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Energy Vending


BluePlate

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Ok, Ok......I've been thinking about it.  Energy products are hot.  I'm not too keen on any of the product that are out there.  I wanted to start a discussion.  What would get you into vending an energy product?  Low cost machine?  Low price entry level?  Here is my perfect situation:

1.  Machine must be around $150-$200

2.  When energy products are not hot anymore, I can use the machine for something else.

3.  I can buy product 1 case at a time.

4.  Product must work (give you energy kick), Product must have some reasonable taste.

Comments?

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I think it comes down to low cost all around. Reasonable machine prices and low product cost with a high return. Non working product should be a given and will take care of itself in time. Low cost or limited free samples would help. I think the level that people will pay for a product is somewhat low. You can say look at energy drinks and how much they cost. I think part of that market likes to drink it and it is sort of a status symbol. Downing a pill or chewing a gum does not have that "look at me" I am getting hyped up appearance.

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Energy shots will vend from existing snack machines and that is how I will vend them. I wouldn't recommend buying a dedicated machine for them.

I use 5 hour energy almost every day as a chaser with my morning coffee. They cost me $3.00 at my local convenience store and it is well worth it. I've been drinking the 5 hours long before I thought about vending them and they are highly recommended in automatic merchandiser as a $3.00 vend.

I'm am not sure what the COGs is for them but Luckner said his brand is $1.10 per bottle. (Keep in mind I'm not endorsing Luckner or his product. I am only using his figure as a comparison)

I wouldn't consider vending them in a "bulk type" machine until you can do it in any machine with a simple, low cost upgrade of some sort.

Steve

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  • 5 weeks later...

Guys,

Our product is now in some 7/11's and many convenient stores. The sell through rate is pretty good, We are not a 5 hour yet but we will get there. The product sells retail for $3 and same for out of the vending machines. If you want to vend them out of your snack machines that is ok, we also have retail boxes that we ship them to you in. I agree with you guys about a machine that sells one type of product but I don't think energy shots are going anywhere. The shelves keep growing and having a unique machine that sells only energy shots have many benefits. They have a 2 year shelf life, a high profit margin and you don't need to inventory a whole snack machine to sell them. We see our business doubling every week. I am sure many of the other energy shot companies wish they can sell an energy shot without a cash register but so far we are the only ones. We credit our growth to our vending machine made for the 2 ounce shot.  Most people that have picked up our product have done it because of our vending machines even a chain of gas stations. You would think they would want to sell it on the counter but  they want the vending machines and they want to own them. 

We know we have something good. Stocking distributors are calling us to stock our vending machines in there local warehouses.

We also have our energy chews and we will have boxes made soon so you do not need a bulk machine to sell them in. You will be able to add them to your snack machines.

The comment that gum and candy are not as popular as drinks is true. Once we got into our 2 ounce drink, its like a whole other world. They sell so much faster than the candy products. I think its the taste. The shot market has taken 10 percent away from the big drinks already and is continuing to grow.

If you guys have suggestions that will help us to become a better company they are all welcome. We have many new products on the horizon. Energy products are here to stay and we hope that you guys will take advantage of it with some of our products.

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You can vend the energy chews in a capsule but not the energy shots the chews are 15 cents they come in a case of 1440, the shots come in a case of 216 and pricing starts at $1.25 depends on quantity. You can see the product on our website or call us at 951-693-2000. Let them know you heard about us on this forum for special pricing.

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lucks

can you vend the product in a 1 inch cap ?

how mauch per each ?

how many pices in a box case etc ?

do supply any clip art so we can make our own dispaly card ?

Simon

Simon,

I've been looking for a good 1" energy product.  The best I think I found was Jolt gum.  I have emailed them and called a few times without an answer.  The best price I found was on Costco's website @ about 9 cents a piece.  It is a good product.

 

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