Jump to content

Couple of questions for a complete newbie


guile
 Share

Recommended Posts

Are there any people out there with a strictly "Triple Head" business? I guess where I'm going with this is why would a lot of people use 1 and 2 head machines when a nice triple would do?

Next question. I know this is not an easy question to answer but approx. how many machines/locations would it take to (realistically) generate $100k per year?

 

Thanks in advance.

g

Link to comment
Share on other sites

Guile, first off welcome to Vendiscuss. 

     About 80% of my machines are triples, the others are just gumball machines.  The thing with triples is that there is a higher chance of spoilage.  If you have a single head in a dud location and the product goes bad you're out just that product, but in a triple you're out 3 products.  You need higher traffic locations for triples to do well.

     The average a month is about $7 a head so a triple should average $21 a month to be considered in a good location.  Having said this it would take about  397 locations doing "average" to gross $100,000 a year ($100,000/21= 4,762.  4,762/12 months= 397).  Now product costs are about 25% so you really looking at $75,000 net. 

Hope this helps.

Link to comment
Share on other sites

I'll add to this also. I currently have only triples - 27 of them. However, I am about to buy some single heads that can be converted into doubles if necessary.

Why? Well, my plan is to place triples initially. If all heads do well, great. If I see it is a place that can't support a triple I'll put a single or double there.

Ideally I will have all triples, though.

On this board you'll get wildly different answers as to single vs. double vs. triple. I believe the "real" answer is whatever works for *you* in *your* location is the best :)

As for 100K, again, people make all sorts of profit on each machine. I am like Gabe in that if I can pull $20+ from each of my triple I will be happy, but there are others on this board who do much better than that. The key is the location.

Good luck!

Kevin

Link to comment
Share on other sites

I make over $100k /year. We make the bulk of our profit off 3-head & 4-head machines; we have a whole assortment of brands of machines that we use. We also have coke & snack machines that make a ton of sales, but have less profit; though coke machines are definitely not bad!

Link to comment
Share on other sites

Guile, first off welcome to Vendiscuss. 

     About 80% of my machines are triples, the others are just gumball machines.  The thing with triples is that there is a higher chance of spoilage.  If you have a single head in a dud location and the product goes bad you're out just that product, but in a triple you're out 3 products.  You need higher traffic locations for triples to do well.

     The average a month is about $7 a head so a triple should average $21 a month to be considered in a good location.  Having said this it would take about  397 locations doing "average" to gross $100,000 a year ($100,000/21= 4,762.  4,762/12 months= 397).  Now product costs are about 25% so you really looking at $75,000 net. 

Hope this helps.

Excellent info and makes a LOT of sense!! (almost like one of those "duh" moments you don't think about, until you realize your losing product of coarse).
Link to comment
Share on other sites

I make over $100k /year. We make the bulk of our profit off 3-head & 4-head machines; we have a whole assortment of brands of machines that we use. We also have coke & snack machines that make a ton of sales, but have less profit; though coke machines are definitely not bad!

Interesting. Question. Approx how many bulk candy machines are you running? While I do think soda and snack are something to consider in the future, I feel there are probably a lot less headaches with candy (not that I don't think I'll even encounter problems). I just think between possible refridge unit issues, lugging HEAVY/LARGE cases of soda, more difficulty securing locations, less profit margin (although that too depends on a lot of factors) and hauling huge machines, bulk candy seems (and always has) MUCH more appealing to me.

Thanks,

g

Posted Image

Link to comment
Share on other sites

As an example from one of the placements that a locator got me. I had placed a few machines by myself but got busy at work so I had a locator get me two spots. I went to the first one and it was this dumpy auto body shop. Two chairs in the waiting room with a small desk for the office girl and a 5 gallon water cooler. I had one double that I ordered and had brought along thinking this place might not be able to support it. It had 4-5 workers and maybe 800 sqft to work inside. At the worst I thought I can get it replaced for non performing or make it a single. It was all we could do to squeeze it in. I put M&M's and gumballs in to try. Well it turns out the owner loves M&M's and someone really likes gumballs. That double does over $20 a month average. The new girl at the desk wished that I could put Reeses' in I said sure. So I ordered them a triple GMW (see my review in the review section) and swapped that one out. Now I could have ordered another single but I would need a triple bracket too. If Seaga still sold them in green and not the new chrome I would have considered it as the cheaper route but I wanted to try the GMW one out any way. I have 2 DI/Certs and one Seaga double, the other 6 are triples. My theory is a 2/3 blend. I use 2/3 triples and 1/3 doubles. Now I just need to find a home for this lucky double.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...