Price rises on the horizon?

[Venderbase]

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[Snackmore]

I hope the producers swallow this increase as this would devestate our business wiping out the little profit we take, I do not think the consumers would be willing to pay more than £1 currently per pot

[Rossi fan]

Hurleys have steted that they expect some prices to fall, due to their increased buying power.
Since prices were lowered, other costs have risen, so price increases now would have anegative effect on operator expansion and new operators entering the market. Pricing the tubs at more than £1 is a non starter in this climate and will be the case for some years to come. For suppliers and operators, prices must remain stable until the vend price can be increased. Without operators, the suppliers would be in trouble, so if people think its not worth the effort, then they will look elsewhere for an income.


Perhaps suppliers could comment in this thread, which will be helpful.

Thanks,

paul

[glennborthwick]

Honestly prices will have to rise at some point this year. Anyone who says otherwise aint telling the truth. Typical jelly fill would be 12p so a 10% price will add about 1.20 a box or a penny and a bit a tub. The better approach would be a reduction of sweets in the pot. Jellies, fizzies etc you wouldnt notice the difference.

[Rossi fan]

Honestly prices will have to rise at some point this year. Anyone who says otherwise aint telling the truth. Typical jelly fill would be 12p so a 10% price will add about 1.20 a box or a penny and a bit a tub. The better approach would be a reduction of sweets in the pot. Jellies, fizzies etc you wouldnt notice the difference.

I agree that reducing volumes in pots is the way to go. Every sector is doing this. For example, we noticed recently that our swing bin liners have been reduced in numbers, to keep the price level. Nuts and scratchings are the same.

We have a situation in this type of vending where profits are better and this is encouraging more to expand and begin. Once we see prices of pots rising, I believe that the industry will go into reverse.

Thanks,

Paul

[Jon123]

I think there is another angle to look at.

Which is Clenport will be doing larger capacity machines for towers soon. which means you will be able to leave towers longer and collect more revenue from the site when going.

It all depends how you look at vending.

- do you look at it as a how much I earm per tub?

- Or how much I earn per hour?

- Or ROI?

It is important to look at all 3 but per hour is probably a good basis for a more profitable business.

Best Regards
Jonny

[Rossi fan]

Hi Jonny,

That machine sounds great, but I doubt ops will be willing to convert 100s of towers to them, if prices rise+ Ppl have already invested heavily. If wholesale prices are increasing, then tub quantities must go down first. If the industry buys less product from manufacturers, they may have to re think. The economy is fragile at the moment and if the Euro countries fail, the uk will suffer more job losses. Price increases will just mean that sweet vending will lose its current appeal.

Thanks,

Paul

[glennborthwick]

we could do with a euro collapse as 70% of the sweets in tubs come from spain.

[Snackmore]

Be careful for what you wish for!

[Vendingwarehouse]

I think a reduction in the quantity in a tub is a definite mistake. People are willing to pay the £1 or 2 euro at the minute but the complaint we hear both sides of the border is that the amount of sweets is too small. Reduce this and you will see sales drop hugely. People are looking for value for money . Personally I think at the current prices there is NO value for money in a tub. It's just a convenience purchase.
Also if the Euro collapses , and there's a 75% chance it will, you will see prices in England Rocket. Global recovery will take years as it will hit the states too and vending will become a luxury purchase.
Jonny I think it's a combination of all three , I think that you need to consider if the total return is worth the cash investment and the the time it takes each individual to do the job. On that scale everyone will differ