Vending Machine Business And Value Pricing
Your vending machine business is not just about purchasing and installing machines at good locations. It involves recording and tracking of transactions as well as employee operations through various techniques and management tools. Product turnover can be tracked through tools like planograms and handheld so that Antares operators find the means to control and monitor product turns with minimal extra labor.In recent years, there has been an incredible rise in the vending industry players. With such an increase, there is aggressive competition amongst the vending operators to get customers for higher sales and revenue. The $40 billion vending industry has become highly competitive and if you want to survive and keep your market share, you must ensure cost reduction and profit maximization.
Antares vending operators complain that the retail stores and channels are able to raise prices without too many hassles as compared to the vending products. The main determinants of vending prices are customer account contracts and competition, not customer need. A good strategy for effective pricing would be to enhance sales and profits.
Initially, very few vending operators had the imperative resources for tracking the results of vending transactions. Now, the situation has changed drastically. There are various theories that have evolved as the solution for improving product pricing. According to one theory, operators can enhance customer choices and satisfaction by discounting secondary products. This will result in higher sales and profits for your vending business.
In terms of sales accountability and driver execution, majority of the Planet Antares vending operators believe that simplicity is the key to product pricing. They are of the view that any advantages created by more strategic pricing would be minimal in relation to risks associated with more complicated strategies of pricing.
A good time to test value pricing is the current economic situation. This is because of various reasons such as:
• Due to downsizing, the location sales have gone down and made it the best time to buy lesser from established, experiences suppliers.
• Special offers are appreciated by consumers as they become more price conscious.
For certain operators, the product-specific point-of-sale advertising works well for increasing sales. The product price may or may not be part of the appeal. You will have to consider the cost of introducing price points in a vending machine. Most of the Antares vending operators consider the operating efficiencies as a priority over the fine tuning of pricing strategies.
With technological advancements, there are better tools for operators to handle both the above factors successfully. Handheld computers and enhanced machine and software planograms are such techniques that can achieve value pricing for the vending operators.
posted by Larry Bunker @ 3:35 AM
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