17 replies to this topic

[bhunso]

helllo guys i need some advice for the price list list on reosonable price on vending like? i just got my first account please help i really appreciate .

bottle soda ?
soda in can?
pastry?
chips?
candy?
cookie?

newbie

[HooseFoose]

bhunso,

Much of this business is trial and error and it will depend largely upon your customers. A good rule of thumb is that you should sell something for 2X-3X in your machine what you paid wholesale for it (like from Sam's Club).

Here is what has been working for me to at least give you a starting point...

bottle soda ? = 16.9oz = $1.00. 20oz = $1.25
soda in can? = $0.75 ($0.85 at some locations)
pastry? = $0.75-.90 for regular size, $1.25-1.50 for a large (i.e. Jumbo honey bun)
chips? = $0.85
candy? = $0.75-.90 for regular, $1.25 for king size
cookie? = $.80-.90

Energy drinks are doing well. Monster Energy sells for $2.25-2.50, Red Bull $2.50-2.75

Let me know if this helps!

Sincerely,

~HooseFoose~

[coinvestor]

[quote name='HooseFoose' date='Apr 17 2008, 01:58 PM' post='3621']
bhunso,

The prices will vary a good bit across the country. So telling you we we get for items will give you an idea, but it could still not be right for your area. This sounds like a smart answer, but don't price your items more than people are willing to pay or undersell yourself. The best way to get your prices is to look at other machines in your area. Ask people you know to make you a list of prices from the machines where they work, go to lowes and look for the bathroom and find your way into there breakroom and make a list This will help you find the range of prices for your area. In light of the economic conditions right now I would try to stay at the very top of that price range. We all know that price hikes are coming.

Here are my prices:
Candy - .70-.75
Pastry - .75-.85
Chips and crackers- .50-.55
Can drinks .60 - .65
Bottles .90 (16.9) - 1.25 (Gatorade 20 oz)

FYI.... I could never get away with the prices that Hoose uses.

JD

[RetroVend]

It surprises me how different pricing can be between the US and Canada.

You can't buy a can of pop *soda* from any machine for less then 1.00

Generally Chips are around the same price 1.00

and Bottles are about 1.50-2.00

Sorry. Left out Candy. Generally Chocolate Bars go for 1.00 to 1.25ish

In all honesty you can't rely on others to help you figure out your pricing. I'd suggest driving around the local
area and seeing what other vendors are pricing their stuff for. Or using the 2x 3x formula if that works for you.

[BVI]

Of course, not only does it depend on your locale (what part of the country you're in), but also they type of location in which you place your machines. I would suppose that in the more public/retail/transient locations you could get away with charging higher prices. However, in factories and distribution centers and other blue-collar type locations where you have the same customers day after day, you have to do better on prices.

I have one such location where I took over an account a few months ago and they were used to paying only $1.00 for 20 oz bottles and $0.50 for cans. To get the account, I had to agree to those prices. However, I got into this account with 3rd party machines plus other machines I already had, so my debt to revenue ratio for this account looks good. Plus, I'm making some good margins on snacks. This is a high volume account for me, grosses between $600 to $700 per week, and I believe that with the level of service I'm giving them, I can get them to agree to some good price increases for next year.

[jblvending]

Of course, not only does it depend on your locale (what part of the country you're in), but also they type of location in which you place your machines. I would suppose that in the more public/retail/transient locations you could get away with charging higher prices. However, in factories and distribution centers and other blue-collar type locations where you have the same customers day after day, you have to do better on prices.

I have one such location where I took over an account a few months ago and they were used to paying only $1.00 for 20 oz bottles and $0.50 for cans. To get the account, I had to agree to those prices. However, I got into this account with 3rd party machines plus other machines I already had, so my debt to revenue ratio for this account looks good. Plus, I'm making some good margins on snacks. This is a high volume account for me, grosses between $600 to $700 per week, and I believe that with the level of service I'm giving them, I can get them to agree to some good price increases for next year.

I use a very simple formula, double the cost, that's your retail, and if they want commisson, add that on top of your retail. In BVI case, I would have done(and have done) the same thing, it's a dog eat dog world, and I like to eat.

[bhunso]

thanks for all your advices..im from california and finally i got an account its a healthcare facility and hoping this account will be a good start.

[scottgtt]

BVI is correct. You have to look at what they are used to paying. All the formulas in the world don't mean anything if you price yourself too high and someone else comes in and undercuts you. Also, look to other sources for your snacks besides just Sams and Costco. You can find quality products from distributors that you can mark up more than you might be able to mark up products form Sams. This allows you to make up some lower margins such as on candy bars with a higher margin on some other product. It is getting harder out there so you also have to be creative. We have started using Blowpops which are about 9 cents each wholesale. We put two in a candy slot and sell them for up to .75. Our total cost is obviously .18 which is a lot better than a candy bar etc.... There are other examples like this if you just do your research.

[jblvending]

BVI is correct. You have to look at what they are used to paying. All the formulas in the world don't mean anything if you price yourself too high and someone else comes in and undercuts you. Also, look to other sources for your snacks besides just Sams and Costco. You can find quality products from distributors that you can mark up more than you might be able to mark up products form Sams. This allows you to make up some lower margins such as on candy bars with a higher margin on some other product. It is getting harder out there so you also have to be creative. We have started using Blowpops which are about 9 cents each wholesale. We put two in a candy slot and sell them for up to .75. Our total cost is obviously .18 which is a lot better than a candy bar etc.... There are other examples like this if you just do your research.

It's common knowlege that you double your cost to find your retail.If your losing customers due to someone undercutting you, that means you lacked in service, most customers will pay more for products for good service than less for poor service.

[BVI]

It's common knowlege that you double your cost to find your retail.If your losing customers due to someone undercutting you, that means you lacked in service, most customers will pay more for products for good service than less for poor service.

I try to do that whenever possible. However, in some categories and certain customers, it can be very difficult. For example, bottle soda. My unit cost is .70. I know for a fact that no worthwhile factory-type account will sit still for $1.40 to $1.50 bottle price. They'll beat you up over $1.25 and then you probably won't get the account (if you're going in new) because they'll find someone who will sell for $1.00 to get the account and buy into the promise that they'll get better service from the cheaper guy. It's happened to me before.

Vitamin water is another example. My unit cost is .90, but I have to sell at $1.50 because that's what all the nearby convenience stores are selling it for, and my customers know this because before I started offering it, that 's where they were buying it.

I think the best way to get your twice cost retail (or otherwise acceptable pricing) is to either go in at the prices they're used to paying, or that they'll agree to pay, give them great service for a year -- and then get your price correction. I've done this with most of the accounts I started off with at lower prices than I initially wanted. JBL is right -- when customers know they are getting great service from you, they feel better about paying a higher price, at least to a certain extent.

[jblvending]

I try to do that whenever possible. However, in some categories and certain customers, it can be very difficult. For example, bottle soda. My unit cost is .70. I know for a fact that no worthwhile factory-type account will sit still for $1.40 to $1.50 bottle price. They'll beat you up over $1.25 and then you probably won't get the account (if you're going in new) because they'll find someone who will sell for $1.00 to get the account and buy into the promise that they'll get better service from the cheaper guy. It's happened to me before.

Vitamin water is another example. My unit cost is .90, but I have to sell at $1.50 because that's what all the nearby convenience stores are selling it for, and my customers know this because before I started offering it, that 's where they were buying it.

I think the best way to get your twice cost retail (or otherwise acceptable pricing) is to either go in at the prices they're used to paying, or that they'll agree to pay, give them great service for a year -- and then get your price correction. I've done this with most of the accounts I started off with at lower prices than I initially wanted. JBL is right -- when customers know they are getting great service from you, they feel better about paying a higher price, at least to a certain extent.

True, is some areas cost is higher, so you do have to play with the numbers to make them acceptable,would I should have said was, that candy, chips, and can drinks , you should be able to double the cost and get the retail you need.I'm all for matching pricing with my competition to get the account, and showing them great service for a year, and then easing them into an increase in pricing, so that being said, you are corrrect on all fronts of your stratgy

[BVI]

Yeah, gotta like those can drinks... those who know me know I abhor vending CSD bottles, period! I wish they were never invented. For lots of reasons. I don't know about the rest of you, but I really take a beating on candy. So much so that I have limited my candy selection to just 3 items. I have 2 candy trays in each snack machine, but I fill them with stuff I can get double or triple my money back on.

[tedk]

Yeah, gotta like those can drinks... those who know me know I abhor vending CSD bottles, period! I wish they were never invented. For lots of reasons. I don't know about the rest of you, but I really take a beating on candy. So much so that I have limited my candy selection to just 3 items. I have 2 candy trays in each snack machine, but I fill them with stuff I can get double or triple my money back on.

BVI:
What other products do you use instead of candy and what are the best sellers of that lot? Candy prices and melting both hurt the bottom line. I'm all for trying other things that
will replace candy.

Thanks, Ted

[BVI]

BVI:
What other products do you use instead of candy and what are the best sellers of that lot? Candy prices and melting both hurt the bottom line. I'm all for trying other things that
will replace candy.

Thanks, Ted

Hi Ted. I stock 3 flavors of Lance crackers, Double Barrel Salami, Salami and Cheese, about 4 kinds of cookies including Oreo, Swiss Creme, Lorna Dune Shortbread & Fig Newtons, 2 types of granola bars, peanuts, cashews, two flavors of Nutri-Grain bars. All of these will fit in your smaller candy-sized augers.

You're right about the bottom line. The little bit of margin you do make is lost immediately the first time your chocolate melts. Truth is, I don't think money is made at all in candy. You only lose money. If I could get away without putting any candy in my machines, I would.

[tedk]

BVI:
I'll see how many of these I can get from my locals.
Thanks for the reply.
Ted

[bhunso]

BVI how much you charge your alternative for candy bars.i have a COMBo II do you think is gonna fit on my machine?

how much you sell your item?like..

Lance crackers,
Double Barrel Salami
Salami and Cheese
Oreo
swiss Creme
Lorna Dune Shortbread
Fig Newtons
granola bars
peanuts
cashews
Nutri-Grain bars.
thanks....bhunso

[BVI]

BVI how much you charge your alternative for candy bars.i have a COMBo II do you think is gonna fit on my machine?

how much you sell your item?like..

Lance crackers, .50
Double Barrel Salami .65
Salami and Cheese .65
Oreo .50
swiss Creme .50
Lorna Dune Shortbread .50
Fig Newtons .65
granola bars .50
peanuts .40
cashews .85
Nutri-Grain bars .60
thanks....bhunso

See above in RED.
You may have to price differently, depending on your local cost figures and what other vendors in your area are charging for the same items.

And, yes, they will all fit in your Combo II.

[bhunso]

See above in RED.
You may have to price differently, depending on your local cost figures and what other vendors in your area are charging for the same items.

And, yes, they will all fit in your Combo II.

thanks BVI for your quick response.. i really appreciate.. im thinking that one for alternative for candy..have a nice day