Thursday, December 18, 2008

Tackling Resistance To Change In Vending Industry

A few vending operators hold the opinion that cocoa and sugar costs have not been raised enough to justify the increase in candy prices. On the other hand, the prices at retail stores just keep lowering, meaning that other retail channels have not had to pay higher prices.

Planet Antares vending operators have just opted to reduce the candy bars to the top selling standbys in order to reduce cost of operations. As a result, there have been some questions regarding the remaining candy slots.

In the recent past, vending operators bought a variety of candy SKUs with all the stock keeping units from a specific manufacturer falling under one rebate program.

Many vending operators have decreased their candy bar offerings to the main core sellers. They have decided not to raise process on the top sellers, due to the fear of being outdone by competitors. Instead, they have opted for addition of more large size products.

Slowly and gradually, the large sized confections are gaining acceptance since the last two years. Many of these products allow Planet Antares vending operators to make an acceptable profit margin as $1.00.

Vending operators have been successful with the larger size candy and agree that it needs to be used in place of and not in addition to the regular sized version. This strategy has proven effective for large size snacks as well.

The large size candy items have sustained 100 % of the regular size versions, where the king-size bars have delivered at 85 %. As a result, the Planet Antares vending operations will be enhanced as well as offer value to the customers who use the equipment. After all, it is not just a matter of price increases.

It seems that the rise in candy prices is reason enough to try some of the large size candy bars. However, it is uncertain how much momentum there is behind the bent towards larger size candy.

Several Planet Antares vending operators have pointed out that this trend is contrary to the demand for healthier products by vending machine customers. In fact, large sized candy means more sugar and calories.

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