garnaout Posted May 14, 2013 Share Posted May 14, 2013 So I just started my vending business with three types of product (1) Reese (2) M&M Milk and (3) Skittles. Looking at the forum, it's recommended to sell 8 pieces of M&M and 10 of the other type. Looking at my profit margin, here's the breakdown: M&M Milk bag price at Sam's Club $9.28 (56 oz) which is around 715 pieces (more or less). Selling 8 pieces / vend for .25 cts that's $22.34 for the whole bag which is around $13.06 profit. Sounds like a bad deal no? At least compared to the gumball profit Link to comment Share on other sites More sharing options...
Toad Posted May 14, 2013 Share Posted May 14, 2013 Hard to best gumballs, they are just 10% product cost Link to comment Share on other sites More sharing options...
Toad Posted May 14, 2013 Share Posted May 14, 2013 There is a reason you don't see the big operators in wal-mart selling M&M's in their vending machines Link to comment Share on other sites More sharing options...
adog Posted May 14, 2013 Share Posted May 14, 2013 Alright a few things. First off chocolate is very expensive! Most of the bulk vendors try to stay away from it for that reason. We try to vend skittles, Runts, Mike n Ikes, Hot Tamales. Secondly your gunna wanna make sure that chart is right. If it is in the downloaded section it's off alittle. Secondly most members say normal M&M's milk don't do as good or don't sell at all. Peanut M&M's do way better. And most of us try to aim 4-5 of them. And thirdly your Cost of goos sold is way to higher! Your almost at 75% right there giving you close to a 25 percent markup/profit if they were all to sell. You wanna aim for your Cost of Goods Sold to be around 25% or below on average. However on average you'll probably be around 25%-30% REALISTICALLY. So then a bag of 6 dollar skittles you make a 24 dollar profit off of. Gross that is. You'll never make enough and probably not even worth your time if your only making 3 or 4 bucks because your vending to much candy or your cost of good sold percentage is to high! Link to comment Share on other sites More sharing options...
Rick Posted May 14, 2013 Share Posted May 14, 2013 I think your pieces per vend on the PMM are high. I try to stay in the 6-7 range and some guys even report that they vend 4-5 pc. successfully. So I think your gross sales per bag should be closer to $30 by tightening your candy wheel a notch. That would put your cost of goods right around 30%-33%. And no, that's not a bad deal when you consider that, on average, you will do as much business with PMM's as you do with the rest of your candy combined. Link to comment Share on other sites More sharing options...
garnaout Posted May 14, 2013 Author Share Posted May 14, 2013 any one can double check my calculations or at least the number of candy pieces (estimated) in a 56 oz M&M milk bag? Link to comment Share on other sites More sharing options...
Rick Posted May 14, 2013 Share Posted May 14, 2013 You said you're vending 8 pieces of M&M Milk? Plain M&M? or Peanut M&M? Let's make sure we're talking about the same thing here. Peanut M&M's are almost exactly 10 pieces per oz. so there would be 560 pieces per bag. Link to comment Share on other sites More sharing options...
garnaout Posted May 14, 2013 Author Share Posted May 14, 2013 no I'm vending plain... PMMs are way too $$$ Link to comment Share on other sites More sharing options...
Rick Posted May 14, 2013 Share Posted May 14, 2013 no I'm vending plain... PMMs are way too $$$ You are vending EIGHT plain M&M's?! Then your numbers are way off. Link to comment Share on other sites More sharing options...
garnaout Posted May 14, 2013 Author Share Posted May 14, 2013 I have one canister with Milk M&M and one canister with plain, the numbers I showed were Milk M&M... can you elaborate why my numbers are off? what are yours? Link to comment Share on other sites More sharing options...
Rick Posted May 14, 2013 Share Posted May 14, 2013 I'm sorry garnaout, I guess I have no idea what a milk M&M is. I thought they were plain M&M's. Link to comment Share on other sites More sharing options...
garnaout Posted May 14, 2013 Author Share Posted May 14, 2013 well they're all the same size no? the question is how many M&M pieces would a 56 oz bag contain? on average Link to comment Share on other sites More sharing options...
Rick Posted May 14, 2013 Share Posted May 14, 2013 well they're all the same size no? the question is how many M&M pieces would a 56 oz bag contain? on average How would I know? I don't even know what a milk M&M is so how would I know what size it is? No other M&M is the same size. Peanut M&M is bigger than the Peanut Butter M&M is bigger than the plain M&M is bigger than my ability to care about this topic anymore. I would suggest buying some of them, grab a digital scale, weigh them out and figure out the cost of goods. Keep all of you numbers in a notebook and you'll never have to guess what your costs are. You'll find it's worth the exercise. Link to comment Share on other sites More sharing options...
will.vend Posted May 14, 2013 Share Posted May 14, 2013 How would I know? I don't even know what a milk M&M is so how would I know what size it is? No other M&M is the same size. Peanut M&M is bigger than the Peanut Butter M&M is bigger than the plain M&M is bigger than my ability to care about this topic anymore. lol Link to comment Share on other sites More sharing options...
Toad Posted May 14, 2013 Share Posted May 14, 2013 Quality info, very helpful stuff! Link to comment Share on other sites More sharing options...
mainor5251 Posted May 14, 2013 Share Posted May 14, 2013 How would I know? I don't even know what a milk M&M is so how would I know what size it is? No other M&M is the same size. Peanut M&M is bigger than the Peanut Butter M&M is bigger than the plain M&M is bigger than my ability to care about this topic anymore. I would suggest buying some of them, grab a digital scale, weigh them out and figure out the cost of goods. Keep all of you numbers in a notebook and you'll never have to guess what your costs are. You'll find it's worth the exercise. At least post of the week Link to comment Share on other sites More sharing options...
Toad Posted May 14, 2013 Share Posted May 14, 2013 At least post of the week No, that chicken trailer was the post of the week Link to comment Share on other sites More sharing options...
garnaout Posted May 14, 2013 Author Share Posted May 14, 2013 alright here's an updated snapshot on the candy I am using. I am sure someone will find it helpful corrections are welcome cheers Link to comment Share on other sites More sharing options...
F J Vending Posted May 14, 2013 Share Posted May 14, 2013 Maybe post a picture of the bag of "M&M Milk" so everyone knows exactly what type of M&M's you are referring to, seems to be some confusion. Link to comment Share on other sites More sharing options...
treadmill Posted May 15, 2013 Share Posted May 15, 2013 If it's the dark color bag then it's plain m&m's he's talking about. Link to comment Share on other sites More sharing options...
garnaout Posted May 15, 2013 Author Share Posted May 15, 2013 yup plain M&M sorry for the confusion guys Link to comment Share on other sites More sharing options...
redfleet32 Posted May 15, 2013 Share Posted May 15, 2013 This thread was so entertaining I just donated $5 to the site for the free laughs! Link to comment Share on other sites More sharing options...
Lake Cities Vending Posted May 15, 2013 Share Posted May 15, 2013 How would I know? I don't even know what a milk M&M is so how would I know what size it is? No other M&M is the same size. Peanut M&M is bigger than the Peanut Butter M&M is bigger than the plain M&M is bigger than my ability to care about this topic anymore. I would suggest buying some of them, grab a digital scale, weigh them out and figure out the cost of goods. Keep all of you numbers in a notebook and you'll never have to guess what your costs are. You'll find it's worth the exercise. I've been on vacation for a week and now I see what I missed...lol Link to comment Share on other sites More sharing options...
Rick Posted May 16, 2013 Share Posted May 16, 2013 yup plain M&M sorry for the confusion guys All joking aside, good luck only vending 8 M&Ms - especially if you're banking on repeat customers like an employee break room. In terms of your product selection, I've had my best success with triples using only one Mars chocolate product and two lower cost bulk candies. So if you already have plain M&Ms don't do Reeses and vice versa. I would double my M&M vend to 16 pc and my other two products would be Hot Tamales, M&I, Skittles, Chewy Sprees, etc. to keep my overall COG under 30%. Link to comment Share on other sites More sharing options...
Tbuford Posted May 16, 2013 Share Posted May 16, 2013 alright here's an updated snapshot on the candy I am using. I am sure someone will find it helpful corrections are welcome cheers But I need the info on the milk M & M's. Can you please provide that info. Link to comment Share on other sites More sharing options...
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