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Are my prices to high


Joe101us

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I have 16.9 ounce bottles at $1.25 in the municipal areas dollars everywhere else and I have cans at $.75 everywhere was told my prices were too high I needed to lower my prices

 I have candy bars have a dollar all pastries and chips for 75¢

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Depends what your cost is. In my opinion you're too cheap on everything except the $1.25 16.9 sodas.

 

Make nice company shirts and just let everyone think you are just an employee,  not the owner. Another thing to tell customers is you have to collect tax. You need to try and keep your COGS at 50% or less or you'll fail. Dont back down this is business be the shark or get devoured. 

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Luckily for you, it's your business and you cab run it how you see fit. No need to listen to people who complain about prices like that but turn around and pay more for the same things at convenience stores. 

I think those prices are fine, other than pastries is a little on the low end. 

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I don't think your prices are to high. Government workers are a pain in the butt complain about everything. Vending the customer thinks we should be cheap and the C store can charge as much as they want. Your company charge what you need to make good profit.

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These people often get some of the best perks and a huge sense of entitlement.  These same people will refuse to pay $1.50 for a 20 oz bottle and will go to a c store on their break and pay $1.79 + tax for the same thing.  They just think prices at vending machines should be whatever price they want.

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I have a hypothesis that what the issue is.. is that they see 16.9 oz bottles on sale for say.. 50 cents each and feel like you should charge no more than maybe 25 cents over the sale price.  It has only happened maybe twice, but i have had people ask me how much i pay for a product, and then say i should only charge what i pay.  The worst, though, are the people who make up their own prices that i pay.  "How much do you pay? 25 cents?"  Then when you tell them you pay more than grocery store sale prices, they either think you're lying or question your intelligence for paying so much.

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I agree with Angry, never let an errant customer dictate you price. I only lower if something isn't selling at the current price. Also grocery store sales often have short shelf life. I found 16.9oz sprites at Sam's Club yesterday with sell by of 04 April 2018. They weren't even on sale.

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19 hours ago, AngryChris said:

I have a hypothesis that what the issue is.. is that they see 16.9 oz bottles on sale for say.. 50 cents each and feel like you should charge no more than maybe 25 cents over the sale price.  It has only happened maybe twice, but i have had people ask me how much i pay for a product, and then say i should only charge what i pay.  The worst, though, are the people who make up their own prices that i pay.  "How much do you pay? 25 cents?"  Then when you tell them you pay more than grocery store sale prices, they either think you're lying or question your intelligence for paying so much.

A lot of folks think that your COG is next to nothing. They think the Coke truck pulls up to your warehouse, unloads, and you get a bill for $5.

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19 minutes ago, BTVFC said:

A lot of folks think that your COG is next to nothing. They think the Coke truck pulls up to your warehouse, unloads, and you get a bill for $5.

"Buy in bulk! You could cut your prices to almost nothing!"    "I've been in business for most of my life.  You could buy from the manufacturer and get product by the pallet for almost nothing."  "Do you have any extras?"

 

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21 minutes ago, 57thTom said:

"Buy in bulk! You could cut your prices to almost nothing!"    "I've been in business for most of my life.  You could buy from the manufacturer and get product by the pallet for almost nothing."  "Do you have any extras?"

 

Exactly.  They really don't know what they are talking about lol.  Years ago, this "homeless" guy asked me for spare change.  I told him i didn't have cash on me.  He saw the snacks in my car and asked what i did. After a short conversation, he tells me he used to run a c-store and i need to order directly from the manufacturer so i can get them for almost nothing. Of course, i explained that i don't have the finances, warehouse space, or sales for that.  Of course, he had answers for that too.

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Coke full service is hard to predict, since they changed hands in Florida this year and the franchise is running things now.  They used to be very big on getting "pouring rights" contracts with governments and will place a bunch of machines.  Their economics are vastly different than ours, and for them it is about advertising and market share over pepsi.  They can load a machine with a few top selections of cans and water and service it every 6 - 8 weeks or more, and the location will be happy because they are pushing money their way up front....

 

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On 3/31/2018 at 9:43 AM, Joe101us said:

I have 16.9 ounce bottles at $1.25 in the municipal areas dollars everywhere else and I have cans at $.75 everywhere was told my prices were too high I needed to lower my prices

 I have candy bars have a dollar all pastries and chips for 75¢

You are too low. Don't worry about lowering prices.It does not matter how low you go they still will say your prices are too high.

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NEVER listen to your customers about pricing.  They didn't invest in the machines, products or spend the time servicing the machines.  They have no concept of how vending works, period.

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Wow!  If anything, you're prices are on the LOW side.  Up here, Candy is definitely $1, some vendors are pushing $1.15 to 1.25.  Your pastries should be at a $1 as well.  Even though their cost may be less than a candy bar, your chance of outdates is much higher.  You don't want your Gross Profit percentage to be too low, or you will find yourself working much harder at this high volume account to make the same as you would at a "decent" account that is priced correctly.

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