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Bryan La Rue
Founder of VendingNation
What’s up everyone! I am so excited to be giving you this awesome serious!! We see so many comments and receive so many calls on the daily about how much product you should give out of your gumball or candy machines. Now this question may be simple but to find that happy balance between giving your customers the best bang for their quarter (meaning giving them enough product to where they feel satisfied) and making the most amount of profit per vend. We first have to go through every single product size on your candy or gumball machine. We will figure out how much product is vended then teach you how to figure how much profit you are making per vend.
Surprisingly there are a bunch of different sizes that you can set your candy machine too. Actually, there is exactly 7 different sizes. Most people think there are only six notches on the product wheel of a Rhino gumball/candy machine, which is true but there is one extra size that people seem to overlook. Although we don’t recommend doing it, you can actually remove the product sizer altogether from your candy wheel. Which makes up the 7th product size. This product size allows you to give out so much product per vend that you rarely make any profit.
With that being said in this specific video and blog post we are going to figure out everything listed above for the 7th product size when it comes to vending Regular M&M’s. Meaning we completely removed the product sizer from the candy wheel
So, we went ahead and put a quarter in the machine, gave the coin machine a turn and ended up with 1.4 oz of candy.
Now we need to figure out how much money you make if you vend 1.4 oz of Regular M&M’s.
We do this by first figure out our cost per oz. In this specific video and blog post we bought this bag of Regular M&M’s for $8.42 and there are 42 oz of product within this bag.
The formula for this is:
COST OF BAG / HOW MANY OZ OF PRODUCT IN BAG = COST PER OUNCE
$8.46 / 42oz = $0.20 per oz
Once we have figured out the cost per ounce we then multiple the amount vended by the cost per ounce. This answer will be the cost per vend.
1.4 oz * $0.20 = $0.28
After figuring out the cost per vend we can then find the profit per vend by subtracting the cost per vend for what your customer pays per vend. Most of the time you will be charging $0.25 per vend.
This equation looks something like this:
$0.25 - $0.28 = -$0.01
You literally lose a penny on every turn of your candy machine when you are vending Regular M&M’s and remove the product sizer wheel. So if you’re running a gumball or candy machine business, we highly recommend you not to do this aha!
You could do this though if you wanted you machine as a decoration or just want to provide some candy to your office but want some of your money back for providing it!
Hope this helped!!