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antoniocinisi
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A few blocks from where I live, there is a vendor with Beaver machines in a car wash.  He has two racks ( one in front of car wash and one in back ).  It's all candy heads.  He vends for 50 cents.

I am leaning towards changing mechs to 50 cents and increasing the portion.  I am still small enough ( 60 machines ) to make changes fairly easily.

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Thanks for that post, Antonio. It will be interesting to see how much of an increase it will be. In the past month and a half, the price of gas has decreased a total of 60 cents around here. Hopefully this will offset the candy increase. I hate the thought of having to adjust portions on 12 locations on site. I can't imagine how much time it will take the ones that have more than 20 locations.

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Let's see here 7.88/56oz bag at Sam's Club would be about $8.83/56oz bag with a 12% increase. 56oz will take in $28.oo worth of vends at 1/2oz per vend.

I think I am going to wait and see what other vendors around here are doing first. I live in a value market so it is harder to raise prices on anything. The can soda machines are still only $0.50-$0.55. It's hard to justify a handful of M&M'a at the same price as a can of pop(soda for you non-midwestern people).

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If you are vending 10 peanut m&m's $.25 now and the price goes up 12% for a 56oz. bag by $.95, wouldn't that be 1.2 less m&m's per vend to make up for the price increase? I don't think any machine's wheels can adjust that precisely. Since the m&m's are different sizes the amount of pieces is always different anyway.

Reese's would be easier to reduce because they are so small. You get a pretty good handful so customers wouldn't even notice the reduction.

I am going to stay with the .25 price-point for now. Raising it to $.50 would be to much for right now. The cost of new equipment, (mech's) would outweigh the price increase.

Gary

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I can not say for all machines but PMM's in a Beaver vend extremely consistently, I currently have mine with a full wing notch 2 and it dispenses 5 at a time. The max I can vend is 12 with a cut wing at notch 4 full open. So if I was to move to a $0.50 vend I would be able to vend at my prefer product cost of 8 PMM's @ 32.5% instead of 5 @ 41%. Which in turn would increase profit, keeping the same product cost would increase cash flow assuming the same amount of vends also.

Here is a excel sheet that I setup to see what each setting would dispense for each product. Using this in cojunction with the vend priceing spreadsheet really helps in planning what is profitable and what is not.

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Grumpy,

What affect do you think rising the price-point to $.50 would have on total vends for a month. If you increase the number of pmm's by doubling to the newly reduced amount, say 5 pieces to 10 pieces, do you think customers would buy 10 at $.50?

I started out vending about 5-6 @ $.25 and everyone complained that it was not enough for a quarter so I increased to 8-10. Now that the price went up, I can't go to 16-20 for $.50 without giving them away. I am happy that I have cut back the number of heads I use for Pm&m's a while ago.

Note: I wonder what price the single serve bags will go to or will they just take weight out on them. It will be very interesting to see what will happen with this 12% increase.

Gary

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Price will not really effect total vends if there is no choice, even when there is it is unlikely people will stop buying their favorite product. I have been running a test on a double set-up quarter and a 8 select loonie machine for a year now. Number of vends are almost equal each month in comparison to each other, this leads me to believe it is the product choice, and what change is in the pocket. PMM's are selling @ $1.00 for 8.

Why you would vend 5-8 pieces is beyond me, I vend 5 but my cost is $4.00 a lb + shipping and charity. In the beginning you were going for too large of a profit margin, you may now be too low. People always complain they do not get enough for their money. As for cutting back PMM's in heads, I think that is a good move, why should we help the Mar's company get richer, as our margins shrink.

As for product buying size, does not matter. What matters is the cost per pound, there is 188 PMM's on average in each pound, so buy it by the pound or the bulk case and figure what is an acceptable margin for you.

And remeber bulk vending is not a designation but an impulse buy.  I have never heard anybody say "Hey Mary lou lets go to Bobby Joe's garage and try that new quarter vending machine, I hear they give 8 PMM's instead of the lousy 6 we get at Frank's place." :)

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I am vending 5-6 per vend with no complaints. In fact I am doing very well at one of my best locations with Pmm's set at 5-6 / vend. If that is what cost dictates then that is the way it is. The option of a 50 cent mech I think is inevitable eventually. If cost goes up prices go up that's business.

David

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Grumpy,

Why?

We discussed this topic back in March 08 and had 54 replies. http://www.vendiscuss.com/forums/view_topic.php?id=1266&forum_id=1&highlight=vending+portions

The questions was asked: Do you think this portion is enough?

After all those replies, it had me thinking that I was not giving out enough product. I was doing 5-6 pnt m&m's and went to 7-9 after the March posts.

Gary

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Ok Gary using the numbers provided by master key a cost of 7.88 for 3.5Lbs of PMM's with an average of 188 PMM's per pound.

Vend amount

5 is 23.95%COGS

7 is 33.53%COGS

9 is 43.12% COGS

So in my opinion at that time 5 or 6 would be correct amount. In that post you talked about Mike&Ike, 200 is the average per pound (consensus of averages I found on the net) and ROI. ROI has no place in goods sold, pick a percentage for COGS and aim for it, use that cheesy percentage pricing excel sheet in tools. (most per pound counts are correct but look for other data if you wish)

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