Price rises on the horizon?

[Vendingwarehouse]

you should do it anyway with the number of machines you have and the fact that you ahve to import everything to ireland

If vending was my only business Glenn I would and may have to yet, but I have other interests and have to consider these too. I have a son leaving school next year so I'll have more scope and time then.

[Rossi fan]

Hi ,
Firstly, the sweets that are in charity bags are the cheapest- you never see branded products. Secondly the bags are dirt cheap compared to the tub costs, so dont really think you can compare in this way. You have to find some middle ground. If product costs are going up to suppliers, they have to protect their margins, but we have the problem of the fixed vend price, so lowering quantities is the way to go.

Since the recession, I believe that £1 has much less value, as everything else has gone up and up, therefore customers will not bother if one jelly is missing from the pot. I think we are way off a two coin vend, so if the profits we make are not kept stable, then many will look at other sources of income. Tower vending is not like the high street, where prices can just be increased. Its our businesses and profits that will suffer.

Thanks,

Paul

It doesn't matter if the bags are cheaper , that's value to the operator you're talking about there. We're talking about the end user and what is value to them. And the amount of sweets they get in a tub for £1 is not value. Forget charity bags, you can go into ANY supermarkey and get branded family bags of sweets like minstrels for £1.40. Also since the recession the £1 has much more value. In good times it would have less value but in recessionary times every £1 is a prisoner and people value it more. People have less money so they make their money go further. It's only in profitable good times that people loose the value for smaller amounts. How could it loose it's value when people have less of them than ever before.[/quote]

I think people think- prices are rising and we cant do **** about it, so your £1 does not go as far and feels less valuable. Therefore, more people may want to shove a quid into a vending machine that the price has not increased , because they see the pot of sweets as more value than last year.

I also agree with Ross above. You are selling your pots at 2 Euro, which means that the profit per tub is greater than in the UK. If we could sell a pot at £1.70 and buy it for .40p, we would all be dancing in the streets. I realise the economy is different in Ireland and £2 Euro is a fair price, but in the uk, we cant increase our vend price, so tub contents must go down, if product prices increase.

Thanks,

Paul

[alrobs]

Not so long ago there was only one credible supplier of stock for towers. As a result they got away with premium pricing and anyone in their position would probably do the same, albeit with better service levels.
Since there is now 3 suppliers prices have come down considerably, for me by over 15%.
So if the business model was sustainable before, there is still a way to go before prices are back to when there was only 1 supplier.
Prices do tend only to go one way and suppliers will use any reasoning to tell you why prices are going up. When the oil price was a record level there were a raft of increases citing this reason. However none bought there prices back down when the oil price came back down.

.

[Vendingwarehouse]

I think people think- prices are rising and we cant do **** about it, so your £1 does not go as far and feels less valuable. Therefore, more people may want to shove a quid into a vending machine that the price has not increased , because they see the pot of sweets as more value than last year.

I also agree with Ross above. You are selling your pots at 2 Euro, which means that the profit per tub is greater than in the UK. If we could sell a pot at £1.70 and buy it for .40p, we would all be dancing in the streets. I realise the economy is different in Ireland and £2 Euro is a fair price, but in the uk, we cant increase our vend price, so tub contents must go down, if product prices increase.

Paul , are you seriously saying that when prices are rising , and peoples money doesn't go as far,that they are going to put it into a vending machine because they think it's better value than last year. Be serious, people are struggling to pay their mortgages, struggling to pay their food bill, struggling to put their kids through school. They are NOT going to put money into a sweet machine because they think their pound is worth less. Their pound might BUY less but that makes it even MORE valuable to them. They haven't even enough of them to pay their bills never mind put it into a machine to buy sweets. You are mixing up value for money for an item , and the value a person puts on a £1.
Also I have machines in Euro and Sterling£1. The costs involved in vending in Ireland are way higher than in the uk including delivery, diesel, vehicle tax, insurance, time, wages etc. All of these are higher than in the uk. Our bottom line is not a lot more than yours.

[Vendingwarehouse]

I really think the customer doesnt care how much the pots are, as a parent I look at value for money and if not in the business would plump for the bags everytime and also feel good about it going to charity

I agree totally

[Rossi fan]

I think people think- prices are rising and we cant do **** about it, so your £1 does not go as far and feels less valuable. Therefore, more people may want to shove a quid into a vending machine that the price has not increased , because they see the pot of sweets as more value than last year.

I also agree with Ross above. You are selling your pots at 2 Euro, which means that the profit per tub is greater than in the UK. If we could sell a pot at £1.70 and buy it for .40p, we would all be dancing in the streets. I realise the economy is different in Ireland and £2 Euro is a fair price, but in the uk, we cant increase our vend price, so tub contents must go down, if product prices increase.

Paul , are you seriously saying that when prices are rising , and peoples money doesn't go as far,that they are going to put it into a vending machine because they think it's better value than last year. Be serious, people are struggling to pay their mortgages, struggling to pay their food bill, struggling to put their kids through school. They are NOT going to put money into a sweet machine because they think their pound is worth less. Their pound might BUY less but that makes it even MORE valuable to them. They haven't even enough of them to pay their bills never mind put it into a machine to buy sweets. You are mixing up value for money for an item , and the value a person puts on a £1.
Also I have machines in Euro and Sterling£1. The costs involved in vending in Ireland are way higher than in the uk including delivery, diesel, vehicle tax, insurance, time, wages etc. All of these are higher than in the uk. Our bottom line is not a lot more than yours.

Hi Noel,
No I am not stating that. I am merely pointing out that in many peoples eyes, a £1 coin is now of less value because of inflation and think less about impulse buying with it. I accept that your costs are higher, but you have to have a large business to warrant employing someone and most on here are sole traders, so that aspect is not as relevant.
Thanks,

Paul

[Vendingwarehouse]

It may have less value but that is far outweighed by the fact that people don't have enough of them and so impulse purchases are much fewer than before.
Also wages are still a cost and are just as relevant as any other. if my business is bigger and requires staff then that is another cost , even more so. I too am a sole trader , employing staff doesn't alter the status of a sole trader.

[Rossi fan]

I have just arrived home and listened to the analysis following George Osborn's ( What a ****) autumn statement. The comentators and experts are talking about at least another 5 years of instability and worse if the Eurozone fragments.

I just wonder how many will still be tower vending in 5 years if prices rise and the vend price cant be increased.

Does anyone have a long term plan, if so, I would be interested to know where others see us going in the future, if the info we are getting is on track. Do you expand- Do you take less income as time goes by, or do you diversify.

Thanks,

Paul

[FlintVending]

Do you expand- Do you take less income as time goes by, or do you diversify.

Thanks,

Paul

Hi Paul
buying out other operators has worked best for me.
Keep the best stuff, sell off the rest!

[Rossi fan]

Do you expand- Do you take less income as time goes by, or do you diversify.

Thanks,

Paul

Hi Paul
I'm doing all three!

How are you diversifying Nigel.

Thanks,

Paul