Selling Toy Capsules through Gumball Machines

By candypreneur

In All Articles
Oct 14th, 2015

For those who have one or even two inch gumball machines and are trying to find the best return have you considered selling toys?. The answer to “what is the best product to sell” is not all that simple. Gumballs have a somewhat classic and nostalgic appeal to adults and children alike. They are cheap to buy in bulk with each piece running you less than 8 cents. When you sell them for a quarter your profiting 17 cents and making 312%. However not all locations will allow gum, or gum won’t always sell well. So what do you do with that gumball machine?

One inch toy capsules or bouncy balls are hit and miss, the location needs to be made for kids, so arcades, bowling alleys, community centers and family restaurants are the best locations to sell toy capsules. The price of toy capsules varies, those selling 250 pieces for $20 ends up costing the same as gumballs, however the far more common $30 sale for 250 pieces comes out to 13 cents a piece which is slightly more than a 50% cost increase compared to candy and gumballs. While 13 cents still means 188% profit, it is significantly lower than the return on candy and gumballs.

Alternatively with the two inch products not only is your cost going up, but it also means customers must fork out either 50 cents or even a dollar for your product. If you are selling toys for a dollar than they better be decent quality, and the majority of good two inch capsule toys end up costing you about 50 cents a piece which again is barely a 200% return. Two inch capsule toys can fall anywhere between 30 and 51 cents a piece, so whether you are making 50 cents or a dollar off of the sale the overall return is not even close to that of candy. The lower price toys tend to be uninteresting like erasers, plastic animal figurines, fake mustaches etc. which can cut into your sales and end up being unprofitable.

Just like with candy, you have to sell the right product in the right place. While selling toys at kid and family friendly locations may not make you a great profit, there is an increased chance of sales if your product is enticing to the little ones. Having different toys that appeal to both boys and girls can be sold on different heads of the same rack, such as space slime for the boys and jewelry for the girls. Additionally toys marketed to different age groups can be included as well. In places with a lot of traffic like kids restaurants there is no doubt that you can sell a lot of toys, it is just a matter of deciding whether or not it is going to be beneficial in the end. If for instance when placing the machine you come across a owner that wants a commission off of your sales, well in the end that machine is not going to make you very much money if you have to hand over 20% of the gross sales in addition to the increased product cost and significantly lower return.

It is worth pointing out the initial cost of goods as well. While toys do not expire like candy, they do cost you a significantly higher price. A 250 count box of two inch capsule toys can range anywhere between $60 – $130, which is a significant investment for a questionably successful product. Stickers and stick on tattoos may be cheap, but for the good quality delivery and service additional machines made for that purpose must be purchased. Nobody wants a stick on tattoo folded and rolled up into a two inch capsule, so if you like the idea make sure to do it right.