Tuesday, September 19, 2006

Vending Operators Rethink Plans about Candy

Changes in a key supplier’s program are forcing Antares vending operators to rethink plans in one of the most important product segments: candy bars. Vending operators have already suffered one round of price increases, only to face another one.

That costs are rising in such an important category has caused Antares operators to reconsider their buying plans. Most operators feel that they cannot raise prices more than they already have, due to competitive pressure. Some vending operators have considered larger size bars, which will allow these operators to provide greater value for a higher price.

Many operators have been unsure of their plans, but have all agreed there could be more changes to candy bar offerings in the time to come since the introduction of the glass front Antares candy/snack vending machines.

Operators watch price points carefully

There are some operators who are waiting for price points to move up just a little more before offering large size candy in their vending machines. You can decide to sell less candy in your vending machine by decreasing the candy facings from two selves to one and a half. This can work for you if candy is one of the least profitable things that you a sell.

There will be a cost involved in changing candy spirals to larger snack spirals. In the long run this extra cost will pay off for your Antares business. At the same time there are some snack companies that are willing to offer incentives in exchanges for guarantied placements.

Operators find consumer acceptance

You will find that the higher priced items will not compromise your profitability. Of course there will be number of customers that will complain about the higher prices. A lot of Antares vending operators have found the number of complaining customers to be less than expected, which indicates that the days of super sensitivity about prices are behind us. LSC and king size bars also create a better price environment for large size candy bags. There has been some improvement in the performance of these items. Despite all this, not everyone is convinced the time is right to charge $1.00 for candy bars.

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