Fundraising ideas and proven fundraisers FREE for nonprofits

The 24 Hour Money Machine

Selling candy for fundraising profits is a

multimillion dollar business. Selling those

M&M’s, snickers, gumballs or lollipops has

been popular with nonprofits for decades.

Traditional Candy Sales

Traditional candy fundraisers takes a lot of hard work and effort. To make any money at all you will need a large sales force. Plan on securing at least a couple of dozen students or volunteer fundraisers in order to make 25 cents apiece selling 50 cent candies.

With candy sales, you are limited on the money you can raise. If you plan on raising over $2,000, it is best to try fundraisers that bring in more money. After all, you would have to sell 4,000 candy bars to raise $2,000. The return on your effort is better served by getting higher priced sales items like candles, scratchcards or gourmet coffees.

Your other drawback is you don’t have the time to really conduct what retailers do all the time. And that’s sell your products all year long for a profit all year long. With the ever popular candy fundraiser, you only have a few weeks to conduct your campaign.

At best you may be able to conduct two to four fundraisers at your school or in your community before you wear out your welcome. The customer burn-out factor is very common with candy sales.

And look at the competition. Every other student and small group is doing the same thing…selling individually wrapped candy. That’s pretty stiff competition.

With all of the negatives of selling candy, it’s little wonder that many are looking for alternatives to raise money. But there’s still the fact that people love candy and will continue to buy it.

So many nonprofit groups can not escape the fact that there’s a ready made market with candy. What to do?

What to do? Well, what about using vending machines to sell the candy for you?

The Vending Machine Advantage

Using vending machines will save you many

hours of hard work and can reduce your sales

force down from dozens to one or two

individuals. It’s a 24 hour worker.

Advantages include:

Buyers aren’t harassed by sales tactics.

No seasonal fluctuations.

Candy buyers will buy even when they don’t know the candy

bought is a fundraiser.

Vending machines can offer several types of candy in one location.

Repeat business. The candy can be found in the same spot for

immediate sales.

Depending on the machine used, buying candy or gum can be fun.

High returns. One machine can bring in $100 or more in profits.

That could be 400% to 500% Return On Investment. Try selling

400 candy bars to make the same.

Limit your time and effort. Replace your product when you desire.

One person can tend to a dozen machines with minimal effort.

10.

Minimal investment. Yes there is a cost, but you will still have

to buy candy bars too.

How To Get Started

Your first step is for your group to research this topic thoroughly and bring it up for a formal vote before your Fundraising Committee or Executive Committee of your Board Of Directors. This is not something you should enter into with sound determination.

Determine the number of machines you will place throughout your community and assign one individual per dozen machines. These volunteers should be totally trustworthy while handling the all-cash fundraiser.

Next, you will have to create a strategy for refilling the machines and for your volunteers to report when they need to reorder. Have a place to store your candy and determine how the candy will be reordered.

Here’s a quick list of some national vending companies that will sell you various kinds of vending machines. Many offer Free Start-up Kits.

•

1.800.VENDING, 800-836-3464

•

VendStar, 800-998-VEND

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Wacky Fun Factory, 800-750-7969

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U Turn, 800-584-8887

Sam’s Club is a place that you would not think

of to find a vending machine, but their equipment

is fairly affordable. At about $520.00, a spiral

gumball machine holds 1200 gumballs. A triple

vending machine costs about $170.00. A smaller

machine holding 500 1” gumballs or candy sells

for about $55.00.

Pick Your Spot

Many of the vending machine sales companies have services that can find guaranteed locations for your machine.

You may also ask every one of your board members to find 5 businesses to place the machines. They could start by placing a vending machine in their own business and then in 4 other locations.

High traffic areas are best to place your machines. However, don’t discount the less obvious locations that may have a steady flow of people. For example, the patient lobby or waiting area in a doctor’s office would be ideal. Or the waiting area at a tire repair shop.

Where To Get Your Candy

Typically, your vending company will offer you some great wholesale prices where you can make a hefty profit. This is because they can buy in volume.

Secondly, consider buying from a name brand candy maker like M & M’s.

Finally, check out Discount Buying Clubs like Sam’s Club or B J's Wholesale Club

How Much Can You Make

Many machines can generate $100 on average.

A combination machine with three separate

candies can generate $300 when emptied.

What if you replaced the candy every two

weeks? At $300 this would amount to

$7,800 generated from one machine. Now

take out your wholesale priced candy refills

and you will have well over $6,500 from one

machine. Replace your candy every week

and you generate $13,000 profit.

One gum vending machine holds 1430 pieces that cost about 1.2 cents each. It is then sold for 25 cents. This is a 1000% mark-up! Are you getting the picture yet?

Some specialty “fun machines” can generate $1,500 weekly. Imagine the great things your group can accomplish with these highly profitable fundraising machines.