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      Tapatalk App   07/27/2017

      I have resolved the issues with the site, except Tapatalk. I am thinking of removing it, but before I do I want to hear from everyone about their opinion of the app. Click the link below to go to the poll. Go to the Golpher Hole in the forums, and take the poll.  

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bhumphrey829    141

Okay, guys, I need some input here.  As a lot of you know, I run an honor snack box route.  I have 229 locations at the moment.  Of those 229 locations, 135 of these are at the $1.00 price per item.  The rest are at $1.25.  It's time to increase all of my boxes to the $1.25 price.  I'm just really nervous about doing this because I am afraid of two things happening.  I'm afraid either since it's on the honor system, they just won't pay the extra .25 or they will ask me to remove the box.  So I guess my question is actually 2 parts.  First, what do you guys think about the two scenarios i just named and second, what is a respectable way to increase the price and how would be the best way to make up the notices and get them on the boxes.  Thanks in advance for everyone's input.

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flintflash    66

Great question, Humphrey!  I survived MANY price increases and have found the best way for my company is to lay the ground work FIRST before implementing he increase.  We start talking to the accounts a few months before, explaining that an increase is coming due to increases in product costs, fuel costs, etc.  We let that sink in, and then at the time of actually taking the increase, we drop letters (on company letterhead, looks more professional) along side of the boxes (do not attach letters to boxes!)  After an account has been serviced following a price increase, if the letter is still sitting there, I have the route driver remove it (No sense leaving a constant reminder of the price increase).  The IMPORTANT thing is that if you laid the ground work by talking to the accounts ahead of time and the account is aware that a price increase is coming, they tend to be more accepting of it.  Now...with that said, we WILL lose a few accounts, shortages WILL creep up a bit at some accounts, and your usage WILL drop.  THAT IS NORMAL!  Stand strong.  I have found that typically around the third month after the price increase, things slowly go back to normal.  ALSO, it is wise to add some premium-type items in your snack tray.  Maybe add a few more chocolate items; anything to help you "justify" the price increase with your customer.  You've done a GREAT job growing your business!  I've been reading your posts and following you for a while.  You're on the right track.  Price increases come and go.  I've been thru several, and if you stay strong, you'll survive.  DEFINITELY try to avoid the "lowering the price" game to save every account.  That will just make it tougher on you the next time you need to raise your price.  Good luck to you, my friend!  :)

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bhumphrey829    141
On ‎4‎/‎20‎/‎2017 at 2:50 PM, flintflash said:

Great question, Humphrey!  I survived MANY price increases and have found the best way for my company is to lay the ground work FIRST before implementing he increase.  We start talking to the accounts a few months before, explaining that an increase is coming due to increases in product costs, fuel costs, etc.  We let that sink in, and then at the time of actually taking the increase, we drop letters (on company letterhead, looks more professional) along side of the boxes (do not attach letters to boxes!)  After an account has been serviced following a price increase, if the letter is still sitting there, I have the route driver remove it (No sense leaving a constant reminder of the price increase).  The IMPORTANT thing is that if you laid the ground work by talking to the accounts ahead of time and the account is aware that a price increase is coming, they tend to be more accepting of it.  Now...with that said, we WILL lose a few accounts, shortages WILL creep up a bit at some accounts, and your usage WILL drop.  THAT IS NORMAL!  Stand strong.  I have found that typically around the third month after the price increase, things slowly go back to normal.  ALSO, it is wise to add some premium-type items in your snack tray.  Maybe add a few more chocolate items; anything to help you "justify" the price increase with your customer.  You've done a GREAT job growing your business!  I've been reading your posts and following you for a while.  You're on the right track.  Price increases come and go.  I've been thru several, and if you stay strong, you'll survive.  DEFINITELY try to avoid the "lowering the price" game to save every account.  That will just make it tougher on you the next time you need to raise your price.  Good luck to you, my friend!  :)

Thank you for the input. I really appreciate that.  I have increased the prices on 13 accounts so far, and so far no lost accounts, and only 1 was short more than the normal amount and the ones I am increasing the prices on right now are the ones that while I don't want to lose them, it wouldn't hurt me if I did lose them.  So everything is going great so far.  I have a total of 84 accounts that need to be increased.

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flintflash    66


Thank you for the input. I really appreciate that.  I have increased the prices on 13 accounts so far, and so far no lost accounts, and only 1 was short more than the normal amount and the ones I am increasing the prices on right now are the ones that while I don't want to lose them, it wouldn't hurt me if I did lose them.  So everything is going great so far.  I have a total of 84 accounts that need to be increased. 


Are you dropping letters announcing the price increase with the box, or are you telling the account about the increase?  The more communication with the customer that you have, the easier the transition to the new price.  I have my drivers explain what triggered the increase (usually it's the chocolate companies; Mars, Hershey and Nestle) and also point the new items we brought in to add value to the box.  Remember, when calculating your box cost (inventory cost of your box), it is a percentage value of your retail value.  As your price increases, it allows more wiggle room in your box cost.  I always increase my box cost a little to add that value to the selections for my customers.  But the communication is key!  My drivers have actually been prepping my customers for the increase to $1.25 for the last year.  I've been able to hold off, but as we get closer to finally needing to raise our price, I know the customers will have been expecting it and most will accept it with no issues.  Oh, we'll still see a little "blow-back" from some customers, usually with a drop in usage or a slight increase in the shortage, but that should be short-lived.  We did this when we went from .85 to $1.00 and had very little effect.

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