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WHAT HAPPENS WHEN INFLATION HITS?


fredfarmer775

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Posted

Do any of you guys who are into bulk candy machines ever worry about inflation? If you've spent all that money on machines but the price for a gumball (or any other small candy) rises over your cost of doing business, what then? I've thought a whole lot myself about getting into the bulk candy business because I think it would be an awesome way to make a living but the inflation worries always makes me pull back from doing it. Any thoughts here?

Posted

I am building mostly bulk, will branch into other things as funds permit.(diversity) Will use higher mechs when the time comes. Dba's will come to more machines. And card readers will more and more earn there place as the times as at some point the economy will go completly cashless. No need to worry about tomorrow, as our worry won't change a thing. Do what is in your power with what you can, adjust and change when the times come to do so. If vending ever becomes obsolete which I doubt it ever will, then take your money and go into a different business. Until these things happen, if at all, achieve what you can!

Posted

Vending Experts, 

          You said you are switching to card readers for bulk candy??? That sounds incredibly expensive to do. Wouldn't the card reader and service itself cost close to the total amount of the machine and on top of that wouldn't you would have to run AC power from whatever location you're using. I don't know if a lot of places would allow that with just a charity sticker on the machine. You'd have to then pay them a commission.

Posted

your talking about now- i thought that this thread was about the future, when technology is going to develop to be cheaper.

Posted

No I was just generally speaking. I thought this was hypothetical and in the future. I don't believe that bulk vending is going anywhere in the near future. Yes the ACC is a current bulk vending machine with a dba. If the market demanded it, they could put a card reader on one, im sure. In the future if coins where to disappear, dba's and card readers would become more prevalent.

Posted

your talking about now- i thought that this thread was about the future, when technology is going to develop to be cheaper.

Think about what you just wrote. In the future kids wont be interested in buying a crabby plastic ring, a lot of them are not now, they have become too sophisticated. Now a Chicken machine with blink may have legs (no pun intended). But there better be something in it thats worth having.

Posted

Inflation has already hit.  In 2008 the real estate bubble bursted.  Every year, a new bubble bust.  Inflation is an ongoing process and cannot be stopped.  The dollar is worth a lot less than it was in the 1980's.  It will continue decrease.  Things just cost more these days.  Most people don't realize that the dollar is worth about a quarter, but they will catch on.  So we used to pay $.25 cents for a candy bar 30 years ago that sells today for $$1.25.  That has been a part of life forever.  When we first started this country, a loaf of bread was worth about $ .02 cents.  Not it is worth $2.00.  That is just a part of life.  As the value of the dollar goes down, people will realize that the $.25 cent candy bar is the same as the $.1.25 candy bar today.  As time passes, the price of life goes up. That is inflation. We can't be expected to sell a gumball for $.05 cents anymore.  Nor can we sell a Nestles Crunch for $.25 cents, when most markets are selling them for $1.25.  Inflation has been a part of life since the beginning of time and will not cease.   Plainly, the economy sucks. and we just have to deal with it just like evetyone else.

Posted

Do any of you guys who are into bulk candy machines ever worry about inflation? If you've spent all that money on machines but the price for a gumball (or any other small candy) rises over your cost of doing business, what then? I've thought a whole lot myself about getting into the bulk candy business because I think it would be an awesome way to make a living but the inflation worries always makes me pull back from doing it. Any thoughts here?

 

Inflation affects every business.

If you are going to own a business, your cost of doing business and how it's impacted by inflation is just another of the million things there is to worry about.

 

However, there are A LOT of vendors with successful vending businesses running profitable routes...and they will continue to do so for the foreseeable future no matter the affects of inflation.

You can be one of them if you spend more time reading through this forum and following the advice given by experienced vendors.

Posted

Just so you guys know the federal reserve allows 3% inflation a year. Sorry I havr been drinking but that is the average inflation rater that goes up a year. 

Posted

Inflation happens because politicians area always spending more than the electorate will bear in taxes.   The way they do that is to print more money and borrow more money.  It's called deficit spending and it's how they get themselves elected!...and it's been going on a long time.

 

The good news is....we have adjustable candy wheels and coin mechs with .50, .75, and 1.00....And one day maybe the dollar bill will be replaced by the dollar coin and we will have 1, 2, 3, and 4 dollar mechs.

Posted

Do any of you guys who are into bulk candy machines ever worry about inflation? If you've spent all that money on machines but the price for a gumball (or any other small candy) rises over your cost of doing business, what then? I've thought a whole lot myself about getting into the bulk candy business because I think it would be an awesome way to make a living but the inflation worries always makes me pull back from doing it. Any thoughts here?

With bulk candy machines, flexibility is key in my opinion. As well as inflation, sugar, cocoa, peanuts, oil etc are all commodities and they rise and fall and affect product cost. I think the main thing is to know your costs and product averages and, like any good businessman, adjust these as needed to ensure profitability.

Posted

I think there will always be quarter machines out there, what is sold in them may change some more but you just have to be more creative in the ways you save in other areas.

there is very little we can do about the candy cost.

 

  • keeps routes closer together to save on fuel,
  • minimize your selections so you stock less inventory.
  • if your dealing with triples consider double or singles where you can
  • be diligent about sales on candy and stock up when it happens
  • go for quality not quantity, more locations doesn't mean more money!

thats my .02

Posted

all the more reason to push for a 1 dollar coin!  One of the nice things about working in Canada.  I think with sugar being the price it is, you don;t have to worry about candy going up drastically in price anytime soon.

Posted

all the more reason to push for a 1 dollar coin!  One of the nice things about working in Canada.  I think with sugar being the price it is, you don;t have to worry about candy going up drastically in price anytime soon.

Sugar is still a commodity and price is related to production and crops just like cocoa and peanuts etc. One bad season and prices spike. Plus you got oil prices which effect delivery cost. Costs go up, costs come down, just got to roll with it.

Posted

all the more reason to push for a 1 dollar coin!  One of the nice things about working in Canada.  I think with sugar being the price it is, you don;t have to worry about candy going up drastically in price anytime soon.

No thanks. gas is about 5.00 per gallon in Canada and has much higher taxes. 

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