22 replies to this topic

[BVI]

Right now, my cost for 20-oz Pepsi products is $16.50 per case, or $0.69 per bottle. Add sales tax, and it becomes $0.75 per bottle.

Coke products 20-oz CSD is $15.60 per case, or $0.65 per bottle. Add sales tax to that, and it becomes $0.71 per bottle.

Granted, I stay away from bottles as much as possible. It really doesn't account for much of my volume for other reasons besides high cost and extremely low GP.

But, I'd like to make money on the little that I do sell. Going to $1.25 would help a lot.

I saw 20-oz CSDs at WalMart for $1.28 the other day.

I'm considering going to $1.25 for existing accounts (new accounts are getting a 6-month price freeze if they come on board between now and New Year's).

My point in all this is that every January, Coke and Pepsi raise their prices - guaranteed. They've already raised them twice this year in my area. Another price increase on bottles, and they won't be worth the space they take on my truck or in my machines. Is anyone else considering going to $1.25 anytime soon? I mean, at some point, we'll to have to stop selling them at $1.00 because even now we're not making any money on them, and it will be even worse this January. I think now is the time to start bracing our accounts for a $1.25 and then act on it in January.

Just think, you could sell half as many bottles and make the same amount of profit just by going to $1.25 - and pay less sales tax on it!

[kevin]

Right now, my cost for 20-oz Pepsi products is $16.50 per case, or $0.69 per bottle. Add sales tax, and it becomes $0.75 per bottle.

Coke products 20-oz CSD is $15.60 per case, or $0.65 per bottle. Add sales tax to that, and it becomes $0.71 per bottle.

Granted, I stay away from bottles as much as possible. It really doesn't account for much of my volume for other reasons besides high cost and extremely low GP.

But, I'd like to make money on the little that I do sell. Going to $1.25 would help a lot.

I saw 20-oz CSDs at WalMart for $1.28 the other day.

I'm considering going to $1.25 for existing accounts (new accounts are getting a 6-month price freeze if they come on board between now and New Year's).

My point in all this is that every January, Coke and Pepsi raise their prices - guaranteed. They've already raised them twice this year in my area. Another price increase on bottles, and they won't be worth the space they take on my truck or in my machines. Is anyone else considering going to $1.25 anytime soon? I mean, at some point, we'll to have to stop selling them at $1.00 because even now we're not making any money on them, and it will be even worse this January. I think now is the time to start bracing our accounts for a $1.25 and then act on it in January.

Just think, you could sell half as many bottles and make the same amount of profit just by going to $1.25 - and pay less sales tax on it!

Thats a touchy subject for me personally. Ive found that most people believe Im already higher then convient stores no matter how untrue that is. I still have some bottles at 80 cents, which is changing during the new year to 90 and all 90 will go to 1.00. Granted my cost is a little lower then yours and the economy is cheaper here so everything is slightly cheaper. I decided to hold off on the 1.00+ rise and just try and sell energy drinks for 2.00 and any other juice and flavored drinks I can for $2.00. Im hoping this my offset my costs enough untill Coke and Pepsi all finish their roll out of $1.25 and its steady for awhile. We pay about 14.50 with tax included at $1.00 sales and like you said it will go up this January, until then I will wait to see what I do. We havnt had many price increases here and Ive been told that when we do they will be big this time since Coke hasnt adjusted yet. Its just hard to see someone scrounging for that extra quarter everytime they want a coke, but it also seems like it is becoming necessar. If you do this let us know how it goes. On average we sell about 50-60 cases of 20's a day and even though I sell alot more cans, its to much of an important part of my buisness since most places I have work in shops and they need a lid for their drinks. In fact I got an account a little over a year ago because the other vendor refused to do bottles and they have a contamination problem there. That vendor does alot of bottles in other places as well so Im not sure why they refused.

[BVI]

Thats a touchy subject for me personally. Ive found that most people believe Im already higher then convient stores no matter how untrue that is. I still have some bottles at 80 cents, which is changing during the new year to 90 and all 90 will go to 1.00. Granted my cost is a little lower then yours and the economy is cheaper here so everything is slightly cheaper. I decided to hold off on the 1.00+ rise and just try and sell energy drinks for 2.00 and any other juice and flavored drinks I can for $2.00. Im hoping this my offset my costs enough untill Coke and Pepsi all finish their roll out of $1.25 and its steady for awhile. We pay about 14.50 with tax included at $1.00 sales and like you said it will go up this January, until then I will wait to see what I do. We havnt had many price increases here and Ive been told that when we do they will be big this time since Coke hasnt adjusted yet. Its just hard to see someone scrounging for that extra quarter everytime they want a coke, but it also seems like it is becoming necessar. If you do this let us know how it goes. On average we sell about 50-60 cases of 20's a day and even though I sell alot more cans, its to much of an important part of my buisness since most places I have work in shops and they need a lid for their drinks. In fact I got an account a little over a year ago because the other vendor refused to do bottles and they have a contamination problem there. That vendor does alot of bottles in other places as well so Im not sure why they refused.

I have taken bottles out of accounts where I could and switched to cans. The accounts where I have to carry some bottles I only carry Coke, Diet Coke, Pepsi and Diet Pepsi and I require them to be in 3rd party machines. The rest of selections are something other than 20 oz CSDs.

I won't spring price increases on anyone or suprise them. This is something I will have to get them ready for. But it's silly for people to see prices go up everywhere else and pay more for everything, but when it comes to vending prices are supposed to stay the same for eternity? I don't think so. Not to toot my horn here, but I do a superb job for my customers, and I fully intend to get paid for doing so. It's a matter of economics. If I can't make adjustments to stay profitable by my definition in any particular account, then I will find a different account and pull my machines. I won't lose money for anybody or accept less than my service is worth. I can't.

By adjustments, I mean adjusting what I stock (cans over bottles), price, machine type, etc.

I have refused a couple of accounts because they wanted lower prices - especially on candy - and I won't sell below $0.65 rock bottom... I raised all my accounts to $0.70 a few months ago and only had one account complain about it, but they got over it.

[BVI]

I have also watched my Gatorade cost go up from $0.51 per bottle to $0.62 per bottle just in the last several months. When it gets to be over $15 per case, I will either reduce my selections or go up to $1.25. Stocking anything in a bottle that sells like crazy is too much work to not make any money on it.

[antonio]

I SELL

[antonio]

I SELL 20 OZ FOR 1.50.everywhere else its about 140-150 after taxes.I only have 1 machine outside my shop and dont rely on it much except for change.

[kevin]

I have taken bottles out of accounts where I could and switched to cans. The accounts where I have to carry some bottles I only carry Coke, Diet Coke, Pepsi and Diet Pepsi and I require them to be in 3rd party machines. The rest of selections are something other than 20 oz CSDs.

I won't spring price increases on anyone or suprise them. This is something I will have to get them ready for. But it's silly for people to see prices go up everywhere else and pay more for everything, but when it comes to vending prices are supposed to stay the same for eternity? I don't think so. Not to toot my horn here, but I do a superb job for my customers, and I fully intend to get paid for doing so. It's a matter of economics. If I can't make adjustments to stay profitable by my definition in any particular account, then I will find a different account and pull my machines. I won't lose money for anybody or accept less than my service is worth. I can't.

By adjustments, I mean adjusting what I stock (cans over bottles), price, machine type, etc.

I have refused a couple of accounts because they wanted lower prices - especially on candy - and I won't sell below $0.65 rock bottom... I raised all my accounts to $0.70 a few months ago and only had one account complain about it, but they got over it.

I hear you on the prices, Im just saying that people believe we are supose to be cheaper, and thats what drives me crazy. Every now and then I actually have a customer tell me that they know Im trying to keep up a machine, pay for product, and gas and so forth. Then you turn around and walk into another account and they act like you are making a ton off them(carrying in 5-6 cases). It can be dificult and my low prices are only on extremly good accounts. I have one that we service twice a week down the street from us. They run an average of 15-20 cases a week and the snack runs out every time on chips and pastries. I have also had them since we opened and they buy a ton of coffee as well at a decent price. I will not go over 90 cents and 55 on can for a long long time because of the ease of filling them and the differnt parts I make money. I have some accounts that I have snack machines in that I just front in order to keep the account. One I sell over $700 a week in product to the whole complex a week and that justifies the non used snacks.

My base prices:
Btl:90
can:60
candy:65
Chips:75
Pastry:90
Cookie:70

My biggest competitor:
Btl:1.00
can:65
candy:75
Chips:75
Pastry:1.00
Cookie:75

I can stay cheaper right now since I do most the routes myself and am not paying anyone for a big bulk of it. Im hoping to hire someone for our big route this next year and thats when I will push the prices up more for sure. I cant raise my coffee prices because the people here sell cheap low quality coffee and I have to match prices with Folgers and Maxwellhouse products. Anyone ever try farmer brothers coffee? Its terrible but most employers sacrifice the taste for the price.

As hard as it is to go up in price I always look at it as .10 means $2.40(without tax) more a case and tahts alot more profit over the year.

[BVI]

Kevin, I think it's interesting how pricing can fluctuate between markets. Like you're at .60 for cans, and very few machines around here are at .60, and your competition is at .65, which is unheard of around here, unless you're someplace where you would expect to wayyyy overpay.

I sell pastries at .75 for the most part which is way off from .90 or 1.00.

You must be selling the LSS size chips. I buy the SS size at Sam's and sell for .50.

Interesting.

[kevin]

Kevin, I think it's interesting how pricing can fluctuate between markets. Like you're at .60 for cans, and very few machines around here are at .60, and your competition is at .65, which is unheard of around here, unless you're someplace where you would expect to wayyyy overpay.

I sell pastries at .75 for the most part which is way off from .90 or 1.00.

You must be selling the LSS size chips. I buy the SS size at Sam's and sell for .50.

Interesting.

I sell all large size and I sell big pastries. My cheapest pastry is Bigtex. My competitor sells crap for pastries(like large brownies) and Ive gotten accounts because of this. My market is cheap were I am but we sell only the best stuff we can get at an affordable price. Coke is pushing .75 on cans nationally from what I have heard and read. I havnt carried SS chips in about 5 years. We stoped when we picked up all the schools due to strict regulations. I havnt used small size on any of my products in awhile. I have noticed that the prices may increase a little but I get alot more sales off of them. For instance I share an account with a competitor and even though their snack is closer to the majority of employees my snack machine does alot better. She can offer the same drinks as me, at least for now, but when it comes to snacks she uses only sams and I get all the sales. The drinks only average about $90 a piece but the snack is a 5 wide AP Studio 3 and can run as much as $150 per visit which is twice a week during the winter. I also offer single cup brewer and a fastcorp frozen machine to offset as much sales from her as possible. Ive been keeping a close eye on this account trying to figure out the best way to secure the rest and raise my profits.

My biggest gripe about snack vending is if you listen to your customers too much it hurts you. I have tried to listen to new accounts on what they like and 3 or 4 individuals think they know what everyone likes. Im sure everyone here has setup an account with product they were told would sell, only to find things getting close dated or out of date in a few weeks. I know my best sellers by trial and error and sometimes you find accunts where it dosnt matter what you put in there they will eat it.

[coinvestor]

I sell all large size and I sell big pastries. My cheapest pastry is Bigtex. My competitor sells crap for pastries(like large brownies) and Ive gotten accounts because of this. My market is cheap were I am but we sell only the best stuff we can get at an affordable price. Coke is pushing .75 on cans nationally from what I have heard and read. I havnt carried SS chips in about 5 years. We stoped when we picked up all the schools due to strict regulations. I havnt used small size on any of my products in awhile. I have noticed that the prices may increase a little but I get alot more sales off of them. For instance I share an account with a competitor and even though their snack is closer to the majority of employees my snack machine does alot better. She can offer the same drinks as me, at least for now, but when it comes to snacks she uses only sams and I get all the sales. The drinks only average about $90 a piece but the snack is a 5 wide AP Studio 3 and can run as much as $150 per visit which is twice a week during the winter. I also offer single cup brewer and a fastcorp frozen machine to offset as much sales from her as possible. Ive been keeping a close eye on this account trying to figure out the best way to secure the rest and raise my profits.

My biggest gripe about snack vending is if you listen to your customers too much it hurts you. I have tried to listen to new accounts on what they like and 3 or 4 individuals think they know what everyone likes. Im sure everyone here has setup an account with product they were told would sell, only to find things getting close dated or out of date in a few weeks. I know my best sellers by trial and error and sometimes you find accunts where it dosnt matter what you put in there they will eat it.

Kevin, do you use the "Big Grab" stickers on the front of your machine? Does anyone know where to get them? I have been thinking about trying some LSS chp, but wouldn't want to do it without advertising it.

This is also how all the big guys operate around here (classic foods and Canteen). They don't sell a standard size product. Even the candy bars are $1.10 - 1.25 bacause everything is LSS.

I have seen the same with snack machines, and drink machines too. I tell people that upfront that we are willing to try just about anything that we can get but wether they stay or not depends on sale only. I am in a simular situation with one of my accounts. I am one of two vendors (three if you include coke) and have been trying to figure a way to take share from the other companies. I will come up with a plan to take over the whole account, but if they don't accept I think I will pull my machines. Its just not a very good idea to be one of two vendors, it depresses prices and leads to inconsistant service.

Most accounts the outdated product goes in the trash or I take it home to the kids. At this account I bring it in and place it on top of the other guys snack machine

JD

[kevin]

Kevin, do you use the "Big Grab" stickers on the front of your machine? Does anyone know where to get them? I have been thinking about trying some LSS chp, but wouldn't want to do it without advertising it.

This is also how all the big guys operate around here (classic foods and Canteen). They don't sell a standard size product. Even the candy bars are $1.10 - 1.25 bacause everything is LSS.

I have seen the same with snack machines, and drink machines too. I tell people that upfront that we are willing to try just about anything that we can get but wether they stay or not depends on sale only. I am in a simular situation with one of my accounts. I am one of two vendors (three if you include coke) and have been trying to figure a way to take share from the other companies. I will come up with a plan to take over the whole account, but if they don't accept I think I will pull my machines. Its just not a very good idea to be one of two vendors, it depresses prices and leads to inconsistant service.

Most accounts the outdated product goes in the trash or I take it home to the kids. At this account I bring it in and place it on top of the other guys snack machine

JD

Put it in their drop doors that way it looks like someone bought it then threw it back in there

I dont sell large size candy except maybe 2-3 slots per machine. I have seen the big grab stickers and they use to offer them to us when we first started carrying LSS. I can scrounge today and see if I can find any that we actually kept. The warehouse is a mess right now becuase we are moving things around to hold more machines when they come in(I have 4 glass fronts and 3 Royals coming wensday and no where to put them right now). Ive got a kid throwing alot of stuff away but I will take a look and mail them to you if I find any.

How much does an average truck come back with outdated products? We average about 10-12 snack machines a day on the big truck and about 6-8 on the smaller truck and they usually only come back with about 4-10 outdated pieces and its usually all from one machine.

[BVI]

I have one account that I share with a competitor, and it really isn't so bad. We sell different things. My CB500 does anywhere from $125 to $200 per week, and my free-standing cold food machine does around $60 to $90 per week. You just have to be different, and you have to do everything better, which I do. There's no way I would pull either of these two machines whether the other guy goes away or not. It hasn't always done this well. I just had to get it figured out. This account only has 65 employees... about 60 of them are blue-collar.

[BVI]

Put it in their drop doors that way it looks like someone bought it then threw it back in there

I dont sell large size candy except maybe 2-3 slots per machine. I have seen the big grab stickers and they use to offer them to us when we first started carrying LSS. I can scrounge today and see if I can find any that we actually kept. The warehouse is a mess right now becuase we are moving things around to hold more machines when they come in(I have 4 glass fronts and 3 Royals coming wensday and no where to put them right now). Ive got a kid throwing alot of stuff away but I will take a look and mail them to you if I find any.

How much does an average truck come back with outdated products? We average about 10-12 snack machines a day on the big truck and about 6-8 on the smaller truck and they usually only come back with about 4-10 outdated pieces and its usually all from one machine.

With the exception of Vistar, I don't know where you would even find LSS chips. Sam's doesn't carry them, at least mine doesn't. And Vistar is too darn expensive. In my opinion, the extra profit you might generate would be offset by paying higher cost. So I don't see the advantage for me.

Now, Kevin, your price on LSS and other items may very well be lower through Vistar due to your size. In that case, I can see how it would make sense. But when you're a small fry like me, SS makes more sense. Besides, I don't need 100 bags per box of every chip I carry.

[coinvestor]

With the exception of Vistar, I don't know where you would even find LSS chips. Sam's doesn't carry them, at least mine doesn't. And Vistar is too darn expensive. In my opinion, the extra profit you might generate would be offset by paying higher cost. So I don't see the advantage for me.

Now, Kevin, your price on LSS and other items may very well be lower through Vistar due to your size. In that case, I can see how it would make sense. But when you're a small fry like me, SS makes more sense. Besides, I don't need 100 bags per box of every chip I carry.

Is that vistars standard size? 100 per box?

JD

[BVI]

I have one account that I share with a competitor, and it really isn't so bad. We sell different things. My CB500 does anywhere from $125 to $200 per week, and my free-standing cold food machine does around $60 to $90 per week. You just have to be different, and you have to do everything better, which I do. There's no way I would pull either of these two machines whether the other guy goes away or not. It hasn't always done this well. I just had to get it figured out. This account only has 65 employees... about 60 of them are blue-collar.

I wanted to add that it hasn't been without some frustration because I have tried to get the whole account. The other vendor does a very shoddy job. Lots of filth and grime on the machines, just absolutely nasty. Lots of frequently empty selections in the snack machine. This vendor loses a lot of business because they do not service it near frequently enough. However, this vendor is locked in and I've come to accept that there's nothing I can do no matter how good I am. There was a time when I almost pulled out because the situation was really getting to me... how bad the other guy is doing, and it's a great account, and I would service the heck out of it if I had the whole thing (not that I'm not doing that already, but you know what I mean).

[BVI]

Is that vistars standard size? 100 per box?

JD

Yes. I don't think it can be any smaller than that (for chips). The price list prices candy out by the case, I think, and I sure don't need a whole case of any candy bar, though I think with candy they can break it down by the box. But even with that, unit prices are just too high.

[coinvestor]

Yes. I don't think it can be any smaller than that (for chips). The price list prices candy out by the case, I think, and I sure don't need a whole case of any candy bar, though I think with candy they can break it down by the box. But even with that, unit prices are just too high.

How many boxes in a case of candy bars?

Sorry for the stupid questions

JD

[BVI]

How many boxes in a case of candy bars?

Sorry for the stupid questions

JD

A case is 8 boxes of 48 bars, typically. Unit price for Snickers regular size, for example, is .426 per par. However, if you have to buy the whole case, it's $163.72 for one brand... ouch!

Some brands are a little cheaper, like Nestle Crunch regular size... .408 per bar.

These prices were valid through 5/31/07... they are probably higher now. Sam's prices were lower on candy back then and are higher now.

[coinvestor]

A case is 8 boxes of 48 bars, typically. Unit price for Snickers regular size, for example, is .426 per par. However, if you have to buy the whole case, it's $163.72 for one brand... ouch!

Some brands are a little cheaper, like Nestle Crunch regular size... .408 per bar.

These prices were valid through 5/31/07... they are probably higher now. Sam's prices were lower on candy back then and are higher now.

What do you pay at Sams in your area? I'm paying about .36-.39 (some brands closer to .40) from sams now. I would mind buying cases as long as I new that I could get them sold before they expired. What do you get on chocolate about a year?

JD

[drifter73]

Is that vistars standard size? 100 per box?

JD

There's 60 in a case for LSS chips. All the LSS chips I get from Vistar have 60 in a case.

[kevin]

With the exception of Vistar, I don't know where you would even find LSS chips. Sam's doesn't carry them, at least mine doesn't. And Vistar is too darn expensive. In my opinion, the extra profit you might generate would be offset by paying higher cost. So I don't see the advantage for me.

Now, Kevin, your price on LSS and other items may very well be lower through Vistar due to your size. In that case, I can see how it would make sense. But when you're a small fry like me, SS makes more sense. Besides, I don't need 100 bags per box of every chip I carry.

My price is offset by rebate mostly. About twice a year they have a rebate on chips and coffee. If you buy so much you get like 3-5% back or .50 a case. Its differnt every time. Like since the nama show was last weekend we were offered the show special from vistar of .50 off per case we pre order for the next month. That will save us around $75-100 a week, maybe more since we have to up pars for the winter. Ive found that all distributors give you these breaks as long as you are consistant buyer. I buy some paper from one company and the rest from another. The smaller company that I only order once a month from for specialty stuff still gives us specials about once a year. The only thing I dont buy from Vistar is candy(Sams is easy and cheap for a plallet) and water. I use to buy all my juices from them(we sell them to alot of coffee acounts) but sams and Coke carry some things for cheaper as well.

[BVI]

There's 60 in a case for LSS chips. All the LSS chips I get from Vistar have 60 in a case.

I'm sorry... all I've ever gotten has been SS, and that's what I had in my mind. The LSS boxes do come 60 per box and the SS come 100 per box. LSS would obviously have fewer bags given the same size box.

[BVI]

What do you pay at Sams in your area? I'm paying about .36-.39 (some brands closer to .40) from sams now. I would mind buying cases as long as I new that I could get them sold before they expired. What do you get on chocolate about a year?

JD

Our prices are the same on candy (Sam's). The thing I have against buying candy by the case is that it ties up a lot of money in inventory that you won't get back until you sell it. I need that money to buy other things with. I never buy more than 3 boxes at a time of any kind of candy just for that reason. If I did, I wouldn't have the money to buy something else I was running out of. So I buy only what I think I can sell in a week or two at most.