Designing a new machine

[Coin Operated Group]

Just in answer to some questions. We pay commission on the VAT exclusive part of the sales thus 25% of £1.67 which is £2.00 less VAT. You would be giving the VAT man an extra 7p if you calculated £2 less VAT was £1.60

Stay safe folks!

David

So in reality you are only paying 20% commisions & then deducting the commision/reclaiming the VAT. Crafty

[Rossi fan]

Paul, sweets were only a part of the products Lee is planning to sell according to his post. Umbrellas, Poncho's, glow mouths, flashing novelties, various combinations of glow sticks are all mentioned. I very much doubt all of those would sell for £1 each. Sweets maybe will only sell for £1, but if you are waiting on the economy to grow by any considerable rate I'm afraid people will be waiting a long time. During which time costs will go up and profit will go down. At some point it will come to a point that vend prices will have to go up and I fear this will be long before growth returns to the economy.

Hi Noel,

I agree with your analysis, but I dont think customers in my area of the uk will pay any higher price for a tub of sweets. I would like to vend at a higher price and get more profit, but it has been tried recently by Nigel ( Flint Vending ) and he said it was a failure.
Thanks,

Paul

[Vend And Glow]

Paul, sweets were only a part of the products Lee is planning to sell according to his post. Umbrellas, Poncho's, glow mouths, flashing novelties, various combinations of glow sticks are all mentioned. I very much doubt all of those would sell for £1 each. Sweets maybe will only sell for £1, but if you are waiting on the economy to grow by any considerable rate I'm afraid people will be waiting a long time. During which time costs will go up and profit will go down. At some point it will come to a point that vend prices will have to go up and I fear this will be long before growth returns to the economy.

That's right, the machine will have many uses, if you wanted to just sell tubs of sweets for a £1, or Umbrellas for £3, Poncho's for £2, Glowsticks for £1 then you can do that. Hell it will have 8 selections so you could in theory sell 8 different products at 8 different prices!

[Vend And Glow]

Hi Lee - Great move on the Glow front there is a market for it. It is one of the machines we get asked for a lot. If the machine looks right etc. I recon we would buy them looking at on a ROI of 12 months. Below is a basic ROI plan presuming product cost and forecast sales.


£2.00 - Vend Price
£1.67 - ex Vat
£0.42 - 25% Commission to site
£0.48 - Product Cost
£0.77 - GP
38.5%

12 Month ROI
£50.00 Forcast Sales Per Week
£19.25 GP Per Week
£1,001.00 Max Machine Cost

Hope it helps

David

Hi David

Thanks for that it's interesting and reassuring that you would look at a 12 month ROI. whenever i have thought about it before i always assumed most people would want 6 months maximum.

A £2 vend price probably would be better but for some of the products i just don't think people would pay. I mean £2 for a 6inch glowstick? £1.50 max.

[Rossi fan]

Paul, sweets were only a part of the products Lee is planning to sell according to his post. Umbrellas, Poncho's, glow mouths, flashing novelties, various combinations of glow sticks are all mentioned. I very much doubt all of those would sell for £1 each. Sweets maybe will only sell for £1, but if you are waiting on the economy to grow by any considerable rate I'm afraid people will be waiting a long time. During which time costs will go up and profit will go down. At some point it will come to a point that vend prices will have to go up and I fear this will be long before growth returns to the economy.

That's right, the machine will have many uses, if you wanted to just sell tubs of sweets for a £1, or Umbrellas for £3, Poncho's for £2, Glowsticks for £1 then you can do that. Hell it will have 8 selections so you could in theory sell 8 different products at 8 different prices!

Hi,
When will it be available.

Thanks,

Paul

[Vend And Glow]

Paul, sweets were only a part of the products Lee is planning to sell according to his post. Umbrellas, Poncho's, glow mouths, flashing novelties, various combinations of glow sticks are all mentioned. I very much doubt all of those would sell for £1 each. Sweets maybe will only sell for £1, but if you are waiting on the economy to grow by any considerable rate I'm afraid people will be waiting a long time. During which time costs will go up and profit will go down. At some point it will come to a point that vend prices will have to go up and I fear this will be long before growth returns to the economy.

That's right, the machine will have many uses, if you wanted to just sell tubs of sweets for a £1, or Umbrellas for £3, Poncho's for £2, Glowsticks for £1 then you can do that. Hell it will have 8 selections so you could in theory sell 8 different products at 8 different prices!

Hi,
When will it be available.

Thanks,

Paul

Hopefully May/June.

[dorsetvending]

Paul see earlier mention that unlikely for sale....Although guess that may be up for discussion....

[Rossi fan]

We will wait an see.

Personally, I think towers are getting a bit dated and a new variant is probably a good idea. If you can have a multifunction machine, with price variability, then your sites are likely to be more willing to have one machine, rather than 3 or 4, which take up more space etc.


Paul

[Vend And Glow]

We will wait an see.

Personally, I think towers are getting a bit dated and a new variant is probably a good idea. If you can have a multifunction machine, with price variability, then your sites are likely to be more willing to have one machine, rather than 3 or 4, which take up more space etc.


Paul

That's what i was thinking, a one stop shop!

If it's viable for operators then there would be no reason for it not to be made available for sale.
I only said it may not be available because i was concerned the price may put people off, although i don't know what the price will be yet!

So i suppose let's wait and see and we can go from there.

Lee

[Vend And Glow]

Just in answer to some questions. We pay commission on the VAT exclusive part of the sales thus 25% of £1.67 which is £2.00 less VAT. You would be giving the VAT man an extra 7p if you calculated £2 less VAT was £1.60

Stay safe folks!

David

I just give the commission to the venue and forget about it. It's up to them if they pay their VAT share. I just pay the VAT on my share.

Out of interest David do you take off the cost of sale before you give the commission or is it just the gross revenue in the machine you give a % of?