Raising Prices for your Antares Business

In vending, it appears that an Antares vending operator can only raise prices when he is able to demonstrate that product prices have gone up. It is thus much more difficult to convince clients to grant price relief simply because the cost of doing business has gone up. It is even more difficult get the customers to accept price increases for their products because of increased world wide competition.

However, it shouldn’t make a difference whether cost increase in your Antares business is due to product cost increases or other cost increases. Any increase in costs becomes a direct reduction in the bottom line, if you are unable to offset the cost increase with higher selling prices or increased productivity. Improving productivity in your Antares business, is a given in any professionally managed business. However, there will come a time when cost increases can simply outpace any possibility of recovery through increased productivity.

Antares operators as well as other operators are finding it difficult to hire people due to record low unemployment rates. As a result, labor costs have risen significantly. There are a number of reasons that make Antares vending operators want to increase their prices. These reasons include; increased fuel costs, increased interest costs and health care cots.

Labor costs, delivery costs benefit costs and interest costs are some of the biggest costs on P & L statements after product costs. If the Antares vending operator has already pushed productivity improvements to the maximum, then this would be the best time to increase prices if he wants to protect the bottom line.

It is never easy telling a customer that he is going to have to start paying a higher price to purchase products. There as some methods that you can use to communicate to the customer, that have proven to be less painful than others.

Supermarkets raise prices at will without consulting anyone. Antares operators and OCS operators usually operate under a long term contract with their locations. Since prices are one of the more important terms of a contract, prices are negotiated with the client at the outset. Any operator, who raises prices without at least giving the client the opportunity to comment on the change, runs the risk of losing the client.