Jump to content

Anyone figure out how profitable snacks are?


AngryChris

Recommended Posts

I think the majority of us here are capable of easily figuring out how profitable a soda machine is, regardless of what it sells, but what about snack machines?

 

The reason why I bring this up is because I noticed something strange as of January 1st, 2015 -- my COGS is about 50%, when it used to be closer to 57% 6 months ago.

 

Most of us are also aware that weather plays a factor in sales, and my soda sales HAVE gone done while my snack sales HAVE gone up, but to increase my profit margin THAT much would either mean my snack profits are far higher than I ever knew or many of my recent changes to my business (ie. cancelling a few slow accounts, doing better on rotating short-date products, etc..) have made a bigger impact than I thought.

 

The general consensus with vending is that soda sales are where you make your money... but that's because they usually generate more revenue than snack sales, the products usually last longer, they are EASIER to restock, and the machines are usually easier to work on and maintain.

 

What do you guys think?  Are snack sales often overlooked as good profit makers?  I know candy isn't!

Link to comment
Share on other sites

I'm definitely not a big, full-time vendor -- but I actually like snack vending much more than sodas. The factory locations I manage prefer soda bottles over cans, which means my margins are highest on snacks.

Link to comment
Share on other sites

I think the majority of us here are capable of easily figuring out how profitable a soda machine is, regardless of what it sells, but what about snack machines?

 

The reason why I bring this up is because I noticed something strange as of January 1st, 2015 -- my COGS is about 50%, when it used to be closer to 57% 6 months ago.

 

Most of us are also aware that weather plays a factor in sales, and my soda sales HAVE gone done while my snack sales HAVE gone up, but to increase my profit margin THAT much would either mean my snack profits are far higher than I ever knew or many of my recent changes to my business (ie. cancelling a few slow accounts, doing better on rotating short-date products, etc..) have made a bigger impact than I thought.

 

The general consensus with vending is that soda sales are where you make your money... but that's because they usually generate more revenue than snack sales, the products usually last longer, they are EASIER to restock, and the machines are usually easier to work on and maintain.

 

What do you guys think?  Are snack sales often overlooked as good profit makers?  I know candy isn't!

I've always seen snacks as the necessary evil of full line vending.   I'm not saying that I don't make any money off my snack machines but I'd much rather do straight soda.  The problem with that is that the highest grossing soda machine accounts will always require a snack machine, so I just grin and bear it

Link to comment
Share on other sites

Myself, I have found that I make most of my sales from snacks (chips).

then soda, then chocolate/candy.

I wont say its 2-1 but it is close to 3-2.

I only have one account where I can gaurentee the pop outsells the snacks.

And with chip prices going up, I will soon have to increase those prices.

Not sure the effect of that will be,

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...