CaptainMike Posted November 16, 2014 Share Posted November 16, 2014 Warehouse spot that is basically 24/7 with office staff...about 200 people total, will be largest spot for me. Their old company stopped servicing machines so they called in a large player. They put in 5 machines (2 soda, 2 snack, 1 meal) and charged $1.50 for 20oz sodas and $1 for candy/chips. They want me to come in if I can offer more drink selections (I can as they have fair requests...more diet, more clear sodas) BUT want cheaper prices as that is the main reason they are upset. They can do $1.25 20oz sodas and snacks/candy for around $.80. Seems like a win to me even though this is a little below what I normally sell items for in my metro areas. 1. Should I do glassfronts for the sodas or a higher volume type of machine? They also said they will do cans which I think will offer better margins and capacity, so I may do that...I like offering juices, starbucks, energy, etc though...so are machines that are geared towards cans with high volume able to also deal juice bottles and other various items? 2. Prices seem OK to me for the volume... 3. Could I get away with 4 machines...? I will be buying some machines soon, so if anyone has any models in mind please let me know. Link to comment Share on other sites More sharing options...
BBVendors Posted November 16, 2014 Share Posted November 16, 2014 You know what you're costs of goods are. If you can afford to sell candy for less than $1 than you are getting a great deal on some product. The cost of candy has gone through the roof and is continually rising. Also the ONLY way I would agree to those pricing points is with 0% commissions. As far as merchandizing, it depends on the demographics of the location and the pay scale of the employees. If it's a higher scaled location I wouldn't be opposed to trying a glass front and the higher priced items. But if the employees only make minimum wage or a little more than I probably would consider going in with just two nice closed front stackers. To answer your question about can machines vending bottled juice, you could simply offer 12oz juice in a can (priced higher than sodas of course). Just out of curiosity, what is the price of a candy bar in local convenient store in your market? Around here it can range from $1.49-1.59 PLUS TAX. Our goal with my company's pricing is to have at least a 51% GP and to stay about 30-35% cheaper than the local C-store. The reason I say that is you're going to have to have an increase on your pricing at some point. The lower your pricing is when you initially go in, the harder it can be to catch up to where you really need to be in your pricing be profitable. Just things to consider before you agree to a certain price in the machines. Link to comment Share on other sites More sharing options...
AZVendor Posted November 16, 2014 Share Posted November 16, 2014 You could do all of this with no commission since they are demanding prices below market. Do cans at .75 - .85 and/or 16.9 bottles at $1 - 1.25. You need to explain that the bottle costs are horribly high so their prices will be markedly higher than cans. Your candy must also be $1 as that is probably comparable to C stores and your cost is always going up. They can't expect you to make a large equipment investment without charging what the C stores charge. Do your homework before committing to something you can't afford to do. Again, all of this with NO commission. Don't be afraid to charge higher prices for categories they aren't requiring such as water, energy drinks, bag snacks and pastries. If you do a cold food or frozen food (recommended) then again, no commission and you should only sell for the prices you want because of the higher machine cost. Don't be afraid to offer credit cards too, and $1 and $5 validators. Link to comment Share on other sites More sharing options...
Jump1979man Posted November 23, 2014 Share Posted November 23, 2014 If they want 5 machines go in with 3. 1 Bev, 1 Snack, 1 Combo that can also sell meals. Link to comment Share on other sites More sharing options...
reel Posted November 29, 2014 Share Posted November 29, 2014 I am an experienced operator, however I am not in the usa.......... I would use a high capacity machine with a live display for the cans, and a Bevmax 4 or RVV 500 for your more expensive products such as your energy drinks and bottles but no 355ml cans. Try and place a credit card reader onto your most profitable machines first if you can afford it which I imagine would be your glassfront drink machine and your snacks/meals.. I guess they will want both a snack and meal machine, however if I was you I would be trying to get away with just one large snack machine that will do both meals and snacks, something like a usi vt5000 combo. You can always upgrade later. If this machine is a bit expensive try an older refurbished Crane Snackcentre it will still have surevend technology (drop sensors) fitted and a larger capacity. Just my view from afar... Link to comment Share on other sites More sharing options...
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