25-cent v 50-cent vend

[Zannah]

Does anyone think that mixing price points at the same location is a bad idea?

If you had a fleet of triples and could do half at 50-cent vends and half at 25-cent vends, then which of the following configurations would you prefer and why?

1. 50% of the locations: 3 50-cent heads

    50% of the locations: 3 25-cent heads

2. 50% of the locations: 2 50-cent heads and 1 25-cent head.

    50% of the locations: 2 25-cent heads and 1 50-cent head.

3. 75% of the locations: 2 50-cent heads and 1 25-cent head.

    25% of the locations: 3 25-cent head.

4. 75% of the locations: 2 25-cent heads and 1 50-cent head.

    25% of the locations: 3 50-cent heads.

Assume all other things are equal (i.e. the product being vended in each head is appropriate for the price point and the location).  In other words, what do you think is the effect of the price issue alone.

Would having 2 lower priced choices hurt the higher priced head?

Would having 2 higher priced choices help the lower priced head?

Or would it be best to keep the price point out of the equation so you can just judge the appeal of each product at that location without adding the price variable into the mix (in other words, option 1)?

[adkarr24]

No one ever replied to this post, but I was looking to ask a similar question and would like to see if anyone has an opinion on combinng different price points for the same size vend on one rack. Thank you!

[Faith Vending]

I don't have any mixed price points yet but I see them mixed everywhere where racks are located.

[lurtsman]

It should be fine to mix if you know what you are doing. All toys @ 50 cents, candy/regular GB at 25. Over the summer I plan to be updating my racks to reflect higher price points.

[adkarr24]

I was thinking more like a 5 head rack with 3 1-inch and 2 2-inch machines. Then having 1 or 2 1-inch machines at 50 cents & the rest a 25 cents and the 2 -inch with 1 machine at 50 cents & 1 machine at 75 cents. Obvioulsy that not set in stone but, has anyone done anything like that? Thanks!

[Faith Vending]

Look around when you are out... racks all over have different price points in one rack setup.

[dperry]

I have a number of racks with 2 2in and 3 1in heads.  I've started changing my vend amounts on the 2in to have one do 50c and one do 1 dollar.  I've also started updating my 1in's to have 1 50c mech.  So yes, I'm mixing price points.  You just have to have a something with a value for the amount being sold.  I have the cheap sticky mix for 25c and I'm starting to sell the more expensive figurines (monkeys, aliens, ninjas) for 50c. 

The silver chains at A&A are $18 per bag of 250.  At 25c vends, that would make it 28.8% COGS and that's too high.  The sticky mix is $12.95 a bag and that's 20.7% COGS and that's much more acceptable.

I'm trying to keep about 20% COGS, so that means that anything that costs less than or around $12.50 a bag will be 25c vends.  Anything between $13 and $25 a bag will be 50c, and up to $37.50 will be at 75c vends.  Any thing over and up to $50/bag will be $1 vends.

[Hillbilly]

I started ordering the PO89 with the 450 globe from A&A with the .50 mechs.  Costs 3.00 more per machine.  Swap them out with older .25 mechs for now to use with candy and gum.

When I'm ready for racks I should have plenty of .50 mechs.

[adkarr24]

Thanks dperry, thats exactly the information I was looking for!