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.