|
Complete analysis of vend operator financial statements provides
expanded insights into the true profit of candy/snack machines.
Historically, snack product profitability in vending has been generally
based on the simple gross profit calculation: Vend Price - Unit
Cost.
True product profit must include all costs associated with
each product, including manufacturer rebates, product handling costs
(such as route and warehouse labor, storage and machine space requirements)
and company overhead.
Only when all cost categories are considered does product True
Profit become visible, allowing Operators to adjust their
candy/ snack machines to maximize location and company profits.
Determining True Profit requires an
expanded profit analysis:

Click chart to view larger version
Source: Vend Operator Candy/Snack Category Profit
analysis, Bachtelle and Associates, Spring, 1998
|