Product margin is not machine profit. Commissions, losses, and service costs come off.
Product margin is net selling price minus purchase cost, often shown as a percentage of the net price. To judge a machine's profitability, also count the site commission, payment fees, expiry losses, and service costs.
What to deduct
- VAT from the gross price.
- Purchase cost.
- Site commission.
- Payment fees.
- Losses.
Further information
See the vending machine guides (publisher's site) for more.
FAQ
Is margin based on the gross price? Usually the net price, after VAT.
How to cut losses? Rotate products and match quantities to sales.