Price too high and people walk past. Price too low and you’re working for nothing. Here’s a simple way to get it right.
Know your real cost per item
Your cost isn’t just what you paid for the can. Add up:
- The product cost (including GST if you can’t claim it back)
- Card reader fees on each sale
- Fuel and time for restocking
- Commission to the site, if you pay one
- Stock you throw out because it expired
Once you know your real cost, you know your floor price.
Check the local competition
Look at what the nearest supermarket, servo or café charges for the same item. Most people will happily pay a bit more for convenience, but not a lot more.
Use round prices
Prices like $2.50, $3.00 or $4.50 are easy to read and easy to pay with coins. Odd prices like $2.85 annoy people who still pay cash.
Price by product, not one price for everything
Water, soft drinks, energy drinks and snacks all have different costs and different demand. Set prices row by row. Energy drinks and premium snacks can often carry a higher margin.
Watch and adjust
After a few weeks, look at your sales:
- Items selling out fast may handle a small price rise
- Items that barely move may need a lower price or swapping out
- Change one or two prices at a time so you can see what happens
Think about the site
Price can depend on the location. A warehouse with nothing nearby can support higher prices than an office next to a shopping centre. If the site gets commission, factor that in too.
Looking for new sites? We connect vending operators with businesses that want a machine. Find out more.