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Done with doubles?


caserri

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Ok, as most of you know, I have a rather large fleet of singles, doubles and racks. Something I have been thinking a lot about recently is keeping my single locations and my rack locations as-is and breaking down my doubles, all of them, to singles. I think maybe it will be easier to keep track of if I know I have a single at every location. Single head, single product.

My biggest competitor here in my area does just that. He (or she) runs only singles with gumballs. Thats it! And I know they make a killing because he's in about 90% of the locations I'm in plus a ton that I'm not in. And I can almost see his gum levels fluctuate regularly.

So, I think I'm done with doubles! Obviously I cant handle many more locations so the extra heads will either be used for back ups, spare parts or sold.

What do you guys think?

Steve

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this is what i am doing right now. i have about 10 more triples to put out and that will be the last of anything other than a single. ill probably locate them and then sell the route.

no more candy for me. only gumballs.

i have 30 singles in the shop right now that i have to get located.

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Pusherman,

What are you basing your decision to do this on? Simplicity? or do you think that given the margin on gum that it just makes better financial sense?

I'm thinking that not only will it simplify things greatly but I'll be getting the highest markup possible in 100% of my machines.

I could be way off base with this but I'm glad there is a like minded person out there.

Steve 

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I'm liking this idea more and more. I think my mind is made up. It will take some time but I'm going to move in this direction. Hopefully i will have everything switched over within a year.

Thanks for your input!

Steve 

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Wow, interesting idea.  Seems like you may loose some locations do to the service aspect.  Aren't you worried some locations may not be very gumball friendly and leave you open to someone else taking your location?  (Just my 2 cents)  Or does the fact you can service more locations faster make up for this?

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That is a very interesting angle to take, done with doubles. I know some of my locations won't work with gumballs, but how many more would? I see quite a few of these candy machines just stalked with gum, I actually have a few, not by choice.

But to get rid of the option of other candy, seems kind of limited, and perhaps leaving you open to others taking your locations. But different market perhaps??

I would love to know your progress with that migration!

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Steve,

 I will say this: I have over 180 locations and know all the location owners names, managers names, and most workers. I know BY HEART what candy goes where, and how much to buy. I am at Sam's daily, and have been given a award by them for business owner of the month! :) 

 I like to say this. If you write out candy, your sales will go down severally. Yes thay sell well, but kids like candy better. Singles get pushed in the corner, and do not have a good "presence". Doubles are 100% better than singles.

 I think that would be a poor, and stupid, business decision on your end. Competitors will be all over all your locations with candy (I do that with mine that only use gum), and the whole thing would suck, and I know it does for my competitors. I have over 80 shared locations with "stupid" gum only operators. Guess who makes more money?:huh: 

Kyle Guth 

 

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Wow,

Interesting comments! I appreciate everyones input. This guy that I'm competing with obviously does much better than me with only gumballs. I know that I will lose alot of existing locations by switching to gum only but I'm sure I can make it back with gum friendly locations.

I just don't know. I think maybe I will start placing only single gum machines and keep the rest as is. Kind of "test market" the idea and see which does better.

Steve 

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My brilliant idea for the day comes from a childhood memory. The penny gumball machine ( 45 years ago ) at my fathers store was filled with muiti-colored small gumballs. If someone got a silver colored gumball the store clerk allowed them to select a " grab bag " from a box under the counter. It was a small bag with inexpensive toys in it. Kids would line up with their pennies to get gumballs and hope to get the " silver gumball " and the prize.

 

How about a new twist to an old game. What would happen if you put one dollar bills in 1" capsules mixed in with your 1" gumballs? What about a grand prize of a $5 bill? Would it even be legal today? Would it be worth it? It would only take a little effort to quickly learn the answer. 1" empty capsules only cost about 6 cents each on e-bay.

 

300 gumballs will vend out for $75 even. The higher quality brand name gum can be had for around 3 cents each or $9 for the three hundred. If you put just six capsules with a single dollar in them and a grand prize capsule with a $5 bill in it the total cost is $20. The net return on 300 vends after the cost of gum and the small prizes is $55 per 300 gumballs. Not a bad profit margin.

 

Just a marketing idea that could be profitable. If it worked 50 years ago why not today? What do you think? I would like to hear from others about this idea.

 

                                                                     Alan

                                                                     Crestview

 

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I think that would be STUPID to change doubles.

Gee Kyle, Can you tell me how you really feel? To be honest though, It seems to work great for this other guy. He has a much larger fleet than I and is making much more money than me so I don't really agree that it would be stupid. However, having said that, I'm wondering if I'm doing just fine because I am offering a different selection.

As for Alan's suggestion, I think it would be a great one. A couple of points to consider though...

You have to make sure you have multiple "prize" capsules throughout the globe. If you have only 1 and it is located near the top then obviously the plan will be ineffective.

Also, I am real nervous about mixing non-edible items in the same globe as edible items. I am afraid that would leave me too exposed to liability should someone pop a capsule into their mouth.

I do love the idea of it though.

Steve

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I wouldn't put that much $ in a machine. I think you would see your machines disappearing in a hurry. $100.00 bill in a candy machine would walk fast.

 I would also think you would need to check out the gambling laws as well. "Put in a quarter and you may get $. sounds like a slot machine to me".

Just my .02

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I wouldn't put that much $ in a machine. I think you would see your machines disappearing in a hurry. $100.00 bill in a candy machine would walk fast.

 

Great point Todd! Hey Kyle, Where exactly is that machine with the $100 bill???

Steve

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 I would also think you would need to check out the gambling laws as well. "Put in a quarter and you may get $. sounds like a slot machine to me".

 

Im not sure about other states but as long as the customer gets an item (at least a gumball) for each quarter deposited then the practice is legal.

Steve

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Yes you are correct. Even here in the ultra liberal state of Mass it is considered gambling if the customer does not receive something for each quarter deposited thus illegal. Like those quarter shooters. However the bonus of money given out on random vends is perfectly fine. Unless of course someone complains to the attorney general because they didn't get their gumball as advertised and ended up with a lousy 100 dollar bill! :shock: 

Steve

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It is in a gas station, newly placed. I super guled the $100 to the bottom of the globe! You can not tell it is super guled. O yea, it is in a 1" cap machine, with "lil combination locks".

As for gambling, here, if you have any other product in a machine with the money, thay can not prove people were going for the money. That is how people are doing quarter pushers here, (Gambling is illegal in TN), thay put the crane mix stuff into the playing field, so it is no longer gambling. Thay also give bouncy balls with ever quarter played. Sometimes people walk away with $10 worth of bouncy balls!! So them not proving thay were going for the money is my 1st shield, then them getting a prize every turn, it is not illegal!

K.G.

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it does not have ANYTHING to do with being able to prove going for the money.

it has to do with being a game of skill or a game of chance.

also it can not pay out more than 10 times the play. it doesnt matter if they walk out with 40 bouncy balls, if they put in a quarter and win a $10 bill it is gambling.

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I think it probably depends on your states interpretation of what is considered gambling. All states are different and interpret the law differently. Here in MA, you have to give someone something, regardless of value, for each "play" or in this instance, for each quarter.

There are businesses here that have a contraption where you drop a quarter into a big container of water. If the quarter lands in a cup at the bottom of the container you win something, I'm not sure what. However, to remain on the legal side they are compelled to give you a lesser prize just for playing.

It would be best to consult your state attorney general's website prior to implementing any thing like this just to find out what the rules are.

Steve

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  • 5 weeks later...

Just wanted to update everyone on my conversion to singles. About 40% of my locations are now singles. And as you can see from my revenue reports in member PLUS, my average take per head has not fluctuated too much.

Pressing onward!

Steve

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No I vend them from a GB wheel. If you want to vend them from a candy wheel you need to attach a "stirrer" to the center shaft. (Provided you have a center shaft) It simply agitates the gumballs on every vend to eliminate pyramiding. Its not 100% but its a suitable fix if you are in a bind.

Steve

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