What to Consider When Moving your Vending Business

Moving your Antares vending business into a separate building is one of the first decisions that you will have to make as you grow your business. Most operators have opted to rent a section of a “strip warehouse” along with other small businesses. To move your vending business out of the home, you will need to look at the costs associated with moving your business outside your home.

Consider your account base

Your account base needs to be diversified. If one account represents a large portion of your total sales, you could be in trouble should you lose that account.

Plan for future growth

A number of vending operators have claimed that no matter what size their business is, their facility is not beg enough. When planning for a new facility for your vending business by Natural Choice USA, plan for future growth and a larger inventory of machines.

Always keep in mind that as your business continues to grow, so will the need for extra space for inventory. How fast you plan to grow and how long you wish to stay in your new facility also factor into the size of the building and the associated costs with the size of the building and lease period.

The key to a successful Antares operation is controlling your costs, maintaining adequate vend prices and managing your machine product inventory for optimal sales and route labor costs.

Keep a focus on business basics

A good example would be selling high quality service versus lower prices. A focus on a higher drink product mix will allow you to have a gross margin above 50 percent. Concentrate on achieving higher sales per week per route by servicing the equipment only when it needs to be filled. This would of course mean having the proper planogram for each machine to allow it to be filled minimally at the 50 percent point.

Facility’s location

When choosing a location for your Antares vending operation, you need to do it carefully. A lower cost facility in an area of town far away from your home may actually cost you more money than a more expensive facility located near your home. The location of your facility can also be a factor in the quality of employees that are willing to work for you.

Vending Operating Costs Rise

Antares vending operators have raised their prices in some product categories, but the price increases are not enough to offset the losses in either per-location sales or machine placements. The price gains are usually only a few cents on average inmost cases. This reflected selective increases on an account by account basis as opposed to “across the board” increases. Retail vend prices took low percentage point increases in some of the major categories.

Operating costs have increased in other sectors as well. There has definitely been an increase in products pricing, but at the same time there has also been an increases in fuel. Rising costs have given Antares vending operators a double whammy, because besides raising their own operating costs, these increases also hurt consumers’ disposable incomes, which has made people reluctant to spend on refreshments.

Currency upgrades continue

The currency upgrades can also continue to add costs. In 2003, the government introduced a new design for the 20-dollar-bill. Upgrades of bill changers and validators continued at certain percentage points.

Antares vending operators viewed higher denomination as a way to support higher product prices. Higher denomination bill acceptance also necessitated dollar coin payout, which in turn required more 4 and 5 tube coin changers.

Largest and smallest get squeezed

Rising operating costs historically drive market share to both the extra-large and small operators. The larger operators have the financial resources to meet rising costs and at the same time offer a wider variety of products and services. The small operators enjoy the advantage of low overhead.

Investment in technology lags

Suppressed revenues can also limit an Antares operators’ ability to invest in new technologies that can offer new customer benefits. Convenience stores and other sectors have already introduced more cashless options and broadband wireless Internet connectivity to entice customers. Vending operators fall behind in this race to offer customers new technology.

There has been no significant change in the percent of operators that are using DEX (digital exchange) handheld computers, which allow for more accurate cash accounting and the ability to match selections to account preferences based on line item sales.

Options for Small Location Vending

Technology creates new efficiencies and also adds cost. As it brings new efficiencies to business operations, business people naturally hope efficiencies offset added expense and eventually reduce costs in relation to sales.

This would be beneficial in small location vending, which have never been profitable for a majority of operators. Can technology make small location vending a profitable business?

Small locations vending is a market that is yet to be fully tapped. A small location would have a population of about 10 to 50 people. This can be ideal for an operator who has limited overhead.

The electronic, preloaded shelf systems can be used to overcome the challenge of providing sufficient return on investment for Antares vending operators in locations that offer limited sales potential. Interest in these systems has grown as operators face one of the most difficult economic climates ever. While there have been signs of job growth in certain geographic area, the automatic merchandising industry continues to suffer the fallout that struck at the start of the new millennium.

As an Antares operator you can test new options for small location vending, an ongoing industry challenge; with the economy not providing much relief to account downsizing, more operators are exploring small location vending.

For existing operators or for the entrepreneur just starting out, becoming successful in small location vending isn’t a quick or easy process. Building a successful Antares small location vending program requires commitment, proper planning and a lot of sweat equity.

The demographics of the American workplace are changing. Over 90% of American businesses now employ less than 50 people. Conventional vending systems are no longer economical or profitable in these smaller locations. The Natural Choice vending program can help you establish your niche in the small location vending business and show you how to take full advantage of this trend. This program will assist you in entering this dynamic market place, so that you can learn how to make money in small location vending.

A Winning Image of your Vending Company

A powerful marketing program can make a difference in winning sales; a memorable logo can change the look of trucks, uniforms, literature and promotional materials.

If you want to send a winning image of your Antares vending operation to customers and potential customers, you can use high quality images in all the company marketing tools.

Create a visual statement

A professional image can be the separating factor between your Antares business by Antares Corporation and your competitors. You can hire a professional design firm to create a complete marketing program. A central element in a company marketing program is the company logo. The logo is the visual definition of the company.

Uniforms can add a touch of class

Once you have chosen a logo for your Antares vending operation, you can simply e-mail the artwork to an embroidery company. These can be found in trade journals and in local phone directories. From there, a digital logo can be created to be embroidered on shirts, hats, jackets and much more. There are obvious marketing benefits to having employees wear uniforms with logos. It also adds a touch of class and pride to the work environment.

Enhance security and credibility

Uniforms with logos also address customer security concerns. A route driver in a uniform for your business will make customers more at ease. A logo on a uniform enhances the employee’s credibility, which in turn helps the employee to meet customers’ concerns about security. The uniform would also look sharp and strengthens customer relations because people in the account can immediately identify the vending company employee.

Making the vehicle a moving billboard

A moving billboard can also be very effective in getting the vending company’s name recognized. You should have the company logo painted on the vehicles. Having the logo on the truck has another added benefit as well. A route driver can more easily navigate tightened security at sites when the truck carries the company logo.

Business cards

Antares operators should print the logo on their business cards along with other important company information like address and phone number. There is no such thing as too much positive exposure for a vending company.

An Effective Risk Management Program

Workers’ compensation premiums have jumped by more than 100 percent for many Antares vending operators. The causes are multiple, but operators can manage costs by implementing an effective risk management program.

The cost of workers’ compensation insurance is one of the fastest rising operating costs for automatic merchandisers today. Workers’ compensation costs are among the fastest rising insurance costs. It is a cost that can be controlled by an aggressive management program.

Highway deaths are rising

In the automatic merchandising industry highway deaths are rising. The losses, medical costs, wages-replacement rates and investment income create an environment where it’s difficult to know the net result. Workers’ comp programs vary from state to state.

Costs components

There are many cost components of workers’ compensation which are both direct and indirect. You can decide which one to use in your Antares vending operation. The cost components include rates, premiums, expense modifications, corporate culture, and programs such as accountability, training, hiring and return to work programs. The best control begins with risk management.

You would be required to protect all the employees of your Antares vending business by Antares Corporation from work related injuries. If you do not have coverage and an employee is injured, there are significant consequences that you would face, these vary by state and would or could include: significant fines, imprisonment, cease work order, employee lawsuits, higher employee benefit costs and personal liability fines.

How to manage costs

Firstly you need to remember that the primary asset of your Antares operation is your employees, and their safety should be one of your biggest concerns. Their safety will not only benefit them, but it will also benefit your productivity, as well as your operating expenses.

It all begins with creating a safe work environment and a corporate culture in which injuries are unacceptable. Every employee must be safety conscious. This should be coupled with employee safety training programs.

The Impact of Forklift Training

In the vending industry, you learn something new everyday. When your workers are trained in forklift handling, they will be happier people, knowing that they have learned something new. They will be able to work without looking over their shoulders all the time, because they know what they are doing.

Bulky cases of 20-ounce soda bottles are the biggest forklift loading and carrying hassle. As all Antares vending operators are aware, they tend to shift easily if they are not wrapped. Cans on the other hand, comprise more of a solid, square mass.

Training in forklift safety not only causes management to breathe easier, but also positions the Antares vending operation to dramatically cut its insurance costs.

Employees appreciate the training

Employees who have received forklift training will walk away knowing that they got something out of it. The training would go a long way in helping the individual. Training improves safety awareness and improves the handling of a forklift by the individual. They learn how to get around tight corners in a forklift-intensive environment. This of course would be important for the smooth running of your Antares vending business. The individual will be able to work around people walking around the warehouse without causing any harm to anybody.

Having a forklift in your vending business really helps you in the loading and unloading of the products to and from your trucks. Without having a forklift in you business you will find moving your products around very labor intensive. Since you already have them in your business, it is now up to you to make sure that they are run by a trained worker, so that there can be no accidents in the warehouse.

All Antares operators should put their employees through formal forklift training, because by not doing so, will be neglecting responsibility not only for the workplace safety, but the company budget as well. Workplace accidents pose a threat to workers’ well being and to the bottom line.

Developing Relationships in Vending

It is important to develop relationships with the business experts in your community. You would need to call them and introduce yourself and your Antares vending company to them. Send them informational packets, or you can invite them to lunch to show them your capabilities and help them understand your services.

By networking with these professionals and developing relationships with them, you will be in a position to refer them business. By doing this, you will be creating a symbiotic relationship that helps both of you.

Key resource: moving firms

It is important that you get to know the sales representatives and executives within every commercial moving company in your local area. These people have information on what companies are moving and where they are moving. Always keep in mind that a company that is moving is very open and willing to switch vending providers. This of course would create an opportunity for you Antares business.

Reach the human resource managers

Get to know the large employers within a 30 mile radius of your vending company. Human resource managers are responsible for keeping their employees happy, motivated and healthy. Call the HR executives and inform them about your new Antares vending healthy initiatives.

It is also important for you know where your target market obtains their news. What business journals, magazines and newsletters are mostly read by your target market?

Using the web as an effective communications tool can improve the customers’ buying experience as well as educate the customers on all the products that your Antares vending business is offering.

Making it easier for customers to do business with your company leads to positive word of mouth, increased sales and new customers.

Word of mouth marketing techniques are a cost effective way to gain new customers. You don’t need to make a large investment for this.

Get in on the conversations

At any one time, in your business community, conversations are taking place and decisions about vending are being made. You will need to know how, when and where these opinions are being shared. Take full advantage of the word of mouth and encourage the buzz to spread.

Energy Bars in Vending Machines

The energy bar category is being described by the c-store industry as “exploding.” Energy bars are becoming “mainstream.” They are as diverse as the clientele they hope to energize. The energy bar assortment in your Antares vending business should be focused on meeting the needs of three different nutritional consumers.

These categories can include: male and young consumers who want to boost their energy; female and slightly older consumers who want meal and snack substitutes; and consumers (male and young) who want high levels of protein or low levels of carbohydrates.

Supermarkets aren’t the right venue

The energy bar category is impacting supermarkets as well. Supermarkets may be a lucrative channel for energy bars, but it is not a place of convenience. Most energy bars are sold in single packs, thus it is not appealing to supermarket consumers. This is a good sign for Antares vending operators.

Energy bars fit in with what today’s consumers are looking for. They have been in the market for a long time, and initially never sold that well. The consumer’s buying habits change in tandem with new lifestyles, so today energy bars are very popular with the consumers.

A home meal replacement product

There are a number of consumers who want this exploding category product, and with limited retail outlets from which to purchase it. C-stores have been exploring the energy bar and energy supplements categories, hence you can explore this product category for your vending business by Natural Choice USA.

Don’t let the price scare you away

Energy bars need to be higher priced than other snacks, but don’t be discouraged. Consumers would expect them to cost more. The consumers who are interested in buying the product will do so regardless of the price, so this should not deter you.

You should not ignore the opportunity to experiment with the energy bars in your Antares vending business. You would not want your snacking consumers to leave your vending locations and visiting the local c-store to purchase their energy bar lunch replacement.

Currency Handling Equipment

The vending industry took the initiative to make sure that the new dollar coin would be compatible with currency handling equipment with minimal adaptation. Once the general public feels that vending transactions can be made easily, Antares vending operators will then have more freedom in their pricing and product offerings. This will lead to a more prosperous future.

Given the success of the dollar coin’s redesign from the standpoint of compatibility with existing equipment, acceptance of the dollar coin is not the most promising issue facing the vending industry. There are some changers that have the ability to accept the dollar coin, while some changers will need to activate the dollar coin acceptance. The bigger issue facing Antares operators is the ability to pay out dollar coins.

The issue that is facing each Antares vending operators is how flexible they want their currency handling equipment to be, as they upgrade their equipment. To begin with operators must identify their long term objectives. If they want to allow the customer more payment flexibility, then dollar coin payout would be in order. Dollar coin payout implies the acceptance of $5 bills. Currency handling equipment must be more versatile than ever, with more products being vended and a wider variety of price points.

The question of upgrading bill acceptors in your Antares vending machine is not about being able to take the new $5. Rather, it is to assure the customer that the change he will receive will be what he wants. Customers will be willing to use $5 bills if they know that their change will consist of dollar coins and not quarters. The dollar coins received in change are more likely to be circulated back into the machines.

The latest generation of currency handling equipment brings about other benefits to consider as well. The equipment offers the most advanced state of the art security features and increased capacity. Most importantly, today’s multi drop bus (MDB) validators are capable of incorporating any future currency designs without upgrades.