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Margin's on toys


Determined

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Hi! I have a 5 way rack I'm working on. But I've been debating on breaking it up in to singles or keeping it as is. How much are y'all really making on your toys. Some of them cost a good bit and I've read that most of you are paying 20-30%? So are y'all essentially doubling your money or ? Are you netting about 50%?

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So let's say you pay .10 each for a toy.

You then pay 30% commission. 30% of $.50 is $.15.

$.10 toy + $.15 commission=$.25

$.50 - $.25 = $.25 net

Do my numbers sound right?

If there correct is toy vending really worth it?

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I DO have a question somewhat related to what you're asking though. People say that commission isn't worth it on singles and doubles because the money's not there to split. I'm wondering how is commission on doubles at 30% different than commission on a rack with the same product at 30%? Overall the location gets more from a rack combined, but per head, you're still paying out the same in commission right?

 

Also determined, if your break up your 5 way, are you going to make singles/doubles in candy or toys?

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I DO have a question somewhat related to what you're asking though. People say that commission isn't worth it on singles and doubles because the money's not there to split. I'm wondering how is commission on doubles at 30% different than commission on a rack with the same product at 30%? Overall the location gets more from a rack combined, but per head, you're still paying out the same in commission right?

Also determined, if your break up your 5 way, are you going to make singles/doubles in candy or toys?

No difference. 30% is 30%. I have plenty of doubles i pay commission on. My standard setup for a toy double is a 2" @.75 and a 1"@.50. Two month service cycle. I've had no complaints. Thats what they make extra capacity panels for.

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I DO have a question somewhat related to what you're asking though. People say that commission isn't worth it on singles and doubles because the money's not there to split. I'm wondering how is commission on doubles at 30% different than commission on a rack with the same product at 30%? Overall the location gets more from a rack combined, but per head, you're still paying out the same in commission right?

 

Also determined, if your break up your 5 way, are you going to make singles/doubles in candy or toys?

Well if I broke my rack up I would make it into singles. That's what interested me in vending is that you can sell a gumball that cost .025 and sell it for .25. If I have a single that does well I ad a second machine and so on.

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Gotcha, I'm not knocking your logic...and though you're only make a bit more per toy with those numbers, I'm still wondering why you say "worth it" as if there is a downside to toys. I'm getting into toys because they don't spoil and I like the profit margin. Also I hear commission spots tend to get less evictions. I don't see the much problems except toys have fewer possible locations vs candy.

Sent from my SAMSUNG-SGH-I747 using Tapatalk

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Gotcha, I'm not knocking your logic...and though you're only make a bit more per toy with those numbers, I'm still wondering why you say "worth it" as if there is a downside to toys. I'm getting into toys because they don't spoil and I like the profit margin. Also I hear commission spots tend to get less evictions. I don't see the much problems except toys have fewer possible locations vs candy.

Sent from my SAMSUNG-SGH-I747 using Tapatalk

The downside I see to toys is the number of items you have to stock.  I'm not comfortable with the amount of cash tied up in overhead (inventory). I could fill up almost 6 Oak vista's with gumballs for about $45. Its going to cost much more than that if it were toys.

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The downside I see to toys is the number of items you have to stock. I'm not comfortable with the amount of cash tied up in overhead (inventory). I could fill up almost 6 Oak vista's with gumballs for about $45. Its going to cost much more than that if it were toys.

You may tie up some cash in inventory but most businesses do. Its just something that has to be done. Overall in a bulk vending route i think toys will bring higher collections so basically its a trade off. If you will be happy with the average that gumball and candy machines will give you then by all means do it. Most full time bulk operators will do all because the collections will be higher with toys and you can stretch the service cycles. There is also no waste with toys.

And as Musser said you can get away with vending at a higher price. If you grow your business you will have to stock gumballs as well.

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You may tie up some cash in inventory but most businesses do. Its just something that has to be done. Overall in a bulk vending route i think toys will bring higher collections so basically its a trade off. If you will be happy with the average that gumball and candy machines will give you then by all means do it. Most full time bulk operators will do all because the collections will be higher with toys and you can stretch the service cycles. There is also no waste with toys.

And as Musser said you can get away with vending at a higher price. If you grow your business you will have to stock gumballs as well.

Oh I see the benefits to toys. I just got burned by buying a bunch of candy and putting them in triples in slow locations. Well actually my locations are picking up so maybe its the time of year I started. But I like the profit margin on gumballs. I've invested some money and I haven't seen much of a return yet.

I use to buy and sell on craigslist and rented space in a store. I would buy all kinds of junk and wonder if it would ever sell but it always did. Is bulk vending a bit like that?

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Oh I see the benefits to toys. I just got burned by buying a bunch of candy and putting them in triples in slow locations. Well actually my locations are picking up so maybe its the time of year I started. But I like the profit margin on gumballs. I've invested some money and I haven't seen much of a return yet.

I use to buy and sell on craigslist and rented space in a store. I would buy all kinds of junk and wonder if it would ever sell but it always did. Is bulk vending a bit like that?

Yeah. Bulk has a slow season. It usually runs from late November to early March. It is not a get rick quick business. It is also a lot of work. Thats why you see so many people getting out.

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Yeah. Bulk has a slow season. It usually runs from late November to early March. It is not a get rick quick business. It is also a lot of work. Thats why you see so many people getting out.

If I quit buying machines and parts I would probably be close to breaking even. It has been more work than I expected but that doesn't bother me.

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  • 4 weeks later...

Determined I hear ya every bit of my money goes to buying another machine I find interesting I am always looking for machines therefore I keep my self poor buying more machines I don't need because I am obsessed with finding new fun machines I tell myself everyday to just be happy with what I have, sit on it and make money but NO everyday there I am on the internet looking for machines I can not afford or resist that is why I still have to punch in to a regular job 

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