Thursday, September 28, 2006

Product Choice is too critical to Defer

In most companies, it is the owner who makes such decisions about things like when to buy a new truck or when to pull out worn vending machines from active duty. Managers can also make such decisions. The owners and managers know the numbers and they are the people that are best qualified to make these decisions.

In spite of this, when it comes to deciding what product to put in the machine, most operations defer these decisions to the route driver. This makes no sense, considering that product selection has as much impact on a vending operation’s success as anything else.

Category management

Several of the industry’s largest product manufacturers and software suppliers have introduced the opportunity to improve sales and profits through category management. And every year, more Antares operators take control of the process; most operators have been slow to realize the benefits of category management. As a result of this convenience stores and other retailers that use this tool are taking business away from vending.

Vendors simply aren’t keeping up with other retail channels in managing the product selection process. Most vendors purchase product based on manufacturer based sales programs instead of customer demand. Instead of this, you can improve sales and profits for your Antares business through the introduction of category management

While c-stores and supermarkets operate on lower profit margins than vendors, they nonetheless grow faster in the product categories in which they compete against vendors. They use every available tool to maximize efficiency. They don’t put their stock clerks in charge of deciding the menu for the shelves.

Product selection is critical for the success of your Antares business. Several product manufacturers and computer software suppliers now offer excellent data management tools. It is all now up to you to act in the best interest of your Antares business and use these tools. Product selection in automatic merchandising should not be left to chance.

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