Product Selection & Pricing Strategy: Build for Profit

Your profit hinges on what you stock and how you price it. Mike kicks off by highlighting that this lesson is all about creating a bulletproof product mix and pricing structure. Your goal is to make shoppers feel, “These guys get me.”

Ruthless Curation: Nail the Essentials

You’ll filter down from hundreds of SKUs to only the best snacks, drinks, frozen items, and impulse buys. Each category gets attention based on customer profile and sales psychology, avoiding slow movers.

70–80% of revenue comes from the top 10 SKUs. Premium items like Smartwater and Häagen-Dazs fund staples like Reese’s. This mix ensures margin balance and customer satisfaction.

Align items with time-of-day cravings. Mornings: Coke or protein shake. Afternoons: Sprite with salty snacks. Late nights: Ice cream or ramen. Get the cadence right, and you capture every sale.

Drink Strategy: The Volume Drivers

Drinks are your highest volume category. Smartwater costs $1, sells for $3.75—about 275% markup. Stock 2–3 rows to avoid sellouts.

Coke and Sprite cost 90¢ and sell for $4—over 300% markup. Coke is the morning boost; Sprite pairs with salty snacks. Fairlife protein, at $2.10 in and $5 out (140% margin), thrives near onsite gyms.

These three drinks can generate over $1,200/month in revenue. Nail them, and the rest of your cooler becomes pure profit.

Ticket Builders: Snack Power Moves

Reese’s Cups offer a 100% markup and move 2–3 units daily. Shin Premium Ramen ($1.40 in, $3.50 out, 150% markup) sells well where microwaves exist, especially in break rooms.

Uncrustables (frozen) cost $1 and sell for $3 (200% markup). They appeal from breakfast to late-night and offer long shelf life. Each fills a hunger gap and lifts margins.

Demographic and Seasonal Tuning

Cookie-cutter menus kill profits. In Southern, Hispanic-heavy areas, Coke dominates. Fitness-minded tenants want protein drinks, Smartwater, and clear Gatorade.

Gatorade jumps into the top 3 during hot seasons. During holidays, add specialty Häagen-Dazs and holiday-themed Reese’s for impulse buys.

A/B Testing and Iteration

Test flavors and watch results. Rotate Gatorade Rose, double down on the best sellers. Replace any SKU selling under five units per week to keep turnover high.

Ongoing tweaks prevent stale shelves and drive cash flow. You now know what to stock and why it performs. Up next: how to place it for even more profit.