raising prices

[bhumphrey829]

Okay guys I need some advice here.  I just took over this small route a few weeks ago.  I have this one assisted living place that averages right at $300.00 a week.  They have one snack and one soda machine.  I have raised the prices on my snack machine to where they need to be with no complaints, but I think that's a little easier than soda.  I have a single price machine that I also have water in.  Right now the price is set at .50.  My question is do you guys think it's possible to raise it to .75 or should I go to .65 and then to .75 down the line.  The one great thing about this location is I pay no commission.  I have already built a great rapport with the manager.  Should I talk to her about raising prices or just do it?  I didn't say anything when I raised the snack machine prices.  Thanks in advance for ya'lls help.

[TKK]

I'd just raise em, or tell the manager why, you can also put a small sign saying prices include taxes etc.

[Vending How Chris]

I like to tell the customers a couple weeks in advance that the prices are being raised and tell them why. This de-potentiates a lot of the negative backlash you might experience. As for raising the prices a certain amount, I think it's fine to raise them to whatever you think is fair, as long as you provide a good reason for it. "I want to make more money" is not a good reason. "I'm taking over as the vendor here and I will be offering you a greater selection and more responsive service" is a much better reason. You don't want the customers to think that you are being unfair. Having said that, $75 for a 20oz bottle of water is still dirt cheap where I service. Most people won't think twice before spending one dollar.

Hope this helps,

[orsd]

holy sh*t

$75 for a 20oz bottle of water is still dirt cheap

[Vending How Chris]

Haha, I meant $.75

[mission vending]

Okay guys I need some advice here.  I just took over this small route a few weeks ago.  I have this one assisted living place that averages right at $300.00 a week.  They have one snack and one soda machine.  I have raised the prices on my snack machine to where they need to be with no complaints, but I think that's a little easier than soda.  I have a single price machine that I also have water in.  Right now the price is set at .50.  My question is do you guys think it's possible to raise it to .75 or should I go to .65 and then to .75 down the line.  The one great thing about this location is I pay no commission.  I have already built a great rapport with the manager.  Should I talk to her about raising prices or just do it?  I didn't say anything when I raised the snack machine prices.  Thanks in advance for ya'lls help.

 

First I'd have a chat with the location POC and make sure he/she is on board with the need to raise prices. Seeing as how you have the snacks where you want them, if it was me I'd go to .65 on the cans and plan on keeping it there for at least 6 months. If you raised prices without letting her know first I think its important to talk to her about raising prices specifically and make sure she's not already hearing about it but has not said anything to you about it because she likes you.

[Poplady1]

Sounds like a really good account.  Like Mission said talk to your contact and go to .65 then hold it.  Take a print out of Automatic Merchandisers monthly product price report.  That shows what vendors are charging around the country for various products.  Pretty sure that will help them understand what you need to do. You don't want to lose the account but you deserve to make a fair income.  They probably expected a price increase coming anyway.  Good luck.