Designing the Planogram
Category management is a system designed to enable you to take advantage of market research in selecting products for your Antares vending machines.
There are three steps in designing the planogram;
1) Identify product categories
2) Allocate space to each category
3) Decide on specific products for each category.
Product groups: a judgment call
Categories can be grouped into smaller categories. This is a judgment call. It is easier to do a planogram if there are fewer categories. But the more categories identified, the more the planogram will ensure variety.
The next would be to allocate space in the Antares vending machine. Each category should get at least one facing. The number of facings is based on category sales and how the products will physically fit the shelf.
The third step of product selection is the most difficult. You will need to consider:
· Core products – these are products that sell consistently in all machines. They can represent 20 % of the products in your Antares vending machine.
· Cycle products – these go in every machine during the menu cycle, but change in between menu cycles. This comprises the majority of products.
· Choice products – these are products that can be provided for a specific location to meet specific requests. They should comprise no more than 20 % of the facings.
The planogram must designate every facing in the Antares vending machine. Hence it is necessary to have a separate planogram for a machine that has a different number of facings.
How many planograms?
Some operators establish separate planograms for different types of accounts, such as; white collar, blue collar, educational etc. There are differences in different types of accounts. For example, cracker sandwiches do better in public sites than captive sites; pretzels do better in offices than factories.
The planogram will give you control over what products are placed in the Antares vending machines. Without this tool, drivers are free to place products based on personal preferences, or use whatever products are available in order to save time.
New Tools Needed for Vending
Technology provides capabilities that can strengthen the Antares operator’s financial management. It just requires a large upfront investment. In other words the operator must invest more resources to gain the capabilities that will improve profitability. It will allow the Antares operator to manage better financially. This mainly includes management software.
Equipment and software are not the only areas where vending operators need to invest periodically. As products, equipment and software become more advanced, the bar also rises for the level of training period. You will need to invest in the education and development of staff as well.
Vending operators need a plan to incorporate new technology that will make them more efficient, leading to higher customer satisfaction. Even though the ability of individual operators to invest varies, you as an Antares vending operator should be able to identify the financial benchmarks that will enable you to measure the return on investment (ROI).
There has been a history of high levels of waste and shrinkage in the vending industry. This has been mainly due to weak accountability systems. As a result of this, one can safely say that most vending operators will benefit from an investment in better information management systems.
In order to gather the financial information needed, an Antares operator may need to have an employee who is trained in this area. This will probably mean that there will be need for additional investment in education. Once this information is gathered, the operator will be in a better position to partner with customers.
Antares vending operators should keep in mind that investing in the future is easier when the operator has an overall game plan. Operators will need to invest not only capital, but also time in educating themselves about the rapidly changing industry.
Vending industry specific software combines financial management with other aspects of operations which includes machine security, route accountability and marketing. Generic accounting software can help vending operators who do not yet have specific software.
Low-Carb Vending
One of the challenges facing Antares vending operators as well as other operators is being on the cutting edge of trends. Operators faced this challenge in the ‘90s when low –fat food seemed to be everywhere. Many operators responded with vending machines stocked with low fat foods, only to find that they have remained untouched when they go back the following week.
Market research firm ACNielsen reported that more than 17% of U.S. households include someone on low-carb diet. What you would wonder as an Antares vending operator is whether this is just another flash in the pan food fad that operators shouldn’t waste a coveted vending slot on, or is this a wave of profits that operators need to ride?
The Atkins diet, which tells followers that they may eat liberal amounts of bacon, eggs, cream and other high fat products, is widely considered to be the most extreme low carb diet. The South Beach diet also touts the benefits of a low carb lifestyle.
This is a trend that has a large following, so placing low carb products in your Antares vending machines can bring in good business for you. By doing this you will be catering to this growing segment of diet group.
Soda giant Coca Cola has a low carb product, which is called Coca Cola C2. This has half the carbs of regular cola. Pepsi Cola have introduced the Pepsi Edge with 50% lower carbs than the original drink.
There is no denying that consumers are demanding low-carb options in vending. A survey that was conducted found that over 66% of vending consumers are requesting low-carb products. This is a potential profit center, which you should consider for your Antares vending business.
As a vending operator you should be aware that dieters will pay a higher price point for these products. The sales are there so price point should not be a deterrent for you. People will buy these products for their health, not for how much they cost. You should understand that price is not always the issue when understanding a customer’s needs. You just need to consider the opportunity at hand.
Dishonest Vending Machine Operators
A dishonest vending operator reports fictitious lower sales to the client. The actual sales record gets altered at some point in the collection, counting, data entry or commission calculation process. Therefore unless this is a one man operation, all other members of the vending operator’s are aware of the scam. This would be from the manager to the route driver. As an owner of Antares vending machines, you will need to hire people who are trustworthy to run your business. If the operator is dishonest this would bring bad repute to your business. This is the last thing that you would want when you are looking forward to the success of your business. If the vending operator is comfortable running a dishonest business, then his only concern is that the client finding out. If the vending operator is found out, he will loose the account and could also possibly face a lawsuit to recover lost commissions. To avoid all this, employ vending operators for your Antares vending business who are honest and have a good record. Whatever references that have been provided should be thoroughly checked on.
Nearly everyone on a vending operator’s team handles cash or products that can be converted to cash. Individuals with ethics, morals integrity and a conscience are the ones who would avoid stealing from your Antares vending business.
A dishonest vendor also ends up facing a real market risk. Every single vending operator whether reputable or dishonest, occasionally loses clients. Suppose that a location is lost due to under reporting of sales, and then a reputable Antares vending operator takes over the account, the sales at that location will appear to dramatically increase. This change in operators will be highly appreciated. The reputable Antares vending operator will could potentially drive a dishonest vendor out of business. The reputable operator can contact the dishonest vendor’s other locations and point out to them that sales have significantly increased at the location he recently took over. The client would then call the location to verify this information. As a result of this you could end up having a lot more Antares vending business accounts. This means more business for you.
By being a dishonest vending operator your future in the vending business will be very shaky because sooner or later people will find out what you are doing. This would an end to your very profitable business.
