Calculation of product costs in Excel
Product costing is the determination of costs in monetary terms per unit of goods, work or services.
The calculation includes direct and indirect costs. Direct – costs of materials, workers’ salaries, etc. Indirect costs: planned profit, transport, etc. We will not consider costing items in detail. We automate the process of calculating the planned cost of production using Excel formulas. Our task is to create a table using Excel so that when substituting data, the cost of goods, works, and services is automatically calculated.
Step-by-step instructions for preparing an oxygen cocktail
- Pour 1 level scoop of the mixture for oxygen cocktails into a dry container.
- Pour approximately 40-50 ml of cold flavor base - juice, fruit drink, etc. into the container.
- Mix everything thoroughly until the foaming mixture is completely dissolved.
- We connect the tip of the oxygen cylinder to the nebulizer tube, holding the cylinder valve with our fingers.
- We lower the device for spraying air into the container with the mixture so that it is completely immersed in the solution. Then press the cylinder valve with two fingers. The oxygen cocktail is ready to drink.
In this video you can see how an oxygen cocktail is prepared:
Calculation of the cost of goods in trade
It is better to start learning to calculate cost from the trade sector. There are fewer cost items here. Essentially, it is the purchase price set by the supplier; transportation costs for delivering goods to the warehouse; duties and customs fees if we import goods from abroad.
To calculate, fill out the following table:
We take a certain group of goods. And for each of them we will calculate the cost. The last column - the planned cost coefficient - will show the level of costs that the company will incur for the delivery of products.
Fill out the table:
- Transport costs, as reported by the logistics department, will amount to 5% of the purchase price.
- The duty amount will vary for different groups of goods. For goods 1 and 4 – 5%. For goods 2 and 3 – 10%. To make it more convenient to enter percentages, let’s sort the data by the “Product Name” column.
- To calculate, we use the formula: purchase price + transportation costs in monetary terms + duty in monetary terms.
- The formula for calculating the planned coefficient is cost in monetary terms / purchase price.
The level of costs for delivery of goods 1 and 4 will be 10%, 2 and 3 – 15%.
Equipment
To set up an oxygen bar, you don't need many things. You need an oxygen concentrator, disposable tableware, furniture for visitors, a bar counter, and a cash register. An oxygen cocktail is prepared from the following ingredients:
- Fruit/berry juice or milk
- Foaming mixture - powdered egg or licorice root
- Oxygen supplied from a special apparatus
Take care of the attractive and original design of your bar. The pleasant interior and friendly service attract customers.
For clarity, we have placed equipment and materials with costs in the table.
Equipment | Cost, ₽ |
Cash machine | 10’000 |
Bar counter and furniture for visitors | 50’000 |
Disposable tableware | 2’000 |
Oxygen Concentrator | 25’000 |
Products and foam mixture | 5’000 |
Total | 92’000 |
Formulas for calculating planned product costs in Excel
Each company calculates planned cost in its own way. After all, enterprises incur different costs depending on the type of activity. Any calculation must contain a breakdown of the costs of materials and wages.
Calculation of planned cost begins with determining the cost of the raw materials used and materials that are needed for the production of goods (which are directly involved in the technological process). Costs for raw materials are included in the cost according to the standards approved by the enterprise, minus technological losses.
Selecting a room
The most successful choice of premises for a stationary bar is to rent a small island in a shopping and entertainment center.
Look for walkable areas and a location that will be easily visible to visitors. It is most logical to place a bar in a food court, as well as at the entrance to a shopping center or cinema.
Which room is suitable for an oxygen cocktail bar?
Calculation of the cost of ingredients
This data can be obtained from the technology or production department.
Let's display the raw material consumption rates in an Excel table:
Here we were able to automate only one column - consumption taking into account technological losses. Formula: =E3+E3*F3.
Note! For the “Losses” column, we set the percentage format. Only in this case the program will calculate correctly. We start numbering the lines above the header. If the data gets mixed up, it can be restored by numbers.
Knowing the standards, we can calculate the cost of materials (calculation is carried out for a thousand units of goods):
In this table you will have to manually fill in only one column - “Price”. All other columns refer to the data from the “Norms” sheet. In the “Cost” column the formula works: =D3*E3.
The next direct cost item is the wages of production workers. The main salary and additional salary are taken into account. By what principles wages are calculated (piecework, time-based, based on output), you can find out in the accounting department.
In our example, wages are calculated according to production standards: how much an employee of a certain qualification must produce per unit of working time.
The calculation data is as follows:
The price is calculated using the formula: =C3*D3.
Now we can calculate the basic salary of workers:
To fill the first two columns, not counting the serial number, we linked the data in this table with the data in the previous one. Formula for calculating the bonus: =C3*30%. Basic salary – =C3+D3.
Additional wages are all payments required by law, but not related to the production process (vacations, remuneration for long service, etc.).
We immediately entered other data for calculating cost calculations into the table:
The “Indicator Calculation” column indicates where we get the data from. If we refer to other tables, we use the totals from there.
Product cost calculation template with formulas:
To calculate the cost of packaging, conditional indicators of depreciation of fixed assets, percentage of additional wages and taxes, and mandatory insurance contributions were taken.
Opening an oxygen bar (cocktail bar) is a very promising business idea: the costs of purchasing equipment, raw materials, dishes, furniture and renting premises are minimal, high profitability, quick payback, low competition
The most attractive places to install an oxygen bar are:
- shopping centers
- office centers
- sport complexes
- educational institutions
- recreation and entertainment parks
- places of city celebrations
- embankments and beaches
Description of business, product or service
The oxygen cocktail business has many advantages.
Firstly, this niche is relatively free, which means that competition is kept to a minimum.
Secondly, the business does not require serious investments and can pay off quite quickly if the business is properly organized.
Thirdly, the sale of oxygen cocktails does not require special permits and licenses, which means the launch process will be quite quick and less labor-intensive.
Fourthly, organizing the process of supplying oxygen cocktails does not require special knowledge; the supply of the product is organized quite quickly.
Fifthly, the business is considered quite profitable, since you can make a markup of 400% on one cocktail.
The most popular places to place an oxygen bar:
- Shopping centers;
- Health complexes;
- Entertainment centers;
- Fitness centers;
- Beaches;
- Kindergartens and schools;
- Swimming pools.
There are several options for opening an oxybar:
Stationary bar . You open a bar in a place where your target audience gathers and gain regular customers. The traffic flow of the retail space plays a big role in this model of starting a business; the payback of your enterprise will depend on this;
Mobile bar . This model has become especially popular recently, because oxygen bar equipment is easy to transport and does not take up much space, which means that you can easily serve presentations, exhibitions, parties and other events.
The combined method also takes place. In this case, you launch a stationary bar, but periodically travel to serve your target audience at events. This method is the most promising, but it requires partners, because it will be difficult to cope with the volume of cases on your own.
This business plan will consider the option of opening a stationary bar in a fitness club, because this is where a huge number of people who take care of their health are concentrated. Bar opening hours: from 10:00 to 22:00 daily. The range includes: oxygen cocktails, nutrition bars, juices and tea.
Technological maps of cocktails - download
rub.
In addition to the equipment, you need to purchase the ingredients for making cocktails:
- Packaged or natural juice - cherry, apple, grapes or pear;
- Herbal decoction (you will have to prepare it yourself) based on chamomile, mint, hawthorn, sage, rose hips, St. John's wort.
- The foaming agent can be replaced with chicken protein, gelatin or licorice root infusion. These ingredients will cost you much less, but they will give the cocktail a specific aroma and taste that few consumers will appreciate
The larger the range of flavors and bases you offer, the more consumers you will be interested in, which will directly affect your revenue.
You can find various options for oxygen concentrators in the oxygen bar equipment section.
How to make an oxygen cocktail at home
You can prepare the drink in two ways: technical (oxygen cocktail and mixer) and manual (tube with an aerator or natural foaming agent).
Technical methods are usually used in various social institutions: schools, kindergartens, sanatoriums and recreation centers, as well as oxy bars in private business. With the help of such equipment, the foam is dense and thick. Different fillers are used.
It is worth knowing the following rules:
- The juice or syrup should be at room temperature;
- Do not press the cylinder valve all the way, oxygen must come out slowly to form thick foam;
- The syrup must be diluted with water in proportions of 3 to 1;
- The cocktail should be eaten with a teaspoon and little by little;
- Juices with pulp or carbonated drinks are not suitable for homemade cocktails.
Sources
- https://4allwomen.ru/kulinarija/napitki/kislorodnye-koktejli-v-domashnix-usloviyax-fakty-i-6-receptov-prigotovleniya/
- https://FB.ru/article/230585/kislorodnyiy-kokteyl—chto-eto-takoe-sostav-polza-i-vred
- https://zen.yandex.ru/media/id/5a0d744b2f578c32aa1e7375/5a5a2d678139baa70ab68e25
- https://zdravbud.net/new/kislorodnyy-kokteyl-polza-i-vred-kislorodnogo-kokteylya
- https://glafved.ru/kislorodnyy-kokteyl-chto-eto-takoye-mif-o-polze
- https://www.beboss.ru/bplans/139-biznes-plan-kislorodnogo-bara
- https://AlteraInvest.ru/rus/biznes-idei/detail-1286693/
- https://abcbiznes.ru/biznes-idei/110-kislorodnyy-bar.html
- https://xn—-8sbebdgd0blkrk1oe.xn--p1ai/biznes-plan/eda/kak-otkryt-kislorodnyj-bar.html
- https://tvojajbolit.ru/populyarnoe/kislorodnyiy-kokteyl-polza-i-vred-kak-prigotovit-v-domashnih-usloviyah/
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Feasibility study of activities
* All calculations are made for a city with a population of 280,000 people
Capital expenditures:
Costs for the purchase of equipment, raw materials - 70 thousand rubles.
General expenses:
- Rent of premises in a shopping center (12 sq.m.) – 10,000 rubles.
- Salary (2 salesmen, work in shifts, two after two) – 30,000 rubles
- Replacement of filters, consumables – 5,000 rubles
Cost of making one cocktail:
- 50 ml of juice or herbal decoction = 2.5 rubles (cost of one liter of juice = 50 rubles)
- Licorice root infusion or foaming agent = 20 kopecks or 4 rubles
- Disposable cup and spoon = 1.5 rubles
- Total costs = 4.2 rubles based on licorice or 8 rubles based on a foaming agent.
- Retail price for 1 oxygen cocktail is 70 rubles.
Profit calculation
Monthly income amount: | 55800 rubles |
Cost of 1 cocktail: | 8 rubles |
Retail price for 1 oxygen cocktail: | 70 rubles |
Net profit from the sale of 1 cocktail: | 62 rubles |
Average daily sales rate: | 30 cocktails |
Daily income: | 1860 rubles |
Total monthly expenses: | 45,000 rubles |
Rent: | 10,000 rubles |
Salary: | 30,000 rubles; |
Maintenance: | 5,000 rubles |
Net monthly profit | 10800 rubles |
Here is a calculation based on very low demand: only 30 cocktails per day. With a more optimistic approach of 48 cocktails per day (1 cocktail per 10 minutes during an 8-hour working day), the net profit will be 44,280 rubles.
For fun, let’s see at what sales rates per day what net profit per month can be obtained.
Number of sales points | |||
Number of cocktails per day | 1 | 2 | 3 |
22 | -4080 | -8160 | -12240 |
24 | -360 | -720 | -1080 |
26 | 3360 | 6720 | 10080 |
28 | 7080 | 14160 | 21240 |
30 | 10800 | 21600 | 32400 |
32 | 14520 | 29040 | 43560 |
34 | 18240 | 36480 | 54720 |
36 | 21960 | 43920 | 65880 |
38 | 25680 | 51360 | 77040 |
40 | 29400 | 58800 | 88200 |
42 | 33120 | 66240 | 99360 |
44 | 36840 | 73680 | 110520 |
46 | 40560 | 81120 | 121680 |
48 | 44280 | 88560 | 132840 |
50 | 48000 | 96000 | 144000 |
52 | 51720 | 103440 | 155160 |
54 | 55440 | 110880 | 166320 |
56 | 59160 | 118320 | 177480 |
58 | 62880 | 125760 | 188640 |
60 | 66600 | 133200 | 199800 |
As can be seen from the table, the break-even point is located at approximately 26 cocktails. This means that if you sell less than 26 cocktails per day, you are losing profit. Based on these data, it is clearly visible how important sales volume is.
In the table above you can also see the profit margins from scaling a business . With three retail outlets, very interesting numbers already begin.
Questions and answers on the topic
View all (2)
How to advertise a business
Oxygen bars are not only stationary, but also mobile. We are describing a stationary bar in a shopping center, but preparing oxygen cocktails at outdoor events is a great idea for promoting your business.
You will fit especially well into summer festivals and sports competitions, large master classes in yoga and dance. For such promotion, you will need additional human resources and equipment.
Also use traditional methods:
- Banner advertising on poles, billboards and other surfaces
- Distributing leaflets to people on the streets and business cards to customers
- Maintaining social networks
Composition of the sales price for finished catering products and calculation
Ideal for placement in a fitness center, pharmacy, swimming pool, beauty salon.
Advantages:
- Inexpensive kit using Spum technology;
- Batch preparation of cocktails;
- Possibility of preparing milk oxygen cocktails.
What's included?
Your savings when purchasing as a set are 3350 rubles!
The oxygen concentrator included in the kit is the most compact one existing on the market. Its weight is only 7 kg! It is very mobile and convenient when you need to move equipment from point to point (for example, working in 2 gardens on one set). Has a complete set of documents. Equipped with devices for oxygen therapy (oxygen breathing procedure).
Spum 1A is a single-mode oxygen mixer.
Sales and Marketing
Despite the fact that the market for selling oxygen cocktails is relatively free, you should still take care to differentiate yourself from competitors and highlight your advantages that will attract customers to your business. Competitive parties may be:
- Original bar interior;
- Availability of snacks in assortment;
- Possibility of cashless payment;
- Possibility of traveling to events;
- System of discounts for regular customers;
- Friendly and professional bartender;
- A unique corporate identity that attracts attention.
In addition, you need to work on a logo that will be memorable and ingrained in the memory of visitors. The best advertising will be a good location in places where your audience gathers (sanatoriums, fitness centers, children's complexes, shopping centers).
It would be useful to distribute leaflets, thanks to which the audience will learn about the opening of your project and the beneficial properties of the product. In addition, it is important to introduce promotions and special offers for regular customers: this way the loyalty of existing customers will be higher.
We'll have to start creating profiles on social media. networks: now most visitors spend a sufficient amount of time on the Internet, advertising with bloggers with recommendations for your oxygen cocktails will be very useful.
Don’t forget about offers for certain days or hours, for example a 10% discount from 15:00-16:00, or a promotion - the fifth cocktail for free.
Strength of alcoholic cocktail
It provides a constant supply of oxygen, the toggle switch turns on and off the rotation of the whisk. Designed for preparing oxygen cocktails using the mixing method while simultaneously supplying oxygen.
Calculation of the cost of 1 serving of oxygen cocktail with a volume of 500 ml, prepared using the Spum technology:
For an oxygen juice-based cocktail:
Required ingredients:
| Total:cost price 12 rub. Recommended selling price for 500 ml portions. — 60 rub. |
For the oxygen milkshake:
Required ingredients:
| Total:cost price 34.5 rub. Recommended selling price for 500 ml portions. – 90 rub. |
The payback period for this set of equipment is only 1 month!*
*The payback period is determined based on their sales of 50 cocktail servings per day. The calculation takes into account the cost of equipment and the average cost of ingredients
Free delivery throughout Russia!
Everyone knows the stories of large international companies that, having started their business from scratch, were able to earn billions of dollars: Google, Microsoft, McDonald's, Ford - there are a great many such examples. And in almost all cases, the success of a business requires the presence of one of three components: specific knowledge, a considerable amount of initial investment, or an inherently revolutionary business idea.
Want to know which of these three things is key?
Of course, a business idea! A business built on the production and sale of oxygen cocktails is the very new thing that, as we know, is a well-forgotten old one. The taste from childhood, perfectly familiar to our parents, takes on a new meaning and begins to play with brighter tones and shades. Today, an oxygen cocktail is not only a tasty drink with rich, thick foam, but also a sure way to improving your health.
The problem of lack of oxygen is especially relevant today, when the air outside the home or office is polluted by endless exhaust fumes from cars, and for people living in the frantic rhythm of the city, and children, whose bodies are most susceptible to the negative effects of the environment, an oxygen cocktail turns out to be a real salvation. This is the meaning of the oxygen business - to give people joy and health for mere pennies, earning thousands and even millions of rubles from this.
The essence of the idea of opening an oxygen bar
Oxy drinks based on berry syrups and herbs were invented by Russian scientists back in the 1960s. In Soviet times, fortified foamy drinks were included in the menu of sanatoriums, recreation centers, and children's health camps. They were prescribed to children, pregnant women, and professional athletes.
The use of oxygen cocktails fell sharply in the 1990s, but has begun to revive in recent years. This line of business is promising and in demand: competition in this segment is not too great, and the demand for oxy-drinks is growing every year.
Today, oxygen cocktails are sold not only in big cities, but also in small provincial towns. A variety of packaged juices and syrups allows us to offer customers oxy-drinks with a wide variety of flavors.
Opening an oxygen bar does not require large start-up capital or specialized knowledge in management, which is why many aspiring entrepreneurs choose this type of business.
To sell oxy-drinks, you do not need to obtain a license or special permission, which greatly simplifies the launch of the project. The markup on one serving of cocktail is 300–400%, so this business is highly profitable and quickly pays for itself. You can open an oxygen bar as an independent establishment or install a stand with equipment for making oxy cocktails in an existing cafe.
What is an oxygen cocktail, how is it useful?
Oxy cocktails are drinks saturated with concentrated medical oxygen. They are prepared on the basis of fruit juices without pulp, low-fat milk, fruit drinks, herbal decoctions, mineral water with syrup. To form a foamy “cap,” special foaming food additives are used.
Oxygen is actively absorbed from the stomach into the blood, as a result of which hypoxia of tissues and internal organs is eliminated.
The positive effects of drinking hydroxy drinks are:
- increased performance;
- improvement of well-being;
- strengthening the immune system;
- stimulation of cellular metabolism.
The target audience of the oxy-bar is children of preschool and school age, as well as adults who lead a healthy lifestyle and watch their diet. All of them will become regular customers of the establishment if you provide them with a variety of delicious foamy drinks and quality service.
Cooking technology
To prepare an oxygen cocktail, the following components are required:
- basic drink - juice, mineral water with syrup, milk, herbal infusion;
- food foaming additive;
- oxygen source (oxygen concentrator);
- foam-forming apparatus (cocktailer, oxygen mixer, oxygen aerator).
A foaming composition is added to the base drink, after which the liquid base is poured into the container of the foaming apparatus and oxygen is supplied. The resulting oxygen delicacy is poured into disposable glasses.
For whom:
The business is perfectly suited to the owners of medical offices, pharmacies, recreation centers and sanatoriums, children's and health institutions, grocery stores, shopping centers, sports complexes, fitness clubs, beauty salons - in other words, all those whose clients are ready to take care of not only about your external beauty, but also about your health and well-being, as they say, “without leaving the cash register.”
In addition, this business can not only be associated with an existing one, but also be completely independent. Therefore, anyone can increase their capital, all they need to do is be active and persistent on the path to their goal.
Description of the sales market
The target audience of oxygen bars is quite wide: children, teenagers, athletes, people leading a healthy lifestyle and watching their diet.
Parents are often concerned about the health of their children and will become your regular customers if you offer them quality service and a decent product. Teenagers will buy cocktails, since a growing body needs nutritional elements like no other. Fitness club visitors (athletes, trainers, people watching their diet) will also be happy to purchase oxygen cocktails, since this is the segment that is interested in their good physical condition.
Also, clients will be people with poor health and lack of oxygen; on the instructions of doctors, they can also visit your bar.
The target audience can be divided into two geographical segments: 70% of clients are visitors to the fitness center, and 30% are casual passers-by and regular clients.
Profit calculation:
If we assume that one serving of an oxygen cocktail (200 ml) is about 20 rubles, and about 300 sales (6,000 rubles) can actually be made per day, the level of sales per month can reach 120,000 or more rubles. After deducting employee salaries, rent, costs of consumables, transportation costs, general expenses and taxes, net profit per month averages from 90,000 rubles.
An even simpler way to quickly and with minimal losses open an oxygen business is to buy a franchise for the production of oxygen cocktails from a company that has proven itself in this field. One of these companies, offering not only proven operating technology, a well-promoted brand, but even a ready-made business plan for an oxygen bar, is “VITASPHERE” (St.
How to choose a suitable place?
It is possible to quickly recoup a business only if you sell more than 40 servings of oxygen cocktails per day, so the location for the outlet must be chosen responsibly. Possible options for placing an oxygen bar are the following locations.
- Recreation and entertainment areas. Bright, tasty oxygen cocktails are sure to attract the attention of children. For parents, the deciding factor will be the usefulness of the drinks.
- Club, bar for young people. Young people who are open to everything new will want to try unusual cocktails. The bar may use additional ingredients, including those containing alcohol. Oxygen foam or mousse can be positioned as a dietary, lean product. Low calorie content and high satiety will make it popular among women. The club price of the drink exceeds its cost several times.
- Shopping centers are constantly filled with shoppers who follow fashion trends. The drink needs to be positioned as a modern product that preserves youth and gives vigor. It is recommended to open an oxygen bar in the passage area of the shopping center.
- A sports club is a suitable place for business. Oxygen is necessary for effective muscle growth; low calorie content will ensure the popularity of the drink.
- Business or administrative center. Employees experience a lack of fresh air and regular stress. The drink is positioned as an invigorating, tonic product.
- The drink is in demand in sanatoriums and hospitals because of its medicinal properties.
For a business, it is enough to rent a small area, less than 20 m2. The cost of rent should not be too high, no more than 3-5 thousand rubles per 1 m2.
Calculation of product costs in Excel
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If you purchase a starter package of 59,000 rubles, the payback period for your business is only 1-2 months. At the same time, you receive all the necessary advice on emerging issues and can use the necessary documents, as well as all advertising materials prepared by the franchisor company. Agree that 60,000 rubles is not such a large amount for your own business to start working. Moreover, this exact amount can be received within the framework of the state program “Assistance to Beginning Entrepreneurs.”
So, you are in a state of full combat readiness, you have a great idea for starting an oxygen business, you dream of independence and success and now you know which direction to move in... So what are you waiting for?
Rospotrebnadzor's opinion on the cocktail
Here's something else I found interesting. It was mentioned just above that since 2005, the use of so-called food oxygen E948 has been permitted. 6 years later, in 2011, in a letter from Rospotrebnadzor, it was reported that the food additive “E948 oxygen”, registered in the State Register, can only be used as a packaging gas for food products. That is, it cannot be used internally.
Now what about the cocktail? Letter from Rospotrebnadzor dated July 5, 2012. defines a cocktail as a medicinal drink. Since its main component is medical gaseous oxygen, which is classified as a medicinal drug.
It should be prescribed and dispensed in hospitals, clinics, dispensaries, or under the supervision of physicians. The production, licensing and sale of such drugs is regulated by the Federal Law of April 12, 2010. “On the circulation of medicines.”
Rospotrebnadzor does not have the authority to control sellers of oxygen cocktails. And there will be no way to understand what else is included in its composition and how it will affect human health.
And the sanitary rules: SanPiN 2.4.5.2409-08, which controls the organization of meals for school and college students, and SanPiN 2.4.1.2660-10, which contains requirements for organizing the work of preschool institutions, which must guard the health of our children, allow the use of a cocktail.
I really liked this word: not allowed and not recommended, but rather allowed. So, these rules allow the sale of oxygen cocktails, but only to those prescribed by a doctor, i.e. The child must have a referral from a doctor to receive this procedure and this appointment is supervised by a medical professional.
Let us repeat once again, we are talking about a cocktail based on medical oxygen, and not oxygen from the air, which does not have any permits. And its implementation in preschool and school institutions is illegal.
And in a letter from the Ministry of Education and Science dated April 12, 2012, attention is drawn to the fact that some schools take upon themselves the responsibility to “improve the health” of all children by using oxygen cocktails. Paragraph 6.32 of this letter states that the sale of cocktails should be carried out only to those who are indicated for this procedure, and only under the supervision of a medical specialist from the institution.
If it is impossible to comply with these conditions, then it is better to refuse these health procedures. When I read all this, I realized that not everything is so hopeless. Someone is worried about the health of our children.
The only pity is that the recommendations of higher-level organizations are not always followed. It is not clear who controls the composition of the drug, what is the main component used to prepare these cocktails?
In large and small cities, in preschool institutions and schools, children are given an oxygen cocktail for a fee. Now the question is, what are parents paying for and does their child need this drink?
And do parents know that you can take this cocktail for 10-14 days, and then a 2-month break is necessary? And it also has contraindications. Unfortunately, this is not decided by parents or doctors.
Cocktail vending machines - profitability
In 2010, vending machines selling oxygen cocktails from a domestic manufacturer came to the Russian market. We wrote about this in the article: vending machines for oxygen cocktails. The most interesting thing is that these machines have no analogues in the world. Since the oxygen cocktail is not as popular abroad as it is here, every self-respecting dispensary sells this cocktail, beloved by Russians.
Reference
An oxygen cocktail is juice saturated with oxygen. To form the structure of the cocktail, food foaming agents are used - licorice root extract or spum mixture. Vitaminizing ingredients are also added to the composition. The taste of an oxygen cocktail depends entirely on the components; oxygen itself has no taste or smell. The oxygen cocktail was first invented in the early 60s of the 20th century by academician N.N. Sirotinin.
Experience in installing oxygen cocktail vending machines
And then the first pioneers appeared who installed vending cocktail stations. And since there are currently no more than three companies producing cocktails on the Russian market, unlike coffee pots, the choice of models is not large. One of the pioneers of the installation of these machines was Mikhail Talalay, general director of St. Petersburg.
Mikhail, how did the installation of your vending machine begin?
I first appreciated the taste and benefits of an oxygen cocktail in childhood. In the nineties, I vacationed in a sanatorium next to the Central Park of Culture and Culture. There we were given this drink without fail for the purpose of prevention and boosting immunity.
Since the founding of my company, in the summer of 2009, I have been looking for a vending machine that would sell a product almost as popular as coffee and at the same time would be new to St. Petersburg. O2Box, from my point of view, meets this criterion. The oxygen cocktail is a drink that is in good demand, especially given the fashion for a healthy lifestyle. At the same time, the market for installing these devices in the Northern capital is free. They can also be installed in shopping centers, sports facilities, business centers and offices of large companies.
Having tried an oxygen cocktail from the O2Box apparatus at the exhibition in the fall of 2010, I felt the taste of the same cocktail that we were given back then in childhood. This fact partly influenced my decision to buy this machine.
Mikhail, do you think it makes sense to improve it?
Of course, like any new equipment, this vending machine needs improvement. From my point of view, the payment system and some software things need improvement. In particular, for the full functioning of a network of a large number of machines and, accordingly, the operator’s work, a test mode for preparing a drink is not enough.
I am glad that the manufacturers (Landvend company) have a program for improving the device. In particular, the devices that will arrive in St. Petersburg in May will already differ from the copy that I delivered at the end of March. At the same time, new firmware versions were released in April and early May, which significantly improved the usability of the device.
Were your expectations met? Pros and cons of installation?
In general, expectations have so far been met. Unfortunately, the first month of work was marred by some technical glitches, however, they were quickly resolved by the manufacturer.
And from a technical point of view, the simplicity of the device is an undoubted advantage. The intuitive device is complemented by clear instructions. The disadvantages include the lack of a test mode to adjust the optimal taste of drinks. I would also like to note that for ease of setting up the device, you will need a USB mouse.
From a commercial point of view, the disadvantages include the need to additionally inform customers about the health benefits of an oxygen cocktail. Unfortunately, it is not yet obvious to everyone.
The advantages include the taste of the drink, its health benefits and its high profitability.
Are buyers interested in this machine?
Buyers are definitely interested. This machine is in my swimming school. The traffic there is 300-400 people a day. Children love the taste of the drink, and parents are slowly beginning to understand its benefits.
I would like to note that the main target audience of the O2Box vending machine is children and young girls, as well as athletes and just people who care about their health and physical condition. The cocktail really invigorates and gives a satiating effect.
How many glasses were purchased in the first week?
In the first week, the device sold 30-40 glasses a day.
How many “clean” ones did he bring and how much did it cost to rent and purchase the ingredients for the glasses?
The economy in this case is very simple: 2000 rubles. - rent, ingredients (glasses, straws, syrups and water) were purchased for 7500. Half of the created stock was gone in a month. Another 4,000 rubles (400 10-ruble coins) were loaded into the hopper for change. With all these costs, the net profit for a month of work amounted to 30,000 rubles.
Are sales growing or are they still at an average level?
Now sales have settled at 1,500 rubles/day. I hope that the marketing efforts that I plan to make will increase it to the level of R2000/day.
How many selection buttons does the machine have?
The vending cocktail maker of my brand (O2Box) has 3 selection buttons. Using these buttons, customers select the taste of the drink, and the operator can configure and maintain the device.
Technical characteristics of the machine
Body dimensions, no more:
- height... 1950 mm;
- width... 550 mm;
- depth ... 500 mm;
- Weight - no more than 100 kg;
- Power consumption - no more than 200W;
- Mains voltage: 220V +/- 10%, frequency 50 Hz.
- Operating conditions: indoors;
- Installation time - 30 minutes;
- Storage temperature range from -10 to +50C;
- Operating temperature range from +10 to +40С
How is the machine serviced and what are the nuances of its service?
Servicing this machine is somewhat similar to servicing a coffee pot. This consists of loading ingredients and dispensing as needed and wiping down the cup dispensing area. You also need to periodically clean the porous stone (oxygen stone). There is a special function for this: flushing the system. The stone can also be removed and cleaned with a regular toothbrush.
What ingredients are loaded into the machine and where to buy them??
To prepare the drink, drinking water and syrups with licorice root extract are used. Syrups are purchased from the manufacturer or from its dealer in the region. Water in 19-liter bottles can be purchased from specialized companies.
The drink is served in paper cups with a capacity of 0.4 liters and drunk from straws. Cups and straws are also purchased from Landved or its dealers in the region.
How much is the load and how many glasses are there enough ingredients?
The full load of the device is 170 straws, 160 glasses, 19 liters of water and 3 0.75 liters of syrups. The consumption of water and syrups depends very much on the settings. I used 38 liters of water and 4.5 liters of each syrup for 800 glasses.
How are cocktails made in it, what is the mechanism inside?
The operation is based on an oxygen concentrator, which takes oxygen from the air. Water and syrup are poured into a glass, and then this mixture is saturated with oxygen through a system of tubes through a stone. Thanks to licorice root, the glass is filled with oxygen-rich foam.
Does the machine need annual maintenance and what does it consist of?
It’s still difficult to talk about this. Too little time has passed since the development of the first device.
Do you expect to expand your network of these machines?
My company is the regional representative of the device developer, the Landvend company, in St. Petersburg. Our main task is to develop sales and service for operators. But we also do not plan to abandon the development of our own network. There are still a lot of good places in St. Petersburg.
Profitability of the machine, how much is the income from one glass?
The cost of a glass of cocktail is 5-7 rubles. There is no set price yet. The manufacturer recommends the price of the drink at 40 rubles. In my machine, the cocktail sells well for 50.
Note - place it on the machine!!!
Clinical trials of the oxygen cocktail revealed no side effects. However, if you have serious illnesses, you should consult your doctor before using the drink. Therefore, contraindications to the use of oxygen cocktails may be:
- Acute attacks of bronchial asthma
- Cholelithiasis
- Asthmatic status
- Hyperthermia
- Respiratory failure
- Intoxication of the body
- Urolithiasis disease
- Peptic ulcer
- Allergic reaction to certain components of the cocktail.
The cocktail ingredients must also be placed on the vending machine.
If necessary, the following documents are required for registration with the SES:
— GOST or TU or STO for products (oxygen cocktail), issued by the ingredient supplier.
— documentation for the vending machine, issued by the seller of the vending machine.
— description of device processing (maintenance)
— description of the outlet