View Full Version : Pricing

RedBull NY
03-31-2006, 02:40 PM
Hello to everyone in the forum. I am new to the Forum. I purchased 5 vending machines from cc and their service was good in terms getting the machine delivered and the time it took. The one thing that they need to become better is there location services. I just finished placing my machines in 3 24hr Laundromats, car detailing place, and cashier. I am going to see how it goes. I wanted to ask those who have these machines what is the average price you are selling them at and how much commission are you giving your respective location. Thanks

RedBull NY
03-31-2006, 03:05 PM
This is what I am noticing. Another thing that makes it difficult to place the machines is that contracts with coke and Pepsi won't allow you to place these machines. Now that they have there own energy drinks you can't use the line “we are not in direct competition with you". Thank you for your response.

Red Bull Vendor
03-31-2006, 10:09 PM
I am vending at $2.00 with no comissions. I tried the $2.25, but got a lot more sales when I dropped to $2.00. At $2.00 that is still approx 70 cents profit. You cant get that king of a profit in any other type of vending, 20 oz bottle of soda vending at $1.25 only gets you about 32 cents. Cans vending at 50 cents gets you about 20 cents. the bottom line is that CC has everyone thinking that you will be making 75 cents to a dollar per vend and I feel those are HIGH expectations. Just my opinion

03-31-2006, 11:59 PM
Stores around are selling at $2.19/can + tax = $2.32 or $2.29/can + tax = $2.42. I think people will pay the $2.50/can at the machine. I will pay commissions where needed. I have yet to test this, but I'm going to start high and see where I get. This is a great message board. Good stuff on here. How are you all getting passed Coke/Pepsi contracts? Any tips?

04-02-2006, 12:02 AM
I think it all depends on what type of primary account you're trying to get. If you're trying to get into some big companies, besides running into the national exclusive agreements with Coke and Pepsi, you'll also run into exclusive agreements with larger local independent vendors that provide snack, soda, coffee and the whole gammit to the large accounts you're trying to get into. More than Coke and Pepsi, this is the most common exclusive agreement I've run into.

You know, it really is a numbers game. You just have to keep at it. The locations are there for the taking, and if you persist and keep knocking on doors, the locations will be there.

04-02-2006, 12:16 AM
Oh, and one more thing. I agree with the $2.00 price point with NO COMMISSION. Unless it's one heck of a great location, I don't think it's worth paying commissions. For 25 to 30 cans per day and especially for less than 20 per day, no way. If there is real potential for 40 or more per day, then I'll discuss it, but not for less than that. It's not worth it. I'd rather move on to the next one.

The way I see it, if the potential at a location is only 25 to 30 cans per day, there is a real possibility that it could be a bad location and you may only actually do 15. Why would you want to be stuck having to pay commission on that?

I guess if you're desparate to get machines out, you could negotiate by offering to see how it goes... ie: start out paying no commission and if the sales are there, then work out something reasonable, like 10% of net.

[ 04-02-2006, 12:20 AM: Message edited by: bullman ]

Mr Zabe
04-02-2006, 12:48 AM
Your making more and more sense.
<Said with appreciation and admiration. smile.gif >

[ 04-02-2006, 12:49 AM: Message edited by: Mr Zabe ]

Red Bull Vendor
04-02-2006, 11:04 AM
Heres a perfect comparison.
Around here the 20oz soda machines sell for $1.00. this is way cheaper than even getting one inside of wall mart. You are wanting the customer to buy from you and NOT go to the convenience stroe on the corner. Some people will look at it as "I'm not gonna pay a quarter more, I am going to the store for cigarettes anyway, I will wait and get one then." Most machines around here, except for some hotels and airports sell for less than the convenience stores. That is why I stick to $2.00. But if you have a location where the people dont hav ethe time to go somewhere else, stick with the $2.25 or $2.50. I personally seel better sales at teh $2.00 range

04-02-2006, 03:33 PM
bullman - thanks for the tip! I know, it really is a numbers game. You just have to keep at it.
Red Bull Vendor - I hear you. I guess it all depends on the location. If I start high, I can always go lower.

04-03-2006, 03:05 PM
I'm just trying to figure out why a location wouldn't expect to receive some sort of bounce back from you placing a machine there... for any type of vendor really not just beverages.

And just to give people a question to ask, whats the average number of single dollars in your target audiences wallet at any given time to buy your drinks? Does anyone put $5 bills in the machines to get all those quarters back, or just pass it up since they don't have more than 2 bucks in small bills?