Profit Theory for RVMs
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General theory of profit factors for RVM businesses:

*The profit depends a lot on the current aluminum can market, how much the customer is paid, and the location of the machine. (Is it to be next to or easily seen from a busy road? Is it to be put in a good neighborhood? etc.) Selling the cans from the machines to a larger scrap dealer will definitely pay more rather then selling to a smaller scrap dealer. For a real example on how much can be made, please call for current market information. 

In the RVM market, if one desires to pay their customers "top dollar" for their cans, the profit margin would be less and the machine would need to be emptied more often and it would take more electricity per month. If someone paid too little, the machine would not be used much but the profit margin would be much higher and the machine would not need to be emptied as often. A balance needs to be determined for each location. Generally speaking, try to cultivate a customer base that revolves around 24 hour supermarkets, laundromats, car washes, and convenience stores. These locations have proven to be the most advantageous to both the business owner and RVM owner. Of course, one would also want their machine to be highly visible and easy to access.

For other information regarding financial principles of a RVM business, click here to be routed to the home page.

To see information which may be helpful for a business plan, click here to be routed to the FAQ page.

To see an actual performance / profit and cost analysis of 4 RVMs in operation during 2006 you will need to contact me and request it. This is highly sensitive, genuine, and confidential material. It is guarded to protect the interests of clients who operate RVMs.

 

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