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Chip size conundrum


QuikVend
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I've been running the 1oz bags for nearly the whole time I've had snack machines. I was selling the LSS when I first bought a few locations from another vendor, but went to the 1oz to try to cut back on the amount of inventory I was carrying. No big deal to this point, I've grown to 12 snack machines. I'm working on a deal to buy another vendors route and they're selling the LSS exclusively. They use a local vending supply company to purchase their products and I've been using Sam's. Now it seems I might need to either start selling LSS at all locations or just go with the 1oz bags at the new locations. I guess what I'm asking is this, should I start selling LSS? The local supplier sells them for 47 cents a bag and they are priced at 90 cents on the new route. The 1oz I get for around 25 cents and sell for 65 cents, so not a huge difference in margin. 

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Depending on the model machines you are using, if you go all LSS you may need to replace spirals to facilitate using LSS.  The pricing you listed has a much greater return on SS(62% vs 48%). You also have better capacity with single serve than LSS. 

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To me it really depends on location.  Price sensitive locations tend to do better on the 1 oz items with the lower price point, and others prefer a wider variety without balking at the dollar.... I would not carry the same items in two sizes tho, you might have small lays chips for example, and a large Cape Cod chip for the higher price point...

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We do both.  As others have said, every account is different.  I like the cogs on the smaller ones a little bit more and they vend a little bit better.  Definitely go with 1.00 for the big bags.  Most of the big bags come in variety packs at Sam's and we always know there is 1-2 chips in every variety pack that doesn't sell as well.  

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I decided to sell both. For all the reasons above really. But doing so, I'll be going through a local distributor and not Sam's. I think I have enough locations to buy the cases and not the variety packs and still avoid too much expireds. 

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When I recently purchased my new route, including 5 snack machines, the previous owner was selling mostly 1.5 oz bags of LLS and very few other brands @ 1oz. He had hundreds of machines but was selling the chips for $1. I’d like to switch to the 1oz bags and keep the price the same but I’m afraid of making a bad impression as the new vendor..I could keep the 1.5 oz bags but consider a price increase..Tough choices as I’m only 2 months into my new venture...

Edited by Finaritwo1
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2 hours ago, Finaritwo1 said:

When I recently purchased my new route, including 5 snack machines, the previous owner was selling mostly 1.5 oz bags of LLS and very few other brands @ 1oz. He had hundreds of machines but was selling the chips for $1. I’d like to switch to the 1oz bags and keep the price the same but I’m afraid of making a bad impression as the new vendor..I could keep the 1.5 oz bags but consider a price increase..Tough choices as I’m only 2 months into my new venture...

Price increases are always a challenge, but I agree with QuikVend, $1 for most LSS chips is a good price presuming you are getting them for about .50 average cost... I sell SSS for .75 to .85 depending on location, $1 is a bit too much at most locations for the smalls.   If your costs are higher or the average C-Store prices in your area are higher, your higher prices may be justified and sellable....   

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I’m located in Massachusetts, South of Downtown Boston. The reality is right now my 5 snack machines are filled with 50% LSS chips,  all 1.5 ounce bags selling @ $1. I’m paying between .47 and .53 cents for my bags right now. Are you both selling the 1.5 ounce size bags or the 1 ounce bags? On the lighter side of this subject, I’m having a tough time squeezing those 1.5oz bags into my coils. Patience has definitely become my friend these days....if you don’t mind the question Quikvend, what size are your LSS bags? My other regulars , such as “Cheez-It’s”, “Chex-Mix”, “party Mix”, “AndyCapp’s Hot Fries” and some cookies like “Oreo” cookies, “Famous Amos” and most of the “Fritos” brand are 2oz’s and more....My cans of soda are 12oz and all bottles are 20oz.......

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Your prices are right in line with mine as far as the LSS. I've just been selling the 1oz bags up to this point. The cheez it's are 1.5 and famous amos are 2oz but those are the smallest offered, so I consider them the sss. There are 3oz(?) bags of those that I would consider the LSS. The weight usually varies depending on product, but the bag sizes are usually what I go by. Larger bags are LSS and smaller are SSS.

As for your bags not fitting, you can turn the bags upside-down in your hand until the product falls, then hold it and flip over to make it fit. If they're really tight, you might need larger coils. 

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Generally anything 1 oz and under is considered a small; my large bags are 1.5 to 2 oz. Being in the Boston area you may well be justified in going higher that $1.  Compare product pricing to some local C-stores and don't forget to factor in the sales tax at checkout vs your prices including sales tax

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On 11/10/2017 at 12:47 PM, Finaritwo1 said:

When I recently purchased my new route, including 5 snack machines, the previous owner was selling mostly 1.5 oz bags of LLS and very few other brands @ 1oz. He had hundreds of machines but was selling the chips for $1. I’d like to switch to the 1oz bags and keep the price the same but I’m afraid of making a bad impression as the new vendor..I could keep the 1.5 oz bags but consider a price increase..Tough choices as I’m only 2 months into my new venture...

You could try 1oz for $.75. I do all 1oz. I tried the 1.5oz bags at first but they didn't fit well and I didn't want to swap spirals. You can sell 2 1oz bags at $.50 each and get the same or better margin than one 1.5oz for $.90  

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