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Asking to reduce prices after placing the machines


putrevus

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Hi All,

Thanks in advance , have you had any experiences in locations asking to reduce the prices after placing the machines. 

I recently put three machine couple of months back and last month after their request  I put another combo machine for office.

It is  a brand new combo machine with brand new  credit card reader Airvend is not working as it is not communicating with machine so it is unable to accept credit card payment. Airvend guys are working on that issue and told me they will be sending  the replacement reader . ( I am totally helpless as the airvend people are unable to identify the issue so far)

Today I got an email from office manager saying $1.25 for candy is too high even though I gave him prices upfront and also the workers in same location have been using the regular machines in their lunch room with out any problems for past two months .He is indirectly threatening me using this credit card issue that I will have to remove my machines if I do not reduce my prices.

Please share your experiences if you had any like this before.

 

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I recently had an issue like this minus the card reader. My contact there repeatedly kept asking me to lower the prices and I kept saying I couldn't especially with the commission. I ended up pulling some products that weren't selling well and put in some products that had higher margins that I could sell for a dime less than everything else, it's worked great and boosted sales.

Play around with the numbers and see if there's another solution. Is the candy selling?


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Sounds like they think you are stuck now that you are there... Chk has a good point with finding cheaper items to add to the mix, giving people a lower price option.  Are your prices consistent with other vendors in the area?  Is the person asking for lower prices the same person that you set up the deal with?  Would they give up their commission for lower prices?  You need to be able to make a rational case for your prices - "No one likes higher prices, but with everything factored in, this is what I have to charge to make a reasonable profit, just like your business has to make a profit.  I am providing machines, delivering product, and absorbing the costs and risks - machine repair, sales taxes, liability insurance, product spoilage losses, time and labor - and I deliver the product here to your employees where it is convenient.  These prices are comparable to the closest convenience store, even better in most cases, and they don't deliver.  The price of candy has gone up a lot recently, both chocolate and sugar have seen price increases.  The credit card readers are also an expense, and like a lot of technology, don't always work right out of the box; but once the problems are solved they will be fine going forward.  You are also sharing in the profit thru your commission, which I pay off the top, even before I make any profit.  I will always work to give your employees a fair price on the items they buy; if someone wants to undercut my prices that is the way business works, but what will they leave out to do that and still make money?"

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10 hours ago, Chkoolaid1 said:

I recently had an issue like this minus the card reader. My contact there repeatedly kept asking me to lower the prices and I kept saying I couldn't especially with the commission. I ended up pulling some products that weren't selling well and put in some products that had higher margins that I could sell for a dime less than everything else, it's worked great and boosted sales.

Play around with the numbers and see if there's another solution. Is the candy selling?


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We just  placed this machine one month back  it was done more like favor to office people  because they did not want to go the lunch room of workers to buy stuff. 

I would understand if it was my fault I gave him clearly prices before putting the machines. When I am giving them the best service I can at a very reasonable price providing with brand new machines, I expect them to appreciate my services.

 

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2 hours ago, putrevus said:

We just  placed this machine one month back  it was done more like favor to office people  because they did not want to go the lunch room of workers to buy stuff. 

I would understand if it was my fault I gave him clearly prices before putting the machines. When I am giving them the best service I can at a very reasonable price providing with brand new machines, I expect them to appreciate my services.

 

If you install a machine as a favor, don't expect great sales - if the location can produce they don't need the favor, every vendor will want to service it.  Some people love to complain and you machine may just be the latest target.  Also, don't expect love from your customers, you are only one lost quarter away from being the eeeevil vending guy whose machine steals money!  It's a business; be professional, be nice, and be smart.

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If they agreed on the prices, and the prices were discussed due to a commission being wanted, then I wouldn't change the prices.  You can't have your cake and eat it too.

By the way, I can almost promise you that some office workers will literally spend time at work browsing the internet trying to see how much you pay for your product at places like Sam's Club, and then throw a temper tantrum when they find out you only paid $0.70 for the candy bar that you are selling for $1.25.  They cry "You're ripping us off! They only cost XX money!!"  Meanwhile, when you ask about how THEY get paid, they are clueless.  Some people believe that their pay checks come magically from "the company" and not from the PROFITS made from selling products and/or services.  They are literally clueless about how a business operates.

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  • 5 weeks later...

How did you go with handling this issue, putrevus?

I always love it when people quote supermarket special prices to complain about prices being too high. Especially in sites that are 6 miles from the nearest convenience store, let alone grocery store.

I would never lower my prices unless running a promo or trying a lower cost item.

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How did you go with handling this issue, putrevus?

I always love it when people quote supermarket special prices to complain about prices being too high. Especially in sites that are 6 miles from the nearest convenience store, let alone grocery store.

I would never lower my prices unless running a promo or trying a lower cost item.


I reduced prices for one or two items. That machine out of the four is doing least.Even though I clearly sent him prices.

Moving forward I am taking in writing that they are fine with prices unless they give that I am not putting machines.

That is saddest part of this business anybody with a dollar thinks we owe him . These guys tend to forget that convenience of buying a drink or snack when needed is a service and like every service it also has a price.


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  • 8 months later...

Hi all,

 

Another location, another moron why do these morons come to me only , this moron wanted all healthy snacks  and we gave them all the selections they wanted, now she comes back to me and say my prices are to high, I specifically went over pricing of each item before we signed the contract and put our machines there.

 After a week she writes people are complaining  your prices are too high you have to reduce the prices.

sorry for the rant these kinds of people piss me off, they have nothing to lose. We invest so much upfront to get the machines in and we bear with their tantrums.I feel sometimes what kind of a mess did I get myself into.

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I know the feeling.  Office breakrooms can be challenging when dealing with unappreciative people who seem to think they should get everything on "demand".  I'd tell her healthy items are of premium and costs slightly more than regular snacks and it's the nature of the market and that your prices are comparable to if not better than nearby grocery and c stores plus you deliver the items fresh for their usage. I got a request to lower price of kit kats to $0.75 just today and used this line and it worked.OR............get really real with them and say my babies have to eat and I dont run a charity/food bank  vending company. Then smile!

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I hand wrote a note to a location that requested "more healthy items."  I literally told them that I don't carry any special healthy items.  There are several varieties of "healthier" items in the machine such as nuts, fruit snacks, etc..  With those items in there, pastries outsells everything.

I am convinced at this point that when someone says "Can you put healthy stuff in the machine?" What they are asking for is "Can you put things that taste exactly like regular stuff but without all of the calories and guilt?"  Those kinds of items don't exist.  Also, when I ask them what specifically they want, 90% of the time they start their answer with "I don't know..." and then they name a few things, some of which are already in the machine.  People just want to feel like they have control over the machine when they don't even have control over their own eating habits.

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11 hours ago, winning123 said:

I know the feeling.  Office breakrooms can be challenging when dealing with unappreciative people who seem to think they should get everything on "demand".  I'd tell her healthy items are of premium and costs slightly more than regular snacks and it's the nature of the market and that your prices are comparable to if not better than nearby grocery and c stores plus you deliver the items fresh for their usage. I got a request to lower price of kit kats to $0.75 just today and used this line and it worked.OR............get really real with them and say my babies have to eat and I dont run a charity/food bank  vending company. Then smile!

When I first had this experience, I decided that I will be upfront on all my pricing .If they agree and sign the contract then only I will get the machines.

These morons think machines and service to get them there come free. I feel I want to sue idiots like these.

 

The biggest  and most worrying drawback in this business is you  are the one who is taking all the risks, the guy who is selling the machines and the locations who are getting the machines have no risk at all.

 

They act as if they own you by spending 75 cents.

 

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11 hours ago, AngryChris said:

I hand wrote a note to a location that requested "more healthy items."  I literally told them that I don't carry any special healthy items.  There are several varieties of "healthier" items in the machine such as nuts, fruit snacks, etc..  With those items in there, pastries outsells everything.

I am convinced at this point that when someone says "Can you put healthy stuff in the machine?" What they are asking for is "Can you put things that taste exactly like regular stuff but without all of the calories and guilt?"  Those kinds of items don't exist.  Also, when I ask them what specifically they want, 90% of the time they start their answer with "I don't know..." and then they name a few things, some of which are already in the machine.  People just want to feel like they have control over the machine when they don't even have control over their own eating habits.

You are spot on they want guilt free snacking but why put the onus on us.

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I don't have control over pricing, but I recently was in a location we were taking over $1.25 bottles. They all rolled their eyes and said "I guess the price is going up again". I told them I was just there to change the lock and add a card reader. When they complained about the current price I just nicely pointed out that the same drink in a C-Store is $1.69. We are delivering the drink to the work place, cold, and the price includes sales tax. The card reader is an additional convenience to them and provides telemetry to us to keep the machine properly stocked. 

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7 minutes ago, lacanteen said:

I don't have control over pricing, but I recently was in a location we were taking over $1.25 bottles. They all rolled their eyes and said "I guess the price is going up again". I told them I was just there to change the lock and add a card reader. When they complained about the current price I just nicely pointed out that the same drink in a C-Store is $1.69. We are delivering the drink to the work place, cold, and the price includes sales tax. The card reader is an additional convenience to them and provides telemetry to us to keep the machine properly stocked. 

If they do that to canteen what do small guys like us can do. Do we stand any chance if they renege on the contract and want to reduce to the prices after the machines are brought in.

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41 minutes ago, putrevus said:

If they do that to canteen what do small guys like us can do. Do we stand any chance if they renege on the contract and want to reduce to the prices after the machines are brought in.

You've just got to politely stand your ground. Only offer solutions you can handle. Be prepared to leave, but they probably won't find another vendor to sell cheaper. If an account calls us and wants to replace their current vendor because he just went to $1.50 on bottles, guess what? Our bottles are $1.50 too and we'd be glad to set it!.

We have 3 things to offer with our service: Quality, Price, and Service. Customers can only choose two of those 3 items.

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We're very high priced compared to most vendors in my area - $2 bottles, $1.25 cans, $1.50 snacks and candy, $1.25 chips. I get complaints frequently about the pricing being too high but I politely remind people that I have a family to feed and our service is superior to any of our competitors. At the end of the day it's all about how you answer. If you cower and let people walk all over you they'll continue to do so over and over. If you stand your ground and tell them the direct benefits of the pricing (with confidence) they'll generally leave you alone.

When we started I thought losing an account was the end of the world. Now my attitude is find a better vendor or shut the f*ck up. We are the bottom of the totem pole but don't let people disrespect you just because you're at their location, there are plenty of locations available that will be respectful and even appreciate your hard work.

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On ‎7‎/‎20‎/‎2017 at 10:12 PM, vendcobros said:

We're very high priced compared to most vendors in my area - $2 bottles, $1.25 cans, $1.50 snacks and candy, $1.25 chips. I get complaints frequently about the pricing being too high but I politely remind people that I have a family to feed and our service is superior to any of our competitors. At the end of the day it's all about how you answer. If you cower and let people walk all over you they'll continue to do so over and over. If you stand your ground and tell them the direct benefits of the pricing (with confidence) they'll generally leave you alone.

When we started I thought losing an account was the end of the world. Now my attitude is find a better vendor or shut the f*ck up. We are the bottom of the totem pole but don't let people disrespect you just because you're at their location, there are plenty of locations available that will be respectful and even appreciate your hard work.

You are spot on, will do the same.

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Had someone ask to lower the price after I replaced a pepsi machine that pepsi couldn't seem to fix, with one of my cold drink mavhines. They said since the machine was older the price should go down. By that logic if I buy something from 7/11 and the attendant is older or less attractive then the one yesterday, do I get a discount?

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1 hour ago, Corvus Corax said:

Had someone ask to lower the price after I replaced a pepsi machine that pepsi couldn't seem to fix, with one of my cold drink mavhines. They said since the machine was older the price should go down. By that logic if I buy something from 7/11 and the attendant is older or less attractive then the one yesterday, do I get a discount?

Lol.  I know what you're saying.  In reality, people *tend* to pay higher prices at nicer convenience and grocery stores but that only happens in higher-income areas.  I'm not justifying their request but just making some sense out of it...

In other related news, I had an account that was part of an acquisition (I wasn't actually involved in the acquisition... these accounts were being canceled because of the acquisition though).  This particular account had 20 oz bottles for $1.25 and those were being sold out of a DN 276E right next to an AP 7600.  The AP 7600 was a mess and the account grossed about $1,000/year, mostly from the soda.  I came in about 2 months later and I told them I had to talk to someone about prices.  This lady says "You're going to lower them?" with a smirk on her face.  I hesitated and I said "No, why would I lower them?" Then her demeanor immediately changed to pissed-off and she proceeds to tell me that they have always been charged too much and everything in it is expired.  Of course, I proved to her that nothing in it was expired and then she continues with her tantrum with "Well, I don't really buy anything out of it because it's too expensive and I don't have cash."  Then the banter continued over how I should add a CC reader AND lower prices and blah blah blah and I am ripping people off, etc..  Well.. I talk to the main guy and tell him I need to go to $1.40 on the bottles and he tells me to just take them out because I "never serviced them right and people have complained for years."  I told him I am not the old company and the price has to go up if I am going to make it profitable and keep it stocked with non-expired soda.  He then asks if he can contact the old company (the company that sold-out) lol...  So, I said okay and called my mover and they were picked up a week later.  I mean.. if you aren't willing to pay a more-than-fair prices for the products, then you should never get the service, especially if you are low-volume.  I would imagine that they either have no vending or really crappy vending now.

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  • 2 weeks later...

I only visit rarely as a someone who was in the vending business for many years, and have been OUT of it for 25 years now... but all of these stories ring true with me. People think that anything with a coin slot is making you rich. (I asked one such person once how much they thought that new cold foods vendor cost - they guessed $1000, and were WAY wrong, and that was ages ago.) They think that you should sell for the same price as the lowest price they can find the item elsewhere. They want items that are either not profitable or won't sell enough. I had more than one person say 'If you put an ice cream machine in here, you'd get rich!' Sure, until the weekend that the cleaning guy unplugs the machine for his floor polisher and doesn't plug it back in. Some sites know the difference between a good and a bad vending company and appreciate having one that provides good reliable service, and are not always crying about the prices. Actually, my experience (with other companies, not my own company) is that they would lowball the prices to get in the door and then start seeking increases. Yes there was a contract with pricing but it also allowed for adjustments, and they went after 'em as soon as they could.

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