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Research Studies

Candy/Snack Product Profit Analysis

What is True Profit

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