Cans vs Bottles vs profit

[KenP]

Do you prefer vending cans or bottles?

I'd rather purchase bottles for my own consumption, so I'm wondering what sells best. (I'm betting bottles)

Of course that leads to the next question: Where's the higher margin? Are you buying from a bottler, wholesale club or other?

Thanks for the info.

[NinnJinn]

It really all depends on cans vs bottles.  Right now my one can machine sells more than my 2 bottle machines combined. But I have pepsi products in cans and the cokes are bottles.

As for profit margin, it really depends on how much you sell your items for.  Although I get grumbled at on here for selling my cans for 50cents, I have tried raising the price on them and my sales dropped by over 50%

But I will give you an idea based on my sales.

My cans sell for 50cents, I check around for sales/specials on them, I try to get them for 25cents a can which equals to 25cent profit.

Bottles from the bottlers vary based on region, but in my area coke 20oz run me about 65cents a bottle. I sell them for $1.25 so I make 60cent profit.  On pepsi 20oz bottles, they want 79cents a bottle. As of date, you cannot get 20oz bottles in bulk anywhere except from the bottlers.

When I purchase my own bottle machine, I am seriously thinking about trying the 24oz bottles, you can get them from walmart for about 10cents cheaper than the 20oz from the bottlers.  But I don't know how well they would go over with the public though.

[RJT]

It really all depends on cans vs bottles.  Right now my one can machine sells more than my 2 bottle machines combined. But I have pepsi products in cans and the cokes are bottles.

As for profit margin, it really depends on how much you sell your items for.  Although I get grumbled at on here for selling my cans for 50cents, I have tried raising the price on them and my sales dropped by over 50%

But I will give you an idea based on my sales.

My cans sell for 50cents, I check around for sales/specials on them, I try to get them for 25cents a can which equals to 25cent profit.

Bottles from the bottlers vary based on region, but in my area coke 20oz run me about 65cents a bottle. I sell them for $1.25 so I make 60cent profit.  On pepsi 20oz bottles, they want 79cents a bottle. As of date, you cannot get 20oz bottles in bulk anywhere except from the bottlers.

When I purchase my own bottle machine, I am seriously thinking about trying the 24oz bottles, you can get them from walmart for about 10cents cheaper than the 20oz from the bottlers.  But I don't know how well they would go over with the public though.

Some vendors I know have had good success selling 24oz bottles along side can drinks in the same machines. Some even use it as a selling tool to get accounts. They offer the 24oz for the same price the competition is selling 20oz for. Then they try and get a .75 can price. While you can only get a few flavors in 24 oz from SC they are the most popular.

[Poplady1]

I work with a lot of vendors, small and large.  The larger companies always offer products across the board from bottles to cans.  Most of them have good relationships with the bottlers which give them (the vendors) a pretty good price on the products.  They use that as a big marketing tool.  Many independent vendors (who we work with too) try to stick with cans because of the difficulty of finding bottles in their markets at prices they can afford when they resell. And because bottles are hard to transport, we call them shape shifters. With that and price margins you need to have a pretty good size account to justify it.

Katie (on our sales team) worked for 3 months trying to close a very large account (Haas) in Oxnard CA.  It came down to .02.  First Class Vending was able to offer .02 less per can on a subsidy agreement and won the 5 year contract.  Our vendor could not do it, that is how tight it gets on those big ones. Before all of you full line companies say you would not be interested in that profit margin.  There was more to the account.  The only subsidy was on cans.  The can machines were only allowed to be filled once a week to prevent employee abuse.

Also there are a slew of can only machines out there which cost much less then a multi-price machine capable of selling cans and bottles.  So as a new vendor you need to determine by location which way you need to go to maintain the account.  If you get a good location be sure to outfit it as best you can to prevent a larger company from getting you removed. If you can afford it, I would try to buy multi-price units when you purchase a drink machine.  I know they cost a little more but you will have a future with it.  When you are talking with a new account it gives you more bells and whistles. 

Also I was contacted by 7-Up in California.  They have machines they want to place either on 3rd party or company fill. It might be a good time to talk to them about some agreement in your area.

Poplady

[NinnJinn]

Also I was contacted by 7-Up in California.  They have machines they want to place either on 3rd party or company fill. It might be a good time to talk to them about some agreement in your area.

Poplady

Im in Indiana, At this point I just want an account with them to order 20oz bottles.  I have called them 11times in the last 3 months.  I get transferred to a voice mail and I leave information and my number.  So far I have had no calls from them. 

There are these little Chevy hatch back cars that I see at stores during the week that are painted/graphiced in 7up, A&W, and Snapple, sorta like the geek squad cars.

I have even considered stopping when I see one and search for the rep, but everytime I see one of the cars, I am busy and can't stop.

[mission vending]

I sell both. Cans are easier to handle and on locations where I have both they tend to sell more than bottles on a unit basis. OTOH when looking at margin typically I make a gross profit of .30 - .35 cents (after COGS and sales tax) on cans and a gross profit of .45-.50 on soda and as much as .75-.90 on Vitamin water, juices sports drinks etc. Actual dollars profit probably works out to pretty close to the same for either category.

So for me it depends on what the customers want, give 'em what they want and they will put more $ in your machine.

[cashman]

cans

[KenP]

I know only a few replied so far, but I appreciate it.

I'm also surprised cans seem to be so popular. I'm so used to capping my bottle when not drinking it....

I guess cans would really open up different avenues for purchases, too.

Of course when it gets down to it, do what mission suggested and give your clients what they want.

Thanks poplady for the info on 7Up. I'm not sure it will help "me" at this exact time since I don't have machinest, but hopefully someone will read it and get some benefit.

[NinnJinn]

I know only a few replied so far, but I appreciate it.

I'm also surprised cans seem to be so popular. I'm so used to capping my bottle when not drinking it....

my thoughts exactly!  when I got my first machine, I really wanted bottles, but thought "oh well, its now or never, I got to start somewhere." 

But when I start placing machines inside, that is what I am going to do.  If they want cans and bottles in one machine, then they are going to have bottles and cans!

[mission vending]

According to the Vending Times 2010 census of the industry....

Quote: Soft drinks in 12-fl.oz. cans continued to represent the loin's share of unit vending sales by operators, if not by bottlers who run vending equipment in 2009.

[Boazcat]

Around here bigger vendors sell 20oz bottles fro $1.25 that they buy from the bottler.

Small timers like me have to guy 16.9 oz at Sam's or try to pick up a few 6 packs at Wal-Mart.  Cost  - $.60 and sells for $1.00

Cans - You can find them anywhere on sale and usually cost is $.25-35 and sells for .75

In my situation is it higher profit and more convenient to sell cans, but everyone here says bottles make more money.

My thoughts -

Michael