Would you sell at 65 cents?

[Apple Leisure]

I have an account that buys about 350 to 400 12 ounce cans a week during the slow season, and about double that during the busy season (about 4 months of the year).  Am I all right selling them at 65 cents?  All of my other locations are at 75 cents and I'd like this one to be too, but I asked and was told no.  I'm getting $2.00 for Monster there, and $1.25 for Gatorade.  That extra 10 cents a can would really add up, but the volume seems worth it to keep the account.  Thoughts?  Oh, and they have two snack and two soda machines.  Plus a cold food.

[TKK]

Ugh i have them at .60c in one place cuz itd do 1500 a month gross and that was the only way i could get in. I offset by the snacks and 16.9 bottles at 1.25

[rmorris1953]

Are you paying a commission?

[AZVendor]

If they won't let you raise the price then you need to decide if you're making money or not.  If you are making sufficient money at that location to cover all your costs and repair and still give you a decent profit then leave it until you can't make money any longer.  I'd keep hounding them with every soda price increase though.

[AngryChris]

I feel you. As they all said, if you're still making money due to volume, you gotta deal with it or risk being kicked out.

I used to keep pricing low, but I found that a lot of locations will throw a fit for a 5 cent price increase after 4 years of no increases. What I realized is that I don't want accounts that don't let the VENDING company make a buck but they will gladly pay the rest of their distributors and vendors for price increases. The lesson learned was to maintain price increases at sub-par accounts (or pull the equipment) and decide if it's necessary at larger accounts.

[Southeast Treats]

It's a tough call, you have to maintain margin to cover your overhead and make a profit.  Reminds me of the businessman who bragged " I lose a nickle on every sale, but I make it up in volume! ".  Are you paying more than .35 per can?   How about a 5 cent increase?  Your changer is already getting overworked at 65 so 70 should not be too bad...

[Apple Leisure]

It's a tough call, you have to maintain margin to cover your overhead and make a profit.  Reminds me of the businessman who bragged " I lose a nickle on every sale, but I make it up in volume! ".  Are you paying more than .35 per can?   How about a 5 cent increase?  Your changer is already getting overworked at 65 so 70 should not be too bad...

 

A 12 ounce can ranges in price from 27 to about 33 cents a can, depending.  And it's in California so it's an additional 5 cents per can no matter what.  But I don't agree with the point about the mech.  I know a lot of vendors talk about having to dispense an extra dime and/or nickel, causing it to work harder.  Maybe a tiny little bit, not enough for it to be an issue.  I'm there often enough that it's easy to keep it full and it either works or it doesn't.  And if and when it doesn't I get a replacement for 60 bucks or so.  And yeah, 70 cents is better than 65 but it doesn't look like I'm getting that either.  So right now the highest price I'm paying is 38 cents, plus the sales tax on whatever I sell it for.  At 65 cents that's about 5 cents more, so 43 cents.  22 to 28 cents a can, average a quarter.  Call it 350 cans a week during the slow season, that's about  $87 a week profit.  Going to 75 cents would add $35 a week.  Just thinking out loud a bit here.  Thanks a lot for your input.

[Southeast Treats]

OK, well if you are happy with the margin that's the real bottom line.  My concern about the changer is not so much the machine itself but running out of change at a busy machine, and you aren't having that problem, so all good!!