Controlling Product Cost

[sweetgypsy]

I am looking for a good system for keeping my candy inventory lean and mean. I'm curious what type of inventory systems you fellow vendors are using.

I just signed up for Vend Trak and like it very much. It allows you to put a unit next to the candy you are using in each canister. My current system is just winging it. Most locations, I fill half way, Busy ones to the top. I talked with another vender who has an employee and he mentioned using a measuring stick to get a sort of exact volume. He also said a 60-90 day is the way to go. It makes me a little uncomfortable, but I am switching to a 45 day cycle and then going out from there. 

I'm putting more machines on the street and growing fast and have all the expenses associated with an expansion and a new business. It's a little frightening to see the money going out, but I believe bulk vending is a good long term plan and I want to stick with it.

I appreciate any wisdom you can send my way. I'm having fun but it's also scary and I want to do well.

Thanks, Beth

 

 

 

[Beer980]

It depends on what machines you have for measuring the product in each. Some of my triples have a metal divider between the canisters. I use a Sharpie to make 1 inch marks from the bottom up. I number every other one starting with 1 at the bottom. I do the same inside my Vendstar canisters. Tape a index card on the inside of the coin door with 3 sections for the 3 products. Fill it to maybe 5 or so and mark it on the card. When you came back to check it, fill it to maybe 1 above where it was last time unless it is nearly empty. Example: if M&M's went from a 6 to a 3 then fill it to a 7. If next time it only goes to 5 the fill to a 6 YMMV. You can bring in a small pad to record the results to enter online also.

[kdeckels]

I don't have any wisdom, but I see you have a 100 machine goal by the end of the year.  Are you at 15 now, or is that an old #?  I hear what you say about frightening; I've never spent $200 on candy in one visit to a store.

I think I will start out filling the machines each halfway, & plan a 4 wk check up when I'm just starting out. 

[sweetgypsy]

Thanks Beer980, that's just the kind of info I need. I will try your system immediately and see how it works for me. I appreciate you taking the time to answer. Everyone loves the debate about what machine is best but it doesn't matter what brand you use if you can't control your product cost.

kdeckels, I bought a route with about 31 machines and I think  16 original locations for $3000. I say about and think because a couple machines were only part and I closed out a couple of the original locations because they were way across town. I just bought 11 triple vends off Craig's List for $500. I'm still canibalizing everything but I should end up with about 38 working machines.

Currently I have 25 placed and Ethical owes me 6 locations which I've been waiting on. Rob, from Ethical, is a nice guy, but he's having some problems.

I just put most of my profit/loss info in the Vend Trak system and it is scary to see the numbers. I have a lot of cash going out and not a lot coming in. I think we just need to have faith. If you build it, they will come.

Thanks, Beth

  

[Beer980]

Ideas are free from us all, that is why we are mambers here. Also it helps to keep a log of how much each of your products average ved is for the settings on your different machines. I have a chart in my notebook I made of what setting I use for a particular product for each machine type I have. Well with your plans you will see a lot go out but it will come back. Take a month or so off to build up some money if you need too. I decided to take a two cycle break and pay myself. I have been turning the profit for a good four months now. I decided to buy myself a nice toy Wednesday for my hard work.

[sweetgypsy]

Yeah, I was thinking of taking the summer off to regroup financially and then pump it up come fall. It's pretty brutal here in Las Vegas, two minutes in the sun and my candy will be goop.

What nice toy did you buy yourself?

Beth

 

[davidsurvz]

Hey Beer,

That is a great idea. Thanks for the info. I am not as worried about tracking the ammounts as I was previously. I am concentrating more right now on getting the rest of my fleet located. After I get my machines out I am planning on fine tuning the route over the summer.

David

[kcinnick]

Getting located seems to be the hardest part....

[Beer980]

I bought myself a nice Piper Cub electric RC airplane. I have been wanting to get into the hobby for awhile. I was at a local RC air show last weekend and I won a plane in the raffle. Problem was it had to be built from scratch and needed an engine, fuel, remote control, batteries, etc. So I went to the store that donated it and they gave me credit. I traded up to a different plane which was a complete system for $100.

[Beer980]

David I am not real worried about precise vend ammounts either. I just keep track so I can set a machine up for the candy they want and to keep the portions in control on all the different machines I have.

[davidsurvz]

I will be a little more picky when we finally get all of our machines out. I think you have a great idea though.