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Does Size Really Matter?


Hillbilly

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Does size really matter? We've all participated in those conversations. But what about gumballs?

I've often wondered if people buy the gumball because it is big? What if they had say, 2 smaller gumballs at a lower price? Which one would they choose?

I decided to find out for myself. I bought 6 chicklet wheels from Ebay that only vend 2 at a time. I bought some 1/2" gumballs and tried them in the wheel. Works perfectly. Every time.

I can get the 8500ct gumballs for $26.90 and I'm guessing the shipping would be about $14. So 40.90 for the box of 8500 pieces or 4250 vends. Cost per vend is almost exactly 1 cent. If I vend them for a dime that gives $425 gross per box. Net is 384.10 per box.

That's a hefty increase over what a box of 850ct will bring.

Now all I need are some .10 mech's and I'm ready to roll. Wait I already have them out in the garage in a box. I took them out of machines to put in a .25 mech's. So, I have everything I need.

So, does size really matter? We'll all find out in a month or two. Just hang on to those ten cent mech's. Somebody just may need them.

2/26/2011 Update

I have 1 machine out and should have another located within the week.

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I've sold 850c gum for 10c too. Just remember to use a large head machine like a vista 450 or a super80. I think I even have some labels. I'll see if I still have them and upload them.
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Are you putting them in your current locations? If so let us know if the dime vends give you an increase over just quarters.
I vend 4 to 5 small gumballs for 25 so you have my attention.
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I have a dime machine next to a quarter machine. It's been there for a month. The dime machine is doing around 12% of what the quarter machine is doing. So far there is no drop in the quarter machine.
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OK, Here are my results after another 5 weeks at this location. My quarter gumball machine did 16.50 with 66 vends and the dime machine did 19.40 with 194 vends. The quarter machine averaged 38.40 a month over the last 12 months so it is down 58%. But the increase in the dime machine makes up for it, almost. Even though my profit margin will be a little better, my dollars will be a little less.

I will keep the dime machine at this location and probably will change the quarter machine to a flavored gumball. At least I'll have bragging rights for cost per vend less than a penny.

I guess this is what I learned from this experiment. People don't care what size their gumball is. They will hang on to the quarters and spend the dimes a little more freely.
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