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Suppliers not having product in stock......again

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However, I still try to get my customers to put one higher vend item on their rack, if possible. Ideally, a seven way would have ( on the bottom ) candy, gum and a toy machine at $.25, then a toy machine at $.50. The top would have two $.50 toy and either a $.75 or a $1.00 toy machine. Depending on the item in the higher vends, it would sell well or drive business to the lower vend machines.

We keep trying to get you to sell your toys cheaper too. Would be better for you to sell half price and blow them out of warehouse as Anthony stated.

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I never suggested that AA sell their toys at half price. And any vendors selling one inch that they bought at say 17 or so a bag is not selling at half price. Do you think we were paying 8.50 a bag 10 years ago? Well we were not. That's not why we try to get .50 a one inch vend. We try because we want as much profit as possible. Some times the best profit in a location is the quarter vend. If you have a location that sells say 15 a month in three bottom heads at .50 you made around 39.00. If that location can sell 80% of the heads at .25 then you made roughly 140. Using a super 60 that hold 250. I love pushing higher price points but some times that lower vend is the ticket. That 80% sell through works wonders in a shared account when shared with a company like SV.

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I can't agree. Not long ago, we were just criticized here for having higher prices, even though we haven't had a systematic price hike in years. And we always try to have lower vend priced items available because we always have a demand for it. We're selling more and more $.25 vend mechanisms opposed to $.50. Also, I can't tell you how many operators have told me that they tried to raise prices to $.50 and $1.00 in their machines and the next collection was a bust.

 

I was very afraid of making the jump from .50 to 1.00 2" and .25 to .50 on 1".  Put it off for a couple years.  When I made the jump I was surprised that revenues staid the same and I was having to fill machines left often.

 

When I convert a location I go in with all new racks and machines and all 2" is 1.00 and all 1" is .50.  Candy and Gum balls have stayed at .25.

 

I am sure not everyone will have my experience with their locations.  Even if gross revenues dropped a little I would take that since the profit margin is much better and servicing is easier.

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Bouncy Balls,

Why would we do that ? To lose money ? That would not be good business sense. Two of the top 2" items we have : Yoyo Balls and Birthstone Bears have a base price of $37.00 per box. We always run out of them, because the demand is extremely high. That means you operator buy more due to your customers increased buying frequency. And not all of you are selling them at a $.50 vend. I have customers who vend these at $.75 or $1.00. By the way, I can give you a list of items at $30.00 or less that do quite well, starting with Punch and Rocket Balloons.  

 

If you switch that to 1.1" capsules, you can use the same scenario with CA Gold and Ninja Fighters. Our Plastic Diamonds are $14.25 ( and out of stock, with growing back orders ). How low do we have to go ? But if you want to practice what you preach with your customers, call me. I can sell you mechanisms at $.10 and $.15 vends to blow out your gumballs.

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Mjacks,

Way to go. It sounds like you studied your locations first before making that decision. It won't work exactly the same way in all demographic/ economic areas, but you can't be afraid to test the market some times. I've known people who have had to back down because of push back from their customers, but they learned to substitute other products to appease them and still increase revenue. That's one reason Self Vend Mix has become so popular this year.

 

It's always good to hear how you guys come up with new ideas. I actually relay that information to new operators when they call in to ask questions.

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Bouncy Balls,

Why would we do that ? To lose money ? That would not be good business sense. Two of the top 2" items we have : Yoyo Balls and Birthstone Bears have a base price of $37.00 per box. We always run out of them, because the demand is extremely high. That means you operator buy more due to your customers increased buying frequency. And not all of you are selling them at a $.50 vend. I have customers who vend these at $.75 or $1.00. By the way, I can give you a list of items at $30.00 or less that do quite well, starting with Punch and Rocket Balloons.

If you switch that to 1.1" capsules, you can use the same scenario with CA Gold and Ninja Fighters. Our Plastic Diamonds are $14.25 ( and out of stock, with growing back orders ). How low do we have to go ? But if you want to practice what you preach with your customers, call me. I can sell you mechanisms at $.10 and $.15 vends to blow out your gumballs.

You are right again.

I figure if I sell 1" at .50 and lose half my sells I am still making more than selling at .25 due to the fact I only need half the product to refill.

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True. That actually works in a great many places. Talk to Caserri.

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True. That actually works in a great many places. Talk to Caserri.

I do appreciate your interaction with the forum, we can learn a lot about each other's business and it benefits all of us.

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It is does give us all more information to serve you guys better. Bottom line, if we don't do that, we aren't doing our job at A&A.

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Well then your conclusions are understandable. I'm looking at it from a consumers perspective. I can't imagine the price point on a gumball machine item being a determining factor as to whether I make the purchase or not. I either want the item or I don't.

But I'm crazy like that. I live on the edge of life.

In terms of percieved value, you are right. Most of the products that we sell are worth 50 cents for 1 inch and 75 or $1 for 2 inch. But that is not the problem. The problem is the number of potential customers that aren't carrying multiple quarters.

Sent from my XT1080 using Tapatalk

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 I want to mention.....the order for the rack I placed last Tuesday from A&A arrived yesterday. That was awesome IMO . I also placed a small parts order today and it looks like it shipped today. So in these cases A&A went above and beyond in a timely manner. Now if only they could /would do this 90% of the time things would be awesome.

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The real problem here is people's expectations. The bull vending industry is tiny. Really really tiny. The dollar volume suppliers have cannot support the type of inventory or staff it would take to ship every item instantly. Funny thing is that everyone whining about sams dropping items don't get that its the same thing -- you can't stay in business selling stuff people aren't buying, it takes volume.

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Quit making excuses for Aa... they make enough excuses for themselves! New software programs excetera . They are great innovators, and i really like my sales guy... but I have learned not to trust people/ companies that always make excuses.

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If you want to think of these as excuses, it's your choice. Other operators ask for an explanation and we give it, because after all, we are trying to provide a service to you. And if we can rectify the situation, every rep knows it is good business to do so. Bad customer service would be " take it or leave it, pal". However, you just said that you like your sales rep, so I assume you have trust there.

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It's hard for larger companies to compete with service and expedited shipping with the likes of Flatline and TNT.

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