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Candy prices


deee_z

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Ya, caught some flack today from an office for raising prices to $1.25 on chocolates and skittles candies. Will change back and place a notice up that the prices will be $1.25 starting November 1.

 

Changing back once it is done may not be the best answer. A this point a note explaining the reason for the price increase would probably be the better answer. Just explain due to price increases from suppliers and I usually use this opportunity to explain that unlike a C store the sales tax is already included in the price and is paid by the vending company.   

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Any time you have to raise prices people will complain, human nature. The thing is you have to be at a certain profit margin to be able to vend at all without regretting it.

 

If you need to raise a price do, keep it where you put it and just put up with the negativity. I vend where I work so I get all kinds of feedback. Even on the intercom sometimes LOL.

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Getting ready to raise prices. Going to 1.25 on candy and .85 on cookies and .65 on 1oz chips.

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Dang!

.65 on 1oz bags!!!!!

If bags are less than 1oz I sell at .65.

Everything 1oz to 1.3 is .75 and 1.5 and above is .90 to a dollar.

 

cajun

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I like it, Cajun. Do you have higher prices for locations with a commission?

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I pay no commission at any of my locations!

 

Just recently "today" I snagged a bar room one mile from house.

 

We agreed to anything over X amount a month I pay 10% and person was happy with it.

 

This will be my second bar, it does decent and I get to drink a couple of cold ones after I'm finished servicing machine there. 

 

Did you receive my Christmas gift I mailed you?

 

cajun

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IMO you should try to standardized pricing across product lines. I look at chips in two sizes regular bags and LSS. So all regular bags might be .65/.75 and lss .90/1.00 All long life "cookies" one price, all pastry one price, all crackers one price, all candy one price, all nut products one price. Then I stick odd items like granola bars into either a candy price or pricing that works. Then you will have the odd ball pricing such as power bars, pistachios, etc that just cant be priced in with your regular price categories. Obviously you have to look at cost but try and keep things as standardized as possible. If not it can be very confusing when a potential customer is looking at a proposal.

 

or the longest time one of the large vending companies used to have two prices on candy because of the deal they got from one and not the other. The customer could never understand why a Snickers cost more than a Baby Ruth. Plus imo if the Snickers was at the higher price point the customer would pay that same price for the Baby Ruth so the company was loosing money every time a customer bought a Baby Ruth.  

 

 

Pricing should never be standardized across all accounts. You should price based on a few factors, cost, commission, no commission, high volume, low volume, etc. 

 

You have to take all these things in consideration or you possibly will loose a opportunity to get an account, possibly leave money on the table you could have made, etc. 

 

Lets say I am calling on an account and they have 200 employees and they recently had a price increase and now looking at other vendors because of it. They get no commission and they have the correct amount of equipment that makes sense to the employee count. Would you work to get the account if you had to go from $1.25 to $1.00 on candy? $1.00 to .95 on pastry? .65 to .55 on crackers? .75 to $65 on cans? As long as it makes sense that is what determines pricing at each location. I would not go lowering prices on the same situation with a 50/75 person account but might would for the 200 person based on volume alone. 

 

You have to determine what makes the customer want to change vendors. That could be a commission, better equipment, cheaper prices, better service, etc. However, keep in mind a customer that is only price driven will possibly do the same thing to you if you need to go up on prices. I have actually gone up on prices many times doing a proposal because they where not price driven they were service driven. We recently got an account that had cheap prices, free condiments, and commission. We landed the account doing away with the cheap prices, no free condiments, but kept the commission. However they got an equipment update and better service. In the end they where very happy with the switch even with higher prices. 

 

You have to look at the big picture of the account and what its worth to gain or keep their business. In the end you have to do what makes sense to you and the customer. Sometimes it will not make sense to you and sometimes it will not make sense to them.  

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I pay no commission at any of my locations!

Just recently "today" I snagged a bar room one mile from house.

We agreed to anything over X amount a month I pay 10% and person was happy with it.

This will be my second bar, it does decent and I get to drink a couple of cold ones after I'm finished servicing machine there.

Did you receive my Christmas gift I mailed you?

cajun

Yes and thank you. If you ever find yourself in Calif look me up. We'll meet at my bar location. It's my last stop on Wednesdays.

Allen

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IMO you should try to standardized pricing across product lines. I look at chips in two sizes regular bags and LSS. So all regular bags might be .65/.75 and lss .90/1.00 All long life "cookies" one price, all pastry one price, all crackers one price, all candy one price, all nut products one price. Then I stick odd items like granola bars into either a candy price or pricing that works. Then you will have the odd ball pricing such as power bars, pistachios, etc that just cant be priced in with your regular price categories. Obviously you have to look at cost but try and keep things as standardized as possible. If not it can be very confusing when a potential customer is looking at a proposal.

or the longest time one of the large vending companies used to have two prices on candy because of the deal they got from one and not the other. The customer could never understand why a Snickers cost more than a Baby Ruth. Plus imo if the Snickers was at the higher price point the customer would pay that same price for the Baby Ruth so the company was loosing money every time a customer bought a Baby Ruth.

Pricing should never be standardized across all accounts. You should price based on a few factors, cost, commission, no commission, high volume, low volume, etc.

You have to take all these things in consideration or you possibly will loose a opportunity to get an account, possibly leave money on the table you could have made, etc.

Lets say I am calling on an account and they have 200 employees and they recently had a price increase and now looking at other vendors because of it. They get no commission and they have the correct amount of equipment that makes sense to the employee count. Would you work to get the account if you had to go from $1.25 to $1.00 on candy? $1.00 to .95 on pastry? .65 to .55 on crackers? .75 to $65 on cans? As long as it makes sense that is what determines pricing at each location. I would not go lowering prices on the same situation with a 50/75 person account but might would for the 200 person based on volume alone.

You have to determine what makes the customer want to change vendors. That could be a commission, better equipment, cheaper prices, better service, etc. However, keep in mind a customer that is only price driven will possibly do the same thing to you if you need to go up on prices. I have actually gone up on prices many times doing a proposal because they where not price driven they were service driven. We recently got an account that had cheap prices, free condiments, and commission. We landed the account doing away with the cheap prices, no free condiments, but kept the commission. However they got an equipment update and better service. In the end they where very happy with the switch even with higher prices.

You have to look at the big picture of the account and what its worth to gain or keep their business. In the end you have to do what makes sense to you and the customer. Sometimes it will not make sense to you and sometimes it will not make sense to them.

Good point. Do you think it would work going from $1 to say $1.15 on candy? As opposed to jumping to $1.25 to make it easier on the change pay-out?

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Allen at that point try and get the .25 because of the very reason you mentioned. If it is a negotiating tool needed to retain a customer then the .15 is an option for sure. 

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Ok. The last price increase I did I had to cry a little at my big account. "The truth is, Nobody's getting rich here, I'm just trying to support my family" is my best and most honest approach.

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Yes and thank you. If you ever find yourself in Calif look me up. We'll meet at my bar location. It's my last stop on Wednesdays.

 

 

Thanks for the invite!

 

The woman will be in SF in the first week of November.

 

My golpher is staying here in LA!

 

Shrimp to catch and the fish is biting!

 

lol!

 

cajun

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I pay no commission at any of my locations!

 

Just recently "today" I snagged a bar room one mile from house.

 

We agreed to anything over X amount a month I pay 10% and person was happy with it.

 

This will be my second bar, it does decent and I get to drink a couple of cold ones after I'm finished servicing machine there. 

 

Did you receive my Christmas gift I mailed you?

 

cajun

I like the way you think....

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Getting ready to raise prices. Going to 1.25 on candy and .85 on cookies and .65 on 1oz chips.

Sent from my iPhone using Tapatalk

 

 

Dang!

.65 on 1oz bags!!!!!

If bags are less than 1oz I sell at .65.

Everything 1oz to 1.3 is .75 and 1.5 and above is .90 to a dollar.

 

cajun

yes i was about to say. if u buy the 1oz chips from Sams CLub the unit price is like .33 cents no way i was going to sell at .50 .75 is where we are at.

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I'm thinking .85 on 12 oz cans. Been selling them for .75 for 10 years.

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I did that at my farthest location which was a sixty plus mile round trip for me.

 

Leave extra dimes and nickles in machine, they will be low because everybody will use a dollar bill.

 

cajun 

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