View Full Version : coin op income verification
rcalabro
10-01-2002, 10:56 AM
I'm looking to purchase a coin op and would like some information on how to verify an operation's income. Any help would be greatly appreciated.
Laundry_Mike
10-02-2002, 12:24 AM
Tax returns, utility bills, company records, if you see something missing - be sure to find out about it.
rcalabro
10-02-2002, 10:37 AM
OK. How do I equate the water usage to income? I saw that the IRS has a formula that they use when they conduct an audit. Verifying the expenses would be a relatively easy part of the process, I would think.
Laundry_Mike
10-02-2002, 12:51 PM
It's hard to say. Different brands and sizes of equipment make it impossible to come up with an exact figure. Generally, I think that total utility costs should average around 25% of gross income. Perhaps your prospective distributer, or the people at the CLA could help further. Good luck.
One of the first things to do is get p&l's of any listings your broker or supplier has. It is better to get more than one, and as many as you can. I would like a minimum of five. Then make a comparison on a percentage basis of the costs to sales.
And that's just a start.
check out http://www.ownersclub4u.com
it may help with your research. Have a couple of pages that help to determine income.
RWSmith
10-24-2002, 11:33 AM
This is a formula I have used. Take your 12 months total water consumption in gallons X $.045= $0.00 Multiply this number by 44% for your dryer revenue. Add the numbers together and you should get an estimate of the annual gross.
This is just a estimate. You need to consider vend prices, equipment mix, type of equipment and is a lawn sprinkler system hooked up to the water meter.
good luck