Run break-even before you place the machine
Calculate the minimum weekly unit sales a vending location needs before accepting a placement.
The move: turn a possible placement into a unit-sales test before you move the machine. Break-even analysis asks one practical question: how many paid vends must happen before this location stops consuming cash? In a vending route, fixed costs include the machine payment or depreciation, card reader subscription, telemetry, insurance allocation, and the route stop. Variable costs include the item cost, payment fee, sales tax treatment, and location commission. The contribution margin per item is the amount left after those variable costs. Divide fixed cost by contribution margin and you get the unit count the location must clear. The value…
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