How to calculate your vending profit
There are a number of steps in order to calculate your vending profit have outlined step by step below.
| Vending Net Profit | |||
| Step 1 | Total vending sale | $440 | |
| Step 2 | minus | Cost of goods sold | $300 |
| Step 3 | equals | Gross profit | $140 |
| Step 4 | minus | Total expenses | $45 |
| Step 5 | equals | Vending Net Profit | $95 |
Step 1: Total Vending Sales
Keep a record of the money you collect from each machine each month (or for whatever time period you choose).
| Total Vending Sales | ||||
| Vending Machine 1 | Vending Machine 2 | Vending Machine 3 | Monthly Sales | |
| January | $56 | $20 | $50 | $126 |
| February | $60 | $50 | $60 | $170 |
| March | $45 | $56 | $43 | $144 |
| Total Vending Sales | $440 | |||
Step 2: Cost of goods sold (C.O.G.S)
With Cost of Goods Sold (C.O.G.S) you are working out how much it cost you (in stock) to refill your vending machine for the quarter (or for the period you use).
| Cost of Goods Sold (C.O.G.S) | ||
| Opening stock | $1,000 | |
| Plus | Purchases of stock made during the period | $200 |
| Less | closing stock | $900 |
| Equals | Cost of goods sold | $300 |
The opening stock is the cost of your stock from the previous quarter (or time period you use). If you have just started in vending, your opening stock will be zero.
To get the closing stock, you have to count the quantity of stock you have at the end of the quarter (or time period you use). Then you have to work out how much the stock cost you to buy.
How to calculate closing stock
Example: At the end of the quarter you count the amount of vending stock you have remaining.
You have:
5 x boxes of skittles
3 x boxes of M&M’s
What is the cost of your products?
A box of skittles costs $120
A box of M&M’s costs $100
So, you can calculate your closing stock as;
Skittles 5 boxes x $120 a box = $600
M&M’s 3 boxes x $100 a box = $300
Closing stock is $600 + $300 = $900
The closing stock of $900 for this quarter will also become your opening stock for next quarter.
Step 3: Gross Profit
Your gross profit is simply your Total sales minus your Cost of Goods Sold
Step 4: Total expenses
To get your total expenses for the quarter (or time period you use), add up all expenses. (not including stock purchases)
| Total Expenses | ||
| Insurance | $15 | |
| Fuel | $20 | |
| Cleaning | $5 | |
| Telephone | $5 | |
| Transport services | $0 | |
| Equals | Total expenses | $45 |
Step 5: Vending Net Profit
Your vending net profit (as shown in Table 1) is calculated as Total Sales minus C.O.G.S minus expenses.
Once you have your vending net profit, you can calcalate your return on investment by dividing your net profit with your original purchase price of your machines.
