Conceptual Understanding Of Vending Product Pricing

The introduction of new management tools such as handheld computers and Planograms have enabled Planet Antares vending machine operators to track product turns with the minimum amount of extra labor. As a result, pricing strategies are being reviewed by Planet Antares vending operators.

Since a few years, Planet Antares vending operators have been complaining about the inability to raise prices to the same level as other retail channels. The main determinants of vending product price include:

• market competition
• customer contracts

It is agreed by most vending operators that a more scientific pricing strategy would improve sales and profits.

According to one theory, you should avoid passing the savings on to the customers so that you can keep the pricing simple and increase your Planet Antares business bottom line. This way, you can cut down the prices of certain items without reducing the gross margin. For this, you must ensure that your vending machines are able to draw attention.

The surprising part about the vending industry is that the ‘take out’ customer is still unheard of and thus, presents a huge opportunity for growth and profit maximisation. By procuring support from secondary suppliers, Planet Antares vending operators can lower their dependence on big manufacturers.

Planet Antares vendors need to understand that this is a great time to experiment with value pricing. One of the reasons for this is the increasing price consciousness among consumers and higher attention being paid to special offers.

Downsizing has also ked to reduction in location sales. In short, it is an oportune time for vending operators to rethink their pricing strategies.