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Increasing prices


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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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I would say on the sign "due to increased food costs, effective immediately the price will increase from $1.00 to $1.25 per item.  Sorry for the inconvenience as we have held off as long as we could before making this change. "

Try a few locations and experiment with it to see what feedback you will get and then go from there.  I know you will probably lose some locations but it's better to lose a location instead of bleeding money losses. 

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  • 2 weeks later...
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.


That's scary.... Not gonna like my opinion. I'm going from 75 cents.. To a dollar.. Right now. My faithful customers for 75 cents stays that way.. The new customers are at $1.00. Honour boxes are very volatile... I'm not wanting to make people mad where they want to get rid of me.

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I would say on the sign "due to increased food costs, effective immediately the price will increase from $1.00 to $1.25 per item.  Sorry for the inconvenience as we have held off as long as we could before making this change. "

Try a few locations and experiment with it to see what feedback you will get and then go from there.  I know you will probably lose some locations but it's better to lose a location instead of bleeding money losses. 


You could ask for the moon, but these are honor boxes... They pay no electric, and unless they look forward to some of the items that are in your box... You are in their way... Indispensable...

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2 hours ago, jerrybrooksvendall said:


That's scary.... Not gonna like my opinion. I'm going from 75 cents.. To a dollar.. Right now. My faithful customers for 75 cents stays that way.. The new customers are at $1.00. Honour boxes are very volatile... I'm not wanting to make people mad where they want to get rid of me.

Sent from my Z987 using Tapatalk
 

How in the world were you even making a profit at .75?  I have started giving my notices about the  price increase and so far no one has asked me to remove my box so we will see, but even at $1.00 that's not much profit.  A lot of full line vendors are charging $1.00 for chips (the LSS size) and they don't have to deal with theft so after thinking about this for a long time, I feel justified in charging $1.25 once you account for the theft and also the charity.

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How in the world were you even making a profit at .75?  I have started giving my notices about the  price increase and so far no one has asked me to remove my box so we will see, but even at $1.00 that's not much profit.  A lot of full line vendors are charging $1.00 for chips (the LSS size) and they don't have to deal with theft so after thinking about this for a long time, I feel justified in charging $1.25 once you account for the theft and also the charity.


Your not gonna whip me are ya? You yelled at me before about that. I know. But it worked for me! Besides I'm mending my ways by charging $1.00 now!

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How in the world were you even making a profit at .75?  I have started giving my notices about the  price increase and so far no one has asked me to remove my box so we will see, but even at $1.00 that's not much profit.  A lot of full line vendors are charging $1.00 for chips (the LSS size) and they don't have to deal with theft so after thinking about this for a long time, I feel justified in charging $1.25 once you account for the theft and also the charity.


Well if your customers are happy with it and it works for you... That's so that matters! You are actually the pioneer in my eyes. I am doing this from taking your example.

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Just giving you a hard time about the $1.00 thing.  If it works for you, by all means go for it.  As far as my customers being I won't know until I go back to service them again, just because they didn't kick me out, doesn't mean they are going to pay the $1.25 either.  I will just have to wait and see.

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Just giving you a hard time about the $1.00 thing.  If it works for you, by all means go for it.  As far as my customers being I won't know until I go back to service them again, just because they didn't kick me out, doesn't mean they are going to pay the $1.25 either.  I will just have to wait and see.


We're all proud of the you Brian. Just looking out for you. We don't want to see you fall.

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  • 2 weeks later...

I think you'll see sooner people only paying a dollar still, so "theft" percent might be a little higher.

Snack machines and convenient stores have recently raised their prices higher than that. 1.50-1.99 is standard now. 

With the economy getting better the product costs will rise because people can "afford" it. 

Just my opinion.

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  • 2 weeks later...

NIce job, Humphrey!  The best way to instill a price increase that I've found, is to lay the groundwork ahead of the notice.  Start talking to your accounts and let them know it's coming.  You don't have to give an exact date, but tell them that a price increase is coming up, mainly due to product cost increases, fuel increases, etc.  This allows the price increase to "sink-in".  Then drop a notice with your box at the time of the actual increase which again explains the reason for the increase.  Most customers will be expecting it and not think twice.  You will ALWAYS get some backlash...that is normal.  You will even lose a few accounts, but I guarantee that in 6 months you can go back to them and resell the account, and they will accept the new price.  Price increases are always scary and create a bit of chaos for the honor snack vendor.  But STAND STRONG!  It may take a few services, but typically by the third month, most customers have become adjusted and won't think twice.  Yes, shortages may increase for a bit, or you may experience a drop in the usage, but it WILL work itself out.  One tip: pack a couple of new "Premium" items in the box to justify the increase and keep the customer interested in what's new.  It worked GREAT for me on our last price increase.

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