Vending And Value Pricing
The introduction of new management tools like handhelds and Plano grams are providing Planet Antares vending operators, among other operators the means to monitor product turns with minimal extra labor. This has resulted on evaluation of the pricing strategies by some of these vending operators.
Since a long time, Planet Antares vending operators have complained about not being able to raise prices to the same level as other retail channels. Generally, the vending prices are determined by competition and by consumer contracts. These are usually not a factor of consumer needs. Most Planet Antares vending operators agree with the fact that a more scientific pricing strategy would improve sales and profitability. However, historic evidence shows that few operators have possessed the resources to track results in a manner that would provide them the essential information required to do this.
Recently, a veteran operator, Roger Monnin, developed an academic theory and argued that by discounting secondary products, vending operators can improve customer choices and therefore, enhance customer satisfaction.
Still, you should not pass on saving on to the customer so that you can keep the pricing simple and increase your Planet Antares vending business bottom line. The price of certain items can be lowered and still a gross margin comparable to that of branded items can be generated.
Your Planet Antares vending machines should have the power to draw attention. If you have snack items priced at 25 cents, you will find customers stocking up on these items at the end of the day and taking them home. In the vending industry, the ‘take-out’ customer is virtually unheard of. This presents a huge opportunity for growth of vending operators. It has also been noted that if Planet Antares vending operators supported secondary suppliers, they would cut down their dependence on the big manufacturers.
The current economic slowdown is a good time for the Planet Antares vending operators to experiment with value pricing. The reasons for this include:
Since a long time, Planet Antares vending operators have complained about not being able to raise prices to the same level as other retail channels. Generally, the vending prices are determined by competition and by consumer contracts. These are usually not a factor of consumer needs. Most Planet Antares vending operators agree with the fact that a more scientific pricing strategy would improve sales and profitability. However, historic evidence shows that few operators have possessed the resources to track results in a manner that would provide them the essential information required to do this.
Recently, a veteran operator, Roger Monnin, developed an academic theory and argued that by discounting secondary products, vending operators can improve customer choices and therefore, enhance customer satisfaction.
Still, you should not pass on saving on to the customer so that you can keep the pricing simple and increase your Planet Antares vending business bottom line. The price of certain items can be lowered and still a gross margin comparable to that of branded items can be generated.
Your Planet Antares vending machines should have the power to draw attention. If you have snack items priced at 25 cents, you will find customers stocking up on these items at the end of the day and taking them home. In the vending industry, the ‘take-out’ customer is virtually unheard of. This presents a huge opportunity for growth of vending operators. It has also been noted that if Planet Antares vending operators supported secondary suppliers, they would cut down their dependence on the big manufacturers.
The current economic slowdown is a good time for the Planet Antares vending operators to experiment with value pricing. The reasons for this include:
- Greater price consciousness among customers and more attention to special offers
- Reduction in location sales due to downsizing, making it the ideal time to buy less from established suppliers.
posted by carol gonzo at
10:11 AM
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