RAISE YOUR PRICES!!

[mission vending]

Here is a link to an article in Automatic Merchandiser by Allen Weintraub.

Pricing, machine collections and profitability, its well worth the read.

http://www.vendingmarketwatch.com/print/Automatic-Merchandiser/Pricing--machine-collections-and-profitability/1$26996

[soco]

Interesting, but he didn't give specific snack ideas @ $1.50.  O.k., so a larger size trail mix, a 3 pack of zingers and what else for the other 2-3 spirals in the row?... I can't access a Vistar, so I'm working from the Sams/BJ line-up and there isn't much at that price point.  I tried the larger trail mix @ $1.50 several months ago and it tanked.  Last week I finally found a source for the Zingers, so am trying those for the first time.  Previously Suzie-Q's and Ring-Dings have been reasonable but not great sellers.

[JEREMYTINA]

I only have one combo machine currently for the full line side of my business.  It sits 10 feet from the door of my ofice at my full time job within my view.  I have been conducting my own experiments with pricing and products over the last few months.  I started selling Monster and Red Bull at $2.50 per vend, and for the snack section,  I started selling 5hour energy @ $2.50,  Beef Jerky @ $2.00,  and Tuna Fish w/ crackers @ $2.50.  I am averaging $1.00 to $1.50 in profit on these items.  I have significantly increased my revenue with these changes from $50 per week to over $100 per week.  I sell cans at $0.65 each, and I have seen no drop in volume there with the addition of these energy drinks.  I have a selection of $0.35 snacks to capture the remaining change from the soda purchase as well.  It's worked well for me so far.  I think I will employ this strategy at the rehab center/nursing home we start in June.

[gogo]

Interesting article. Let me summarize it briefly ...

If you raise prices, you make more money.

If you use premium products, people won't care/notice.

I've had mixed results with raising prices. In some locations it is no big deal (motels/hospitals, etc.).

But in locations where the same people use the machines every day (sometimes for years), it can be a real headache. One blue collar location I serve decided to boycott the machines when I raised prices on pastries by .10

They literally stopped buying everything, and they weren't really that nice about it. I could feel the hostility when I entered the breakroom to service the machine. I tried to keep it friendly and we settled halfway at .05 raise.

Raising prices is definitely a location-by-location issue. What works some places doesn't work others!

Good to be reminded of the profitability side of it, though. Thanks for sharing, Mission.

[mxer518]

Interesting article. Let me summarize it briefly ...

If you raise prices, you make more money.

If you use premium products, people won't care/notice.

I've had mixed results with raising prices. In some locations it is no big deal (motels/hospitals, etc.).

But in locations where the same people use the machines every day (sometimes for years), it can be a real headache. One blue collar location I serve decided to boycott the machines when I raised prices on pastries by .10

They literally stopped buying everything, and they weren't really that nice about it. I could feel the hostility when I entered the breakroom to service the machine. I tried to keep it friendly and we settled halfway at .05 raise.

Raising prices is definitely a location-by-location issue. What works some places doesn't work others!

Good to be reminded of the profitability side of it, though. Thanks for sharing, Mission.

I agree 100% with that you have said, its a location to location issue, some places I knew it had to be done and it went without an issue on a nearly 30% across the board increase and then there are the places that i try and do a meager 10% across the board and its like the world is coming to an end. The recent thread that talked about adding new items and at that point raise the price works wonders for me and all vendors that are nervous about loosing a location because of price increases should seriously consider this method.

[mission vending]

Interesting, but he didn't give specific snack ideas @ $1.50.  O.k., so a larger size trail mix, a 3 pack of zingers and what else for the other 2-3 spirals in the row?... I can't access a Vistar, so I'm working from the Sams/BJ line-up and there isn't much at that price point.  I tried the larger trail mix @ $1.50 several months ago and it tanked.  Last week I finally found a source for the Zingers, so am trying those for the first time.  Previously Suzie-Q's and Ring-Dings have been reasonable but not great sellers.

Seeing as how your get most stuff at Sam's here are a few ideas, have you tried the Jack Links Jerky, cost around 1.00, retail for 1.50 - 2.00. The 5 hour energy bottles in the snack machines cost around 1.50, sell at 3.00. The Van Holtens's pickle in a pouch cost around .60 sell at 1.25.

Finally, I have a couple of vending buddies that have much smaller routes and they order a few cases of stuff from Vistar on my order once in a while. Is there someone you could do this with, or get some other vendors together and form you own little co-op?

[soco]

Thanks for the acknowledgment Mission-always appreciate reading your posts.  Based on your comments last week I grabbed a box of 5 hour energy even tho' I don't have $5 DBV in any of my 'chines.  The other challenge there has been having a broad enuf spiral so there is play on this vend... come to find out that only a few of my machines have it, so have to consider ordering the broader spiral... I'll look into the pickles and jerky.  I know a vendor who does a full row of various Hostess products... but it seems to me you need 50+ for that much turnover on a weekly basis.  I hear what you're saying about the co-op, but it's a cagey bunch in my region, not a lot of "visibility" if you know what I mean.  I still feel you can get the higher prices in the urban and tourist areas, but that's not my turf.  I've just started pricing candy @ $0.95 from $0.90 on my new a/c's.

[s.weir]

This co-op idea that was mentioned by mission, i like it.  My only concern is would you have a problem with vendors trying to screw over other vendors?  Some guys aren't that honorable.  Don't answer it here though i will make a post specifically about co-ops in the full line forum.