A blog on your views about Planet Antares Vending Inc.

Tuesday, February 12, 2008

Adjusting Price Points To Large Sized Candy

With the introduction of large sized candy in Planet Antares vending machines, vending operators will have to raise the price of candy bars to adjust to this change. For example, if the vending price is $1 and $0.57 on large sized candy as blended cost and $0.75 on the smaller counterpart with blended cost of $0.38.

Also, you will have to take the commission paid to drivers into consideration (usually 6%). As a percentage of the gross profit, this commission will come to 15% on the large candy and 12% on smaller candy.

The product price needs to be at least $1 for the products to perform well in terms of sale of your Antares vending business. In some cases, it may even exceed one dollar if the larger size line is to be financially profitable. Definitely, higher price points will be beneficial for your vending business. As you strive for higher revenue, it may wreak havoc with the coin mechanisms but that is part of growth and expansion.

In the short term, the operating expenses of the Planet Antares vending remain fixed. These may include:

• Insurance
• Amortization
• Interest
• Depreciation

You must try to make strategies for enhancing each with your vending machines at each stop on the vending route.

The growing popularity of the large sized candy and its offering by many vending operators has provided an opportunity to Planet Antares vending operators to make more money and upgrade business scale. Some concerns associated with this new change include the perception that the proposition promoted by the candy companies is identical to those offered by salted snack companies and bottlers.

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