Yes, I went to Miami today with my friend and picked up more candy machines! I got double heads, yes double head machines for $95. Not too shabby. The machines are metal double heads, upgraded from the plastic bottom ones. I just didn't want to buy the plastic ones even though they were a bit cheaper. And I have black metal stands. ANYWAY, THEY ARE SEXY. I built one today and just love it. I love it, love it, love it. I'm a double head man now. So I went to buy 10 double heads, but I got excited and got 15. That's the beauty of having my business plan in my mind, it changes on the spot. I can tell the machines are just built better than the triple-head ones. I'm excited. AND DAMN do they look sharp. My idea is to put Runts and Gumballs in all places that are non auto related. I just think that they will sell better. M&M Peanuts are a hearty snack, not good for a restaurant. Maybe salons will get M&M Peanuts! We will see. Anyplace where I think true hunger is an issue I'll put in M&M Peanuts!
My locator called with two new locations today. I haven't had time to drop them off yet but I will tomorrow. I think he said one was an apartment building and one was a Goodyear tire. Great.
RUNTS RUNTS RUNTS. He (www.gumball-machine.com) charges $7.50 a bag and I begged for $7 and we negotiated $7.25 a bag, haha. So I bought 20 5lb bags. Yes, I had 100lbs of Runts in my car today. And probably another 750+ pounds in candy machines. It took an extra quarter of a tank on the way back from Miami then on the way to.
I need to get building my machines! I think my friend is going to help me tomorrow, how nice.
The nice thing is with these new machines is 1 bag of runts and about $7 worth of gumballs will fill the two heads. Meaning for under $15 my machines are full. The triple-heads were costing me $35! That was crazy. Lower inventory = higher profits. Who's excited!?!
Candyman 007
One last thing. I've been talking to this retired Sergeant and he is considering 1800vend. Now, I have fervently tried to sway him from them and I want you guys to help. Below is a copy of the email I sent him tonight:
EMAIL:
Alan,
I respect that you have a plan and are sticking to it but I think a few adjustments could be made. A business plan is a living document and is never perfect. As you grow and learn more you must make needed changes. Some advice. Buy 10 machines on a credit card and get them located. As you will find out, locating is not an overnight process, it takes weeks. 50 machines will not be located in 1 day. A home equity line of credit is a great thing and probably the lowest interest rate you will find, however, there are other options. I'm 22 and they approved me for $45,000 in credit with 0% interest until May 2008. This gives me considerable time to grow with OPM or other peoples money. Bulk vending machines pay for themselves in less than a year.
Don't buy triple-head machines. That is the last thing I will say. I got my first batch of double head machines today and I can tell you the quality is much better than triple-heads. There is a reason every single large vendor on the market uses double head machines.
Marketing and promotional material provided to you by companies such as 1800 vending are gimmicks. Promotional material does not sell vending machines, you do, your locator does, and good service does. From someone with a business degree I urge you once again to stay away from business opportunity's such as 1800 vend, UTURN, and others. These are MADE to make money from novices. Buy your machines on eBay and get a locator yourself.
You are a retired Sergeant. Most people respect that. I don't see why you can't locate your own machines. Don't tell me that you are scared to sell like so many others, I won't hear it. You are in a position of authority, people will be happy to accept your machines. Use a charity that means something to you and sell it. I'm telling you how to be successful.
Rob
25 comments:
You have had 10 machines out there on location for over a month now. How come you have not serviced those machines and told us how much money you have collected?
I've serviced 3 machines so far.
Auto: $15.75
Restaurant 1: $30
Restaurant 2: $35
I need to check more you are right Ken! You know, I've just been trying to expand. I'll go servicing maybe Thursday of this week!
Rob
Great blog Rob, Looks like you are getting your ducks in line. By the way, I may be able to get you a better price on those Runts. Let me run some numbers.
Hey Caserri!
Thanks for visiting and thanks for checking on Runts for me. I know they cost $5.84 at SAMS but mine does not carry them. Any idea what the profit margin is on them? I give a generous amount but I'm not an over zealous candy giver. Hopefully I'm not giving more than 5 cents out, but I haven't checked yet. I will.
To let you guys know, Caserri is a big vendor! I met him on a forum where he blasted me for having triple-head machines. Since then we have come to respect each others opinions. He's a great guy, hopefully he will continue to add to the blog.
Rob
If you are using a regular pan candy wheel set wide open you are most likely giving close to an ounce which is just over .07 per vend. If you back your wheel off a notch you should be in the 1/2 to 3/4 of an ounce area which would be .03 to .05 per vend. I keep mine wide open. I know my cost per vend is more but people remember which machine gives more for a quarter. Thats helpful when your machine is not the only one there. Besides, .07 per vend yeilds over $14.00 profit per bag. I can live with that.
Alright. Well, I am not wide open yet. I'm trying to stay away from my stingy ways. Mine is about half way, not wide open. To be honest I have never seen a location in my town with Runts. I don't know if that is a good thing or a bad thing. Anyway, I don't think I have any competition on that front! Plus, half way seems like a good amount of candy to me. I don't want them overwhelmed. Thanks for the info.
Rob
Rob,
I KNEW YOU WOULD LIKE THEM! One question. What does the GMW look like. It is a piece of crap building?
Now...what color did you get? I have all of the abs plastic bodies. Hard plastic. I dropped one on the ground once, it did not even chip!
Runts. You have got me convinced. I will try them again. I was at a tattoo parlor today. The Reese's Pieces, and runts were almost gone. That is why I am going to try them again.
I pray to god that you service your machines soon! Good gosh, you are behind on servicing Rob! I am swapping machines around tomorrow. I got my black triple in the mail today. One word. COOL.
Kyle G.
I know the black triples are cool. Does it have a chrome stand? I saw the plastic ones at GMW and I just wasn't impressed. For the $5 extra per head that I paid I figured I might as well go with the metal ones.
Is it a piece of crap building? Well, I mean it's not consumer friendly, haha. I think I'm the only customer that actually goes there. I heard him say he paid 1800 a month in rent. It's probably 2500sqft or so. It's just him (Sam) and Alani the secretary that work there. I don't know if he owns it or just runs it or what. He makes all the decisions though. Young guy, Jewish for sure. Good businessman.
It's nothing fancy I'll tell you that. The website is a facade for the underlying business. But, it gets stuff done. I don't think they are going out of business anytime soon. :)
Rob
I can tell you that I saved $1000 in shipping today by picking my machines up. I'm lucky to have them so close.
Rob
Rob,
No crome stand. What color machines did you get? I use red.
Kyle G.
I just weighed one vend of runts and it equaled .5oz At $7.25 per bag this comes to a cost of 4.3cents per vend and a gross profit of $40 per bag.
Net profit of $32.75 per bag.
Not bad. You may want to tune down the amount you give out a little bit caserri. At 1/2 ounce vends you more than double your net profit per bag.
Rob
I got 10 red double head sets and 5 black double head sets. Maybe I'll take a picture.
Rob
Rob,
My Runts are going to be on order from Sam's!
The red ones are cool. I hesitating pulling one of mine from a bank and replacing it with the new black one..but I thought since it was siting next to a .50 cent drink machine, 3 choices would be good since thay have quarters back from the drink machines. I am using Reese's pieces, gumballs, and skittles in there.
Do you think your doubles will fit with your town?
Kyle G.
Yeah my double heads look outstanding. That picture doesn't do them justice. These double heads will work just find in good o'll Naples, FL.
I can't believe you don't have M&M Peanuts in the bank, come on guth! Those ladies work hard behind the counter, they need some food!
I have a machine in a bank and she specifically REQUESTED RUNTS. Drop the gumballs. Try M&M Peanuts, Runts, and Reeses. Those were three things my bank lady wanted.
Rob
Rob,
would you post a picture of a black one? I am curious as to what thay look like.
Kyle G.
Rob,
My machine is in there main entrance hallway. I have to use gumballs for the kids. I will see about runts. P-Nut M-M? Well I am being lazy. I did not want to go to Sam's to buy them tonight. I have Reese's pieces and skittles in my garage/warehouse!
Kyle G.
Hey Rob,
Congratulations! I totally think these new double head machines are the way to go!
I am looking forward to reading about you servicing all of your machines!
Take care,
Ryan
That looks like a Seaga. It could be one that has been renamed.
I've tried them and personally don't like them. I'd try an Oak instead.
This one seems built extremely well to me. It has 4 bolts that hold each head on. The construction is all metal in the machine. I really don't see it breaking or me having any problems with it. What didn't you like about the seaga one?
Rob
Rob,
Saga: There machines are crap. There always wobbley on the stand. And cheap everything about it. I see sagas everyday. One location has all sagas. One of the 5 machines is always broken down. It is diffrent every time.
One of he saga coin mechs broke one day. I turned and gave free Peanut M-M. A extreme loss for that vendor.
Kyle G.
I don't know but the M&M Peanuts sure do sound good. I would have kept turning!
Rob
Rob,
I do not like chocolate, so I did not get any! But my friends did!
Kyle G.
One issue I have with Seaga's is the lip on the globe. For example, If you go from Skittles to Runts onsite, 9 times out of 10 product gets stuck on the lip at the top and makes a mess. I use nothing but square globes now.
2nd issue is the screws tend to back out of the coin mech. use some Lock Tite and it will help with this issue.
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