Value Pricing in Vending

New management tools such as handhelds and Plano grams are giving Antares vending operators as well as other operators the means to track product turns with minimal extra labor. As a result of this, some Antares operators are evaluating their pricing strategies.

Vend prices not based on demand

Antares vending operators have long complained about not being able to raise prices to the same level as other retail channels. Vending prices are generally determined by competition and by customer contracts. Prices are not determined by consumer needs. Most Antares vending operators would agree that a more scientific pricing strategy would improve sales and profits. But historically, few operators have possessed the resources to track results in a manner that would provide them the necessary information to do this.

One veteran operator, Roger Monnin, recently developed an academic theory. He argues that by discounting secondary products, operators can improve customer choices and thereby enhance customer satisfaction.

Vendors don’t pass on savings

You should not pass the saving on to the customers so that you can keep the pricing simple and increase your Antares business bottom line. You can lower the price of certain items and still produce a gross margin similar or higher than the branded items. Your Antares vending machine should have the ability to draw attention. If you have snack items priced at 25 cents, you will find customers stocking up on these items at the end of the day and maybe taking them home. The ‘take out’ customer is almost unheard of in the vending industry. It presents a huge opportunity for growth in the industry. It has also been noted that if Antares operators supported secondary suppliers, they would lessen their dependence on big manufacturers

A good time to experiment

It has been noted that the current economic slowdown has provided a good time for Antares vending operators to experiment with value pricing. The reasons for this are:

· Consumers are more price conscious, and are paying more attention to special offers.

· Location sales have decreased because of downsizing, making it an opportune time to buy less from established suppliers.

For most, operating efficiencies continue to take priority over fine tuning their pricing strategies