| CALCULATING POTENTIAL REVENUE
The key feature of unscrupulous promoters is the lure of making a lot of money in a short period of time. Generally, promises which are too good to be true are precisely that - too good to be true. To make his sale, the unscrupulous vending machine promoter frequently uses a so-called "Profit Chart". These charts are usually not a serious projection of profits, but are little more than multiplication tables. They are almost completely hypothetical in nature and are based upon the supposition of an imaginary volume of sales. As a result, these charts are a misleading device to entice an inexperienced investor. Do not take seriously a promoter who says "If a vending machine does five vends a day, then 100 vending machines will do 500 vends per day." The math is perfect, but the question is whether the particular vending machine can realistically do five vends per day, especially at the location you may be able to place the vending machine. Listed below are some industry figures on average revenues per machine, but there is also another part of profitability beside revenue. Expenses are frequently ignored by the dishonest promoter. The "profit charts" of those promoters usually fail to take into account important expenses such as store commissions, car expenses, equipment depreciation, taxes, license fees, insurance, overhead, etc. Our Association does not publish "typical expense averages", but we know the expense components that operators incur. Individual results vary greatly between members and, in part, depend upon the size of their company, the region they operate and the type of locations where their machines are located. |