6 replies to this topic

[VetTechJess]

I am going into the bulk vending business using just ½ inch gumballs (8,500 ct is what I keep finding). The reason I am going with ½ inch is because the machines I have don't accept 1 inch gumballs.

I figured I would have my machines set to give two ½ inch gumballs per 25 cent vend, which is in essence, like giving one 1 inch gumball per 25 cent vend.

Now for the math:

For the regular 1 inch gumballs (850 ct) you buy it for say, $41 (including shipping, quoted at gumballs.com) and sell each gumball for 25 cents, your profit margins are high and the formula is as follows:

850 gumballs X .25 cents per gumball = $212.50 - $41 product cost = 171.50 per case initial (before taxes) profit.

With that in mind, I attempt to figure out the total profit per case with my 8500 ct ½ inch gumballs:

keep in mind the cost per case is $51 as quoted by gumballs.com... Each case of 8500 ct gumballs is 23 lbs.

seeing how I am going to vend [2] half inch gumballs per vend, I divide the initial 8500 by 2 and then multiply by .25:

8500 ct gumballs / 2 = 4250 gumballs

4250 gumballs X .25 cents per vend = $1,062.5 - $51 product cost per case = $1,011.5 profit per case before taxes

If I have 60 machines and each machine holds approx 12 lbs of product then do I really get my money's worth on this or will the cost per case be too much to bear??

12 lbs of product per machine X 60 machines = 720 lbs total...

720 lbs / 23 lbs per case = 31.30 cases (round up to 32 cases)

32 cases X $51 per case (with quantity discount) = $1,632 cost for product for all my machines


Here's the part that I am questioning, so please correct me if I am wrong:

If I get $1,011.5 profit before taxes per case, then how can I get this number?:

$1,011.5 X 60 = $60,690 from all my gumball sales?!?!

Surely I must be miscalculating somewhere! Because the most each of my machines can hold money wise is $60 each, which if I multiplied by 60 machines would only give me $3,600.

SOMETHING IS NOT ADDING UP!!!

PLEASE HELP!!

[roco35]

You miscalculated a couple of things. First, each machine holds 12 lbs, each case has 23 lbs. So, a better way to figure this is that each case will fill 2 of your machines. Each case has 8500 gumball, which 4,250 should go in each machine. You will sell 2 gumballs per vend for a total of 2,125 vends/quarters, $531.25. If your machines only hold $60, or 240 quarters, you will need to empty your quarters numerous times before all the gumballs are dispensed. So, if each of your machines gross $531.25 fully filled, then X 60 machines is $31,875 (before costs & taxes).

I am going into the bulk vending business using just ½ inch gumballs (8,500 ct is what I keep finding). The reason I am going with ½ inch is because the machines I have don't accept 1 inch gumballs.

I figured I would have my machines set to give two ½ inch gumballs per 25 cent vend, which is in essence, like giving one 1 inch gumball per 25 cent vend.

Now for the math:

For the regular 1 inch gumballs (850 ct) you buy it for say, $41 (including shipping, quoted at gumballs.com) and sell each gumball for 25 cents, your profit margins are high and the formula is as follows:

850 gumballs X .25 cents per gumball = $212.50 - $41 product cost = 171.50 per case initial (before taxes) profit.

With that in mind, I attempt to figure out the total profit per case with my 8500 ct ½ inch gumballs:

keep in mind the cost per case is $51 as quoted by gumballs.com... Each case of 8500 ct gumballs is 23 lbs.

seeing how I am going to vend [2] half inch gumballs per vend, I divide the initial 8500 by 2 and then multiply by .25:

8500 ct gumballs / 2 = 4250 gumballs

4250 gumballs X .25 cents per vend = $1,062.5 - $51 product cost per case = $1,011.5 profit per case before taxes

If I have 60 machines and each machine holds approx 12 lbs of product then do I really get my money's worth on this or will the cost per case be too much to bear??

12 lbs of product per machine X 60 machines = 720 lbs total...

720 lbs / 23 lbs per case = 31.30 cases (round up to 32 cases)

32 cases X $51 per case (with quantity discount) = $1,632 cost for product for all my machines
Here's the part that I am questioning, so please correct me if I am wrong:

If I get $1,011.5 profit before taxes per case, then how can I get this number?:

$1,011.5 X 60 = $60,690 from all my gumball sales?!?!

Surely I must be miscalculating somewhere! Because the most each of my machines can hold money wise is $60 each, which if I multiplied by 60 machines would only give me $3,600.

SOMETHING IS NOT ADDING UP!!!

PLEASE HELP!!

[desert_gold_hound]

I am going into the bulk vending business using just ½ inch gumballs (8,500 ct is what I keep finding). The reason I am going with ½ inch is because the machines I have don't accept 1 inch gumballs.

I figured I would have my machines set to give two ½ inch gumballs per 25 cent vend, which is in essence, like giving one 1 inch gumball per 25 cent vend.

Now for the math:

Your math is already wrong. Let’s make it easier to understand and get rid of figures like pie.

Let’s say we are talking a square gumball. You have one that is 1 this would calculate to be 1 cubic inch

Now lets get a 2" square gumball and you would have 8 cubic inches. See how this changes stuff.

So there for the 2" area is 8 times larger then the 1" area. Point is your not even giving them half the gumball with the 1/2 inch when you compare it to the 1".

We could bring pie into the calculations but I figured squares would be easier to understand.

I would also like to mention though that the human mind doesn't always think this way. If someone walks up to a vending machine that gives two 1/2" and then the machine next to it gives 1 1" they will probably think the 2 is the better deal. So don't let my math get you down and think you are not giving your customers what they paid for. I just wonted point out what I saw was a mistake. I make them also my math is much better then my spelling.

OF COURSE I AM PERFECT ON EVERYTHING ELSE HE HE HE HE HE

[philo]

Your math is already wrong. Let’s make it easier to understand and get rid of figures like pie.

Let’s say we are talking a square gumball. You have one that is 1 this would calculate to be 1 cubic inch

Now lets get a 2" square gumball and you would have 8 cubic inches. See how this changes stuff.

So there for the 2" area is 8 times larger then the 1" area. Point is your not even giving them half the gumball with the 1/2 inch when you compare it to the 1".

We could bring pie into the calculations but I figured squares would be easier to understand.

I would also like to mention though that the human mind doesn't always think this way. If someone walks up to a vending machine that gives two 1/2" and then the machine next to it gives 1 1" they will probably think the 2 is the better deal. So don't let my math get you down and think you are not giving your customers what they paid for. I just wonted point out what I saw was a mistake. I make them also my math is much better then my spelling.

OF COURSE I AM PERFECT ON EVERYTHING ELSE HE HE HE HE HE

What you are not taking into account is that you will probably sell $5-$10 worth of gumballs per machine per month. Which means that 1) you will be 106 years old by the time you run out of gumballs or 2) you will end up losing a lot of gumballs as they tend to go stale after a couple of years.

Best of luck,

Philo

PS- most of us are able to buy 850 count, 20 lb. boxes from Sam's for about $16, no shipping. Helps on the margins a bit.

[VetTechJess]

PS- most of us are able to buy 850 count, 20 lb. boxes from Sam's for about $16, no shipping. Helps on the margins a bit.

I don't think my machines accept 1 inch gumballs. thats why I was asking about the smaller version.

[Sweet Tooth]

I just brought my first machine (3 triple head) from XYZ vending. I just wanted to know how many pounds does it take to full one head, and what is a standard basic formula track profit from each head.

[philo]

I just brought my first machine (3 triple head) from XYZ vending. I just wanted to know how many pounds does it take to full one head, and what is a standard basic formula track profit from each head.

I usually fill each section with 2 bags or about 6 lbs. I use a cost of goods sold of 30% or 7.5 cents per vend when calculation profits.

Regards,

Philo