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One Machine One Product = Profit and Easy Service


havending

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I know a guy in Florida who has a 100% single stand gumball route he covers nearly the whole state and has a gross of 1 million a year. I have been thinking of doing somthing along those lines with the chicken machine. It takes me what 45 min to service a 7 way rack including cleaning and product rotation. I can service a chicken in 15 min. Using only one product I would have alot less inventory on hand saving storage and van space thus being able to service more locations in a day. Lets face it inventory on a shelf is really cash sitting on the shelf. The Feds will not start making a dollar coin any time soon so we are stuck with the dollar bill. So I would be set there also I can take quarters and dollars.

As I have been placing chickens locations have been super willing to let me in often times booting long time operators and because its a maching locations want im not giving up a large comm %, I plan on buying even more chickens to reproduce the sucess I have had thus far.

I know what your thinking its 1500.00. Whats a machine worth that will gross 2400 to 3000 a year. And that will give you and edge over the next guy.

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The big difference between what you are considering and what the Florida vendor is doing is this:

Many chicken machine locations merit the placement of additional vending machines...bulk and amusement.

Whereas single GB locations often do not.

If all you did was focus on chicken machines, you'd be leaving money on the table because someone else would be providing your chicken locations with the other bulk/amusement equipment.

A gumball single location often will support only that...a gumball single.

So, unlke your chicken machine idea, you aren't leaving money on the table only focusing on that single and nothing else when it comes to gb singles.

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That's a lot of gumballs. I went through 36 cases last year of 1430c.

I don't think it would be that easy. You can only carry so many chicken machines that you would have to keep going home to load them up.

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If all you did was focus on chicken machines, you'd be leaving money on the table because someone else would be providing your chicken locations with the other bulk/amusement equipment.

Is he really though? This point deserves a longer look because, all too often, we get so focused on the bottom line $$$ that we forget to account for efficiency. I completely agree that while you're building the route you're leaving money on the table, but what about once you've reached your maximum time equity? I mean, there's only so many hours in a day.

If hav can service four chickens in the same time it takes him to service a chicken, a 7 way and a double flat he's actually leaving money on the table by branching out and offering everything. This isn't even factoring in the amount of overhead/spoilage and additional resources used to inventory various assortments of candy/toys/mechs.

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Is he really though? This point deserves a longer look because, all too often, we get so focused on the bottom line $$$ that we forget to account for efficiency. I completely agree that while you're building the route you're leaving money on the table, but what about once you've reached your maximum time equity? I mean, there's only so many hours in a day.

If hav can service four chickens in the same time it takes him to service a chicken, a 7 way and a double flat he's actually leaving money on the table by branching out and offering everything. This isn't even factoring in the amount of overhead/spoilage and additional resources used to inventory various assortments of candy/toys/mechs.

Thats where I was heading. Now I have on hand 20 or so toy products. With a good size route you have to have a selection of many offerings to rotate through. Then comes the displays 3.50 to 3.75 a pop they add up fast. I buy printed when I can but by doing so im missing out on some sales. Lets face it im sure I would have a rack here and there for the super busy places. But I know there is a ton of savings to be had and great locations to grab up by placing more and more chickens.

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I don't mean to sound cheesy given the subject....but, it's hard to justify putting all your "eggs" in one basket like this, IMO.

I am all about simplifying your route AND I am a big fan of the All-American.

I just think today's business climate dicates we make the most out of our locations.

So I wouldn't want to leave any money on the table in any of my locations if it's possible for me to provide the additional equipment a location deserves to accomodate.

Again, my views don't apply to the gb singles routes...this is about the locations which merit/deserve more equipment.

If we are talking strictly about efficiency, I don't see how anyone can trump the efficiency of having multiple machines in one location squeezing all the quarters for yourself rather than taking a smaller piece of the pie at multiple locations and leaving part of the quarters for your competition to have.

Besides, locations want "efficiency" too....the person you let provide the racks and/or claw-machines to your chicken-only location can simply tell your location, "Hey, why not just deal with one guy rather than two? I can provide my bulk and/or claw machines AND a chicken machine...it'll be more efficient for you."

If that location is as interested in efficiency as much as we all seem to be, chicken-machine-only guy will be getting the boot so that one vendor can provide all of the location's bulk and/or amusement needs.

Diversity, diversity, and diversity.......

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I have done something similar with a different specialty machine. It did work as planned. There were places that I was giving up business to other vendors and in two cases I eventually lost good locations because of that but the ease of placement of the machine and the fact that I hit it hard and got a bunch of really solid locations up front made up for that. The only drawback is if the mfg. discontinues your machine.

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That's a lot of gumballs. I went through 36 cases last year of 1430c.

I don't think it would be that easy. You can only carry so many chicken machines that you would have to keep going home to load them up.

Thats what my box truck is for :rolleyes:

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I met him about 9 years ago at a show. He covers all of fl and has a team of drivers. I wish I still had his info so I could check in with him

If his first name is Tim and he lives in the Clearwater area I have met him before

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  • 1 year later...

I think the idea about gumballs only is it takes 5 minutes to fill and clean, if you let it sit till it's almost empty, your getting 150+ for 5 min, then add several stops and on the same amount of time it takes to service a 7 way, you've serviced 5 locations including some drive time.

Product cost is low and profit high. This is the direction I'm headed after I dial in my current locations.

My area is really competitive and over loaded. The funny thing is, there are no single head gumball machines. I'm thinking of a good charity and put them in all my current restaurants. Then take out gumballs in the racks and other equipment to put another toy.

It takes up more space to keep others out and makes a bigger profit margin Imo.

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I think the idea about gumballs only is it takes 5 minutes to fill and clean, if you let it sit till it's almost empty, your getting 150+ for 5 min, then add several stops and on the same amount of time it takes to service a 7 way, you've serviced 5 locations including some drive time.

Product cost is low and profit high. This is the direction I'm headed after I dial in my current locations.

My area is really competitive and over loaded. The funny thing is, there are no single head gumball machines. I'm thinking of a good charity and put them in all my current restaurants. Then take out gumballs in the racks and other equipment to put another toy.

It takes up more space to keep others out and makes a bigger profit margin Imo.

As said before, you can stick a GB machine in a lot of places where a rack wouldn't work. Plus, it only take one sugar junkie to make a terrific spot.

On most of my GB spots, I will start with a single 300 globe. I use the 300 globes because they don't hold as much.  About 25 % will ask me to add another head of candy after a few services. If need arises, I will switch to a bigger globe. I have tried to think outside the box on these locations.  I have them in police stations, city halls, and offices, banks, trucking garages and driver lounges.  I always try to locate the machine next to any time clocks. All are adult locations.  I shoot for a 3-4 month service.

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As said before, you can stick a GB machine in a lot of places where a rack wouldn't work. Plus, it only take one sugar junkie to make a terrific spot.

On most of my GB spots, I will start with a single 300 globe. I use the 300 globes because they don't hold as much.  About 25 % will ask me to add another head of candy after a few services. If need arises, I will switch to a bigger globe. I have tried to think outside the box on these locations.  I have them in police stations, city halls, and offices, banks, trucking garages and driver lounges.  I always try to locate the machine next to any time clocks. All are adult locations.  I shoot for a 3-4 month service.

 

Why don't you use a panel head and expand it if it does better? I actually have been adding the same type as you mentioned (300). Just curious. Or does the panel hold more? If my memory serves, they hold about the same?:huh: 

 

I've learned a lot from you, Musser, HaVending, and well everyone, but the single gumball idea has only been a few and makes the most sense . 

 

I also have a customer right now that has over 600 gumball machines that is doing well with it.

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