Profits Posted March 21, 2011 Share Posted March 21, 2011 When the a-hole competing vendor sitting next to you is selling junk for .25. You'd think premium products would be enough of a justification for the higher price... Oh well. The only real solution is just to install more .50 mechs. Time to get rid of the gumballs. Link to comment Share on other sites More sharing options...
MrGranger Posted March 21, 2011 Share Posted March 21, 2011 Is this for gum or toys? I actually have never seen a .25 junk toy machine beat a .50 cool stuff. I put a .50 Domo filled machine right next to a .25 mix machine. Domo sold out and the "junk" didn't get any play until the Domo was gone. Link to comment Share on other sites More sharing options...
Hillbilly Posted March 22, 2011 Share Posted March 22, 2011 I know you guys are in California where things are "different", but a lot of parents will only give the children one quarter to spend in the machines. My .25 "junk" mixes sell very well. My .50 items usually end up in the mix after sales drop drastically. Link to comment Share on other sites More sharing options...
sherlock Posted March 22, 2011 Share Posted March 22, 2011 a lot of parents will only give the children one quarter to spend in the machines. I agree. So many parents don't even pay attention to the machines -- cost or product. They give their kid(s) a quarter and let the kid choose for themselves. Kid can't buy what he/she can't afford. The kids probably settle for whatever they can buy for a quarter rather than ask for a 2nd quarter and risk mom/dad not allowing them to buy anything after all. Link to comment Share on other sites More sharing options...
will.vend Posted March 22, 2011 Share Posted March 22, 2011 one thing I love about racks is being able to offer several price points, a lot of my racks go from 25 to 75 cents, I will have 1 25 cent 1 inch machine (either a mix or 27mm bb's) and 2 50 cent 1 inch machines and on top I will have 1 50 cent 2 inch mix and 1 75 cent machine. imo I have covered all the bases for what the parents/kids can afford. Link to comment Share on other sites More sharing options...
dpvnc Posted March 22, 2011 Share Posted March 22, 2011 I agree with Will.Vend on this one. Price points are important although I use 25 cent 50 cent and 1.00 at my locations. I only have 1 machine that takes.75 in my whole fleet. Link to comment Share on other sites More sharing options...
West Coast Vend LLC Posted March 22, 2011 Share Posted March 22, 2011 I'll tell you what, California is in very bad shape. Our economy continues to slide downward. But with that said, I just started testing 50 cent 1" machines on my rack along with 25 cent products and they are doing okay. You do have to find products that have a perceived value higher than 25 cent items. A&A Global is moving in that direction with more and more of their 1" product. Domo, Puppy Mix, Disney item, etc. will earn the higher price-point. I want to have every price-point available for every customer. I have .25/.50/.75/$1 on one rack and they are all working for me. Gary Link to comment Share on other sites More sharing options...
jamesjmcgough Posted March 22, 2011 Share Posted March 22, 2011 Just my experience with competitors who sell for two coins. We only have 1 coin machines. I have competitors who place their machines right next to mine. They appear to be doing quite well. Mind you, I am in Central America where the average family wage is less than $10,000 per year. Our single coin is equivalent to 20 cents in the US, two coins approximately 40 cents. I am not sure I am ready to buy the parents...only 1 coin excuse. I am positive my machines at 1 coin per turn are doing more turns than the competition. However, I do believe their profit margin and cycle of service may work out better for them. Even though, two coin vending machines are something just recently introduced here, the kids don't seem to have any problem figuring out how to work the two coin mechs. All the two coin competition uses a little sign that prompts "2 coins". Maybe it is time for me to places some predominate sign which says "solamente 1 moneda", only 1 coin to take them to task. At least until I can figure out how to get mechs from Beaver (or elsewhere) that will accept the large diameter of our local coinage. Link to comment Share on other sites More sharing options...
Jax Snacks Posted March 22, 2011 Share Posted March 22, 2011 I know you guys are in California where things are "different", but a lot of parents will only give the children one quarter to spend in the machines. My .25 "junk" mixes sell very well. My .50 items usually end up in the mix after sales drop drastically. I second that as well! If a kid only has one quarter, I want to get it. And the junk mix is a good way to get it. My junk continues to evolve and is really turning into a watered down plastic ball mix. Kids (and adults) often ask for the puzzle balls, soccer balls and basket balls. So I have recently increased the mix to 50% plastic balls. I am seeing better results with that and also adding the junk back into some places where the old mix did not do as well. I plan to have 25 cent junk for a long time as well. Link to comment Share on other sites More sharing options...
jamesjmcgough Posted March 22, 2011 Share Posted March 22, 2011 And the junk mix is a good way to get it. My junk continues to evolve and is really turning into a watered down plastic ball mix. We only sell 'junk mix' now. We seed the junk mix with bouncy balls and occasionally a US $1.00 bill in a capsule at the top of the pile. Last few users hit the jackpot. Keeps them trying for that BIG PRIZE. Now don't tell me how that is NOT FAIR. No less fair than seeding with a few highly prized items in a mix of 2-400 capsules in the head. Link to comment Share on other sites More sharing options...
MrGranger Posted March 22, 2011 Share Posted March 22, 2011 Kid can't buy what he/she can't afford. The kids probably settle for whatever they can buy for a quarter rather than ask for a 2nd quarter and risk mom/dad not allowing them to buy anything after all. Depends really. In the area I'm in the kids usually aren't going to care the price, they will beg the parents for the toy no matter the cost. I think that's why the name brand stuff works best for me. The kids see Disney, Domo, Spongebob, Pixar, etc. and they know it. They want it. The price doesn't seem to be a factor so much. But that said, I am going to swap out a .50 Brand machine for .25 Mix machine. I am rotating my ice cream shop NW S60 to see what works best. After the Mix I hope to have enough Domo to put that in next. Maybe every 2 months swap them to see. I may mix the Squishies into the .25 mix just to get rid of the dang things. Link to comment Share on other sites More sharing options...
MrGranger Posted March 22, 2011 Share Posted March 22, 2011 I'll tell you what, California is in very bad shape. Our economy continues to slide downward. True...but many of us parents will still spoil our kids. And to be honest, .50 or .25 is hardly much of a difference to me personally. When my child asks for something I'm happy when it's not going to cost me more than $1. Under that and I don't really think about it. And what I've observed at my machines is that people break $1 and will spend it all so they don't have to carry around the coins. The key for me is getting them interested enough to break the $1 in the first place. Also, the medium income in the area that I've located so far was $649625 in 2009. And it's $147267 down the street where many of their customers come from. But I'm trying to get some locations in areas that are $57,590 and I think the price will play a bigger role. Link to comment Share on other sites More sharing options...
Profits Posted March 22, 2011 Author Share Posted March 22, 2011 As far as the economy goes, I think bulk vending is perceived as a small enough purchase that it's not even a purchase at all. Wealthier areas have more money, but a better understanding of the value of a dollar. This may perhaps work against us. They probably are tighter with their money. Poorer people have less money, but a stronger propensity to spend money irrationally - because it "doesn't matter, we're never gonna be rich anyway". Poor people are a better target for the impulse buy. Link to comment Share on other sites More sharing options...
MrGranger Posted March 22, 2011 Share Posted March 22, 2011 Poorer people have less money, but a stronger propensity to spend money irrationally - because it "doesn't matter, we're never gonna be rich anyway". Poor people are a better target for the impulse buy. This is pretty interesting actually. It might have something to do with why the name brand stuff seems to do better in some places while the "junk mix" doesn't, and visa versa. I'm just learning so am trying out many combos and reading as much as I can from the rest of you. Link to comment Share on other sites More sharing options...
Jax Snacks Posted March 22, 2011 Share Posted March 22, 2011 As far as the economy goes, I think bulk vending is perceived as a small enough purchase that it's not even a purchase at all. Wealthier areas have more money, but a better understanding of the value of a dollar. This may perhaps work against us. They probably are tighter with their money. Poorer people have less money, but a stronger propensity to spend money irrationally - because it "doesn't matter, we're never gonna be rich anyway". Poor people are a better target for the impulse buy. Interesting points. Generally speaking, I find that my machines do not do as well in the upscale/upper class areas. But the "average joe" working class areas do much better for me. Of course, there will always be a few exceptions. Now I have found a some upscale locations where the parents like to spoil their kids with quarters, but not in high concentartion in those upscale areas. In reference to the poor, the state governments have found a nice way to "tax" their irrational "we're never gonna be rich" mind set. It called lottery tickets - essentially a tax on the poor as well as a false sense of hope. But there is also a gambling mentality in all classes of people. So it's nice when a vendor can legally tap into that gambling mind set as well with either some cranes, pushers and even junk mixes with chaser items. Of course casinos have the best type of profit generating vending machine - the slot machine! Link to comment Share on other sites More sharing options...
sherlock Posted March 22, 2011 Share Posted March 22, 2011 Generally speaking, I find that my machines do not do as well in the upscale/upper class areas. But the "average joe" working class areas do much better for me. Of course, there will always be a few exceptions. Now I have found a some upscale locations where the parents like to spoil their kids with quarters, but not in high concentration in those upscale areas. My experience has been exactly the same. Machines in lower class areas outsell those in upscale areas nearly every time. Link to comment Share on other sites More sharing options...
JEREMYTINA Posted March 22, 2011 Share Posted March 22, 2011 Three of my best bulk locs are in some of the poorest areas. I have anout 15 or so daycares that I currently operate a machine in, and I can honestly say that the nice high income area places do $10-15 per month. The low income project areas always come close to emptying the machine. I will see pulls of $50-100 in lower income spots every time. Link to comment Share on other sites More sharing options...
nepavend Posted November 28, 2011 Share Posted November 28, 2011 My best route is in a town in Pennsylvania which was just in the news in my area recently. They have 41% poverty rate and the highest unemployment in the state. My second best route is the second highest unemployment rate in the state. My hometown has higher than state average unemployment and my best locations are here. That about sums it up that topic nicely. Link to comment Share on other sites More sharing options...
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