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Why not .50 cans?


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Nrpick44

It is scary that you would even consider lowering your price.  You have already made a considerable investment in your business and if you will not take the advice of veteran vendors then your machines will soon be on Craig's List or Ebay…For Sale.

When I started vending 6 months ago, I was hard headed and stuck on Vendstars.  These guys talked some sense in to my head.  These machines may hold for the short run, but for a long term viable business, I need to go with a more durable machine like Northwesterns or Beavers.  If you are going to make it in this business you need to accept what it takes to make it in this business.

Im happy to report that I went by and serviced the machine today for the first time by myself and left it at  .70.  Thanks to everyone who have shown me that i was wrong and Im sure I'll have some more boneheaded ideas that I'll share here first before I think of trying out there.

This forum is awesome! I cant thank everyone enough for yalls replies and honesty.

Btw, i left thinking about going for .75 in a couple of months! lol

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Im happy to report that I went by and serviced the machine today for the first time by myself and left it at  .70.  Thanks to everyone who have shown me that i was wrong and Im sure I'll have some more boneheaded ideas that I'll share here first before I think of trying out there.

This forum is awesome! I cant thank everyone enough for yalls replies and honesty.

Btw, i left thinking about going for .75 in a couple of months! lol

I'm glad that you changed your mind! Think of anything over product cost and expenses as your paycheck and protect that margin. Like I have said in the past, we are building assets here by putting the right machines in front of the right cutomers we create value (I would add, at the right prices too). With that said which location is worth more:

1. 10 year old dixie narco drink machine that does $1500 gross a year with the price @ .50

2. 10 year old dixie narco drink machine that does $1500 gross a year with the price @ .70

I personally would pay ~$200.00 more for #2.

JD

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Hurry up and get here already DBA!!!  I want that extra DIME!

In all seriousness, Thanks guys for beating it into our heads about prices.  even though I may lose a vend or two possibly by raising the price by a dime,  I think overall, the price increase will benefit me more.

And even if it goes to pot I have other spots in mind where there is no competition for at least 5miles!

I will just have to find a moving company to move it. 

Where I am at right now, I can't see spending hundreds of dollars for a vending dolly etc.  plus, I'm not all that big or strong for that matter.

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Where I am at right now, I can't see spending hundreds of dollars for a vending dolly etc.  plus, I'm not all that big or strong for that matter.

A couple of things, in a pinch a couple of piano dollies will work to move machines they cost about 60-70 bucks a piece. Strength is not the most important thing in moving equipment its leverage. I'm 5' 7" and 165 soaking wet, I have no problem moving 800 lb machines around.

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A couple of things, in a pinch a couple of piano dollies will work to move machines they cost about 60-70 bucks a piece. Strength is not the most important thing in moving equipment its leverage. I'm 5' 7" and 165 soaking wet, I have no problem moving 800 lb machines around.

Whoa!  So am I!!

Do you care to share how you are able to move these machines and what you use to move them?  Or do you prefer I pm you?

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cast my vote for the "never lower prices" camp. the consumer is accustomed to paying a certain price, if the gamble of lowering prices doesnt pay off (likely) your sales will drop off even further if you try to raise it back up so you will end up stuck at the lower price. odds are the best you will do is end up increasing volume only enough such that your margin loss and volume increase converge to the same $ amount of profit as you would have got at 70 cents, except its more trouble now.

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why do you need a DBA to raise your price?

I wouldn't really,    Its just the flea market owner is the one that is always getting asked to break a dollar, and although he doesn't grumble,  when I am there checking on the machine, more times than not,

He asks to buy quarters off of me.  

"well, everybody wiped me out on quarters again, you got a few to spare?"

and another line he usually says is

"If you would fix it to take dollars, you wouldn't have to mess with me so much."

So my thinking is, if I raise the price now before I get the dba in, more people are going to be hitting him up for more change.

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odds are the best you will do is end up increasing volume only enough such that your margin loss and volume increase converge to the same $ amount of profit as you would have got at 70 cents, except its more trouble now.

That was my thinking,  lower price, more sales.  but the guys were finally able to convince me about the second part of your post about more trouble. etc

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Well for one thing whenever moving machines there are ALWAYS two of us. I use a large vending dolly with the kickout wheels, one that cost hundreds of dollars  ;) or a narrow spread pallet jack.

With the dolly hook the straps, one guy on low side blocking the wheels to keep them from moving and pulling on the handle with body weight. The other guy (pusher)  puts hands on the font of machine at about 3/4 height, then bend knees and use legs to push machine over. As the machine tips over the low side guy will kick out the wheels and there you go. I'm making this sound easier than  it is, it takes  a number of moves to figure out the choreography, that's one reason why I prefer to move with the same helper(s) as often as possible.

With pallet jack or piano dollies its basically the same process except that you need to be a little more careful because you don't have the kickout wheels to stop the machine from tipping to far and possibly falling over or on the low side guy.

When walking the machine on a dolly you need to find the balance point and keep the machine just past the balance point to where there is a little weight that the low side guy has to hold up which makes the machine virtually weightless as you walk it through the building. 

If you need more let me know.

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See, my problem would be outdoor machines.  :( the one I have now, is on the sidewalk against the building. well, about 3-4ins from the building.  to get it to a tommy lift, I would have to move it to the parking lot which in turn is about an inch higher than the sidewalk. it isn't an actual step, but if you drag your feet, you would definitely stumble

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75 cents is where you really want to be. As psoted earlier that extra nickel doesn't mean all that much to the consumer BUT if you run out of nickels in your changer your machine will go on Use correct change only. That will really hurts sales with people looking for dimes when your machine is looking for nickels. 70 is a deadmans price

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As usual, I agree with Technivend.  Keep it simple...quarters only.  Another reason for increasing your price is the possibility of you needing to pay someone to move your machines.  ;)

It takes money to make money.

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I own a laundromat, and in this mat I have a soda/snack machine.  When I started, I sold cans at 75c, now its $1.  Sales went UP after I raised the prices, so obviously it had more to do with people just finding the machine and not the price!

Another thing, my "day job" has soda for employees at 25c!  I've never bought more sodas than I would have before just because it was cheaper.  So I don't think the price has much to do with it.  Although I did think about stocking my soda machine from theirs :)

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I own a laundromat,

Nosebreaker

You own a laundermat and have a day job?  Why?  I know this sounds like a dumb question.  But, my goal was to purchase a laundermat when I retire from State employment in 12 years.

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I own a laundromat, and in this mat I have a soda/snack machine.  When I started, I sold cans at 75c, now its $1.  Sales went UP after I raised the prices, so obviously it had more to do with people just finding the machine and not the price!

Another thing, my "day job" has soda for employees at 25c!  I've never bought more sodas than I would have before just because it was cheaper.  So I don't think the price has much to do with it.  Although I did think about stocking my soda machine from theirs :)

If you dont already have a toy rack in there it would be a good investment, people sitting around bored with a pocket full of quarters is a good thing for you. Im sure you could make an extra 100 a month easy.
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I own a laundromat, and in this mat I have a soda/snack machine.  When I started, I sold cans at 75c, now its $1.  Sales went UP after I raised the prices, so obviously it had more to do with people just finding the machine and not the price!

Another thing, my "day job" has soda for employees at 25c!  I've never bought more sodas than I would have before just because it was cheaper.  So I don't think the price has much to do with it.  Although I did think about stocking my soda machine from theirs :)

off topic but how long do you spend running the mat? i have been considering buying one in addition to my "day job" but am concerned it probably takes more time than i would have, i assume ur mat is unattended.

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Its an unattended mat, I go once per week now that things are set.  Maybe 2-4 hours each week, depending on what else is broken.  My mat has older machines so I'm always repairing them (minor repair every other week it seems)!

I don't have space for any other machines, I could get rid of the arcade machine and put something there I suppose (it doesn't do much business at all).

I bought a small mat as a test, I'm glad I did, I'll stick to real estate for my passive income in the future.  I am inventing a device for my mat though, I've had lots of interest so I'm making it a commercial product! http://www.laundromatwatcher.com

My laundromat: http://www.dedhamlaundry.com

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Its an unattended mat, I go once per week now that things are set.  Maybe 2-4 hours each week, depending on what else is broken.  My mat has older machines so I'm always repairing them (minor repair every other week it seems)!

I don't have space for any other machines, I could get rid of the arcade machine and put something there I suppose (it doesn't do much business at all).

I bought a small mat as a test, I'm glad I did, I'll stick to real estate for my passive income in the future.  I am inventing a device for my mat though, I've had lots of interest so I'm making it a commercial product! http://www.laundromatwatcher.com

My laundromat: http://www.dedhamlaundry.com

We have a section for bulk vending and full line vending.  We should have a section for laundermat, car wash and anything else that vends.

Nosebreaker

What is it you do not like about the laundermat business?

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