kai1836 Posted January 19, 2009 Share Posted January 19, 2009 Are there any sources for info about the marginal sales increase gained for each additional head on a rack? Certainly there's some type of curve where sales can increase and then level off per head added........ Wondering about this due to my push into rack placement. Does anyone have info on this? Link to comment Share on other sites More sharing options...
BluePlate Posted January 19, 2009 Share Posted January 19, 2009 Good Question. I have a pizza place consistantly does $55-$60. I have (2) 2 head machines. I vend Bouncy balls/gumballs/Skittle/PMM. If I placed a rach and did stickers and toys, what would be the payback? Worth it? Link to comment Share on other sites More sharing options...
kai1836 Posted January 19, 2009 Author Share Posted January 19, 2009 You know I wonder if you could get industry figures like this from vendtrak.....they've got to have something because the sales would probably look like a sharp curve per head added until you go past a certain amount....the only huge varibale is toy vs candy ratio. It would be helpful thats for sure.... Link to comment Share on other sites More sharing options...
kai1836 Posted January 19, 2009 Author Share Posted January 19, 2009 You know.......we could put our own together if enough people put in info.....doesn't have to be anything too revealing either.... to make sure you were comparing apples to apples you would need to group like type businesses.......pizza shop sales per4, 5 ,7 or 9 head rack placements.....retail locations....etc. you could then compare a groups of racks and come up with a good average increase per head.....certainly between us we have enough past info to accomplish this. Link to comment Share on other sites More sharing options...
antoniocinisi Posted January 19, 2009 Share Posted January 19, 2009 each location is differant even if it is the same type biz. I have 2 9 way racks one in my pizza shop in a small town and another in a pizza shop in Springfield IL.THE ONE IN THE city does better obviously. even if we compare apples to apples as you say lets remember all the various types of apples we have:red delicous,granny smith,golden delicous,macintosh etc etc.:Pin other words all locations are different! Link to comment Share on other sites More sharing options...
Beer980 Posted January 19, 2009 Share Posted January 19, 2009 It would be nice to see what an average rack of different size ranges brings in a month. It is usually a differnt type location then your average triple machine. We all know that a triple should bring in $20 at least per month. What does a 5 way with two .50 and three .25 average. What about a two or 4 column sticker? I think the not knowing how much you should bring in with a rack is what keeps many from going into racks. Link to comment Share on other sites More sharing options...
nepavend Posted January 19, 2009 Share Posted January 19, 2009 Beer, you are onto something here. The law of diminishing returns... it is basically a lesson in economics... at some point, you max out what you can get out a particular location for the amount of time/equipment you invest in a location. In a lot of instances it is a judgment call. In my example, I got a Chinese buffet that is my best spot now in July 08, that I started with two Eagle Mini Giants, 1" gum and toys. For one month it did nearly $50. I immediately got permission and put in a 5-way rack (.50 Dentures, .25 1" Gum, and 3 toy/ball .25 heads on bottom) and the first 8-week service brought $275 (160% increase), a great jump, so then I added a wing on the rack with another .50 toy head and a 4-column sticker machine in. The next 2 services were at $465 and $450 (70% increase). I have now swapped the 4-column for an 8-column sticker machine and will soon put a 7-way rack in. Do I expect the services to jump at the same rate, to $850? Not necessarily. More likely they jump to $600-650 (another 35%). This is diminishing returns in a nutshell. You additional return on more heads with racks is still pretty high in this example even as diminishing returns kicks in. If I can increase my sales by 20-30% by adding 2-3 more heads by getting a bigger rack or sticker machine, I will go for it most of the time, especially in the prime spots. I am about to repeat this example at a pizza shop that is my #2 spot, that has an Eagle Mini Giant triple, going to a Beaver 5-way, 2 Mini Giants, and a 4-column sticker machine. The triple has averaged at least $120/month gross sales for the past 2+ years and the potential sales increase is huge. So I will gladly throw as many extra heads as I can in there, starting with a 5-way (Dentures and .50 Mix on top, Mike & Ike, a special gum flavor, and toy balls on bottom) and 4 stickers, and flanked by two Mini Giants with Assorted .25 gum & Assorted .25 toys. I guess the biggest thing with racks is to get into them. Don't be afraid, don't out-think the room, even with diminishing returns you can make $100 spots into $500 spots (or more). It isn't 100% certain but with bigger machines the chances are better. If you get a chance to lock down a spot and have the means to get a rack or racks, do it now before someone else comes in behind you. Link to comment Share on other sites More sharing options...
Jax Snacks Posted January 19, 2009 Share Posted January 19, 2009 Great discussions. I wish there was an easy way to determine the optimal number of selections at a location before the quarters stop growing and simply get shifted to the other coin boxes. I guess it will always be a trial and error process since each location is different - which is why we upgrade and downgrade as needed. But I do try and vend diverse products that don't compete with each other. Jax Link to comment Share on other sites More sharing options...
Beer980 Posted January 20, 2009 Share Posted January 20, 2009 I was thinking of that 5 way NW rack for $175 deal I found. It is placing it somewhere that is keeping me from snapping it up. I really need a 3-4 month ROI to make it worth my while I think. I would have to get two different cases of .50 toys for up top and maybe one or two .25 for the botttom and a gumball in the third spot. If I can't find a spot then I will have to throw in $90 to get it located also. All our buffets are covered up with racks. I have one take out pizza spot I might be able to entice into it at 20% commission that does about $20 with my triple. It just seems hard to imagine that a 5 way rack will gross $75+ a month. Is $15 a head a decent average for those that are not into racks? Link to comment Share on other sites More sharing options...
nepavend Posted January 20, 2009 Share Posted January 20, 2009 A NW 5-way for $175 is a good deal, I would scarf it up in a heartbeat, provided it was in good condition. To fill it, you would need two .50 toys (I use Dentures and a mystery mix) - 25" top row heads hold about 180 of them - Dentures would be $27 and the mix would be $17. On the bottom, Assorted Gum (300 gumballs for $6), Superballs mix (300 for $12), and 1" toys mix (300 for $18), for a total fill cost of about $80, I rounded costs to the nearest dollar. A minimum rack spot to me would bring in about $200 or so gross every 8 weeks (about 50% usage of product), paying 30% commission would be $60, leaving $140. Assuming 50% depletion of inventory you refill with $40 worth of product, leaving $100 gross profit. I do about $200 gross on a rack at another chinese buffet where I have heavy competition (another 5-way, a crane, and a bounce-a-roo). Link to comment Share on other sites More sharing options...
Beer980 Posted January 20, 2009 Share Posted January 20, 2009 Thank you for the input. I am going to see how a couple of places feel about a rack. Link to comment Share on other sites More sharing options...
kai1836 Posted January 20, 2009 Author Share Posted January 20, 2009 Joe, What are dentures? Link to comment Share on other sites More sharing options...
Bravo Duck Posted January 20, 2009 Share Posted January 20, 2009 Joe, What are dentures? I'm not Joe but I'll try answering : http://www.monstermarketplace.com/Food/Landing5556a383.html For our Christmas get together we put these in everyones stockings. It was great fun and the pictures are good too. Link to comment Share on other sites More sharing options...
Quarter Master Posted January 20, 2009 Share Posted January 20, 2009 Kai, Dentures are fake plastic teeth kids put in their mouth to be funny. Here's a link to A & A to see them: http://www.aaglobalind.com/bulk-vending/bulk-vending-toys/bulk-toys/HOT5B-dentures-by-dwayne-funny-teeth-bulk-vending.htm Link to comment Share on other sites More sharing options...
nepavend Posted January 21, 2009 Share Posted January 21, 2009 Dentures by Dwayne 2" capsules (what A&A calls them), also knows as Hillbilly Teeth (at actionmatic), different kids of teeth with whistles on some of them. They are the silliest thing I have ever seen but I can't keep them full enough on any of my racks so I keep using them. Link to comment Share on other sites More sharing options...
Beer980 Posted January 21, 2009 Share Posted January 21, 2009 I would not pick that as a fast mover just looking at it but who knew. Link to comment Share on other sites More sharing options...
Gerald Posted January 21, 2009 Share Posted January 21, 2009 Is the goal of most succusful bulk vendors to get into racks? Or can you make it on just single, double, and triple heads alone? Link to comment Share on other sites More sharing options...
dperry Posted January 21, 2009 Share Posted January 21, 2009 Is the goal of most succusful bulk vendors to get into racks? Or can you make it on just single, double, and triple heads alone?I know of one vender in florida who as of 2 years ago had 1200 single head charity gumball machines. According to him, it was the best way to go. I don't think he ever considered doing it any other way. Link to comment Share on other sites More sharing options...
T BIRD Posted January 21, 2009 Share Posted January 21, 2009 Islander wrote: Kai, Dentures are fake plastic teeth kids put in their mouth to be funny. Here's a link to A & A to see them: http://www.aaglobalind.com/bulk-vending/bulk-vending-toys/bulk-toys/HOT5B-dentures-by-dwayne-funny-teeth-bulk-vending.htm One of those was me years ago before I got clean and sober. Link to comment Share on other sites More sharing options...
T BIRD Posted January 21, 2009 Share Posted January 21, 2009 Gerald wrote: Is the goal of most succusful bulk vendors to get into racks? Or can you make it on just single, double, and triple heads alone? One of the first things I was told by veterans was to get into racks to make money. Link to comment Share on other sites More sharing options...
kai1836 Posted January 21, 2009 Author Share Posted January 21, 2009 I feel that I should let the board know....over the years Large Racks have gotten me into a lot of trouble....... Be careful! Link to comment Share on other sites More sharing options...
antoniocinisi Posted January 22, 2009 Share Posted January 22, 2009 I feel that I should let the board know....over the years Large Racks have gotten me into a lot of trouble....... Be careful!what kind of trouble and how large of a rack? Link to comment Share on other sites More sharing options...
kai1836 Posted January 22, 2009 Author Share Posted January 22, 2009 Antonio, For starters the largest rack I ever tangled with I had actually picked up in PA.....it left me after two years for another man! Link to comment Share on other sites More sharing options...
nepavend Posted January 22, 2009 Share Posted January 22, 2009 Its all in your strategy and your approach. I'm sure it can be done without racks, but it would take a lot of locations and a ton of single machines, and a lot of time/patience. I just can't see it being done when you would have spots getting wiped out and that you would HAVE to upgrade to a double/triple/whatever instead of just leaving a single gumball machine in place and only stick with that type of machine. I've had owners request bigger/better/badder machines also, normally they are good spots you would want to keep at almost any cost, you would HAVE to keep them happy and put them in and make more money there. Link to comment Share on other sites More sharing options...
golpher Posted January 22, 2009 Share Posted January 22, 2009 Hey Kai, I've always been a fan of small racks myself. I find the pear sized ones to be the most enticing! Link to comment Share on other sites More sharing options...
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