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Chocolate prices


newheart53

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I just heard on the news the chocolate prices are going up by about 20 to 25%. So I wonder what m&m prices are going to do? Not making much profit on them now and don't think we can take much of an increase.

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Wow. If this happened it would probably be the straw that broke the camels back for me and PMM's.

I vent 6 pieces which puts my gross per 56oz. bag at $22.50 (44% COG).

A 20-25% increase would raise the cost per bag in my area from $9.88 currently to $12.00-12.50 and well over 50% COG. I wouldn't vend them anymore at that price regardless of the requests to do so in all but the BEST locations.

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a 20% increase in the overall cost of PMM would put the PMM at the level of crack cocaine.

I'll be selling baggies of several PMM for $10 on the corner at that point.

 

I've been phasing out candy (other than runts and gb) from my route.

But, I've been doing it more slowly than I should be.

This kind of increase would just about push me out of that area of the business completely.

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I've been thinking of going to .50 on PMM"s and M&M's. The news may help me do this. I can also increase my vend amounts and everybody will be happy happy happy.

 

Not to rain on your parade.

But, customers who complain about candy portions for .25 are likely to complain even more readily about the amount of candy you vend for .50....and some who were ok with the vend amounts at .25 will now complain because they are paying double and not likely getting double the vend portion.

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I think that I'll just discontinue m&m if that happens because I considered .50 but with the increase in price I would only be able to give 8 pieces, and I'm sure people would complain. Easier to explain why my machines don't have them any more.

 

a 20% increase in the overall cost of PMM would put the PMM at the level of crack cocaine.

I'll be selling baggies of several PMM for $10 on the corner at that point.

 

I've been phasing out candy (other than runts and gb) from my route.

But, I've been doing it more slowly than I should be.

This kind of increase would just about push me out of that area of the business completely.

Sherlock, what are yo going too if your doing away with candy? My machine are in factories and offices more toward adults, very few kids.

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I was talking about a larger vending portion for .50. Pay more get more.

 

Are you giving twice as much for .50 as you do for .25?

If so -- then what's the point of increasing your price-points?

If not -- then people will complain about paying 2x the cash for less than 2x the vend portion.

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Sherlock, what are yo going too if your doing away with candy? My machine are in factories and offices more toward adults, very few kids.

 

Actually, I'm not switching over to anything.

The majority of my route has been toys/flat/BB for quite some time.

 

I still have quite a few of those locations that require candy so I am nowhere near getting out of candy altogether.

And I hope to always do GB and hard candy like runts.

So to clarify -- I'm just not interested in choco candy and things like skittles and RP.

 

So, I do not accept any more locations that require candy (like those adult only locations you describe).

As I lose candy spots they become less and less a part of my route and that's why I consider myself in the process of leaving that part of bulk vending.

However, that method is a very slow way of transition.

Another spike in candy prices and I may proactively start to pull machines from those adult-only spots that won't support gb and hard candy.

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Wow. If this happened it would probably be the straw that broke the camels back for me and PMM's.

I vent 6 pieces which puts my gross per 56oz. bag at $22.50 (44% COG).

A 20-25% increase would raise the cost per bag in my area from $9.88 currently to $12.00-12.50 and well over 50% COG. I wouldn't vend them anymore at that price regardless of the requests to do so in all but the BEST locations.

 

 

Your numbers are off unless you are paying more for the ($8.88) 56 oz. bag

I vend 7 pieces which grosses $24.50  which comes to a 36% COGS. My opinion is if they is more cash in the cash box it probably equates to more profit per collection.

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Your numbers are off unless you are paying more for the ($8.88) 56 oz. bag

I vend 7 pieces which grosses $24.50  which comes to a 36% COGS. My opinion is if they is more cash in the cash box it probably equates to more profit per collection.

I am - I pay $9.88 at Sams.

PMM's are .1oz. each so there are approximately 560 pieces a bag. If you are vending 7pc. you are grossing exactly $20/bag. So your COG is 44.4% even if you are only paying $8.88.

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I ran a whole bag thru the machine and it came to a gross sales of $24.50. Average pieces were 6-8

I don't know what to tell you. There's approximately 560 pieces in a bag = 56oz. so...

Maybe you didn't really average 6-8 pieces. All I know is that 7 pcs per vend is almost exactly 80 vends.

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You guys had me curious, I just grabbed handfuls and weighed 7 Peanut M&M's at a time (about 15 times) and 13 of 15 the weight was .55oz, so 56 / .55 = 101.8, that is roughly $25.00. 

 

* Disclaimer - I was using a cheap scale but it weighs my quarters accurately every time

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You guys had me curious, I just grabbed handfuls and weighed 7 Peanut M&M's at a time (about 15 times) and 13 of 15 the weight was .55oz, so 56 / .55 = 101.8, that is roughly $25.00. 

 

* Disclaimer - I was using a cheap scale but it weighs my quarters accurately every time

 

Well that's more in line with vendmania's numbers so maybe I should re-check as well!  It's been awhile since I weighed them out, but I specifically remember 10 = 1oz consistently.  But if two of you are in agreement I better double check.  

 

Personally, I'd love to be wrong because it would mean my COG are actually well under 35% as opposed to what I originally believed.

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The Sam's clubs here (Rochester, NY) have PMM for $7.29 per 56oz bag right now. Very cheap. Also, if you are a veteran you can purchase whatever you like right now without a membership! They told me they are doing that to help the military since all of the PXs/BXs are closed due to the government shutdown. I believe it's a temporary thing they are doing but very helpful anyhow. Saved me from getting a membership since I generally go to BJs instead.

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The real test is not about the weight but running a bag through the machine and see what the gross sales would be.

I guess counting the whole bag would give you the exact average per vend also.

I have my setting on notch 3 using a northwestern.

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OK did another test , can't believe I counted the whole bag.

Here is what I came up with.

 

A bag cost $8.87 and total pieces 639.

The average pieces vended were  6.79  bringing in $23.50 with a product cost of 38%.

 

If it is charity and sells then 62% profit is good. Heck capsules with commission is probably about 20% less.

 

Fred

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That's why I don't understand the fuss about vending M&M's. As long as your not paying commission and control spoilage they make decent money and sell a lot better than cheaper candy, with the exception of skittles and gumballs in my area.

The problem at my house is that the "quality control department" works overtime so my COG's typically run a little higher than normal.

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Peanut M&Ms vend like crack.  I don't mind using chocolate and candy products as much in the charity locations. The commission locations you obviously making a lot less. BUT, there's a million reasons, like keeping an excellent location, to give the chocolate crack mamas what they want especially if you're making it up a selling 3 cent gumball for 25 cents. Don't you agree? 

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