Dreaded13 Posted April 25, 2014 Share Posted April 25, 2014 Now let me start by saying I've done a lot of reading and I'm on the verge of settling and buying a small handfull of machines. Until I stumbled on a semi old thread talking about how inflation and the cost of goods is the doom of candy machines as we know it. That the bulk industry is going to be going in the credit card readers and such. I'm nervous about building this business up and just see me having to sell off all my candy machines in less than two years. Is that outlook that gloom? Or is it appear to be more stable than what it looked like it would be two years ago? If you had to start all over TODAY would you buy candy machines? Link to comment Share on other sites More sharing options...
orsd Posted April 25, 2014 Share Posted April 25, 2014 That's why most full time pros only do toys and cranes / redemption with only gum and maybe sugar based candy as thier only candy Also, good machines like oak, eagle, northwestern, aa global, beaver can be converted to toys with 3 simple part changes Link to comment Share on other sites More sharing options...
musser Posted April 25, 2014 Share Posted April 25, 2014 Single head gum, but lots of people argue about this. Link to comment Share on other sites More sharing options...
orsd Posted April 25, 2014 Share Posted April 25, 2014 Or what musser said, he's probably been vending before I was even born... Link to comment Share on other sites More sharing options...
bhfisher Posted April 25, 2014 Share Posted April 25, 2014 Frankly, I thought about this too. But ignored it. It will be sometime before the 25 cent machines are obsolete. Almost products can still make money at 25 cents. M&M's might be the exception some day, but there are other product to replace them. Guys here will tell you to skip candy and go directly to stickers and toys. But I for one don't have any stops where toys might work. The only plus to toys is you don't need to visit your locations much and no spoilage. I'm happy to visit every 30 to 40 days. Bart Link to comment Share on other sites More sharing options...
jimbo7256 Posted April 25, 2014 Share Posted April 25, 2014 90 % of my machines are candy. I don't see candy becoming obsolete for many years. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Rick Posted April 25, 2014 Share Posted April 25, 2014 People have been saying bulk vending ain't what it used to be since the 2nd day of bulk vending. If that's the case, why do so many people do it? Bulk isn't going anywhere. Link to comment Share on other sites More sharing options...
mission vending Posted April 25, 2014 Share Posted April 25, 2014 Now let me start by saying I've done a lot of reading and I'm on the verge of settling and buying a small handfull of machines. Until I stumbled on a semi old thread talking about how inflation and the cost of goods is the doom of candy machines as we know it. That the bulk industry is going to be going in the credit card readers and such. I'm nervous about building this business up and just see me having to sell off all my candy machines in less than two years. Is that outlook that gloom? Or is it appear to be more stable than what it looked like it would be two years ago? If you had to start all over TODAY would you buy candy machines? I don't do bulk but I read a lot of bulk threads..... My assessment is that if you want to do this full time then toys, stickers, racks and cranes are a absolute necessity to survive long term. If this is going to be more of a sideline source of income then going primarily candy, IF DONE CORRECTLY, can work for you. That means buying good used equipment, keeping your locations close together and moving to .50 cent vends when and where appropriate. Link to comment Share on other sites More sharing options...
sherlock Posted April 25, 2014 Share Posted April 25, 2014 The answers to your questions depend heavily on your location. If you are not in my area, then bulk vending is still a sound business start-up provided that you follow the advice given by experienced vendors. Like most any other start-up, ignoring the advice of those who have previously tread the path you're on is often the quickest way to failure. Start small to keep your start-up both low-cost and easy to manage. Once you have a grasp of how the industry works and know this is something you want to do long-term, then you can grow your route at the rate that best suits your needs/finances. Realize it's not a get-rich-quick business and keep your business organized, this is still a GREAT way to make a very good living. However, if you are in my area, then bulk is the worst possible decision you could make regarding a business start-up. The industry is in such a downward turn there is no hope of saving it and you would be better off investing in ANYTHING other than a bulk vending route. If you have great locations or awesome equipment deals locked up, I recommend you sell while the selling is good and contact me via PM...I will get those money-pits off of your hands. Link to comment Share on other sites More sharing options...
dromero Posted April 25, 2014 Share Posted April 25, 2014 I am just starting on this business. And yes high inflation is a risk, but you can simply vend less candy as well as buy mechanisms which take 2 3 or 4 coins or buy more machines to fight inflation. Link to comment Share on other sites More sharing options...
davco1 Posted April 26, 2014 Share Posted April 26, 2014 Oh no...."The Sky is Falling, The Sky is Falling" says Chicken Little Link to comment Share on other sites More sharing options...
rodney69 Posted April 26, 2014 Share Posted April 26, 2014 Anything that makes your time worth while is worth doing! If you want to grow bigger eventually, then do as everyone suggested, start small and grow out. There has been a change in how much the product cost is, but like you mentioned, you can give less, or you can add .50 coin mechs. Sure everything is headed that way, but we won't be beyond .50 mechs for candy for years to come! I still vend .25, but have also started incorporating .50's in specific locations and putting in higher end stuff. Like for offices, putting in dark chocolate acai berry's and so on. The product cost is high, but still with in margin and it's a good way to start training locations to use the .50's to eventually come. I still think it will be awhile. The only one's that have been necessary are the one's that have a high over head like malls and contracted big stores. Also, the bigger you get, the bigger you buy, the cheaper it get's! Link to comment Share on other sites More sharing options...
dromero Posted April 26, 2014 Share Posted April 26, 2014 Anything that makes your time worth while is worth doing! If you want to grow bigger eventually, then do as everyone suggested, start small and grow out. There has been a change in how much the product cost is, but like you mentioned, you can give less, or you can add .50 coin mechs. Sure everything is headed that way, but we won't be beyond .50 mechs for candy for years to come! I still vend .25, but have also started incorporating .50's in specific locations and putting in higher end stuff. Like for offices, putting in dark chocolate acai berry's and so on. The product cost is high, but still with in margin and it's a good way to start training locations to use the .50's to eventually come. I still think it will be awhile. The only one's that have been necessary are the one's that have a high over head like malls and contracted big stores. Also, the bigger you get, the bigger you buy, the cheaper it get's! I mean ok lets say the business becomes obsolete in 10 to 15 years. SO what? We still have 10 years of a steady income which we could just reinvest in something else. Link to comment Share on other sites More sharing options...
Dreaded13 Posted April 26, 2014 Author Share Posted April 26, 2014 Thanks everyone for taking the time to respond! I'm placing in order this week for 2 NW 60's. Going to focuse on buying just singles. Going to do the locating myself and start very small. Going to also focuse on toys and gumballs. Link to comment Share on other sites More sharing options...
Rick Posted April 26, 2014 Share Posted April 26, 2014 Sounds like you're on the right track. Wishing you luck! Link to comment Share on other sites More sharing options...
hawksfan9325 Posted April 26, 2014 Share Posted April 26, 2014 I only do full line vending, but wanted to comment about not doing candy or snacks. I think that if you only do toys, and stickers, you limit yourself in terms of customers. How many adults are buying stickers and toys for themselves? On the contrary, adults will buy themselves mints, gum, M&M's, etc. Inflation on candy is like anything else, adjust your costs accordingly. You want to offer products for every demographic. I can't believe gumball machines are still 0.25¢, it's been like that for so long! Link to comment Share on other sites More sharing options...
Rick Posted April 26, 2014 Share Posted April 26, 2014 That's one way to look at it. An argument can also be made for keeping your service time per stop to a minimum. Link to comment Share on other sites More sharing options...
dromero Posted April 26, 2014 Share Posted April 26, 2014 What does service time have to do with this? I mean you can take 20 sec in each place but if the candy costs 1 dollar and you can only sell it at 25 cents u r in trouble. Link to comment Share on other sites More sharing options...
sherlock Posted April 26, 2014 Share Posted April 26, 2014 What does service time have to do with this? I mean you can take 20 sec in each place but if the candy costs 1 dollar and you can only sell it at 25 cents u r in trouble. I think you missed the point. No one is trying to make a case for selling product at a loss. Link to comment Share on other sites More sharing options...
orsd Posted April 26, 2014 Share Posted April 26, 2014 What does service time have to do with this? I mean you can take 20 sec in each place but if the candy costs 1 dollar and you can only sell it at 25 cents u r in trouble.Time is money so the goal is to make as much as you can in a unit of timeEx: you can work your arse off servicing 5 low performers that are miles apart and make 20 an hour or use the same hour and service racks and cranes and make 5-10 times that in an hour Link to comment Share on other sites More sharing options...
rodney69 Posted April 27, 2014 Share Posted April 27, 2014 I mean ok lets say the business becomes obsolete in 10 to 15 years. SO what? We still have 10 years of a steady income which we could just reinvest in something else. realistically, I doubt that in 10, 15 or even 20 years that machines will become obsolete. We may have to upgrade, but that's about it. I mean, eventually gumballs will sell for .50 for the common, but that is pretty far down the road. Link to comment Share on other sites More sharing options...
rodney69 Posted April 27, 2014 Share Posted April 27, 2014 Time is money so the goal is to make as much as you can in a unit of time Ex: you can work your arse off servicing 5 low performers that are miles apart and make 20 an hour or use the same hour and service racks and cranes and make 5-10 times that in an hour That's been my theory and why I went with 4 and 8 selection machines. Still do, might expand to small gumball machines, but I'm really ingrained on less travel and more money per stop. Link to comment Share on other sites More sharing options...
orsd Posted April 27, 2014 Share Posted April 27, 2014 Your money isn't in charity upturn stops its in racks with 6-10 single heads in big locations like groceries and buffets and cranes and redemption You could theoretically make the charity uturns and single gumball work if they are all in a strip mall so your time to service is reduced Link to comment Share on other sites More sharing options...
rodney69 Posted April 27, 2014 Share Posted April 27, 2014 That makes sense. The problem around my area is that there is a huge company that has the Willamette Valley locked up in contracts. I was going to venture in to racks, and even have a rack that I use with 2 4 selection Uturns in the front and a 3 or 4 selection flat on top. I only have a few of these, but I've been trying to expand them into restaurants and bigger places. Along with that comes a commission though. The big stores and buffet's here have a big corporation that that handles the contracts for them. They get 42% of the gross. Referring to Walmart, Safeway, Winco, Food 4 less and so on. I'm open to suggestions around this though. My goal is to get some racks and take the contracts in the restaurants. Link to comment Share on other sites More sharing options...
Rick Posted April 27, 2014 Share Posted April 27, 2014 A lot of us are talking in absolutes and I think that's a mistake. There's pros and cons to everything. It's a matter of figuring out what's most important to you and building a route to your strengths. A college student with full-time classes and 5 hrs a week to devote would probably find success with single gumball locations because there's ONE product to buy, it doesn't spoil easy, nice to transport, one type of wheel to buy, and no figuring commissions or multiple complicated expenses to factor in at tax time. A full-time bulk vendor with 40hrs/week might define success as 6-figure income from anything fewer than 200 locations, placing a premium on racks and amusement/redemption because he has the time, the storage space and cash-flow. So anybody saying THIS is the way to do it needs to take a step back. Success can be defined in many different ways. Link to comment Share on other sites More sharing options...
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