Nick505 Posted November 20, 2013 Share Posted November 20, 2013 Just about all of my racks consist of the following setup: Two Inch .75 1.00 Flat .50One Inch .50 (1) .25 I was playing with numbers and to me it is looking to make sense to take a smaller profit per 2" cap in hopes of higher sales returning a greater overall profit. Currently I have a rack in a busy Chinese buffet. The location nets about $260 every 4 weeks. From the (2) 2" machines I would estimate that combined they do about $55 dollars; $25 from the $1.00 head and $30 from the $.75 head. Lets look at the $1.00 2" machine. A product that I sell for $1.00 is A&A's Yo Yo Balls with a cost of $.143 per cap. So obviously if I only sold 30 Yo Yo balls @ $1.00 that nets me 25.71 before commission. Selling: 60 @ $.50 = $21.42 net before commission 65 @ $.50 = $23.21 net before commission 70 @ $.50 = $24.99 net before commission 100 @ $.50 = $35.70 net before commission The Walmart approach sounds very tempting but other factors I have not factored in include shipping prices, and cost to service. Shipping prices being a big one because I will obviously be moving more product. It was just something that I was thinking about and wondering if I am doing the right thing with the higher price points... Link to comment Share on other sites More sharing options...
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