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Targeting 20% COGS...


fogcity

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My research here on VENDiscuss indicates if you can keep your bulk vending average COGS in the 20%-25% range you should be able to do ok. 

Does everyone agree with that range or is it too high or low, what with product costs being as they are these days?

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My goal is 20% or below and most of the time i can achive that.  I vend about 85% toys and stickers and i am good at being crative on making my goal.  The best way to help keep cost down is to buy lager quanitys in doing this it puts the ball into your court on pricing.  NONE of the suppliers pricing is set in stone.  Always ask about speicals but dont buy  "junk" on speical buy what you can sell.  Ask for free displays.  Flat displays are easy to get free i dont think i have paid for a flat display in years.  I use a plus .25 method on my pricing.  For a .25 one inch toy i cahrge .50.  A .50 two inch toy i go to .75.  On two inch i will try most toys at 1.00 at firts to see if i can get a dollar and if i can i keep it there. 

Its way differnt is you do candy only.

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20% or below is my goal also. As the last poster said dont forget to count cost of displays and shipping. 20% should be the absolute max for candy where waste is also a factor.

Mike

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I find with most gum and candy I can easily stay below 25%. Right now I am vending, sour chews gum, chicle tabs, gumballs, mike and Ikes, and PMM's.PMM's not so much, I'm at about 40% cost I am thinking about vending PMM's at 50 cents to make my margins a little nicer. I want to get into capsules, but there are no suppliers near me. With shipping costs its going to be really tough getting them at a 25% cogs. But with no spoilage that helps.

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