Vend pricing

[Kitty]

What are the vend prices in your area? How do you compare with your competition? Do lead, match or lag in vend pricing with your competion?

[BWJR]

Over the years I have tried to go up with my competition, and for the most part we work together. Cost of doing business is getting higher each year in leaps and bounds. At this point it doesn't matter, if I need to increase prices I am just going to do it. I will probably let my competitor know, but irregardless i will still go up.

BWJR

[Andy]

I just raised my prices last Monday they are as follows:

Tops: 1.50
Neptune: 2.00
25 #: 2.25
27#: 3.00
35#: 4.00
50#: 4.50
80#: 8.25-8.75

Dryers: 0.25/7 minutes

[Anonymous]

I don't consider the competition when I adjust my pricing. I know where they are and don't mind that I am higher. I know that customers appreciate that when they come to my place they rarely if ever see an out of order machine.

I watch costs, and when prices rise I am quick to increase what I charge. The card system helps with that. My dryers all go for 29 cents not 25, and as some on this board who have followed my strategy know this 4 cents adds big time to the bottom line.

A week ago I got a sewer bill that contained an 8% increase, I quickly put a sign up explaining the situation and telling people that washers were going up 5 to 10 cents just to cover this and suggested they complain to their council person about the increase. I have not heard a single complaint. If I am to provide people with a high quality service then I need to stay ahead of the price curve and I don't apologize for that - an neither should you.

[Andy]

I am among the price leaders in my market. Because a few of my competitors use the card system and I am a quarter user prices may never be the same.

[srhaz]

I know there have been several posts on vend prices.
Top loaders are always the least amount.

If top loaders are so inefficient and use so much more water, then its stands to reason that the operating cost is higher. Then why is it cheaper?

A Neptune costs much less to operate than a TL but we charge more for the neptune. I know the load difference- but still.

Am I missing the profit margin basics here?

[Anonymous]

when I first took over my mat was way under, but as I replaced equipment I brought the prices up to match the other mats in the area.

[Andy]

srhaz,

Top loaders in general cost more to operate on a per pound basis than their front load counterparts.

I am sure it cost me more to run one cycle on my 80# machine than it does to run one cycle on a top load machine. However if you look at the cost per pound the front loaders tend to be more efficient.

I charge 12.5 cents per pound to run the tops and 10.3 cents per pound to run the 80# machine.

[Duane]

srhaz,

Toploaders also only cost about 1/3 to 1/2 of a front loader softmount. Even though they cost more to operate, they have a lower purchase price.

[Fred50]

DUANE SAID, "Toploaders also only cost about 1/3 to 1/2 of a front loader softmount. Even though they cost more to operate, they have a lower purchase price."

Duane,

Don't toploaders also have a shorter lifespan than frontloaders? Therefore, this lower cost would be spread out over a shorter time. This would add to SRHAZ's argument.

[Anonymous]

Top loaders also don't clean as well as front loaders. People are always commenting to me how much cleaner their clothing comes out from my machines then the ones at their apartment complex (top loaders).

[Duane]

Originally posted by Mark
Don't top-loaders also have a shorter lifespan than front-loaders? Therefore, this lower cost would be spread out over a shorter time. This would add to SRHAZ's argument.


Mark,

I am going with what this board has said several times about a Neptune only lasting 8-10 years instead of 20 years as a hard mount washer does.

SRHAZ was comparing Neptune's price per cycle to a top loader.

But your comment is correct that a top loader's cost would be spread out over a shorter time compared to a hard mount front loader's price and life expectancy.

Duane.

[JBTcajun]

The lowest priced machine is what folk base their cost opinion on. In this area it is the main reason to decide what mat 2 use. I choose not 2 have any tops so my smallest front (hard mount) has 2 be very close to the tops in other stores. The long run is my game and I would prefer the ease of having fewer change outs and 1 set of parts. There is more to cost of something than expense, look, ambiance, ease of management, etc. According to my figuring the 40# is where the max profit will be. JBT

[srhaz]

I'm just looking at it from the surface....

A customer comes in with their 15# laundry basket, looks at my neptunes for $1.50 then looks at the $1.00 top load and uses the Top Load. When in fact I would prefer him to use the neptune because it would cost me less (even if it vended at $1.00)

My tops get more TPD than any other machine.

[JBTcajun]

Tops 1$ Neptune's 1.5 tops more turns. Even at a 1$ for the Neptune's you would do better loosing the tops. The tops here are 1.25$ I am considering setting my 20# at 1.48$. When first open everyone will get 5 laundry bux on their card. The laundry bux will make the vend - 8% 1.366=1.37$ By the time the 5 bux are gone they will see the benefits of the 20#. Then I can ease up the prices once volume is where needed. Is this a good plan or am I over thinking something I know absolutely nothing about?

[mike]

Guessing how people will respond to any give pricing or equipment is next to impossible before the fact,

but keep your ears open, and you will know soon enough.

(my inclination is to price higher, because you can ALWAYS adjust downward)

except in the case of close competition, where you may have to reflect market price.

[pete f]

Just one persons opinion, mine, but your scheme sounds close to a lost profit situation. You can't make anything up on volume, you will only have what volume you get within the first 6 months. It does not get much better after that. Really, in the first 3 months. You price for profits. You do not compete on price with a new store or a remodeled store with new equipment, it is not necessary. Your local trade will develop based on need of your mat, not price. I really think not having any top loaders is a huge mistake, if you are old enough remember what happened to "new coke". You take a widely known thing and toss it because you have a better idea. Customers could give a crap how much you save on water. And now you have to lose money on your double loaders. And to top it all off you want to vend 20's for 1.48?

Did you know a 18# or 20# machine uses more water than a top? Did you know a 18# or 20# machine holds more?
If you bought tops, and priced them profitable, then you can price the rest of your store profitable. Starting out pricing 20's like tops does not seem to good to me. Wait till the store is done and you see what it all costs, you should be in the mood for higher prices by then.
I know the no top stores will chime in .. for another view. Note thier location and market..

[Anonymous]

Pete - how much water does a toploader use these days?

[pete f]

The (new) tops from maytag were quoted to me at around 32 gal. Most older ones, and 18's (hard mount) are at around 40 gal.

[JBTcajun]

points taken, I wasn't planning on making up on profit with volume was just thinking of giving the bigger machines and better wash time to take hold Until there were people knowing about the new mat. But then what happens when I lift price to where they need to be? When visiting the local mats they seem to be mostly machine pakers good for front load store. The coke analogy is one way to look at top loaders but i prefer using the steam locomotive analogy;wishing it were as cut and dry as the buggy whip. Plan B is to set price and give more discount with the ladder bux. That way they knew the price the whole while and can accept the idea of grand opening. All ideas and comments welcome. thanks for the help. And I am quite aware of most the expense to enter and remain in this venture although I am sure there will be many surprises as there usually are. Thanks for the help and keep the experience coming. JBTcajun

[Anonymous]

Originally posted by srhaz
I'm just looking at it from the surface....

A customer comes in with their 15# laundry basket, looks at my Neptunes for $1.50 then looks at the $1.00 top load and uses the Top Load. When in fact I would prefer him to use the Neptune because it would cost me less (even if it vended at $1.00)

My tops get more TOD than any other machine.

Yea me too, my tops are $1.50 +25 for SS and my nept. are $1.75 +25 for SS. I was just going to put in all nept. but the older folks told me they would not use the newfangled Neptunes, the tops wash better etc....

my 3 remaining tops get 2X the TPD of the nept.

[BWJR]

How can anyone predict the life expectancy of the Neptune? They have only been on the market for 6 years. I have had 6 of mine for 5 years with little or no problems. They are the second phase 14's.

BWJR

[PeterH]

I think we are moving to the point of toploaders being vended at the same price at double loaders. Since they are the utilitiy hogs, why not? My tops are at $1.50 and doubles are $1.75. My next price increase will be moving the tops to $1.75.

[ajay]

FYI..the new vendrite machine model 360 I believe, has muti-price option.