Stocking & Pricing

Your Straightforward Stocking & Pricing Playbook

Built by operators, for operators. Find suppliers, stand up a smart starter mix, and set prices that already account for commissions, card fees (incl. per-txn), shrink, tax, deposits, and rounding. Save your directory and grow it over time.

Open Machine Chooser

General guidance only — not legal, tax, or compliance advice. Confirm specifics with your local authorities, providers, and contracts.
Last updated: .

What should MY prices be?

That depends on your profit goal. You should always aim for the highest profit you can achieve but be aware you can price yourself out of the market and lose customers. There is a balance to this; the further you increase the price, the more customers potentially cannot or will not pay the price. This can be offset in markets where the people using your equipment tend to make better wages or have more wealth in general. A high-end ski park is typically very expensive; typically the customers won't even check product prices and make purchases based on how they feel (e.g., hunger). A location like a manufacturing facility may only pay their workers minimum wage—you can quickly price yourself out of these potential customers.

Principles & Formula

Profit-first, market-aware. Start from contribution margin and let demand tell you how far you can go. Track unit volume and contribution per vend; keep any price that grows total contribution even if units dip slightly.

Price (pre-tax) = ( COGS × (1 + Shrink%) + PerTxnFee ) ÷ ( 1 − TargetMargin − Commission% − Card% )
  • Model reality: include card % + per-txn, commission, and expected shrink.
  • Adjust assortment (good/better/best) to meet different budgets without racing to the bottom.
  • Test in small steps (±$0.05–$0.25) and watch contribution per visit, not just units.

Quick Reference (example lanes)

Location Type Example SKU COGS Assumptions Floor Price* Test Range
Ski Resort (high income) 20oz Drink $1.20 Margin 55%, Card 3%, Commission 0%, Shrink 0%, Per-txn $0.00 $2.85 $3.50–$4.00
Ski Resort (high income) Premium Bar $0.85 Margin 55%, Card 3%, Commission 0%, Shrink 0%, Per-txn $0.00 $2.00 $2.50–$3.50
Manufacturing (price-sensitive) Chips (Std) $0.60 Margin 40%, Card 3%, Commission 10%, Shrink 0%, Per-txn $0.00 $1.30 $1.50–$2.00
Manufacturing (price-sensitive) 12oz Soda $1.00 Margin 40%, Card 3%, Commission 10%, Shrink 0%, Per-txn $0.00 $2.15 $2.00–$2.30

*Floors shown are the math result rounded to the nearest $0.05 (“nickel rule”). Your test range reflects willingness-to-pay.

Real Scenarios & Solutions

Ski Resort (convenience-first, higher willingness to pay)

What to do: Lead with premium SKUs, front-face cold drinks, keep shelves spotless. Emphasize convenience and speed (contactless, tap-to-pay).

Example: COGS $1.20, Target 55%, Card 3%, Commission 0% → Math floor $2.86 → nickel-rounded $2.85 → Test $3.50–$4.00.
  • Use better/best mix (e.g., premium energy drinks) to lift basket value.
  • Bundle cues: “Grab 2 for the lift” signage; anchor at the higher single price.
  • Monitor units: if volume drops ≤ 8% but contribution rises, keep the higher price.
Manufacturing Facility (budget-constrained, price-sensitive)

Risk: Over-pricing reduces access for minimum-wage workers and cuts repeat visits.

Example: COGS $1.00, Target 40%, Card 3%, Commission 10% → Math floor $2.13 → nickel-rounded $2.15 → Test $2.15–$2.30.
  • Offer Good/Better/Best: value water & chips at $1.25–$1.50, mainstream at $1.80–$2.00, premium at $2.30.
  • Convert part of commission into perks (employee credits/raffles) to keep shelf prices accessible.
  • Use smaller pack sizes and private-label where fit to hit key price points without killing margin.
  • Tighten par levels to reduce shrink; align cadence to true sell-through.
How to test prices responsibly
  1. Pick 3–5 SKUs per location; change price by $0.05–$0.25.
  2. Run for 2–4 weeks; record units, refunds, and contribution (= Price − COGS − Commission%·Price − Card%·Price − PerTxn).
  3. Keep any change that improves total contribution with minimal service complaints (≤ 1% of vends).
  4. Communicate: if you must raise prices, pair with a visible value add (freshness rotation, nicer options, reliability).
Balance matters: Price for profit, then shape demand with assortment. In affluent venues, push premium and convenience; in budget-sensitive venues, protect entry price points and shift margin to higher-tier items.

Distributor Directory

We keep this directory fresh. If a distributor in your area is missing, contact us and we’ll get it added.

Starter Assortments

Choose a preset to get moving. You can tweak SKUs, margins, and shrink later—defaults below are there so your math is honest from day one.

Pricing Ladder

Set category margins. We factor in commission, card fees (incl. per-txn), shrink, tax, and bottle deposits. Final prices are always rounded to the nearest $0.05.

Category Cost ($) Target Margin (%) Suggested Price Net Margin (%) Actions

“Net margin” here includes commission, cashless fees (incl. per-txn), shrink, your tax setting, and rounding impact. Display prices are nickel-rounded.

Price-to-Profit (Single Item)

Have a tricky SKU? Enter the numbers and see the math step-by-step. Display prices always round to the nearest $0.05.

Suggested Price: $—
Net Margin: —%
We show how the display price is built: cost, shrink, fees (incl. per-txn), tax mode, deposit, and nickel rounding impact.
Show formula 
Price (pre-tax) =
  ( COGS × (1 + Shrink%) + PerTxnFee )
  ÷ ( 1 − Commission% − Card% − TargetMargin )

Tax mode:
- Added: display = nickel_round( pre-tax + Deposit ), tax added at checkout
- Included: display = nickel_round( (pre-tax × (1 + Tax%)) + Deposit )

PAR & Reorder (Fast)

Two simple rules you can apply on a route without a spreadsheet.

PAR

PAR = Daily Sales × Service Interval + Buffer (10–20%)

If telemetry shows 35 units/week and you service every 14 days, PAR ≈ 77–84 units. Adjust buffer for seasonality and breakroom traffic.

Reorder Point

ROP = Lead Time (days) × Daily Sales

Add a safety factor for volatile SKUs or tight delivery windows so you don’t stock out right before shift changes.

FAQ & Terminology

Quick definitions and practical answers for people learning business basics—framed for vending, micro-markets, and general operations.

Terminology (Mini-Glossary)

Cash-and-Carry

Definition: Buying goods from a wholesale outlet where you pay at checkout and take inventory with you—no delivery, minimal paperwork, and usually no credit (net terms).

Use it when: You need quick stock, small test batches, or to fill gaps between scheduled distributor deliveries.

Example: “We source fast-moving drinks via cash-and-carry when weekend demand spikes.”

COGS (Cost of Goods Sold)

Definition: Direct costs to acquire or produce what you sell (purchase price, freight, non-recoverable taxes, packaging). Excludes overhead like rent or admin payroll.

Why it matters: It’s the base for pricing and margin decisions, inventory valuation, and profitability analysis.

Gross Margin vs. Markup

Gross Margin % = (Price − COGS) ÷ Price

Markup % = (Price − COGS) ÷ COGS

Example: COGS $1.00 → Price $1.50 ⇒ Margin 33.3%, Markup 50%.

Contribution Margin

Definition: Price minus all variable costs (COGS + card % + per-txn + revenue share/commission). This is what contributes to fixed costs and profit.

Breakeven Point

Definition: Sales level where profit is $0.

Breakeven Units = Fixed Costs ÷ ( Price − COGS − (Commission% × Price) − (Card% × Price) − PerTxn )
Commission vs. Perk

Commission: A % of revenue shared back with the client/location.

Perk: Equivalent value delivered as discounts, credits, or employee benefits instead of cash.

SLA (Service Level Agreement)

Definition: A commitment on response and resolution times (e.g., same-day, 24h, 48h).

Par Level & Planogram

Par Level: Target quantity to keep on hand for each SKU.

Planogram: The layout plan for shelves/slots to optimize sales and speed restocking.

Net Terms (e.g., Net 30)

Definition: You pay suppliers within a set time after invoice. Improves cash flow but requires discipline.

Working Capital

Definition: Cash tied up in day-to-day operations (inventory + receivables − payables). Lower days-on-hand frees cash.

Shrinkage

Definition: Lost inventory (theft, damage, expiry). Track it; treat as COGS or contra-revenue in reporting.

Card Processing / Interchange Fees

Definition: Per-transaction and % fees on cashless payments. Treat as variable costs when modeling price and margin.

Frequently Asked Questions

How do you set prices responsibly?

Start from COGS and account for variable costs (commission, card % + per-txn) and your target gross margin.

Target Price (pre-tax) = ( COGS × (1 + Shrink%) + PerTxn ) ÷ ( 1 − TargetMargin − Commission% − Card% )

Example (no per-txn, no shrink): COGS $1.00, target margin 45%, commission 10%, card 3% → denominator = 1 − 0.45 − 0.10 − 0.03 = 0.42 → price ≈ $2.38 → rounded (nickel) = $2.40.

Reality-check with the market and review quarterly.

Commission affects prices—how do you keep it fair?

Commission is a variable cost. If commission rises, you can (a) adjust price, (b) adjust assortment, or (c) convert some value into non-cash perks. We model options and share the impact transparently.

Do cashless fees raise prices?

Cashless fees are variable; they reduce contribution margin. We incorporate them in the formula so prices remain sustainable without surprise surcharges.

What’s your breakeven for a new location?

We estimate fixed route costs (time, fuel, maintenance) and contribution per unit:

Breakeven Units / Month =
  Fixed Costs ÷ ( Price − COGS − (Commission% × Price) − (Card% × Price) − PerTxn )

If projected volume is near breakeven, we adjust planograms, par levels, or cadence to improve viability.

How do you decide service cadence?

By data: sales velocity, days-on-hand, and shrink risk. We start with your selected cadence (weekly / biweekly / monthly) and tune based on real sell-through.

What does your SLA cover?

Response times (e.g., same-day, 24h, or 48h), parts and labor for covered equipment, and proactive checks. We track uptime and close the loop with clear incident notes.

How are refunds and chargebacks handled?

We refund immediately for failed vends or product issues and monitor patterns to fix root causes (mechanical, planogram fit, or SKU quality).

Do you provide reporting?

Yes—concise monthly summaries: sales by SKU, top sellers, out-of-stock time, service history, and commission/perk detail. We’ll spotlight trends and recommended actions.

Do you use cash-and-carry or distributors?

Both, depending on speed, cost, and availability. Cash-and-carry is great for urgent restocks and testing; distributors excel at stable supply and negotiated pricing.

What payment terms do you use with suppliers?

We prefer net terms when appropriate to smooth cash flow, while paying on time to maintain pricing and priority service.

Quick Tip: Margin and markup are not the same. If you “need 40%” be explicit: is that margin or markup? Use the formulas above to avoid under-pricing.
Open Machine Chooser

Add a Distributor

Add Category