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Pricing of the products in a snack machine?


royalforest

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depends on the location and the type of snacks, the 1oz bag of chips from sams I usually price between 50 cents and 65 cents, gum I am getting in most all of my locations 45 cents per pack, and candy bars are what is killing me and most other vendors. I am getting anywhere from 70 cents to 80 cents for them but most locations are paying 75 cents. On all new installations I am pricing them at no less than 80 cents and try to get in at 95 cents to start.

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This is what I charge

Chips :$1.00

Candy Bars: .85

Granola Bars: .50

Gum (5 stick pack): .40

Certs/Mints: .75

Soda (cans)  .85

Soda (Bottles) $1.25

Energy Drinks/Starbucks: $2.50

Water: .75

Gatorades/Juices:  $1.50

Anything odd, it's double my cost, up to a sale price of $2.50  Most people won't spend more that $2.50 for a drink.

Travis

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I've included my cost for the items so you can see the cost sale price relationship. Basically double your cost and try to round up, but pay attention to what these items are selling for at local stores so you don't drive them away. In my area Coke just took over distribution of Monster a few months ago and they are selling them at the local stop n robs ;) at 2 for 3.00 or 4 for 5.99 so I can't go much higher than that without subjecting myself to irate customers thinking I'm overcharging them.

1 oz chip  (cost .21-.25) .50 - .60

Candy bars  (cost .42- .47) .85 - .90

Granola bar, rice crispy trail mix, etc. (anything w/cost basis of less than .40) .75-.80

Pastry items (cost .43-.48)  .95-.100 most places a few at 1.25

12 oz soda  (cost .23-.30) .60 - .75

20 oz soda ( cost .60 - .64) 1.25

Gatorade ( cost .58) 1.50

20 oz water ( cost .40 - .42) 1.00

energy drinks (monster cost 1.09) 2.00

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wow I thought I was right on par with charging 75 cents for pastry's, I have been going through a transition recently with my machines pricing, I think I am not going to start rolling the pastry's up from .75 to .85....

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wow I thought I was right on par with charging 75 cents for pastry's, I have been going through a transition recently with my machines pricing, I think I am not going to start rolling the pastry's up from .75 to .85....

mxer,

Just wondering, what do you pay for your pastry goods? If your cost is low enough so that the price range keeps you around 50% COG then great, but if were me I'd start looking for price bumps anyway.

FYI Around here the local corner stores are getting 1.39-1.49 for the same pastry items that I'm selling for 1.00.

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IS EVERYBODY NUTS! HOW CAN YOU MAKE A STRONG PROFIT! SODA CANS SHOULD BE PRICED AT $1.00!!!!!!!!!!!!! 

How could I price cans at $1 when there are still vendors in my area selling 20 oz bottles for $1. I would put myself out of business if I went to $1, so no not nuts, in business.

JD

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in the words of sam walton, founder of sams club "its not what i sell it for,its what a pay for it"...years ago vending companies tried to hold the line at a 40% overall product cost.... but due to market trends, competition , geographics etc. most are trying to hold this line at 50% now.

i would suggest to anyone to:

go out and see what your competitors are doing.... if your in a 1.00 can market great, but if its .75 be mindful of this...

look at your business from an "overall standpoint" maybe you cant achieve the price you need on choclates, but can pick it up on other products.

constantly be looking for new products.... and if your customer has never seen it in vending before "get your price"...

increase sales by looking into credit card acceptance.... for years the downfall of transaction fees has been a killer, but now technology exists that virtually eliminates all card fees allowing 2 prices...one for cash and one for credit... the american workforce is constantly changing...the under 30 blue collar worker doesnt carry cash anymore...................

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increase sales by looking into credit card acceptance.... for years the downfall of transaction fees has been a killer, but now technology exists that virtually eliminates all card fees allowing 2 prices...one for cash and one for credit... the american workforce is constantly changing...the under 30 blue collar worker doesnt carry cash anymore...................

I've been looking into CC acceptance for awhile now as well and will install my first couple of units after the holidays, got something else on the hot plate right now that keeps me from it now.

Are you saying you are charging two different price points, one for cash and one for CC's? The processing companies I've talked with have told me they can't/won't do that, that it is illegal?:huh:?? :huh:

I'm looking at it as a way to increase prices across the board knowing that maybe it'll split half and half with cash and CC's. I'll get a better margin on the cash and still be ok paying the fee on the rest.

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IS EVERYBODY NUTS! HOW CAN YOU MAKE A STRONG PROFIT! SODA CANS SHOULD BE PRICED AT $1.00!!!!!!!!!!!!! 

How could I price cans at $1 when there are still vendors in my area selling 20 oz bottles for $1. I would put myself out of business if I went to $1, so no not nuts, in business.

JD

this really all depends on location. here in ny, its 2$ for a bottle of soda and 1-1.50 for a can

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Are you saying you are charging two different price points, one for cash and one for CC's? The processing companies I've talked with have told me they can't/won't do that, that it is illegal?:huh:?? :huh:

It's not illegal, however I have never seen a vending machine charge 2 different prices (for cash and credit).  Go to an AM/PM or an Arco gas station.  They take cash or debit only.  If you pay with debit, they charge you a 45 cent transaction fee, regardless of the final sale price.  I have also seen little Teriyaki stands charge a fee for debit/credit if you sale price is below $5....so illegal, I don't think so.

Travis

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It's not illegal, however I have never seen a vending machine charge 2 different prices (for cash and credit).  Go to an AM/PM or an Arco gas station.  They take cash or debit only.  If you pay with debit, they charge you a 45 cent transaction fee, regardless of the final sale price.  I have also seen little Teriyaki stands charge a fee for debit/credit if you sale price is below $5....so illegal, I don't think so.

Travis

It may be different in other states but in Massachusetts, the difference in allowable cash/credit prices is a matter of semantics. It is illegal to charge a higher than base, or advertised, price if you use a credit card but it's NOT illegal to give a discount to cash paying customers.

As long as you charge the regular advertised rate to credit customers, you are free to give cash customers any discount you want. I hope that makes sense.

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How could I price cans at $1 when there are still vendors in my area selling 20 oz bottles for $1. I would put myself out of business if I went to $1, so no not nuts, in business.

JD

I'm paying 90 cents for a 20oz bottle! Theres no way I could sell for $1. All my 20oz bottles are priced at $1.50 and 12oz cans at 75 cents.

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while it is true that credit card companies, fight it , its been going on for quite some time.... as you travel, have you noticed that convenience stores/ gas stations have 2 prices for fuel? they advertise a cash price,,,and a list/credit price......while they dont advocate not using credit cards by mentioning "discount" they are doing it. basically it becomes customer choice. I know in ohio a lot of the convenience stores are doing it... example I have a technician who bought a pack of gum the other day and it cost him an addtional .23 cents...when i made fun of him and asked him why he did it, he said he wanted a pack of gum!....the mentality of the younger workforce is amazing.... and they just dont carry cash....

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Vendnoob- I buy soda from Sam's and BJ's when I can because they are always cheaper then buying direct from Coke or Pepsi.  Don't know where you are, but check it out.  I asked Pepsi the other day if I could give them my Sam's number and they could give me the same discount as Sam's so I could order everything through them directly, and they didn't respond... ;)

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