Thursday, May 8, 2008

Resistance To Change By Vending Operators

Some operators’ claim that cocoa and sugar costs have not been raised enough to justify the increase in candy prices. In contrast, the prices at retail stores just keep lowering, meaning that other retail channels have not had to pay higher prices.

Planet Antares vending operators and other operators has just opted to cut down on the candy bars to the top selling standbys in order to reduce cost of operations. This has raised questions about what to do with the remaining candy slots. In the past years, vending operators bought a variety of candy SKUs with all the stock keeping units from a specific manufacturer falling under one rebate program.

A lot of 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. Rather, they have opted for addition of more large size products.

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 size 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 %. All this will enhance the Planet Antares vending operations as well as offer value to the customers who use the equipment. After all, it is not just a matter of price increases.

Perhaps the fact that candy prices have increased 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. Certain 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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