Are my prices to high

[Joe101us]

Thinks for the input I’ll be raising my  pastry prices 

[AngryChris]

12 hours ago, flintflash said:

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.

I think some vendors focus too much on the gross figures and not enough on the bottom line.  You make an excellent point about working harder at a high volume account where prices are too low.  I recently canceled probably 12-machines worth of accounts, with many of them ending up in scrap yards.  Wouldn't you know... my net profit hasn't changed much despite my annual revenue going down probably 9k

[CapitalCityVendingLLC]

You're prices are fine. (raise pastries to at-least $1)  Unless it's someone who is in charge, I wouldn't worry about someone saying your prices are "too high".  When someone says that to me, I quickly walk them through our costs.  The cost of the product itself, gas, auto, warehouse, parts/machines, taxes, insurance, phone, website, etc.  Most people understand.  

 

We did what AngryChris just said a couple of years ago.  Killed our slowest 10-12 machines/accounts.  Our annual revenue went down a little bit, but our Bottom Line was barely effected.  We were unsure about the decision but quickly realized it was a no brainer.  Add up all the hours that we don't have to waste on those slow accounts, we are in the positive by killing those accounts.  Plus we got a handful of good machines out of it to relocate. 

 

Most important things I keep an eye on is $/Mach visited, COGS %, Profit %.  Keep those numbers high and everything else takes care of itself.