brendamca Posted November 14, 2010 Share Posted November 14, 2010 Has anyone heard of this? Supposedly you set your prices to be half of what you'd normally charge, and the location pays you the difference. Sounds fishy. What kind of place would need the prices to be set so low on the machines? Or is this some sort of scam? Link to comment Share on other sites More sharing options...
Sparta_Automation Posted November 14, 2010 Share Posted November 14, 2010 It's not a scam. I have heard of some corporations doing that as a benefit to their employee's. I think they are the great exception to the rule...but in theory it would work. Travis Link to comment Share on other sites More sharing options...
coinvestor Posted November 14, 2010 Share Posted November 14, 2010 I have two locations the subsidise the drink machines. All drinks are .25 then I invoice for the difference. The account does a good bit more volume then they would without doing it thhis way. JD Link to comment Share on other sites More sharing options...
mission vending Posted November 14, 2010 Share Posted November 14, 2010 Nothing fishy about it. It is a fairly common practice. Currently have two locations like this. Only for drinks though, I charge .25 and invoice the balance monthly or quarterly. Link to comment Share on other sites More sharing options...
brendamca Posted November 14, 2010 Author Share Posted November 14, 2010 Good to know! This location was too far away, but it was priced very low. Thanks! Link to comment Share on other sites More sharing options...
snack dude Posted November 14, 2010 Share Posted November 14, 2010 Ive had a couple of customers do this. Its just a little perk some companies try to give their employees. I also suspect that in some cases it quiets down the people who complain about the coffe drinkers getting their drinks for free. Just a hunch. Link to comment Share on other sites More sharing options...
mission vending Posted November 14, 2010 Share Posted November 14, 2010 I forgot to mention that I've had a number of these type of locations over the years and thinking back it seems that everyone of them was some sort of technology based business. Maybe the .25 drinks are part of the union contract. LOL Link to comment Share on other sites More sharing options...
tedk Posted November 15, 2010 Share Posted November 15, 2010 We offer subsidized service as an option. We had one customer who used it from 2007 until May of this year, They subsized 25 cents of every purchase. It works well in some respects. The larger the subsidy the more it helps your sales. In our case, we told the account we would invoice them for their share at the end of each month but we would need the check in a week because we have to pay up front for the product. They were ok with it, and always paid quickly. A friend of mine had an account that subsidized 75% of the cost of all goods. The sales were so good that it impaired his cash flow a bit. A problem I ran into with my account was they never explained to the employees that they were subsidizing the pricing and I never thought to. When they withdrew the subsidy in May I adjusted my prices by 25 cents and the employees went nuts for a few weeks. To make matters worse, two months before I had upgraded them to a larger machine so they assumed I raised the prices to pay for the machine. In fact I'm not getting any extra money, and I was preparing to pass on a price increase. So now I am holding off on the price increase for at least another 6-8 months Oh well is was good while it lasted. Link to comment Share on other sites More sharing options...
mission vending Posted November 15, 2010 Share Posted November 15, 2010 I`ve got a sign on my machines giving the employers some credit saying: The vend price for drinks in this machine is .65 but .40 of this paid by your employer as a benefit. Please don`t abuse this benefit. Link to comment Share on other sites More sharing options...
tedk Posted November 15, 2010 Share Posted November 15, 2010 I wish I'd thought of that. I'll use it next time. Link to comment Share on other sites More sharing options...
mission vending Posted November 16, 2010 Share Posted November 16, 2010 Can't take credit for it either. One of the locations asked me to do it so the employees would know that the company was doing it for them. I thought it was such a good idea I have done it at all the locations where they subsidize the drinks. Link to comment Share on other sites More sharing options...
coinvestor Posted November 16, 2010 Share Posted November 16, 2010 Can't take credit for it either. One of the locations asked me to do it so the employees would know that the company was doing it for them. I thought it was such a good idea I have done it at all the locations where they subsidize the drinks. This is a great idea! I will be stealing the idea too Link to comment Share on other sites More sharing options...
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