Does your price go up with inflation?

[Morphius]

I am curious, since I am in California and everything is going up like crazy. Does your soda beverage price go up to offset the prices?

What are your current prices for 12oz can, or Bottles?

I'll appreciate an input. Keep in mind, I am in California. if anyone from California can share their experiences, that will be great.

 

Thanks

 

 

Edited August 13, 2022 by Morphius

[Zachsea]

Florida. $1 for cans $2 a bottle. Soon to go to $2.25 on bottles beginning of year.

[AngryChris]

I'm in Ohio.  A can of Pepsi costs between 44c from a distributor and 35c at Sam's.  Coke is about 50c from distributor and 42c from Sam's.  I'm at $1 or going to $1 ASAP.  20 oz bottles cost about $1-1.10.  I'm between $1.85 and $2 but going to $2 everywhere by end of year.  When you account for sales tax, I still don't make 50% on bottles unless I'm at 2.25.  some items have better margins than others.  

On candy, everything will be $1.50-1.75 by end of year.  Pastries I think I can stay at $1.50 until some time next year.  LSS is already at $1.25 at most places.  

Yeah, this is my livelihood and I can't eat these costs and I won't.  When I first started, I figured I could just provide cheaper items at cheaper prices for my customers.  As I grew, I realized that I can't necessarily get everything I need from Sam's.  I base prices off of distributors now. If I get a better deal at Sam's, that's savings in my pocket, not my customers, because I had to go out of my way for that savings.

There has been some pushback but most people know that inflation is happening.  I think some people are just frustrated at how it affects them.  I have a customer right now (not mine) that's looking for vending.  The current vendor was selling bottles for $1 (probably 16.9) but stopped showing up.  I'm guessing the account isn't great and the current vendor doesn't make enough money so may have abandoned service.  That's the risk you run into when you focus on having the lowest prices.  You might get some customers, but you won't keep them if your service is bad.

I'm not here to help my customers pay their bills by lowering prices.  I'm here to provide a service by keeping their machines stocked at a price that makes it worth my time.  If McDonald's can pay me better than my business, I need to reevaluate what I'm doing.

[Morphius]

Thank you for a great reply.

[Morphius]

Anyone from California?

[CapitalCityVendingLLC]

We delayed and delayed and delayed going up on our prices but finally had to bite the bullet and do it.  We should have done it way earlier, and not doing so definitely hurt our bottom line.  About 3-4 months ago, we made the move though.  Put the prices where they need to be.  We slightly feared the push back and the potential of losing accounts, but haven't lost a single one.  A couple people have asked or commented, but after a brief discussion, they all can read the writing on the wall.  We are in SC, which is far cheaper of a place to live than California. 

Our 12oz cans are now $1.00 which seem crazy as 2-5 years ago, most of our locations were at $.60-$.75.  They are now all $1.00, no exceptions.  We do 16.9 soda bottles, and they are $1.25.  We will probably soon go to $1.50, but we are dragging our feet on that.  Candy/Chocolate $1.25-$1.50.  Big chips $1-$1.25.  Small chips $.75-$1.00.  Pastries $1-$1.25.  Need to make all of our pastries $1.25 or more eventually.

The prices we have to pay are similar to AngryChris.  12oz cans are anywhere from $.35-$.50.  Not sure of the bottles off the top of my head.