AZquickvend Posted August 30, 2014 Share Posted August 30, 2014 How much are you guys selling candy for? All of my locations I purchased from someone else so I have not increased the prices...yet but something's got to give. Most locations are at 75 cents. I would like to jump to $1.00. I'm afraid they will have a fit. Had one location last week that I raised soda prices from 50 to 55 cents and they called screaming that they had an agreement with the previous owner. I changed it back but geez something's got to give. On my suggestion paper on the side of the machine they had the nerve to write 25 cent candy bars and sodas. Link to comment Share on other sites More sharing options...
AZVendor Posted August 30, 2014 Share Posted August 30, 2014 You need to be in charge. You should give your accounts one or two weeks notice of a price increase. Post a letter indicating how long they have enjoyed the current prices and that due to several product cost increases over the last 2 years the prices must be increased in the machines. Don't be afraid of losing all of your accounts, but if you handle this professionally you will not encounter problems. You might lose an account here or there, but those aren't the accounts you want anyway as they will not be profitable for you at the lower prices. One thing to do is not drag out price changes over a period of months. Do it all at once and get it over with. There will always be complainers and those that threaten to boycott your machines, but they are the vocal minority. Don't do any nickle increases unless it's for a small category of one or two items in each machine. If you were to do soda from .50 (no one should even be there now) to .55 you will drive yourself crazy keeping the coin mech full of change. Try to achieve quarter pricing as much as possible or any pricing that doesn't include nickles for change. Be brave. Most of your large competitors are at much higher pricing already and it works for them. You must remain profitable or you will be forced to sell or go out of business. Anyone who replaces you because they offer below market pricing will not last long. Link to comment Share on other sites More sharing options...
Rick Posted August 30, 2014 Share Posted August 30, 2014 Time to meet with the location owner. You're really at a critical juncture with this account where it's either time to walk or time for them to pay. Link to comment Share on other sites More sharing options...
moondog Posted August 30, 2014 Share Posted August 30, 2014 How much are you guys selling candy for? All of my locations I purchased from someone else so I have not increased the prices...yet but something's got to give. Most locations are at 75 cents. I would like to jump to $1.00. I'm afraid they will have a fit. Had one location last week that I raised soda prices from 50 to 55 cents and they called screaming that they had an agreement with the previous owner. I changed it back but geez something's got to give. On my suggestion paper on the side of the machine they had the nerve to write 25 cent candy bars and sodas. They're living in LaLa land. Most people that use vending machines are well aware of what the prevailing price is for the items they buy and 50 cents for a soda is unheard of - you'd be lucky to make 15 cents a unit. Get this straightened out with management or dump this account. Link to comment Share on other sites More sharing options...
delb101 Posted August 30, 2014 Share Posted August 30, 2014 I posted a letter explaining on July 15 all candy manufactures raised prices due to increases in cocoa and dairy products and prices will be increasing in 2 weeks. I also met with the location owners and gave them a comparison of my prices to all local convenience stores around them to prove to them I still have GREAT prices. My Candy Price $1.25 - MOST convenience stores $1.45-1.60 My candy prices are now $1.10 - $1.25 for most locations. I charge .70-.75 for can soda.....or they can go to the local convenience store and pay .99 for a can soda....their choice. Heck 1 location I put a comparison chart up comparing all the prices in the local area compared to mine....I still won big time on prices. All my locations understood once I explained my prices are influenced by manufacture prices I would write them all a letter explaining what happened on July 15 and give them a 2 week notice of increases in prices. Link to comment Share on other sites More sharing options...
tc vending Posted August 30, 2014 Share Posted August 30, 2014 I hate candy the manufacturers are always making the candy bar smaller or raising prices been at this for awhile the candy prices move alot. I want all our machines at 1.00 for candy. Link to comment Share on other sites More sharing options...
SchligVend Posted August 30, 2014 Share Posted August 30, 2014 I am in Arizona and there is no way I will do soda for less then 75 cents I even have a couple accounts at 1 dollar....candy has to be at 1 dollar minimum but 1.25 is where it should be I do have 2 accounts at 95 cent candy but I have 4 soda machines that make me a killing at same location .... if they kick me out I say C-YA Link to comment Share on other sites More sharing options...
orsd Posted August 30, 2014 Share Posted August 30, 2014 How much are you guys selling candy for? All of my locations I purchased from someone else so I have not increased the prices...yet but something's got to give. Most locations are at 75 cents. I would like to jump to $1.00. I'm afraid they will have a fit. Had one location last week that I raised soda prices from 50 to 55 cents and they called screaming that they had an agreement with the previous owner. I changed it back but geez something's got to give. On my suggestion paper on the side of the machine they had the nerve to write 25 cent candy bars and sodas.Tell them Too bad You ain't the previous owner Link to comment Share on other sites More sharing options...
AngryChris Posted August 30, 2014 Share Posted August 30, 2014 Here is what needs to be done (if you ask me). Lets say you have a location that sells candy for 75 cents. The account has soda (lets say cans at 70 cents) and snacks. Most of the snacks are priced well but you sell VERY LITTLE candy and A LOT of soda. Under those circumstances, I would try to increase the price of the soda by 5 cents. If the soda machine grosses $50/week and the snack machine does $20/week with mostly chips and what not (which is a really slow account), you may get away with not touching the candy and letting the account know that you will be reducing the variety of candy unless the prices go up on the candy to make up for the cost of goods. It's a matter of wording. On the other hand, if you sell a LOT of candy relative to everything else at that location, you HAVE to raise those prices. If candy is a large percentage of your revenue, and they won't agree to price increases, you DO NOT WANT THAT ACCOUNT! First of all, people keep going to McDonald's when the prices go up. People still buy gas when the prices go up. People still buy milk when the prices go up. People still pay high prices at convenience stores when the prices go up. If the account refuses to ALLOW YOU to sell your products at a a fair price, then they DON'T WANT YOU TO MAKE MONEY! Do you want to have a location that doesn't care about whether you make it or not? No, you don't... unless you are purely a charity. I have three accounts right now that need major price increases. Out of those three, two already agreed to price increases and the third account has been problematic about it for a while. I am going to have to put my foot down on them and let them know that I need to increase candy prices or I will not stock candy at all. Link to comment Share on other sites More sharing options...
AZquickvend Posted August 31, 2014 Author Share Posted August 31, 2014 Thanks everyone. I think I will mail out a letter to the owners/managers and post a notice on the machines explaining why with the 2 weeks notice and a comparison. Going to take some work but maybe I won't be so frustrated. I'm still semi new, purchased all of these accounts and have left former owners prices long enough. Maybe I won't feel like I'm just spinning my wheels and actually make some real profits! I did up the candy on one account already. It's a small office with a combo machine and someone (of course no one knows who) broke the plexi glass trying to get a stuck bag of chips. Wasn't happy so upped it. Link to comment Share on other sites More sharing options...
psk007 Posted August 31, 2014 Share Posted August 31, 2014 Vending is a business just like anything else and if you can't make any money why be in it. I have been raising prices and the ones that don't like it there done. Getting ready to cut out eight locations. I told them all how would you like to loose a few bucks an hour out your checks every week. They just give me a look and I say i'm not in to working for free. I've already replaced four of the locations. In this business you run the show don't let them try to run it for you. I don't work for the man I am the man and no ones chews my butt out better than myself. Vending is a journey just stay the course and you will be fine. Link to comment Share on other sites More sharing options...
QualitySelectionsJ Posted September 1, 2014 Share Posted September 1, 2014 Thanks everyone. I think I will mail out a letter to the owners/managers and post a notice on the machines explaining why with the 2 weeks notice and a comparison. Going to take some work but maybe I won't be so frustrated. I'm still semi new, purchased all of these accounts and have left former owners prices long enough. Maybe I won't feel like I'm just spinning my wheels and actually make some real profits! I did up the candy on one account already. It's a small office with a combo machine and someone (of course no one knows who) broke the plexi glass trying to get a stuck bag of chips. Wasn't happy so upped it.You'll be fine. No one is vending at those prices and I'm sure your customers know this. If not, send them to other vending machines or convenience stores so they can learn for themselves.Best of luck. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.