Out of Date Product

[EMI]

Hi,

Does anyone have an any ideals on where you can donate out of date beverage and snack products when you get caught with a product that didn't turn quick enough and the expiration date has passed.

Does a half price sale work instead or does that create other isuues.

[Zeke]

Product waste is a real concern.  We usually have one taker at most locations that will bring home the snacks to their kids for school lunches.  Depends on the type of location you have but I usaually have a good repore with the employees that we provide our services to.  So I just ask.  Someone always steps up and will take them.  Good question though. 

 

Zeke

[dssd22d]

Here is what I do.  My father works as a mechanical for a smaller town.  I have a small route myself, but I also get expired product.  I located a machine in their repair center which has only 2-4 workers and set it at $.35 and told them the bags of chips that were in their might be past sale date.   It works out perfect.  If I don't have any expired product, the machine doesn't get filled. No harm-no foul.  They get an inexpensive snack and I make a little.  Just something to think about.

[antoniocinisi]

when I took my food handler certification test the health inspector present told us that it can be tricky to decipher those experation dates.for example best buy dates.that COULD mean that the product could be good after that date but will taste fresher and better before then.

she recomended to taste/smell whatever it is to be safe.

I wouldn`t throw anything away without tasteing it.I think usually those experation dates are on the safe side

[coinvestor]

I usually have very little expired product. This past week I got in trouble with short dated coke product. I don't usually check the dates on regular soda. I got a complaint from a location about a coke being out of date and flat. When I started checking all the dates I found that the stuff I had bought the day before only had three weeks left. I went to the grocery store to buy some stuff to fill the machine until I got my inventory straight and the stuff on the shelves only had 9 days before it expired! I think that coke sales have dropped off with the current state of the economy (not so much at my level, but as a whole) and coke had signifigant inventory build up, so they were short dating the retailers. After sorting inventory I had 26 cases of out of date product. I found a homeless shelter that would accept the soda and put it to good use. They were greatful and I didn't have to find a dumpster.

I do not leave expired product at the location with anyone (except rarely). I figure that every one I give away will equal one lost sale, which means that the stuff in the machine is more likely to expire. I do have one location where I am not the only vendor. I am on the top floors and another vendor is on the bottom floors. In this case I take all of my expired product and set it next to his machines

I would not try to sell out of date product without it being known. We all know that the stuff is still good after that date, but it is no way to run a business. This is just one of the rules of the business that we have to learn to plan and adjust inventory levels for.

 

JD

[ecoastvending]

I agree with coinvestor ever time you give product away on site you lose a sale. If anything donate it to a local shelter and right it off for taxes.

[midtenn]

Just remember you can still held liable if anything happens with out of date products that may be bad. Plus some employee that you give them to could take to HR at location for refund or complaint. Not telling anyone what to do, but it is best to remove item from location and eliminate any problems completely. Some people will dig thru trash to get these stales.

[West Coast Vend LLC]

I think that if you start a regular routine of giving out-of-date products away at your locations, some customers may just stop buying your products and wait for the outdates. Plus, It doesn't look good when people hear that your products are going stale in their shop. It may hurt your overall business.

Why not give the out-of-date product to your local soup kitchen or church, etc. You could get a receipt from them and write it off at the end of the year as a donation.

Most importantly. Control your inventory and avoid the issue all together. That's sometimes easier said than done.

Gary

[BVI]

I usually have very little expired product. This past week I got in trouble with short dated coke product. I don't usually check the dates on regular soda. I got a complaint from a location about a coke being out of date and flat. When I started checking all the dates I found that the stuff I had bought the day before only had three weeks left. I went to the grocery store to buy some stuff to fill the machine until I got my inventory straight and the stuff on the shelves only had 9 days before it expired! I think that coke sales have dropped off with the current state of the economy (not so much at my level, but as a whole) and coke had signifigant inventory build up, so they were short dating the retailers. After sorting inventory I had 26 cases of out of date product. I found a homeless shelter that would accept the soda and put it to good use. They were greatful and I didn't have to find a dumpster.

I do not leave expired product at the location with anyone (except rarely). I figure that every one I give away will equal one lost sale, which means that the stuff in the machine is more likely to expire. I do have one location where I am not the only vendor. I am on the top floors and another vendor is on the bottom floors. In this case I take all of my expired product and set it next to his machines

I would not try to sell out of date product without it being known. We all know that the stuff is still good after that date, but it is no way to run a business. This is just one of the rules of the business that we have to learn to plan and adjust inventory levels for.

 

JD

 

I agree.  I almost never leave outdated product behind for the very same reasons.  I have to be in very rare form to throw anything on the table.

I usually don't have this problem anyway.  The only time I do is when I get short-dated product, or if I overbuy when adding a new account (not knowing for sure how much extra to allow for a new account).  If you only buy a week's worth, maybe two, at a time, you usually don't have product going stale.

[kcinnick]

I have been in Managed Grocery stores in different forms over the years, and I can tell you most products have built in buffers on their dates.  Frito Lay has 3 weeks, something that is good for 2 years might have a year lead on it, some things don't ever go bad, it just looks bad if they don't put a date on it.  Check the frozen turkeys next time you go to Wal-Mart, good luck finding a date there.  However, even though most out of date products are still perfectly fine, I would never, ever intentionally sell one to a customer.  It gives the image of a low quality operation like Piggly-Wiggly or Big Lots.  As far as giving the items to someone, give them to a food bank.  The food bank will know when the product really goes bad.

[West Coast Vend LLC]

 

 

I think that most of the product dates are there because companies have tested the quality and taste of their products and determined what point a product has lost the best flavor it was intended to have when it was fresh. BVI is correct in saying that companies have buffers or extra time on their expiration dates. Bakery companies do it because it gives their products extra time to sell in thrift stores. The same with crackers and cookies. Frito-Lay products have a very short buffer. Their product is ready to remove from the shelf when the date expires. Chips are not sold in thrift stores for that reason. Candy is another product that has lost it's taste and quality once the expiration date has been reached. Candy with nuts and fruit turn stale tasting very quickly if the conditions they are stored in are not exactly right. (sunlight, high temp's, freezing temp's, etc)

All products in your vending machines should be checked periodically, just to make sure they taste fresh. If a customer buys candy from XXX's vending machine once, they will never buy from that machine again.

Since this is a repeat customer business, that would be the worst thing that you could do.

 

Gary

[BVI]

Of course, you could just eat the outdated snacks yourself.  Depending on what you like, why not?  My accountant told me a long time ago that there's no advantage to writing the stuff off, because you buy it up-front,  not sure why that matters, but apparently, if you're looking for a tax-write-off, you might not get one using expired product.  So go ahead, tear into those bags of chips!

[antoniocinisi]

Of course, you could just eat the outdated snacks yourself.  Depending on what you like, why not?  My accountant told me a long time ago that there's no advantage to writing the stuff off, because you buy it up-front,  not sure why that matters, but apparently, if you're looking for a tax-write-off, you might not get one using expired product.  So go ahead, tear into those bags of chips!

you get the write off when you buy it so that counts as your deduction it wont count when you are just throwing it away.you cant deduct it agin

I was donateing pizzas and I can`t deduct them either because they were deducted when I BOUGHT THE INGREDIENTS ALREADY

[BVI]

Of course, you could just eat the outdated snacks yourself.  Depending on what you like, why not?  My accountant told me a long time ago that there's no advantage to writing the stuff off, because you buy it up-front,  not sure why that matters, but apparently, if you're looking for a tax-write-off, you might not get one using expired product.  So go ahead, tear into those bags of chips!

you get the write off when you buy it so that counts as your deduction it wont count when you are just throwing it away.you cant deduct it agin

I was donateing pizzas and I can`t deduct them either because they were deducted when I BOUGHT THE INGREDIENTS ALREADY

 

Well put, Antonio.  You said that very well, and that was exactly what I was trying to say, except you did a better job of it.  What you end up with that didn't sell, I say eat it or drink it if you want or give it away, but there's no real tax benefit either way.  I don't really understand it, seems like we should be able to deduct it as a loss.

[andyinchville]

HI All,

FWIW I placed a small ad on Craigs List to sell sightly outdated by the boxfull....I have a waiting list of people for it and so far the same guy has been buying all my boxes for the past 4 weeks...

The size of the box is the standard Tom's chip box....I fill it w/ misc chips / cakes and get $15 per box

The only thing that would be better is to NOT have so much waste!....I can't wait until summer when the pools open.....easy to get rid of all the near expired products there since they eat like crazy!

Andrew

[soco]

Many good solutions here.  I randomly will leave a few bags of out of date chips behind as "good-will" for hang ups or what-ever my clients encounter from my machines.  When I have expired pastry + expired chips I do a homeless shelter drop.  The Craigslist idea was innovative.  BTW, as a newbie I didn't monitor my soda well enough and got caught in early fall with Diet Coke expirations: 90 cans overall-ouch!

[Sparta_Automation]

HI All,

FWIW I placed a small ad on Craigs List to sell sightly outdated by the boxfull....I have a waiting list of people for it and so far the same guy has been buying all my boxes for the past 4 weeks...

The size of the box is the standard Tom's chip box....I fill it w/ misc chips / cakes and get $15 per box

That is an EXCELLANT idea.......you are probably get close to your puchase price back that way!

Another tool to add to my toolbelt!

Travis

[imperialv]

Is it a good idea to have a spot in your machine lets say for .35 cent for merchandise that will go out of date that week. It would always be random merchandise in that slot but at least you would get your investment back.

[coinvestor]

Is it a good idea to have a spot in your machine lets say for .35 cent for merchandise that will go out of date that week. It would always be random merchandise in that slot but at least you would get your investment back.

I thought about doing this, the problem is either way you sacrifice the sale. The person walks up to the machine to make a purchase and buys either the almost expired product that you make no money on, or they buy the fresh product at full price. Assuming you have a 50% your customer covered the cost of the one that expired when buying the later, but they got a fresh product with out discounting.

JD

[snack dude]

I have thought about discounting stuff before myself but havent. I have several cold food machines also. Here is the question I am afraid is going to be asked. " If you can sell it for 1/2 price when it is going out of date how come you cant sell for that all the time". Or " Were just going to let it go out of date so we can get at that price anyway". As far as leaving out of date stuff behind you might well shoot your big toe off. I took over a location where the guy before me left stuff behind and sales almost doubled when I quit doing that. I do not mind giving away a drink or fresh bag of chips to a good customer every now and then.

[Mikey B]

I usually don't have to deal with out of date product, but when I do, I just bring it home and put it on the kitchen table. within 24 hours, its gone.

After taking over a location with the snack machine making a gross of  $15-30/week (so the seller said)  I had a woman and man both approach me about if I was going to leave the "expired" product there like the previous owner did.

I told them I have other locations so I rotate stock on a regular basis.

I have had this location for 32weeks now.  First week's gross was $21.50

From week 2 through week 31 I am averaging $44.25/wk

Based on my records and what the previous owner stated, has led me to believe that the 30+ employees were waiting for "out of date" day and getting stuff for free.  Plus I also think the hike in sales is partially due to me taking better care of the location and keeping it stocked than the previous.  Plus I told them like with all my stops, let me know if there is something you would like to see in the machine.

Basically to sum it up,  In my opinion if you leave free stuff for your customers, they will expect it all the time therefore saving their money and waiting for "free day"

[andyinchville]

HI ,

Good pints Micky B.....I had the same thing at one stop of mine too.....I can and have given away food every once in awhile but NEVER anywhere near my machines....

Andrew

[imperialv]

Going back to the previous thought I dont thing if I were hungry today and I new something would be marked down in three days I would starve until its cheaper. The beauty of vending is that product is available when you want it its not like waiting for a shirt to go on clearence. Also if you were to put in a break even slot in your machine it would only house items you tried and did not sell ,not good movers so you would never run the risk of a discounted product and the same product in the machine at full price would you?

[coinvestor]

Going back to the previous thought I dont thing if I were hungry today and I new something would be marked down in three days I would starve until its cheaper. The beauty of vending is that product is available when you want it its not like waiting for a shirt to go on clearence. Also if you were to put in a break even slot in your machine it would only house items you tried and did not sell ,not good movers so you would never run the risk of a discounted product and the same product in the machine at full price would you?

Since I move slow moving stuff around, most of my stale comes from over ordering top sellers or being short dated by a supplier (or a combination of the two). Because of this my stale is usually Cheetos, Doritos, etc.

Either way, if you assume that a hungry person walks up to your machine and buys a discounted item instead of a full price item, you loose. Your customers will begin to look to your machine for discounts and not the value of convenience.

JD

[JPVendCo.]

I bet you could donate the items to a local food bank, and in turn write it off as a "charitable contribution" I am not a tax attorney, so I am not sure about this, but its an idea I just got. you would be helping people, and helping the bottom line.....might look into it.