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Profit margins on frozen items


SchligVend

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So I currently service a hotel with 7 machines.

 

I noticed by the receptionist they have a food area where they sell frozen food such as hot pockets, tv dinners, ice cream frozen, burritos. I offered to deliver these items they were excited I can do this for them and they want me to send them a Price list of the items they currently have and what I charge to delivery and stock their freezers.

 

I currently run a few frozen machines so I already have a freezer on the truck and my upsale in my frozen machines are 3 times my cost. But I feel since I dont have to worry about machine repairs, expires or any of that stuff what should my upcharge be?

 

40%?   50%? more or less?   Should I offer discounts for Payment on Delivery?   What else should I say when I submit my proposal.

 

 

 

Thanks for the help!!!

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Since all you have to do is take an order from them, place an order with Vistar, pick up the order and deliver it, I don't think any markup over 30% is needed (unless that doesn't give you much of a profit in dollars), but if you can find out what prices they currently pay you might get an even better markup and still get them lower prices.  You should expect a 30 day pay but I would ask for a payment on delivery with no discount.

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Since all you have to do is take an order from them, place an order with Vistar, pick up the order and deliver it, I don't think any markup over 30% is needed (unless that doesn't give you much of a profit in dollars), but if you can find out what prices they currently pay you might get an even better markup and still get them lower prices.  You should expect a 30 day pay but I would ask for a payment on delivery with no discount.

 

I've already tried to ask for their current prices, they said they are to busy to send them so I would need to send them my prices.  I told them I am able to match or beat all competitor pricing since I am already their at least once a week, but still refuse to send me pricing. So i guess I will send them my quote with 30% markup and see what happens.    Thanks

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Delivery may not be as easy as you are thinking. I was in the lobby of a hotel when Vistar delivered. He 2-wheeled the order into the cafe area and then waited to get checked in as the counter people were busy with check-in & check-out. I think he waited about 1/2 hr. before they were able to get to him. Just something to consider

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