6 replies to this topic

[Mustang]

I just purchased a few soda accounts and most of the machines are priced at 55 or 60 cents and I want to raise the price to 75. I don't want to piss off the new accounts I just picked up so is there a good way to go about doing this? Should I wait a few months to raise the price or slowly increase 5 cents every few months?
Thanks for the advise

[CANDYMAN00]

This is a very touchy subject and yes you may run the risk of the boot, but i doubt it. I would wait till they get to know you a little better and offer them a great service. Once they notice you and you get an opportunity to talk to the owners explain to them the inflation factor and gas prices cost and a lot of things have gone up. Also, go around the area and see what they are charging for drinks and snacks like convenient stores, other vending machines etc.. If they are higher, they pretty much have no choice. There are not too many vendors out there offering 50 and 60 cents prices, specially now days most cans depending were you live are going for 85 cents to $1. $75 is a very good price for a can of soda.
These customer you acquired have been spoiled for a long time with those 1970's prices and a vendor that never bothered to do anything about it. That gets me irritated when they allow that to go on forever.
I would not recommend raising prices gradually. I personally think it is more irritating to customers coming to the machine every few months and seeing prices go up again and again and again like is not going to stop. That will most likely piss them off more than just setting one price and leaving it alone.
Do you pay them any commision? If you do. that might help you a little bit to give them an excuse to raise it. But then again some customers rather have low prices and no commision. I think .75 cents is a very fair price. It also depends what part of the country you live.
But 55 and 60 cents needs to go away like 20 years ago! Seriously!
Hope this has helped you some. There is really no easy way to sugar coat rising prices on your customers unless you own a gas station and people come to you no matter what.

Thanks

CANDYMAN00

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[Mustang]

When I purchased the accounts I was concerned about this. I will give it six months and raise the prices to 0.75

Thanks for the advise

[Vic]

Hello...

I have a small vending route in Michigan with about 40 accounts. My lowest price for cans is $.85 and that is in my two largest accounts. Within the last two years, I have raised all other account can prices to $1 and that is the cost to new accounts. I have not had a single complaint and have not lost an account. Convenience and other stores sell 20 oz bottles for about $1.50...that's 7.5 cents an ounce x 12 oz = $.90 plus our 10 cent deposit in MI equals, ounce for ounce, $1. I prepare my accounts for increases...my equipment, my time, my fuel = your convenience. Remember that we are selling convenience...not discount drinks. I put this in a note and tape it to my machines for week or two before jacking up the prices.

Vic

[All Pro Vending Locators]

I was in the same boat a few weeks ago.  I got into an apartment complex where the bottle drinks were 1.00.  The manager gave me no hassle when I raised the prices to 1.50.

[AZVendor]

At stated above, give the accounts a few weeks of impeccable service so they know you are taking care of them.  Then 2 weeks before the planned increase, inform your account contact that you are going to have to increase the prices to ensure that your business is profitable.  Have information available of any recent product price increases to support your effort.  You may want to work up a pro forma for each account to show your expenses, where the sales volume is now and where you need it to be.  Factor in a 10-20% sales decline for the first few weeks after the prices go up.  Then post a notice on every machine 2 weeks in advance so no one is surprised.  An increase of 20-30 cents will create a large backlash, but if you can prove to them that the machines have been underpriced for many years and suggest that is part of why the route was up for sale, you will get more sympathy for your cause.  Make the large jump now and don't mess with it for 1 - 2 years, unless there are major future price increases.  Operate this like a business and not like you are just trying to make everyone happy and you will be more successful at price increases.  If commissions are paid to any accounts then they get the highest prices.  If an account earns commission now, you can offer a price 5 cents lower with no commission.