5 way racks vs triple heads. Do the 2" toy heads actually make a big difference?

[Zeusophobia]

So the 5 way rack is around 3-4 times as expensive as the triple head. If you're using a locator, they're 3 times as expensive to locate.

 

All this added cost for 2 heads that don't have great margins and only work on kids. 

 

Everyone says racks are the way to go if you're trying to maximize your $$$ per hour. 

 

Admittedly, I don't know a lot about bulk vending, but I've worked on the business end of my dads company for over a decade. I just don't see the value of spending $500 instead of $150 for something that has a narrow demographic and doesn't have insane margins to justify it.

It seems like a much better investment to throw some decent triple heads everywhere.

 

I'm trying to get setup right off the bat to have a stream lined vending operation where I have the same machines and same products everywhere. I was initially thinking racks are the way to go based on what I've read here, but they don't make sense to me unless you're moving a huge amount of toys. The thing about toys is, nobody's going to vend 3 bouncy balls. It's not a consumable like gumballs and candy. You only need one.

[Zeusophobia]

Just trying to learn about vending before I start shelling out cash. I hope nobody takes this the wrong way.

[QuikVend]

Toys tend to have decent margins and they never go bad. You also don't need to worry about making adjustments on toy wheels. All things that are disadvantages for candy. 

When I was little, I collected the mini football helmets. I would buy them all the time trying to collect them all. Most toys come in series, so kids will be interested in collecting the set. As long as you find the right toy that is. 

Also, buying used equipment helps keep the initial costs down. I just picked up a 5-way Northwestern rack for $150. Just needed to be lightly cleaned and it was location-ready. 

[zjtaylor]

I started with only triple heads and I found out something that has been said a lot on here already, a location is usually best with a single or double head or a rack. Eventually I will likely phase out my bulk locations that won't support a rack of at least 4 heads.

Toys offer good margin and no spoilage and people value toys higher than candy so you can have higher price points. As for the demographic, if mixed foot traffic I would target only kids with toys and gumballs. If mostly adult foot traffic I would use candy and gumballs or tab gum.

Also you can put together a rack for dirt cheap if you do some digging around. EBay, craigslist, etc. are good but even if you have to buy new, the rate of return on racks is quick at a good location. I only focus on rate of return when I think about buying new equipment. I don't care what the actual price is. 

My current goal is to have as few stops along my route as possible and to collect from locations that consistently bring in at least 20-30$ per collection. The only way I can see that happening in my area is with bulk racks and amusements.

[AMD Snacks]

I think it's good to diversify. I agree with racks about the spoilage thing, and price point. Down side for me is that finding a home for a rack takes more time than a double or triple.

Also trying to have all your doubles/triples with the same candy gets hard when people get tired of the same selection or a customer asks for another one etc.

I have some racks and collect way more even after commission than most doubles, but It'd be hard to only do racks, unless you drove quite a bit between stops

[Determined]

I don't think your focus should be on the kind of equipment or number of locations. It should be about profitable locations! A diverse amount of quality equipment is good. I have a single gumball machine that does at least $60/every 2 months. There's no room for any other equipment unless perhaps a triple but I don't think they want any other selections.

[havending]

13 hours ago, Zeusophobia said:

So the 5 way rack is around 3-4 times as expensive as the triple head. If you're using a locator, they're 3 times as expensive to locate.

 

All this added cost for 2 heads that don't have great margins and only work on kids. 

 

Everyone says racks are the way to go if you're trying to maximize your $$$ per hour. 

 

Admittedly, I don't know a lot about bulk vending, but I've worked on the business end of my dads company for over a decade. I just don't see the value of spending $500 instead of $150 for something that has a narrow demographic and doesn't have insane margins to justify it.

It seems like a much better investment to throw some decent triple heads everywhere.

 

I'm trying to get setup right off the bat to have a stream lined vending operation where I have the same machines and same products everywhere. I was initially thinking racks are the way to go based on what I've read here, but they don't make sense to me unless you're moving a huge amount of toys. The thing about toys is, nobody's going to vend 3 bouncy balls. It's not a consumable like gumballs and candy. You only need one.

If you want the same setup and product in every location pick another business.  There are far too many  variables.  

[Zigzag Vending]

There are some that it will work best to only do single-triple head candy or gumballs, but others will do only the toys and racks. Its something you learn as you go. When i started in april my plan was to offer as many varieties of candy as it was possible to with the COG i could manage, and never considered toy racks. Now i have my first rack, looking to hopefully buy a retiring vendors rack route, and dumping as many candy choices as possible because im sick of the waste. And trying to edit my route to being able to service it every 2 months. Youll grow with your business. But my advice would be to buy a good quality used rack if possible, find your girst location on your own, and give it a shot. Sometimes jumping in with both feet is the way to take your business to the next level.

[brendio]

On 24/12/2016 at 3:37 PM, Zeusophobia said:

The thing about toys is, nobody's going to vend 3 bouncy balls. It's not a consumable like gumballs and candy. You only need one.

The thing about bouncy balls is is that they bounce, and in the hands of kids they often bounce away, leading to the need to buy more.

[brendio]

I have found that good quality balls is a key too. Popular are the clear balls with different animals inside. People will keep coming back to try to get a set.