Candy prices - $.85 min these days?

[ABCVending]

Got a number of machines I need to raise prices on - took over locations, most of them are set with chips at $.65 - $,75 and candy at $.75.

Can't do candy at $.75 not sure if I should bump to $.85 or $.90 - up here have seen quite a few operators selling candy at $1.00 - no way my accounts are going to be good with that - the wailing would be great.....

Chips - big bags $.85, little bags $.75 - sound about right?

ABC

[G-Vending]

On the candy 85 would be good your chip price is in line..

[Technivend]

I agree that you should be at $.85. However, I would be concerned that if you just took these over from another vendor that raising prices too soon could be the wrong thing to do. If you are a new face, that is a hurdle you need to overcome until they become comfortable with you. If you are a new face and then raise prices, why not look around for another vendor? They don't know you or your service and have no allegiance to you. They may look at it as a forced change that they don't like and maybe they will change on their own.

So what I am trying to say without babbling is: If you are the new vendor, give it some time until you have  a relationship before the boat is rocked.

[agrantha]

Technivend is right.

[ABCVending]

Agreed - the previous operator was bad so there is/was a lot of ill-will toward the vending program by the employees using the machines.  Instantly raising the prices is not going to improve that dynamic.

Been in there since the begining of May - when I took over the account, the company assumed prices would go up on the soda, I agreed to hold it at $.50 for 30 days as a good will gesture but did plan to raise to $.75 1st of June (thinking now maybe bump to $.65/can for the Summer and then bump again in the Fall to $.75)

No rush to jack price on the candy (although those gals are pounding through the Snickers, MMP & Reeses like there is no tommorrow) - need to think that one through, have 16 candy slots on each machine - right now, 12 are set at $.75 and 4 at $1.25 for more expensive items like Cliff bars & Stride gum.  I might wait another month and bump all the $.75 stuff to $.80 and then re-evaluate a couple months after that.

Do you guys have a standard notice of price increase that you post on the machines?  Trying to figure out how to keep it short and sweet and still explain the justifcation for price increase.

ABC

[mission vending]

I'd be careful about raising prices for a while, the margin you are getting on the chips should help you through. When I do price increase I meet with point of contact and explain the need for the increase, sometimes with invoices to show my cost. Once the increase is approved I post a notice on the machines that says something like this;

Due to increased costs and wholesale prices increases we are forced to pass this along. We apologize for any inconvenience. The new prices will be: 

Soda 1.25 no change

Chips .60 no change

Pastry 1.00

Candy .90

This price increase will go into effect in approximately two weeks as existing inventory purchased at the old price is used up.

Thank you for your past and future business.

[ANDERSONVENDING]

I have a note posted on all my machines that reads,

Like most businesses that are food and transportation based,we are seeing a significant increase in the cost of our products and the cost to transport.The increased cost of gas has not only increased our operating cost,but the operating cost of our suppliers that they then pass on to us.This leaves us paying more for transportation,and also making less to cover this expense.Therefore we are forced to increase our pricesas the need arises.

  Thank you for understanding,

Anderson Vending Service

I haven't had anyone complain yet,but I have had employees at a new location complain about begining prices.I don't remember who originally posted this,but I got it off the site.

John