The quarter review shows this particular vending machine had low revenue of $22.00 per day in the first week, which was 62% of potential revenue, and high revenue of $35.43 per day in the thirteenth week, which was 99% of potential revenue. The quarterly average revenue per day was $33.10 per day, which is 93% of potential revenue. The supervisor can calculate part of the items related costs to get an idea of the gross profit for this example vending machine, because the wholesale product cost and delivery cost are known to be $0.35 per item and $0.04 per item, respectively. Oh! Wait. The wholesale product cost and the delivery cost have been renegotiated due to higher quantity orders now. The new cost per item is $0.30 and $0.03 respectively, which saves $0.06 per item. Every penny saved on product item related costs translates into an increase in net revenue greater than 33 cents per day per machine. Six cents saved on product item related costs means a $2 increase in net revenue per day per machine. That means we could clear an additional $200,000 of profit for this quarter. The accountants will calculate the other product-related costs including ordering, labor, handling, and storage. The accountants will also calculate all the other costs including labor, location, building, vehicle, machine, and all other overhead costs. Soon most of these other costs will also be calculated automatically, as more and more options are implemented during and through the CodeRealm Setup Portal.

The net income average for this quarter is $18.20 per machine per day. Net income equals average revenue per day minus wholesale product cost and delivery cost. The supervisor is very excited because this figure is over $5.00 more than the figure was for the Old World Tuning method. The best news is that all his machines are doing much better using the CodeRealm Tuning method. Since the on-going cost of the CodeRealm system is only $1.25 per machine per day, this means a net increase of about $3.75 per machine per day. That means that the additional one-time costs of hardware interfaces, installation and software setup charges are paid off in significantly less than one-half of a year of full operation! The supervisor was pleased because it was suggested that the payoff would be less than one year of full operation. This is amazing.

The next section deals with Timing, or adjusting the time between vending machine refills.

Next: Timing Introduction