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Move above $1 for candy


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Has anyone gone above $1 for candy yet?  If so, what's your recommendation on appropriate price increases?

 

I've been at $1 for over a year.  Price in grocery and convenience stores around me is $1.19 (+ tax). 

 

What say you?

Go.

 

BTW....I'm at $1 for LSS chips and $1.50 for pastries right now.

I've slowly migrated to $1 for canned soda at my best stop....without too much grumbling.

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I moved up past $1 this Jan.  Lost a few accounts because of it but no biggie.  Main issue I come across is ALOT of people are receiving bad service  but once I tell them the prices they are ok with bad service instead with their current ridiculous pricing.  I mean .65 candy, .50 chips. .25-.50 soda etc etc.  Everyone is used to low pricing so many will complain depending on your market.

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No issue.  I'm just chicken.

Is a jump from $1 to $1.25 too drastic to do all at once? 

 

Is it possible for you to explain this to the DM, or would you not be able to? I think it's best to discuss this with him, and let him know that you have received cost increases from your supplier and you need to adjust yours accordingly. 

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I have the price tags to move up to a $1.25, just waiting for ??

Our cost of living here is cheaper than most places so doing it will be tough!

:blink::blink:

Same here. $1 candy bars is doable but some people act like I'm rolling in millions of dollars by being a rich evil capitalist. The cheapest candy I have is $.80 and I'm going to have to get them up to 90 by year's end.

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1.25 is where im at and only sell snickers and peanut.mnms. I jave like 2 places at 1 dollar because its places I bought with. 75c candy bars so slowly went up

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Breaking the 1.00 barrier has been and continues to be a huge hurdle. There are several things to consider...

What is your local competition doing.

Are you paying commission.

What is your overall cost of goods and are you other categoriespriced aappropriately.

We have managed to go to 1.10-1.25 on candy at all commission locations, it took almost six months to fight through the resistance. Some locations opted to go to a no commission structure to keep the prices at a 1.00 and we also adjusted some other prices down when we did that as well. For now we are going to keep all noncommission accounts at a 1.00, not because we don't want to, but because the local market dictates that we do this for now.

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The only place I pay commission is all chips, if I put a LSS bag in machine I up the price to .90 and all one oz bags is .75.

 

All other locations has candy bars which I price at a $. When the vendors at my work place put their candy at $1.25 then I up my price in my machines. My last two boxes of Snickers at Sams cost me .49 a bar.

 

Until then everybody have a great Secretary Day tomorrow!

 

Mutt!

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Yeah. Looking at stores that are 0-2 miles away from your location will give you an indication of market prices, and then you can price appropriately. Walgreens sometimes does 2-$1 candy at my store in Illinois. I think that's a loss leader for them at times, as Walgreens is a drug store first. Who knows. Study your area and see what things are going for. $1.25 is where I am sticking on all candy pretty much. 

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Yeah. Looking at stores that are 0-2 miles away from your location will give you an indication of market prices, and then you can price appropriately. Walgreens sometimes does 2-$1 candy at my store in Illinois. I think that's a loss leader for them at times, as Walgreens is a drug store first. Who knows. Study your area and see what things are going for. $1.25 is where I am sticking on all candy pretty much.

I had a temporary job in the last six months and all I did was help deliver to convenience stores. In most of these stores, we delivered everything but beer, soda, and local things like potato chips. With chips being about the only exception, we delivered practically everything that you could find on a shelf.

With that being said, I can tell you that a lot of stores don't offer things like 2 for $1 unless it's a promotional deal done by the dustributor. This means that, sometimes, they make almost no peofits on the sale item but they have to do it as part of their agreement.

In the end, it probably is a loss leader but it may be a marketing ploy by the distributor rather than the store itself. We can't really compete with that but I can assure you that they don't care about how many candy bars they sell, they just have to honor their agreements.

As for the distributors, they probably have to honor their direct distributors but the pass it on (which is the idea). Mars candy says "make them sell our candy 2 for $1 and we will sell them to you at $.40/unit." The distributor says "okay, you got it, but I'm going to sell it for $. $45/unit." Once the sale is over, the prices go back to normal. Mars gets a sales lift, the distributor gets a sales lift, the store gets a loss leader that brings some people in for a sales lift.

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My locations let me set the prices. So going to $1.25 won't be a problem for ME......it probably will be for my customers.

Is that too big of a jump at once? Hell.......gas prices around here fluctuate $0.10 - $0.13 per day.....

1.25 seems more practical change-wise, especially if gas prices are going up. You're in business to make a profit.

Also, I agree with keeping prices competitive.

The only place I pay commission is all chips, if I put a LSS bag in machine I up the price to .90 and all one oz bags is .75.

All other locations has candy bars which I price at a $. When the vendors at my work place put their candy at $1.25 then I up my price in my machines. My last two boxes of Snickers at Sams cost me .49 a bar.

Until then everybody have a great Secretary Day tomorrow!

Mutt!

Wow, Snickers $ .54 at Sam's down here. Cringe ...

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I have had all of my candy at $1.25 for about a year now. I always look at the gas stations/convenience stores for pricing comparison and these days its hard to find any of them selling for less than $1.19. I pay between $.48 - $.55 for candy and one you add in any commission and sales tax its just not worth it for anything under $1.25. In my eyes margin is king and with an additional $.25/candy your profit increase will outpace any slowdown in sales due to the price change (and that's what really matters). Someone who wants a snickers is going to by that snickers weather its $1 or $1.25.

Have I had minor complaints, yes your going to have a whiner at every location. I get around this by making sure the location is happy with my service. I sell 1 OZ chips for &.75, Grandmas Cookies for $1.00, 1.5OZ Chips/snacks for $1.00, Pastries are typically $1.50. I also do a fairly good soda business selling 16.9 OZ Coke Pepsi, Sunkist, A&W Rootbeer for $1.50, 16.9 OZ water I sell or $.75 & $1.00, 12OZ Can pop I sell for $.75 & Monster $2.50, Red Bull $3.50 & Kickstart $2.25.

The biggest problem with going to $1.25 is the quarter consumption, if you have a lot of candy sales be prepared to fill quarters.

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