westlakevending Posted January 24, 2008 Share Posted January 24, 2008 2007 ended in a great year for my bulk vending venture. I obtained close to 100 locaitons. However after doing calculations I believe that I am going to swap all of my candy heads out and replace them all with gumballs for about 3 months then rotate to a cheaper product than peanut mms such as mike and ikes or toys in some cases. Basically getting rid of the peanut mm's to high of cost and moving on to just a gumball/toy route. I believe this will be a better concept for profit for 2008 even though i may lose some sales at some locations, however i think ill gain any losses by the amount im saving in product cost........Whatca guys think good idea?> Link to comment Share on other sites More sharing options...
grumpy Posted January 24, 2008 Share Posted January 24, 2008 Shawn I agree about the high cost on PM&M's, but not your strategy. Of course it depends on your clientel, yes some adults will buy gumballs but they are more likely to not. If your machines are focused in retail locations with kids then gumballs maybe a great choice; but if they are in breakrooms then I think you need to find something else that will draw them to part with a quarter. Let me give you an idea of the mess I'm in from the former vendor looking for a balance on cost and what the plublic wanted. Cashews pieces rst w/s Peanuts bbq peanuts Pistachio in shell nat. w/s Gum black cherry 850 ct Peanuts blanchled rst w/s jelly beans Zingy zaps Hockey pucks Baseball Double pink Resse's pieces MM peanuts Chocolate almonds Jewellery Skittles Time bomb jawbreakers 4812 assorted gum Bouncing balls Chews Sour Cherries Bridge Mix JB Tuittie Fruitti JB 10 Flav Sours JB 49 Asst JB Buttered Popcorn Bubble King Classic Pink Bubble King Asst Printed Skulls Milk Choco Raisins Cheekies Candied Peanuts Gumball Large Runts Grumpy Link to comment Share on other sites More sharing options...
grumpy Posted January 24, 2008 Share Posted January 24, 2008 That post was getting long, I had 1000 lbs of product in my warehouse last Wed, did half my route and still have 750 lbs. 500 lbs are gumballs. I have limited locations with kids as the customer, sure am glad gumballs last almost forever. Not sure if you have the same pricing but skittles is also on my hit list. Grumpy Link to comment Share on other sites More sharing options...
grumpy Posted January 24, 2008 Share Posted January 24, 2008 Is there room to adjust down the amount vended, if so then that may be a better choice for you. Grumpy Link to comment Share on other sites More sharing options...
skyviper73 Posted January 24, 2008 Share Posted January 24, 2008 I see two sides to this. Dropping the PMM will cost you some customers. Adjusting down the size of the portion vended will raise your profit, but your customers might not put another quarter in your machine if they don't get much product for that quarter. Going to gumballs and other high profit items,,,,,,, better find alot of kid friendly locations. I did a little experimenting and it seems that my vend for about 11-13 PMMs costs me about .11 cents. After I pay the sales tax and other expenses that gives me about .09 cents profit per vend. It's not alot, but I put my PMMs in a tri-head and draw a little side business with the PMMs. At least that's my thinking. Just some thoughts! Sky Link to comment Share on other sites More sharing options...
chad Posted January 25, 2008 Share Posted January 25, 2008 i could never give up PMM. I understand that gumballs are cheap with great profit but as of now, most of my locations are in breakrooms so I couldnt do that anyway. I doubt they would sell in adult breakrooms My full time job is in a factory and we have both gumball machines and other machines with mike and ike and PMM and that machine empties out about 4 times faster than the gum. However I do want to get in on the gumball action. I think my next 10 machines will be for gum and find appropriate locations. I think you might be better off swapping out maybe half with gum. Swap the locations that you think gum and toys will be better. Link to comment Share on other sites More sharing options...
remarcvending Posted January 25, 2008 Share Posted January 25, 2008 Ok, does anyone else use Boston Baked Beans? I get these at Sam's club for less $4.00 a bag which equals about 3 cents per vend giving them about 8-10 pieces. I've found that many of the same people that buy peanut m&ms (adults) will be the boston baked beans, but there's much more prophit for me. I'd try switch out your pmm's for these. Link to comment Share on other sites More sharing options...
AmuseStar Vending Co Posted January 25, 2008 Share Posted January 25, 2008 I support you 100% I am going to singles, breaking down all heads, and am selling off triples. It just makes sense. You have a double pulling $10 with M&I, and Reese Pieces. Now, the M&I are selling $7 of the $10. You drop the Reese Pieces, and put them in anther location doing lets say, $12. Now, that is $19, when you were making $10 off the double. I am moving to JUST toys/superballs or gum for the hair salons/body shops type places. They vend from the same wheel, and can be bought 850 for $16 or 14 for gum. I feel compelled to do this because of the extreme loss of money due to no movers in candy. Toys last forever, and sell as long as you stay on top of the good sellers. If a location sells no toys, or gum, it will be pulled, and put somewhere else where it will. I will not run in circles, trying to get a location profitable. I am tired of buying candy, to discover I don't need it (happens a lot with me). I have tons of unopened bags on P-MM that I will never use. I want to get the route to mostly to toys, as I am really getting into racks. Don't think there is money in toys? Pulled $60 today from a single monkeyn around. (tried to put up picture of all the coins, but it exceed to byte limit of this forum). Kyle Link to comment Share on other sites More sharing options...
AmuseStar Vending Co Posted January 25, 2008 Share Posted January 25, 2008 Never had luck with BBB. Kyle Link to comment Share on other sites More sharing options...
grumpy Posted January 25, 2008 Share Posted January 25, 2008 Skyviper, I think your cost are a little off at $7.88 for 3.5 lbs vending 11 count cost is $0.132 or 52.69% 13 pieces cost is $0.156 or 62.27% unknown is if pricing is with tax or not. If Colorado was like Ontario then you would have to submit a further 8% for RST. Which would leave 30% for all other costs. Not very profitable. I do agree that using multi-head units and twinnig these higher products with lower cost products is a great idea. (lost leaders same as large retail outlets) Grumpy Link to comment Share on other sites More sharing options...
skyviper73 Posted January 25, 2008 Share Posted January 25, 2008 I buy tax-free and have to pay 6.25% in sales tax on my sales. I figure about .10 profit per vend. Not great, but the Skittles next to the PMMs do well also. Sky Link to comment Share on other sites More sharing options...
grumpy Posted January 25, 2008 Share Posted January 25, 2008 Skyviper what do you pay for Skittles, for me it almost the same cost but I'm able to vend more product at lower cost. PMM 25 lbs 96.00cs Skittles 82.00 25lbs. Have you used the percentage calculator in tools? Grumpy Link to comment Share on other sites More sharing options...
Bravo Duck Posted January 25, 2008 Share Posted January 25, 2008 Skittles from Sams- $5.82 for a 48 oz bag .038 oz per skittle 15 skittles per vend .57 oz per vend 48 oz bag divided by .57 = 84 vends per bag $5.82 divided by 84 = 6.9c per vend cost Link to comment Share on other sites More sharing options...
grumpy Posted January 25, 2008 Share Posted January 25, 2008 tstrong According to my calculation your are below that magic number 30% (my goal) at 27.91% product cost. Unfortunately for me I pay 9.84 for 3lbs in bulk form (25lb case) to achieve they same cost I would have to vend only 9 skittles. Grumpy Link to comment Share on other sites More sharing options...
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