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Wow Chocolate is Expensive


maestro489

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Prices on chocolate are killing me.  I am considering dropping the amount of chocolate I put in my snack machines.  It doesn't sell very well at any of my locations anyway and I have to use a cooler to distribute it.  How many different types of chocolate do you sell?  Anyone else cut back on the number of chocolates they sell.  I think I am selling 10 different chocolates in most of my machines.  Too many?

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Candy bars have been over priced by Nestle and Mars for many years now.  Many vendors have converted candy shelves to snack shelves (where possible in their machines) so they could add more profitable salty snacks or cookies.  For the candy you do sell, don't underprice yourself.  You need to be proactive and aggressive with your pricing to ensure you are getting a good return on the bars that you do sell.  Don't be afraid to get a good price over $1.

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I really cut back on chocolate overall, keeping just the best sellers, priced at $1.25. One thing I've used to substitute are the more "narrow" cookie/cracker packs. There's an Oreo/Chips Ahoy mix at Sam's that I'm pretty partial to (HERE), and those little "Austin Snack" packs (HERE). I turned a whole shelf of candy bars into the Austin packs at 50 cents in a "low-income" spots, and they sell really well.

 

But, I've only got a handful of spots though, and I'm probably nowhere near the volume you guys are looking for.

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I get fed up with people who compare Vending prices to Walmart prices. People complain nonstop about candy prices being "too high" and go on and on about how they can get it cheaper at Walmart. I tell them to buy their candy at Walmart then! I don't even want to carry chocolate except for a few varieties. A Vending machine isn't a grocery store.

I have changed a lot of accounts to sell more crackers, nuts, and granola. People think it's nice to have healthier options, but I'm just carrying less candy.

Off topic.. but I got a call Wednesday from a court building I service. The parking is tight and they were repaving the parking lot last week (before the call). I couldn't park anywhere without risking getting a ticket. The customer called complaining that they were low on snacks. I explained that I was actually on my way but I couldn't get there last week due to the paving. She was practically demanding bigger, newer machines with cheaper prices. Coincidentally, their prices are as low or lower than any other vendor and the Vending area only has room for a DN 276 and a 3-wide snack. I apologized (I wasn't sorry, it wasn't my fault) and said I would be there soon. Sure enough, the lady was upset because there wasn't enough chocolate.

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Up here, most of my locations are at 1.50 I have one at 1.25 and a couple at 1.35

The vendor at my full time job just upped his to 1.75

The local government here is screwing with wages and taxes, so when that crap hits the cost, everything will have to be raised.

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Prices on chocolate are killing me.  I am considering dropping the amount of chocolate I put in my snack machines.  It doesn't sell very well at any of my locations anyway and I have to use a cooler to distribute it.  How many different types of chocolate do you sell?  Anyone else cut back on the number of chocolates they sell.  I think I am selling 10 different chocolates in most of my machines.  Too many?

Chocolate has about a ten month shelf life so when it goes on sale, I stock up.  I can still get candy bars for an average of 50 cents apiece, I just have to designate more space in my fridge to store it in the summer.

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A lot to cover in this thread. 

 

Yes chocolate is getting expensive, but it has been for the last several years. I can remember when it went from $.32 to $.34 a unit. 

I buy mostly from a wholesaler in New Jersey who delivers every other week and fill in at Sam's when it's cost/quantity effective. Thru them Nestle isn't too bad, about $.44/unit, so lately I've been pushing Nestle more than Hershey's and M&M Mars which are up to mid to upper 50s. My rep can and will still adjust the price of my Snickers to $.50 unit, so Im good there. Everything else I've got to grin and bear it. But my strategy has been to go to a single shelf of candy where I can and only stock the core/staple chocolate items (Reese's, Snickers, M&Ms). Those 3 along with Peanut butter crackers (another core) leaves only 6 other candy selections which between cookies, nuts, crackers, and Nestles are pretty easy to fill. Places where I cannot go to a single shelf of candy, I will double face some of the premium chocolates. 

As far as selling price I've begun a campaign to get to $1.00. Currently $.80-$.90. I really don't think that my local market will allow me to go beyond that. 

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I get fed up with people who compare Vending prices to Walmart prices. People complain nonstop about candy prices being "too high" and go on and on about how they can get it cheaper at Walmart. I tell them to buy their candy at Walmart then! I don't even want to carry chocolate except for a few varieties. A Vending machine isn't a grocery store.

I have changed a lot of accounts to sell more crackers, nuts, and granola. People think it's nice to have healthier options, but I'm just carrying less candy.

Off topic.. but I got a call Wednesday from a court building I service. The parking is tight and they were repaving the parking lot last week (before the call). I couldn't park anywhere without risking getting a ticket. The customer called complaining that they were low on snacks. I explained that I was actually on my way but I couldn't get there last week due to the paving. She was practically demanding bigger, newer machines with cheaper prices. Coincidentally, their prices are as low or lower than any other vendor and the Vending area only has room for a DN 276 and a 3-wide snack. I apologized (I wasn't sorry, it wasn't my fault) and said I would be there soon. Sure enough, the lady was upset because there wasn't enough chocolate.

 

Customers can drive you nuts for sure. 

I hate the Wal Mart comparison too. Tried to raise the prices of 12 and 20 oz drinks several years ago and the manager of the dealership gave me the "people are going to go across the street to Wal Mart where they can buy it cheaper." What I wanted to say was that I will keep my prices the same, even lower them, but you have to buy the whole case...oh, and you have to come to my shop to get it. How I actually replied was to try to make him see that I am more comparable to a Convenience Store and not a wholesaler and that I'm not only in line with the C-stores, but other vending companies as well. 

I had a friend of mine who owns a bar and pizza shop tell me that he doesn't know how I make a living selling colas. He sells them in the pizza shop and he knows the cost and the price that he can get. He told me that his beer for the bar is cheaper, he can sell it for more, and that people buy 6, 8, 10 or more at a time. I think he's right! 

I never ceases to amaze me how people always think that because it is from a vending machine that it is should be cheap. We're the only industry where people want it delivered to them so they can have it NOW and CHEAPER than anywhere else they can buy it. 

 

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I only have 1 or 2 selections of chocolates and only snickers or peanut mms. All at 1.25 they are .55 here. When ppl request other chocolates i tell them ive had problens with them and they are like oh ok....put higher margin items instead

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Thanks for the great advice everyone. I'm already at .90 at all my locations and think that I might work my way up to $1 or $1.15. I think I will also reduce to my top sellers and replace with cookies and granola.

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  • 3 weeks later...

One of my accounts asked me to take out the chocolate because it was too expensive. What a perfect to cut down on chocolate without ticking anybody off. Now my problem is finding items that will fit in those spirals. Also is there a way to put pop tarts for example in a spot where chips normally go. Right now they fall off because the corner is missing to allow the chips to fall easier.

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You can probably remove and reinstall your spiral in another position that will hold the poptarts in place.  Then you can decide if you want them vertical with a spacer to hold them up or if you want them horizontal in the selection.

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All machines generally come with adjustable side walls to put into some of your snack columns.  There may have been anywhere between 4-8 included when the machine was new.  They don't always stay in the machines as vendors move them around.  You probably have some in a few of your selections already.  If you need more then let me know what model machine this is for and I'll get some to you.

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Prices on chocolate are killing me.  I am considering dropping the amount of chocolate I put in my snack machines.  It doesn't sell very well at any of my locations anyway and I have to use a cooler to distribute it.  How many different types of chocolate do you sell?  Anyone else cut back on the number of chocolates they sell.  I think I am selling 10 different chocolates in most of my machines.  Too many?

I sell 4, snickers, 3 musketeers, peanut M&M's and M&M's, I carry a cooler with ice packs in it to keep the chocolate chilled.

John

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My core chocolates are Reese's Cups, M&Ms peanut, and Snickers. I'll rotate Butterfingers, Baby Ruth, Oh Henry, Nestle Crunch, and Hershey Almonds in as well. I order from Thayer every other week and will rotate 2 items from the second group with each item. Will also grab individual boxes from Sams Club when it's cost/quantity effective to do so. 

 

They haven't done it yet this year, but in past years my local Sam's will order pallets of Reese's PB Cups in a display pack meant for C-Stores and concession stands. After they sit a while, they'll cut the price to move them and I'll buy large quantities while available. I've gotten them as low as $.35/unit. 

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I charge $1.50 at all my locations and no one has complained. I add a mix of lower price snacks like Rice krrispy treats, Cosmic brownies and granola bars where the margin is better and price is under the chocolate. After 3 months I'll generally pick the slowest selling chocolate item and lower it to $1.25 to balance the sales against the other items in the machine but I've read chocolate prices are expected to increase again this year so I'm slowly reducing the amount I offer in each machine. Right now 1/2 my snack selections are chocolate and I think I will be down to 1/3 by the end of the year.

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  • 2 weeks later...

Depending on the location, sugar candy such as Skittles or Starburst does well for me also.  Kids and males under 30 seem to prefer it to chocolate.  The healthier products like Nature Valley are getting more sales these days, and lance crackers and cookies are the old standbys, sized and priced for small slot vending.   Larger vending companies seem to be down to 3 or 4 chocolate selections in a lot of locations.

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If you need to fill space, some personal care items might do well, I put Tylenol and Advil in some of my machines.  Not big sellers but they usually move and the margin is good.  My supplier is Merch-A-Vend out of Orlando FL they ship anywhere.  You might need to ask at some locations before adding them, some offices supply these for free; in nursing homes some will allow them and some won't.....

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If you need to fill space, some personal care items might do well, I put Tylenol and Advil in some of my machines.  Not big sellers but they usually move and the margin is good.  My supplier is Merch-A-Vend out of Orlando FL they ship anywhere.  You might need to ask at some locations before adding them, some offices supply these for free; in nursing homes some will allow them and some won't.....

you need to be careful with such items, I have had a couple steel plants here in PHX ask me remove such items due liability and concerns with OSHA.

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