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Texas operator finds success with just bulk


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90 percent of my route has been kickouts. Yes I would say I am successful with sales and you are correct, I could probably instruct them to believe that all 1" is best option but location owners are weird and do weird things. I think a lot of it comes from greed and as soon as someone tells them that they are loosing money they will forget what I told them..

This is how it would go: Hey I hve been in here a few times and noticed that the current vendor has removed 2"...how come he did that? I still offer 2" as a standard on all my racks. You will make more money in commission on the 2" product. Here's what I can offer you (show picture of my standard 7 way rack) and explain we cover 4 price points and offer 1", 2" and flat...

Now to get off topic...

Continued:

We do the bulk just to be competitive, it doesn't make that much money. We use it to compete and take up space in locations to keep other vendors out. Where you will really make your money is with one of these (show crane and stacker). This is where you will really make big bucks in commission. They will ask well can you just bring a crane or stacker?

I respond well because thsee machines are expensive and sometimes require expensive repairs we want to be the exclusive vendor in here. I'll bring you a new rack and a crane. If you think you were making good money with that rack wait till you see how much you get from a claw machine and a rack.

Your lucky your business isn't in my area because you couldn't compete ;)

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Glad to be doing bulk only now after my short stint into cranes. Have everything now to powder coat my own equipment but still have to run another 220v 50amp line for stove. Working on some sports themed machines right now to re-sell. Got behind but the first 3 Alabama ones will be done next week.

Show us when completed sounds cool.

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If you recall, its all about the jumpsuit. It really makes a difference.

Also, NO PRODUCT LABELS!

And all this time I thought VT was a legitimate trade publication.

Oh yeah......I remember.    Nah, I'm not getting a jumpsuit.  No way.

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No one is removing bulk altogether.

The suggestion was to replace 2" toys with better selling & more profitable products -- like flat or additional 1".

 

And, if some locations believe more product means more money, then 1" heads or flat instead of 2" heads would make even more sense.

You can fit more heads of 1" and/or columns of flat vend than you can fit heads of 2" on most racks.

Sorry sherlock, I was on my phone and it corrected for me. What I was saying is, if there is a rack there that doesn't have 2", it's easy to convince the location owner that they are missing out on revenue by not having it due to the price point and attraction of the bigger toys and so on. Not all will be like that, but any opportunity left open is not worth it to me. 

Most of you guys know more than me about this, I only have a handful of 2".

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I hate 2" myself but with caps i never get stuck with inventory, now flat on the other hand i still have boxes and boxes of old flat from my years of trying to be the salesman's buddy at the shows.. A&A used to have great parties at NBVA and i would have a blast and feel guilty (like I'm sure a lot of other guys would) and I would order those extra cases of crap stickers to round out my 50 case order for the deal or whatever. Same way with hanging with Adam from all-star or whatever supplier had the party that night etc.

 

 Those guys knew how to sell you!! and I'm not at all saying is tricky or whatever as i got exactly what they showed me and sold me, i was just swayed by good times and not using best judgement or just not knowing and doing my due diligence in testing.. My hero Glen B. in Oklahoma would be ordering 1 box of everything he liked and just ignoring their clamoring on "if you buy 10 ill give you 3 bucks off a box etc." and thats when it really hit me i should be smarter on flat purchases as my shelves where full of old crap these guys had guilted me into buying.

 

I never have been stuck with 2" or 1.1 as it seems some locations will sell anything  but with flat if its a dud it will be just like machine is out of order.

 

As far as 2" being dead i would also like to phase it out, but i do see another operator capitalizing on that by slipping a single 80 on stand in your lineup or even bounce a roo type machine.. I myself will convert most 2" cap machines to 1.1 and just put real hot leader or real strong mix to take advantage of my 75 cent mechs and the ones that are 50 those are easy now for 1.1.  I plan on keeping 2" but just do two products total, a junk mix and a known winner and then just rotate that one winner into the junk mix as  it goes dead or needs to rotate out of machine cause its almost empty etc.  If a location has more than 2-2" then the extras will be converted to 1.1.

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I never have been stuck with 2" or 1.1 as it seems some locations will sell anything  but with flat if its a dud it will be just like machine is out of order.

 

Never have been stuck with flat.

I get rid of all my crappy flat using .25 "mystery mix" columns.

 

.25 isn't ideal.

But better than having product gathering dust and taking up storage space.

It's often the flat we buy on "sale" that doesn't move.

In those situations cog is less than .10 per piece.

By no means is it a profit worth raving about when clearing flat at .25, but we aren't sitting on product either.

 I plan on keeping 2" but just do two products total, a junk mix and a known winner and then just rotate that one winner into the junk mix as  it goes dead or needs to rotate out of machine cause its almost empty etc.  If a location has more than 2-2" then the extras will be converted to 1.1.

 

 

This sounds like a winning plan.

I like the idea of doing only two 2" products.

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To me the key takeaway from the article is that ANY formula can be successful if you're just flat out working harder than everybody else.  I'm sure On The Ball loses locations here and there to guys with cranes and stackers; just like if they completely phase out 2" they'll probably lose some locations to the next bulk guy in line that offers 2".  But big picture, it looks like they're also fairly diligent about locating.  And as long as your equipment is getting placed, if you have the occasional kickout here and there who cares?  Do what you do more diligently than anybody else. 

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I agree 100%! You gotta work it!

I for one am parent with 5 kids and I will not have overnight routes anymore. So all bulk is not possible for any 6 figure or more income with that result. Maybe if I lived on Long Island or LA but backwoods country that I love it ain't happening!

It's hard to even have cranes or amusements and stay within 150 miles . If gambling was legal like GA or IL it would be easy as I could have one location down the street and clear 6 figures

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In all respect to the veterans here , I feel your all not thinking logically about this , and heading in the wrong direction.  Your thinking opposite of the way you should be.  The logic seems to be to move more product by selling 1 inch at .50 and drop 2 inch. The claim seems to be poor sales of 2 inch at .75 or a dollar. So isn't it the same profit on one 2 inch vs two one inch. Yes 2 inch at a dollar will sell half as much but we still have the same profit.  Shipping cant be less with two one inch vs one two inch , so shipping is equal. So now you have twice as much physical work to keeps those heads full of fast moving product , more frequent trips to locations , for the same money. Then ......as 2 inch is phased out the suppliers will raise prices on 1 inch due to increased demand as well as lost revenue from poor 2 inch sales.  So, now what , increase 1 inch to .75?  Back to square one !  I think the best in todays world is 2 inch at .75 & 1.00 with 1 inch at .50.  Keep rotating merchandise , keep equipment clean & in good working order , displays bright , and ride it out.

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Interesting points TWvend.

Problem is, in many instances, 2" doesn't sell HALF as much as 1".

Too often, it sells far less than half as much.

 

That throws your math out of whack a bit.

Doesn't obliterate your points. Just something worth recognizing.

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In all respect to the veterans here , I feel your all not thinking logically about this , and heading in the wrong direction.  Your thinking opposite of the way you should be.  The logic seems to be to move more product by selling 1 inch at .50 and drop 2 inch. The claim seems to be poor sales of 2 inch at .75 or a dollar. So isn't it the same profit on one 2 inch vs two one inch. Yes 2 inch at a dollar will sell half as much but we still have the same profit.  Shipping cant be less with two one inch vs one two inch , so shipping is equal. So now you have twice as much physical work to keeps those heads full of fast moving product , more frequent trips to locations , for the same money. Then ......as 2 inch is phased out the suppliers will raise prices on 1 inch due to increased demand as well as lost revenue from poor 2 inch sales.  So, now what , increase 1 inch to .75?  Back to square one !  I think the best in todays world is 2 inch at .75 & 1.00 with 1 inch at .50.  Keep rotating merchandise , keep equipment clean & in good working order , displays bright , and ride it out.

 

If 1" outsold 2" at exactly a 2:1 ratio, your premise might be correct TW.  But I think what most people are saying is that their 1" is outselling their 2" by a WIDE margin...like 4:1 or more.  So much that they are losing money by continuing to sell 2" rather than converting to 100% 1".  Plus, your work is NOT doubled by selling strictly 1",  Regardless of the product size you still have to unlock, remove globe, scoop money and clean and test vend every head you have.  The amount of work has little to do with 1"vs.2".

 

ETA:  Whoops, sherlock beat me to it.  

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I am located in PA and find my 2 inch selling 4x more than 1 inch . Most posts are  vice-versa here . For example I sold out of A&A animal string dolls 2 inch on 1.00 and the squishy from brand 1 inch on .50  which is supposed to be hot wasn't touched. Just curious ,  guys ,  if the 2 inch NFL doesn't move well ? Seems to move good in my neck of the woods.

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I am located in PA and find my 2 inch selling 4x more than 1 inch . Most posts are  vice-versa here . For example I sold out of A&A animal string dolls 2 inch on 1.00 and the squishy from brand 1 inch on .50  which is supposed to be hot wasn't touched. Just curious ,  guys ,  if the 2 inch NFL doesn't move well ? Seems to move good in my neck of the woods.

 

My NFL stuff is moving REALLY well right now.  I think that has as much to do with the fact that the Broncos are America's dream team right now than anything else but I couldn't be happier with my NFL 2" and flat.

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I am located in PA and find my 2 inch selling 4x more than 1 inch . Most posts are vice-versa here . For example I sold out of A&A animal string dolls 2 inch on 1.00 and the squishy from brand 1 inch on .50 which is supposed to be hot wasn't touched. Just curious , guys , if the 2 inch NFL doesn't move well ? Seems to move good in my neck of the woods.

The appeal to one inch for me is the margin. lower cost and cheaper to ship. Take the string dolls. Product, freight and displays you around 35% margin most one inch is well below 20%.

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In all respect to the veterans here , I feel your all not thinking logically about this , and heading in the wrong direction.  Your thinking opposite of the way you should be.  The logic seems to be to move more product by selling 1 inch at .50 and drop 2 inch. The claim seems to be poor sales of 2 inch at .75 or a dollar. So isn't it the same profit on one 2 inch vs two one inch. Yes 2 inch at a dollar will sell half as much but we still have the same profit.  Shipping cant be less with two one inch vs one two inch , so shipping is equal. So now you have twice as much physical work to keeps those heads full of fast moving product , more frequent trips to locations , for the same money. Then ......as 2 inch is phased out the suppliers will raise prices on 1 inch due to increased demand as well as lost revenue from poor 2 inch sales.  So, now what , increase 1 inch to .75?  Back to square one !  I think the best in todays world is 2 inch at .75 & 1.00 with 1 inch at .50.  Keep rotating merchandise , keep equipment clean & in good working order , displays bright , and ride it out.

Shipping is not the same. I know for a fact that Cardinal will put 5 bags in a box and ship. The same size as a 2" box. 2" caps also cost more than 1" caps.  So COG is lower on 1". Displays are usually cheaper as well. Some can even be had for free if you order enough at one time.

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In all respect to the veterans here , I feel your all not thinking logically about this , and heading in the wrong direction.  Your thinking opposite of the way you should be.  The logic seems to be to move more product by selling 1 inch at .50 and drop 2 inch. The claim seems to be poor sales of 2 inch at .75 or a dollar. So isn't it the same profit on one 2 inch vs two one inch. Yes 2 inch at a dollar will sell half as much but we still have the same profit.  Shipping cant be less with two one inch vs one two inch , so shipping is equal. 

 

I respectfully disagree with most of what you said.  Specifically, the shipping.  You can fit at least 1000 pieces of 1.1 inch capsules in the same box as the 250-count two inch stuff.  So how is shipping equal?

 

And by the way, I am a former computer programmer (albeit obsolete skills), so I do think logically - or at least I think so (LOL)!  And I am very happy with this "New Direction".  ^-^

 

Too each his own on this 2 inch stuff.  I am sure there are regional differences.  And some are still happy with 2 inch sales.  But in this region, I am just so glad to be moving AWAY from two inch as well.  So call me an On-The-Ball twin!  Or maybe even the evil twin.  Or maybe On-The-Ball is the evil twin.  Or maybe both of us are evil twins!  Our jump suits would have made for a good Halloween!  >:D  ^_^

Shipping is not the same. I know for a fact that Cardinal will put 5 bags in a box and ship. The same size as a 2" box. 2" caps also cost more than 1" caps.  So COG is lower on 1". Displays are usually cheaper as well. Some can even be had for free if you order enough at one time.

 

Ditto my friend, ditto!

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Ok, let's say you set up a rack of only 1" and flat, that currently is set up with 4-1", 3 column flat, and a 2".

of you get rid of the 2" on this configuration, do you run another 2-1" to fill the space? Honest question...

Looking at space being taken and so on.

Ok, let's say you set up a rack of only 1" and flat, that currently is set up with 4-1", 3 column flat, and a 2".

of you get rid of the 2" on this configuration, do you run another 2-1" to fill the space? Honest question...

Looking at space being taken and so on.

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The appeal to one inch for me is the margin. lower cost and cheaper to ship. Take the string dolls. Product, freight and displays you around 35% margin most one inch is well below 20%.

 

Yes, yes, yes!  As a politician would say, "It's the margin, stupid".

 

Looks like another great debate is brewing!  

 

The question is will the 2 inch vs1 inch debate be on par with...

  percent of gross vs percent of net?

  charity vs commission?

  triples vs singles?

  slamming vs permission?

  EBV vs non-electronic traditional?

  candy vs toys?

 

I guess we will see!

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This is exactly why I love vending! It's different everywhere including just down the street at a different location!

 

Yes indeed.  Each one of us is our own CEO of our own business and each one of us makes choices and decision as we see fit!

 

Whether it be triples, singles, vendstars, uturns, oaks, charity, tattoos, commission percentages, tattoos, candy, MMP, big racks, small racks, one inch, two inch, gumballs, cranes, shootin hoops or chickens (stop here!), we each make our own choices and decisions!  And we can voice those choices and decisions if need be.  Freedom rocks!

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For example I sold out of A&A animal string dolls 2 inch on 1.00 and the squishy from brand 1 inch on .50  which is supposed to be hot wasn't touched.

 

 

If you had posted this in 2012 I would have agreed with you.

But, calling squishy a "hot" seller in 2014 is a bit of a stretch.

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Ok, let's say you set up a rack of only 1" and flat, that currently is set up with 4-1", 3 column flat, and a 2".

of you get rid of the 2" on this configuration, do you run another 2-1" to fill the space? Honest question...

Looking at space being taken and so on.

Ok, let's say you set up a rack of only 1" and flat, that currently is set up with 4-1", 3 column flat, and a 2".

of you get rid of the 2" on this configuration, do you run another 2-1" to fill the space? Honest question...

Looking at space being taken and so on.

i am just converting the 2" machines to 1.1 caps.. rack still looks the same it just has different wheel. Now the capacity is greater on machine also.

 

 

 

 

now as far as everybody's debate…..

 

If you have 75 cents or 1.00 mechanisms a good mix  for 1.1 is micro mp3 players watered down with  earbuds etc..  micro mp3 on alibaba is about 1.50 but comes with a pair of earbuds so you get money back even when they get it, then earbuds  are 10 cents or so in bulk if you can find suppler over there that won't package them individually.

 

I am phasing out 2" not for reason that it doesn't sale like all of you are debating about. I see it as a dying horse and I'm not prepared to try to cross the prairie on it.  without a dollar coin its days are numbered for one reason as inflation is gonna kill it. 

 

it takes up more space in warehouse and van.. I like to drive small vehicles for service(minivans, nissan sentra etc.) and I can service a lot more 1.1 than i can 2", I can take one box or container and have entire racks service in it.

 

the 2" caps now suck as far as staying together. Since a&a went to the break/crack resistant caps a few years ago they don't snap as good and are harder to snap together(I cap a lot in-house) so they are always opening in box and machine . 1.1 suck now also but ill take the less of 2 evils.

 

the 2" mixes they sell now are the same they sold  as 1.1 just a few years ago so why sell a bunch of air?

 

other reasons i can't think of now but there are more

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While I agree that 2" will die some day, I doubt it's within the next 15-20 years. It's still very common to find 2" around 15-17 cents per. Very respectable. At 75 cents that's around 20% COG. That said, even though 2" still has legs it's probably a good idea to move away from it for other reasons. If I was 20 years younger and building my route I wouldn't touch 2".

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