Raise your prices!

[TKK]

I went ahead and raised all my prices. Some places were told in advance some through contracts. 

 

Wow! What a difference!

 

I rose everything .25c.

I was scared sales would drop alot as people who could buy chips for $1 now would pay 1.25. Candy from 1.25 to 1.50. Ice cream from 1.25 to 2.25 to 1.50 to 2.50. 

16.9oz from $1.25 to $1.50, 20oz powerades from $1.50 to $1.75 etc.

 

Results after 1 month.

Previous month before increase gross sales:

$115,700.00

Cogs: $51,263.  44.3%

Net: $64,437

 

This month:

Gross sales $127,650

Cogs: $44,677 35%

Net: $82,973

An extra $18,500 NET this month while ordering About $7,000 less in product or roughly stocking over 14,000 items Less! 

 

This is great! Sales actually went up, while items sold went down (as expected).  My inventory orders are alot smaller yet theres more cash.

 

$18,500 in profit more per month = $222,000 per year in profit and carrying less items. Just for a measly .25c.

 

So raise your prices!

 

Only bad thing is we went from adding about $3000 a month of quarters in the mechs to $2500 a week in quarters. But its all goo

[Snickers]

We just got ours up to your “old” pricing. Lol 

[Chard]

same here

[Southeast Treats]

You've got the math figured out, hopefully your locations won't all flee to other vendors.  I like raising prices one category at a time and at least 6 months apart.  Less likely to spur action on provider changes.  You are big enough that there may not be enough competition to take a huge share of accounts, but how many can you afford to lose before the math turns around?  That is the competitive side of the issue, and it does act to hold prices down in basic economic theory.  Good luck.

[Anacapa Vending]

On 8/30/2019 at 11:56 PM, TKK said:

I went ahead and raised all my prices. Some places were told in advance some through contracts. 

 

Wow! What a difference!

 

I rose everything .25c.

I was scared sales would drop alot as people who could buy chips for $1 now would pay 1.25. Candy from 1.25 to 1.50. Ice cream from 1.25 to 2.25 to 1.50 to 2.50. 

16.9oz from $1.25 to $1.50, 20oz powerades from $1.50 to $1.75 etc.

 

Results after 1 month.

Previous month before increase gross sales:

$115,700.00

Cogs: $51,263.  44.3%

Net: $64,437

 

This month:

Gross sales $127,650

Cogs: $44,677 35%

Net: $82,973

An extra $18,500 NET this month while ordering About $7,000 less in product or roughly stocking over 14,000 items Less! 

 

This is great! Sales actually went up, while items sold went down (as expected).  My inventory orders are alot smaller yet theres more cash.

 

$18,500 in profit more per month = $222,000 per year in profit and carrying less items. Just for a measly .25c.

 

So raise your prices!

 

Only bad thing is we went from adding about $3000 a month of quarters in the mechs to $2500 a week in quarters. But its all goo

I am with you on this post. I think most vendors are too timid to pass along price increases to locations for fear of losing them. I like to run the best equipment I can get my hands on and compete to be the best, not the cheapest.

We shouldn't have to try and compete with grocery store prices either. A location with good equipment and great service should expect to pay up a little..

 

Ps.

Going from $1.25 to $1.50 on candy is a little aggresive for me but more power to you.

[TKK]

Well im in line with competitors here and i do give alot of incentives sometimes. Our product line is great and so is the service and equipment. Ice cream cohs are at 28% due to transport and dedicated freezers etc.