1.1 inch capsul, 50 cent vend

[lurtsman]

What would you put in there? I'm contemplating getting some machines from westlake. With no 2-inch available, is there a good assortment of toys that would fit 1.1 inch, sell well, and go for 50 cents? OR should I drop down to using 25 cent mechs and build my racks on 1.1 inch toys that way? If I do a rack, should I try to find 2 inch toy machines to go on the top with it? What about a rack that runs skittles, RP, and several 1inch toys? I'd use gumballs, but there's a giant spiral across the entry way that I don't think I can get removed. There's also a sticker machine next to it. The entire left side of the entryway is mine though, and I'm looking at expanding on it significantly.

Ideas, how would you guys do it? I currently just have a double in there marking my territory. They've already approved me to upgrade the machine if I choose to.

[nepavend]

I would definitely go in there with a 5-way rack with 2" toys and/or balls on top, a special flavor gum (different from the spiral), I'm thinking a Watermelon, Fruit Stand, Nerds, something that is different, a 1" toy, and 1" superball mix on bottom.  Be ready to swap the superball to another kind of gum if your first gum head far outsells the balls.

If you have room left, try a charity candy machine if you want to experiment with that, but I think you will find your rack setup will compete well with a spiral, it is only one head after all, albeit a large one.

If the spiral is running Dubble Bubble you can out strip him by running the "gourmet" gums and you will definitely put a dent on their sales, maybe even enough to have it taken out, who knows?

I do not think 50 cent vends for 1.1 capsules will go over very well, but I always say every area is different.

My basic 5-way setup is 2" 50 cent Dentures and Toy Mix on top, and gumballs, 1" toys, and 1" balls on bottom, and I adjust as needed from there.

[lurtsman]

I just got back from the pizza place. It has been on location for about two weeks. Runts were at 3.25, gumballs about 6.50. That's before paying a commission, but it shows the product is moving. He's running DB, I'm running concord. Clearly quarters are there for gum. Doing a gourmet is a great idea. Since they have to decide which gumball machine to use, I'm considering a "Guaranteed fresh. Tested Feb 2009." sticker. Really it would just be a sign taped in there, but it seemed like it might be a good idea. The place is less than a mile from my house, so I can easily service it each month and update the sign. I might open up the vend a little on runts, when they sell out I intend to just leave skittles in their place if the skittles do better.

I don't have a rack yet to put in, but I'm definitely thinking big. I've got a double head seaga in the living room that needed some serious washing work. (I bought it used and dirty, hadn't cleaned it off since I didn't have a place for it.) I've also got a single NW60 set for RP) I'm planning to add both of those tonight. That should make it extra clear that I am taking the square footage on that side, incase any other vendor comes to ask about it. I see this also as a way to empty my supply of runts/boston baked beans. Then I'll cut my candy selections to skittles/rp/PMM/gumballs (possibly two flavors, one gourmet, one assorted). I'll add in two inch toys and one inch toys, but I don't have the machines or a rack stand yet. This location clearly looks to me like it can support that. (I may go as big as a 7 way rack, or larger if I can get the other vendors removed--or convince them to sell the machines to me if they are getting out of the business)

Since I don't have toy machines yet, but do have machines in the house that aren't collecting quarters, I'm looking at a selection of:

Doublehead NW60: runts + assorted gumballs

Single NW60: RP

Doublehead seaga:Skittles+Boston baked beans

Eventually the candy will just be skittles/rp, with one or two gumballs. That leaves room for plenty of toys ^^.

Just seeing that the location was able to move product effectively made me very happy. As a small vendor trying to control inventory cost, having a location that can cut through inventory dramatically reduces my risk of spoilage, while allowing me to purchase in large amounts to maintain better pricing.

I LOVE your ideas of toys, and the gourmet gum is excellent. How comfortable do you feel putting superballs next to gumballs though? (I'm always scared the kid will be stupid enough to chew (and choke) on a superball). One way or another, I intend to have dentures in there before April is over.

[Beer980]

I switched out a DB assorted for Fruit Patch and my sales more then tripled in that slot. I vote for the Fruit Patch. Rack it up baby.

[nepavend]

Nice work!  For now get your machines out on location, but look for a rack immediately used or just machines.  Don't delay upgrading if you already have permission.  You want want to consider just buying the rack stand new, if it is a classy place in there, even if it costs extra money.  Having and keeping nice stuff in your best spots is always a good idea.

You already saw that gumballs are doing double of candy, after commission and cost of product that is a huge margin for you.  For right now get whatever you can on the location, then let them know you will have some "brand new" machines for them that will make them more commission if they ask any questions.

Nice touch on the freshness sticker, I think as long as you use better gum than DB/Concord you will be all right.  Try Oak Leaf Watermelon or Fruit Stand or both.

I like the gum/balls idea.  Good way to test the toy market there, you will probably find it blow out on you!    As long as you have your sign on the head with balls in it, it includes the warning label for a choking hazard, you should be ok.

If you are really strapped for cash for machines, try an 18" rack stand instead of the 24" for the 5-way and do a 4-way with 2 gourmet gums and 2 toys, with one (or two) of your doubles flanking them with candy.  Think like MacGyver! 

[pdavid]

what kind of commission are you giving on a rack?

[lurtsman]

I don't think I can build far enough forward to have a double behind a rack. The area isn't wide enough for it. It is a little on the long side though, which is why I'm thinking two rows deep but I could go as far as four machines across if they were NW60 size.

I dropped off the RP machine and the GM wasn't there to talk to. I left a message for her that I wanted to make sure she was okay with it and would come by the next day. When I talk to her tomorrow I'm thinking I could ask about putting in the double head from seaga and discuss the rack options. I also need to research the racks. While over all I don't have alot of spending money, I do have enough set aside for the business that good investments won't be passed up. (if the cost is that of a stand )

[ginger vend]

Don't underestimate that spiral.  I have 3 sprials with DB (of course different locations) that all together bring in around $450/month before commission.  One of those locations has a rack, which isn't mine, with gum in it (have no idea though what it makes). Two of these locations also have gas pumps (which are also mine---was set up that way by previous route owner) and they hardly make any $. Ginger Vend

[lurtsman]

Don't underestimate that spiral.  I have 3 sprials with DB (of course different locations) that all together bring in around $450/month before commission.  One of those locations has a rack, which isn't mine, with gum in it (have no idea though what it makes). Two of these locations also have gas pumps (which are also mine---was set up that way by previous route owner) and they hardly make any $. Ginger Vend

That's incredible. I'll need to look into purchasing a spiral of my own and trying to get the location.

[lurtsman]

Ginger, what is your commission on those? The GM said that she was getting 50% grosse off the spiral machine. (Getting 40% off my machines. It's a very large commission, but I really wanted to get some high volume locations that could burn through product. At that rate I expect to have a very low chance of getting kicked out, and an easier argument for expansion.) If I can control the cost on machines I could still get a decent payback period because the volume will probably be very strong.

This location has been on my mind all day, and there will be no immediate relief. I'm expecting to feel much better after I talk to her and figure out what kind of rack can go there.

[nepavend]

I mean along side of the rack, not behind it.  To the left and right have doubles.

If you can find a good looking spiral, and get it in the location, that would be great, you may run into the excuse that "they already have one of those" so you may run into an objection that you will have to overcome.  You can then compete directly with the other vendor by vending a different gum in the spiral.  Ford Gum from Quill would go nicely in there and with your special flavor options in a rack you will slowly take over the gum sales.  With spirals, though, be prepared to shell out $200 or more for a used but excellent condition spiral.

At the commission you are paying, you definitely need to focus on gum and toys for your space.  I'm sure you have seen other threads about the increasing difficulty with being profitable with candy vending before commissions! 

[dperry]

You can then compete directly with the other vendor by vending a different gum in the spiral.  Ford Gum from Quill would go nicely in there and with your special flavor options in a rack you will slowly take over the gum sales. 

Don't forget that adding a 2-for-1 wheel will also increase sales quite a bit.  You will definately want to use 1080ct gum when using a 2-for-1 and such high commission.

[lurtsman]

2 for 1 on 1080ct is an interesting idea. I've got gum from quill right now, two crates waiting to be used actually

I do like the ideas coming up though. What about trying to get the location for a flat rate? Would it be a good idea? It would allow me to use items where the margin wasn't as high and cover it with moving fast. I'll definitely be watching for a spiral machine, but it seems hard to find. Flanking a small rack with doubles on either side is also interesting. If it doesn't cause them to feel the location is clutter, then it's a pretty good idea.

I have seen the challenges with maintaining profitability on candy vending, which is part of why I wanted to make the jump to include toys. I like to think of my machines as soldiers in my army, and this pizza place as one of my strong holds.

[Beer980]

pdavid

The going rate for rack commission varies from area to area. Some have placed charity racks and other like lurtsman had to give 40% but the vaerage is somewhere between 20-30% I think. I am about to get into racks & sticker/tattoo machines so I can say for sure about my area but I hope for the 20% area if I can. You can also pay off gross or net depending on the situation.

[lurtsman]

I went in there and spoke to her today. Here are the things I learned:

1. Do not trust employees about what time to come -- they scheduled me at the start of the lunch rush. Fail. I know they are dead quite at 2pm, I should have told the employee yesterday that I'd come at two.

2. She approved me to upgrade to a rack as long as it fits. I'm thinking a 7 machine rack will be right. I thought about going to nine, but I'm not sure it can justify it. She suggested changing out the gumballs since they had a gumball spiral. There was no polite way to tell her that at a forty percent commission and two thirds of my sales, the gumballs were what made the location worth having, so I didn't. I'll just upgrade the location and leave it to her to be too busy to worry about. Next time I talk to her should be a few months from now to hand her a large commission.

3. She runs this place almost by herself, there are several employees but the work she puts out is incredible.

4. Last night the RP machine didn't bring anything in. That was sad. I was expecting 50 to 75 cents. I guess we will see how the rack does.

I'll go to measure it today to make sure the 7 way is the right choice. (I think going 9 way may be too large)

5. That gives me room for at least two super 80s doing 2 inch, and I'm considering a super 80 doing tattoos, though there is a 4 column sticker machine across from me. I don't want to appear overly competitive to her, because clearly she has concerns about keeping the sales high on the other machines for their commissions.

6. I could do a one inch capsule machine on bottom, or gourmet gumballs. I'd like to keep assorted in there also though.

[lurtsman]

On another note. This thread is now talking about 2 inch toys at fifty cents.

What should I stock? Assume I have three machines for it. (Yikes, if I have to buy these as brand new super 80s from sams club it will run around $400 before the supply for them)

I was a little sad that the super 80s can only hold about 177 2 inch capsules. That means a max of 70$ in a machine for the service. (keeping in mind commission and product cost and the payback period could be pretty long)

Also considering buying one of westlakes 1 inch capsule machines. Would having 3 super 60s and one oak vista on the bottom look too awkward?

If I did that, what would I put in for the one inch capsule? If all the products are from the same supplier, that is awesome. Simplicity = win. If I can order strictly through a website, that would help also. (I hate talking to sales reps)

[Beer980]

What was the average age range for customers you spotted today? Have you investigated any toy/sticker companies yet? I have been in contact with some asking for catalogs or price sheets. Today I got a nice packet from TNT at www.ceistickers.com with 8X10 color copies of all their stickers/tattoos plus a 34 piece sample pack of stickers/tattoos. They have mainly stickers & tattoos but also some 1" & 2" toys.

[lurtsman]

The average age was over fifty!

I was there at 11:30 on a school day. I think that made the customer base very biased

[Beer980]

So you think there is potential of children that do come in at other times to support the rack then? Any chance of teens? Back on topic for a change: I am thinking of the Addopt a Puppy/Kitten for a rack set up. The Puppy has a new version #2 and you can get it in a .25 or .50 vend. So that could be either a 1" or 2" on the rack. Also maybe the Big Head Dog one in a 1" cap if I remember right.

[lurtsman]

I put up a separate thread now for the rack development, after going through A&A price manuals and website.

I am convinced several kids frequent the location in the evening. When I've gone by late I see them, just today was a school day. I expect it to get alot of business friday night/saturday, and decent business on other nights. I expect sales to be very strong there during the summer.

[westlakevending]

I do have a few 50 cent toy capsule machines that are available for purchase that are the 2"

[Beer980]

Did you list them in the sale section?

[westlakevending]

Not yet

[ginger vend]

Ginger, what is your commission on those? The GM said that she was getting 50% grosse off the spiral machine. (Getting 40% off my machines. It's a very large commission, but I really wanted to get some high volume locations that could burn through product. At that rate I expect to have a very low chance of getting kicked out, and an easier argument for expansion.) If I can control the cost on machines I could still get a decent payback period because the volume will probably be very strong.

This location has been on my mind all day, and there will be no immediate relief. I'm expecting to feel much better after I talk to her and figure out what kind of rack can go there.

The commission is 50% on mine also.  It is a large amt of commission to pay, but considering the time it takes to service, it is still a good $$ amt I can make quickly.  And it is near to impossible to lower the commission amt after they are used to this amt from the previous vendor.  Good Luck with your location.  Ginger Vend

[lurtsman]

Ginger, what is your commission on those? The GM said that she was getting 50% grosse off the spiral machine. (Getting 40% off my machines. It's a very large commission, but I really wanted to get some high volume locations that could burn through product. At that rate I expect to have a very low chance of getting kicked out, and an easier argument for expansion.) If I can control the cost on machines I could still get a decent payback period because the volume will probably be very strong.

This location has been on my mind all day, and there will be no immediate relief. I'm expecting to feel much better after I talk to her and figure out what kind of rack can go there.

The commission is 50% on mine also.  It is a large amt of commission to pay, but considering the time it takes to service, it is still a good $$ amt I can make quickly.  And it is near to impossible to lower the commission amt after they are used to this amt from the previous vendor.  Good Luck with your location.  Ginger Vend

Yeah that 50% thing from the current spiral owner made negotiating much harder. On the other hand, it may have scared off enough other vendors that the location was still available when I reached it.