Food pricing

[AngryChris]

Does anyone mind sharing their formula for food prices?  I just tried a few items from the local Walmart as it's all prepackaged.  The market side cheese steak was pretty tasty but at $3.87, I feel I'd have to charge $6.  Is that too low?  I'm afraid higher prices will just turn people off but there aren't many food options close enough to get you there and back before break time is over.  I just don't know pricing on food.  There is a lot of good quality stuff but the inflation has me concerned too.  I mean, $9 would get you a filling, reasonably tasty sandwich with a bag of chips and a drink.  I just don't know what people are willing to pay in this economy.  I'm getting an ams combo with beverages on 3 shelves and food on 2 shelves.  I already have a snack and beverage there.

[lacanteen]

We have nothing higher than $4 in vending machines. Micromarkets might have a few $6 items. Margins on food, when you include stales, are lucky to break even. It's a necessary evil. 

[AngryChris]

44 minutes ago, lacanteen said:

We have nothing higher than $4 in vending machines. Micromarkets might have a few $6 items. Margins on food, when you include stales, are lucky to break even. It's a necessary evil. 

Thanks.  Do you have your own food production or do you just buy wholesale?  Do you try to double costs?

[Zachsea]

Larger sandwiches (hamburger chicken sandwich etc) $3.00

Breakfast items (breakfast burrito Jd sandwiches) $2.00

small items (hot pocket white castle etc) $1.50 

Rayberns and breakfast bowls $4.00 (theyre huge but dont sell much)

It all comes froms sams and the small items are the highest profitable and outsell other stuff 3 to 1. 

[lacanteen]

You're not going to get double cost on perishable food. Some will be close, but mostly not. That's why in a dedicated machine you need some shelf stable items that sell in order to push the margins up. Since we have close to 100 food machines, our buying power gives us some better deals. 

[AngryChris]

1 hour ago, lacanteen said:

You're not going to get double cost on perishable food. Some will be close, but mostly not. That's why in a dedicated machine you need some shelf stable items that sell in order to push the margins up. Since we have close to 100 food machines, our buying power gives us some better deals. 

I understand.  Honestly, I'll be content to break even on food.  I just don't want to cut myself short either.  They kill sports drinks,monster, and water surprisingly (they have a free dispenser).  I'm thinking more varieties of monster/sports drinks will help out tremendously.  And tea seems to be trending up too.

Would you walk away if you saw I had 3 machines (one with some food in it) and no more than 30 cars in the parking?

[Southeast Treats]

I only have 3 food machines, and my pricing and margins is about what LA said.  It's critical to control stales if you hope to break even.  I have put one shelf of higher end drinks (red bull, iced coffees, etc) in 2 of my machines and that helps prop up sales totals and margins.  Hormel completes are a good shelf stable, buy at retail for under $2 and sell for 3 or 3.25.  Bumble Bee Tuna kits are OK; and ramen cups for $1 still gives a good margin if you have some larger spirals that can hold them.  If you can find who distributes packaged sandwiches for your local C-Stores you might be able to source some items from them.  I have storage freezers and can buy frozen from them and date the items as I put them out.

[Southeast Treats]

Something else to consider, I buy the individual packets of condiments and supply some at my food locations.  A bit of extra cost, and yes people will take advantage, but it seems to help the food sales, as people can fix up the items they buy.  Expense is not too great and I wouldn't do it free for commission accounts. 

[AngryChris]

22 minutes ago, Southeast Treats said:

I only have 3 food machines, and my pricing and margins is about what LA said.  It's critical to control stales if you hope to break even.  I have put one shelf of higher end drinks (red bull, iced coffees, etc) in 2 of my machines and that helps prop up sales totals and margins.  Hormel completes are a good shelf stable, buy at retail for under $2 and sell for 3 or 3.25.  Bumble Bee Tuna kits are OK; and ramen cups for $1 still gives a good margin if you have some larger spirals that can hold them.  If you can find who distributes packaged sandwiches for your local C-Stores you might be able to source some items from them.  I have storage freezers and can buy frozen from them and date the items as I put them out.

Thanks!  Yeah my intention for the top two trays is going to be maybe 1 or 2 "deli" sandwiches (turkey&cheese or ham&cheese), a cheeseburger option, a sausage biscuit option, maybe a higher-end sandwich, and some shelf stable items like hormel completes, tuna kits, and fruit cups.  The condiments is an excellent idea too.  I'm really more focused on keeping the location happy more than anything else.  I'll make my money back from the additional beverage sales even if I lose a little from the food.