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Subsidized vending location?


brendamca

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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.  :huh: 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?

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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.

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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.

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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 ;)

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