[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y ] [Search | Free Show | Home]

Hello Biz, I am placing a micro market at a local manufacturer.

This is a blue board which means that it's for everybody (Safe For Work content only). If you see any adult content, please report it.

Thread replies: 12
Thread images: 1

File: micro-markets-3.png (2MB, 973x615px) Image search: [Google]
micro-markets-3.png
2MB, 973x615px
Hello Biz,

I am placing a micro market at a local manufacturer. I hope it's the first of several, and I think this location has promise, plus I already have leads on other potential locations.

For TL;DR if you don't know what a micro market is, it's basically a more modern vending solution and has higher profit margins plus increased sales.

So my question is, for the portion I'm financing, I can either get a loan @ 15% for $216 a month for 5 years, or a lease for 36 months at $367 a month.

I was really hoping the lease would come in lower for the tax benefits but I think at this point the loan is my best bet. Do you guys have any input? Am I missing any magical reason I should still go with the lease? I don't really see any equipment upgrades in the near future; if I did I can easily unload most of my equipment on the used market.
>>
>>1000488
Oh man you are doing an Avanti like solution? Good luck with that, these kinds of business get completely eaten away with perishable goods and credit card fees. You are going to be lucky to break even if you have enough volume.
>>
>>1000515
Not Avanti, another provider though. I've got a growing location so I'm hoping it works out.

The thing I have going for me is that the location is almost completely isolated from other nearby foodservice. To go grab an energy drink, a coffee, or any sort of sandwhich takes their entire lunch period.

If it doesn't work out, it doesn't work out; hence only one location initially. It's not like I have many better options where the money would perform better.
>>
>>1000599
Do you have a route servicer lined up? Have any current vending machines available? If this is an established business go with the loans. If you don't have any other vending machines then lease your equipment with a purchase option.

It also depends on if you have a whole lot of turns or if you get stuck holding. How many SKUs are you going to be stocking and what is the breakdown between cold, perish and dry goods?
>>
>>1000612
I'm servicing it myself and ordering mostly through Vistar. I'm setting up with a local 'fresh food' packager as well but that's going to be in after launch.

No current machines, new business. The lease was my preference but it's over 50% more expensive by all accounts. My current rough scheme for stock is 50% dry, 30% cold, 20% perishable. I've had an unusual opportunity to peruse their trash cans (don't ask, my wife works there, long story) and see what they consume, which has been informative. So many effing red bulls. These people love energy drinks.
>>
>>1000488
>Lease

Year 1 >$4400 deduction
Year 2 >$4400 deduction
Year 3 >$4400 deduction
Year 4: balloon payment? new terms? new lease? new equipment costs? what? you don't own it, do you?
Year 5: ?
Year 6: ?

If you take the loan, then you'll deduct $9,080 in depreciation and $3,880 in interest (assuming equal amount every year to make my life easier) over 5 and 6 years (assuming you purchased it in the beginning of the year).
Year 1 >$2592 deduction
Year 2 >$3682 deduction
Year 3 >$2519 deduction
Year 4 >$1822 deduction
Year 5 >$1822 deduction
Year 6 >$523 deduction and now you own a fully depreciated asset

Does the lease come with repair and fixes? These things notoriously break down because people are awful to them. Do you have the specific skills or are you just handy? Does purchasing offer the same value and additions from the company or not? Why do you have to take out a small loan? Can't you get money from elsewhere where you're not getting bilked on the interest rate?
>>
What state are you in OP?

I deal with overstocks of food items, mainly frozen, refrigerated and produce.

Could stock your shelves for probably 25 - 35% of wholesale if shipping doesn't destroy the margins.
>>
I work with markets from a prekitting stand point. AMA and I'll do my best.
>>
>>1000822
not op but i'm in az night be interested, where are you?
>>
I'm in MN, shipping frozen and fresh to AZ might be too much of a cost for it to make sense.
>>
Question about micromarts, how do you prevent someone from walking up to the shelf and taking whatever they want without paying?
>>
>>1002464
You can try secuirty camera, but its going to do next to nothing, if your in a bad area there is nothing you can do unless you want some one constantly watching.
Thread posts: 12
Thread images: 1


[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y] [Search | Top | Home]

I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
Read more on this topic here - https://archived.moe/talk/thread/1694/


If you need a post removed click on it's [Report] button and follow the instruction.
DMCA Content Takedown via dmca.com
All images are hosted on imgur.com.
If you like this website please support us by donating with Bitcoins at 16mKtbZiwW52BLkibtCr8jUg2KVUMTxVQ5
All trademarks and copyrights on this page are owned by their respective parties.
Images uploaded are the responsibility of the Poster. Comments are owned by the Poster.
This is a 4chan archive - all of the content originated from that site.
This means that RandomArchive shows their content, archived.
If you need information for a Poster - contact them.