Profitability Issues For Planet Antares Vendors

All your Planet Antares vending locations may be earning what they should. In spite of this, there can be problems that may arise later on. Most of theses issues can be classified under five main categories.

1. Gross sales
As per the population of the location, the sales will also vary. As the population increases or decreases, so will sales. If a new fast food outlet is opened near your location, sales can decline. Since gross sales are the main determinant of the bottom line, they need to be monitored closely.

2. Gross profits
Gross profits are sales less cost of goods sold. If product costs increase and you cannot raise the selling prices in your Planet Antares vending business, the gross profits from the location will decline. Moreover, if a dishonest route person doesn’t return all the cash collected, reported sales will fall while the product costs will remain the same and the gross profits will also decline.

There is need for the vending operators to understand that gross profits don’t portray the whole story. At a given location, gross profits may remain as 54 percent, but if sales drop by 50 percent in real dollars, gross profit will also drop.

3. Operating costs
The operating cost of the vending business should be limited to the client related costs alone. There include the direct, variable costs associated with servicing the client. The larger ones include direct labor and vehicle, commissions, equipment depreciation, sales tax, etc.

4. Net profits
Net profit is the result left after deducting all the operating expenses from gross profits. It must be calculated in both dollars and percentages.

5. Return on investment (ROI)
ROI is the net profit from the location, annualized and expressed as a percentage of the capital investment in that location. This calculation is important as it is possible to show acceptable net profits, expressed as a percent of sales and still have a problem. You should monitor the problems that can happen in your Planet Antares vending business to ensure efficiency.