Thread: Cherry Poptarts
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Embraer Embraer is offline
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Join Date: Mar 2008
Location: Indy
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Originally Posted by Oh Haha View Post
.55 for a can of pop and you're complaining?!!! We were charging 1.00 per can and 1.45 for 20oz. bottles.

While it may seem like nickel and diming you this is the only way a vendor can try to make up the extra costs that are passed to him from the manufacturers.

In the last 3 years, we were given(non-negotiable) increases from the all of the major candy companies. I think the total from one company was 25%. This was in addition to increases, again non-negotiable, from the pop companies.

I was laid off and my company closed after 75 years because it had gotten so hard to make a profit without gouging the customer. There isn't much left of a $1.00 once you subtract your costs.

And typically you don't sell more items at .50 than .55. I tested this in different markets with my customers and the difference was neglible.


My question back to a customer in a situation like yours was to ask, "What does this same product cost at the convenience store?" Chances are that, barring a special sale or promotion, the cost was the same or even higher and we save you the time/gas/frustration of having to go get it during your lunch time.
You obviously know your business, but I still think that there are issues if a profit can't be made on 50 cent cans of pop. In college (just a couple of years ago), I managed a 50's style diner, and I was able to pay all of my employees on each night shift, strictly on the sale of fountain pops. Any item of hot food, ice cream, etc. would go to other overhead/profits. We charged $1.09 for a 16 ounce fountain pop. The cost of the cup, initial drink, and 1 refill worked out to be about 9 cents. That's a dollar profit on each one sold.

At a wholesale cost of $5 for 24 cans of pop (not un-realistic, considering every week when I go to Meijer, either Pepsi or Coke products are $4.96 per 24 pack on a retail setting.)...that'd would be roughly 21 cents per unit cost.

I'm not alone when I look at a pop machine and see 55 cents for a can, and walk away. It's hard to make a profit on 0% of nothing.
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-mike
Old 11-18-2009, 06:50 PM
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