2 replies to this topic

[murphmack]

I'm new to the vending business and new to this forum as well. I did some reading and what not and found that the U-Turn machines are quite popular and very efficient with the space they use. Much to my surprise I saw a local ad for a vending route for sale which involved 13 U-Turn machines total (the ones with 8-selections, not 4), 8 of the machines were already in commission free locations, and 5 of them were not placed yet. The total cost of the deal was $1500 CAD, needless to say I bought because I thought it was a great deal (a little over $100 per machine plus 8 are already located).

So we exchanged ownership. It was a lot of work for me to get my own inventory up and running because I didn't have much pricing experience with bulk foods, and I didn't believe my operation was big enough to begin ordering bulk straight from the internet. So I shopped around: Costco, Superstore (Loblaws), and Wal-Mart Supercentres. I ended up buying about half of my product from Costco and half of my product from Superstore. Some huge differences in prices between the two places, but on average I am paying about $0.80 per 100gram of product. My list of product includes Pistachios, Choc Almonds, Tiny Gumballs, M&M Peanuts, Mike and Ike, Hot Tamales, Jelly Bellys (the legitimate ones, real flavors... 0.88/100g I thought it was a steal--it's also a market monopoly because I see nobody else offering them), Smarties, and Skittles.

If anyone is experienced with the U-Turn machines, I have mine set on the maximum setting to increase value for the customer (don't want to make them feel ripped off) which is the '10' setting.

My ultimate question: is paying on average $0.80 per 100g of product too much?

Secondary question: does anyone have recommendations of places to buy bulk foods? Keep in mind I live in Alberta, Canada...So shipping to Canada must be available.

Thanks.. I love the forum =)

[markvend]

Hello,

These are great questions and some of the best ones to ask. I have 2000 or so machines and as I grew I began to really look at my cost-per-vend to see my profits. I wanted to give a lot of product at first because of giving value to the customer. I learned the cost of doing business is much higher than you think when you add in spoiled product, machine thefts and repairs, gas prices, etc.

I decided to quit vending high cost products and buy in bulk from Sams Club (equivalent of Costco). Some items did not make financial sense to vend because I would come out with less than a dime's profit. I can tell you my highest profit margins on product are gum, runts, reeses pieces, skittles, then MM Peanuts.

I have a article entitled "Figuring your Cost-Per-Vend" on my website that will help answer your question. (For some reason it won't allow me to give you the link directly.........)


http://www.vendingarticles.net/

Look under the "Increasing Your Cashflow" section.

Hope this helps. Feel free to contact me if you have any questions.

Mark

I'm new to the vending business and new to this forum as well. I did some reading and what not and found that the U-Turn machines are quite popular and very efficient with the space they use. Much to my surprise I saw a local ad for a vending route for sale which involved 13 U-Turn machines total (the ones with 8-selections, not 4), 8 of the machines were already in commission free locations, and 5 of them were not placed yet. The total cost of the deal was $1500 CAD, needless to say I bought because I thought it was a great deal (a little over $100 per machine plus 8 are already located).

So we exchanged ownership. It was a lot of work for me to get my own inventory up and running because I didn't have much pricing experience with bulk foods, and I didn't believe my operation was big enough to begin ordering bulk straight from the internet. So I shopped around: Costco, Superstore (Loblaws), and Wal-Mart Supercentres. I ended up buying about half of my product from Costco and half of my product from Superstore. Some huge differences in prices between the two places, but on average I am paying about $0.80 per 100gram of product. My list of product includes Pistachios, Choc Almonds, Tiny Gumballs, M&M Peanuts, Mike and Ike, Hot Tamales, Jelly Bellys (the legitimate ones, real flavors... 0.88/100g I thought it was a steal--it's also a market monopoly because I see nobody else offering them), Smarties, and Skittles.

If anyone is experienced with the U-Turn machines, I have mine set on the maximum setting to increase value for the customer (don't want to make them feel ripped off) which is the '10' setting.

My ultimate question: is paying on average $0.80 per 100g of product too much?

Secondary question: does anyone have recommendations of places to buy bulk foods? Keep in mind I live in Alberta, Canada...So shipping to Canada must be available.

Thanks.. I love the forum =)

[tstrong]

Murph, I dont know jack about vending in Canada , but there are a few from up north that post on Vendiscuss http://www.vendiscussforums.com/ . Grumpy is the only one whose name I remember offhand. Hope this helps. Tom