Makes Cents Posted October 20, 2014 Share Posted October 20, 2014 I completed month 1 of a 90 day trial raising m&m peanuts to 50 cents in five places on different routes to see if it would work out, here are my results so far: 1- JC Penny breakroom- next to full line snack- double w/ skittles - mmpavg. mmp vends per month were 92, after switch vends dropped to 12mmp before $23.00 gross $13.80 net - after $6 gross $4.80 net = net loss $9.002- Kohls breakroom- full line snack accross room- double with mmp - chicle tabavg. mmp vends per month were 67, after switch vends dropped to 25mmp before $16.75 gross $10.00 net - after $12.50 gross $10.00 net = net loss zero3- Pizza franchise- next to amusement vendor w/ change machine - single head mmpavg. mmp vends per month were 135, after switch vends dropped to 29mmp before $33.75 gross $20.25 net - after $14.50 gross $11.60 net = net loss $8.654- Pita franchise- only vendor college area- double with mmp - mike & ikeavg. mmp vends per month were 58, after switch vends dropped to 31mmp before $14.50 gross $8.70 net - after $15.50 gross $12.40 net = net gain $3.705- Grocery store breakroom - next to store soda machine - double with 850 gb - mmpavg. mmp vends per month were 43, after switch vends dropped to 9mmp before $10.75 gross $6.45 net - after $4.50 gross $3.60 net = net loss $2.85 There you have it, honestly I want to swap the mechs back out and use for toys but Im going to stick it out and see how this changes the next 60 days. Link to comment Share on other sites More sharing options...
Bravo Duck Posted October 20, 2014 Share Posted October 20, 2014 Thanks for the information. Link to comment Share on other sites More sharing options...
Rick Posted October 20, 2014 Share Posted October 20, 2014 Great stuff, I appreciate you sharing this! It looks like you chose to not increase vend amounts at all, I'm guessing that didn't help your cause. I'm glad you're running this for 90 days to see if the numbers rebound at all. Link to comment Share on other sites More sharing options...
Makes Cents Posted October 20, 2014 Author Share Posted October 20, 2014 Im vending 7 pcs. My goal is to have all candy at 20% cogs or less so I just wanted to see if this is feasible at all. I expected some initial drop, what im really interested in is to see if it recovers, how it looks at 90 days out and if any drop seen allows me the same net or not. Im also interested in the difference in sales from transitional traffic (pit and pizza) and repeating customers in the break room locations (JC, kohl, grocery) Link to comment Share on other sites More sharing options...
sherlock Posted October 20, 2014 Share Posted October 20, 2014 Thanks for posting this info. Very good stuff to know. Link to comment Share on other sites More sharing options...
treadmill Posted October 21, 2014 Share Posted October 21, 2014 Im vending 7 pcs. My goal is to have all candy at 20% cogs or less so I just wanted to see if this is feasible at all. I expected some initial drop, what im really interested in is to see if it recovers, how it looks at 90 days out and if any drop seen allows me the same net or not. Im also interested in the difference in sales from transitional traffic (pit and pizza) and repeating customers in the break room locations (JC, kohl, grocery) I think 8-9 pcs per vend might sell more. When I had my bulk route I sold pmm 4-5 for .25 and people complained. I always told them put in another .25 for more. Link to comment Share on other sites More sharing options...
Rick Posted October 21, 2014 Share Posted October 21, 2014 Ya, 7 pieces for 50 cents is a ripoff. Better to discontinue chocolate than vend at that price. Link to comment Share on other sites More sharing options...
redmms250713 Posted October 21, 2014 Share Posted October 21, 2014 what blows my mind now, is you go into walmart or any store, and the candy by the registered, for $1.00, only has like 10 pieces in it! Pick one up next time and just feel!!!! Link to comment Share on other sites More sharing options...
Makes Cents Posted October 21, 2014 Author Share Posted October 21, 2014 I think 8-9 pcs per vend might sell more. When I had my bulk route I sold pmm 4-5 for .25 and people complained. I always told them put in another .25 for more. I may have to give more pcs after the 90 day test run. The 7 pcs dosent account for sales figures in the two transitional traffic (non repeating) locations. One was a net gain, one a net loss. They have no idea if they are getting 7 pcs or 17 pcs. The decline in revenue is mostly, if not soley, based on the .50 cent price label only. I say mostly in the assumption some sales may be to employees. If you look at location 4, sales were down but net was more. Thats why Im testing this out, im willing to accept a decline in sales if the net is more. You never know unless you try it. Link to comment Share on other sites More sharing options...
Jax Snacks Posted October 22, 2014 Share Posted October 22, 2014 I may have to give more pcs after the 90 day test run. The 7 pcs dosent account for sales figures in the two transitional traffic (non repeating) locations. One was a net gain, one a net loss. They have no idea if they are getting 7 pcs or 17 pcs. The decline in revenue is mostly, if not soley, based on the .50 cent price label only. I say mostly in the assumption some sales may be to employees. If you look at location 4, sales were down but net was more. Thats why Im testing this out, im willing to accept a decline in sales if the net is more. You never know unless you try it. I tried 50 cent MMP with 9 pieces per vend a few years ago. Had mixed results as well. Even had some "protests"! There is a strange almost cult-like following for MMP and they just don't want anyone to mess with their MMP! Going from 25 to 50 cents is too traumatic for many of them. Another vendor told me the GM called him to complain about the MMP price increase! Heck, I had one owner once demand 10 PPM for a quarter or remove the machine. So maybe replace the MMP with another product for one cycle before upping the price. But at the end of day, this product was no longer worth the hassle for me. I discontinued MMP for many reasons (including the hot Florida climate) and went to a single candy model. Link to comment Share on other sites More sharing options...
jmac Posted November 1, 2014 Share Posted November 1, 2014 Have you tried vending them at 50 cents at locations that arent used to paying 25 cents? Just curious if that yielded better results Link to comment Share on other sites More sharing options...
TWvend Posted November 2, 2014 Share Posted November 2, 2014 Wow! This topic keeps appearing over and over . I recently bought a bag of M&M peanut at Wal-Mart for $1.00 . There were 18 pieces in the bag . The same size bag sells at convenience stores for $1.20 to $1.50. Just today I bought a 2 pack of Reese's peanut butter cups at a Hess and it was $1.49. IMHO M&M peanut should be .50 vend / 8-9 pieces vend in today's world. If they don't sell , replace with something else. If the location has a problem with that setting, I'd move on unless your making it up elsewhere there. This topic can be discussed forever. I'm sure back in the day there was a buzz and fear among vendors going from .10 to .25 ............ the world adjusted. The world will adjust again . Keep your service good, the product fresh, and don't sweat the price you NEED to charge to make a profit. They will get use to it. Link to comment Share on other sites More sharing options...
Grazing Hippo Vending Posted November 2, 2014 Share Posted November 2, 2014 There is no question that charging .50 cents per vend for 8-10 PMM is fair. Convenience stores have been charging more than that for years now. The problem is that we need 2 coins for a .50 cents transaction. I think plenty of people would be fine paying .50 cents per vend BUT they may not have the quarters available to do so. Most people dont walk around with pockets full of quarters. Canadian vendors have this a bit easier than those of us on the U.S. side. Folks to the north have $1 and $2 coins. I charge .50 for 1" toys and it is sort of hit and miss lately. Link to comment Share on other sites More sharing options...
BlindVending Posted November 2, 2014 Share Posted November 2, 2014 I agree with hippo. I don't think it's so much of a "whoa not .50 for 8 mm's" as its more about them not having loose change. It's a world of plastic. Those same people will buy a small bag of mm's in a convince store for $1.49 when they buy their lottery tickets or whatever on debit. Link to comment Share on other sites More sharing options...
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