Convenience Remains Key in Vending

Vending machines are playing a bigger role in today’s rushed lifestyles. This has provided an opportunity to meet consumer’s needs. The vending industry needs to put emphasis on this benefit. As an Antares vending operator you are in a perfect position to meet consumer needs.

In the meantime, manufacturers are waiting for the Food and Drug Administration requirements for labeling products as “low carb.” This would change packaging labels to reflect the new regulations.

Price, will always be a issue with Antares vending operators as well as other operators. Typically, consumers are more price conscious about vending than other retail outlets.

Operators need to be aware that dieters will pay a higher price point for the low carb products. Consumers will purchase these products from your Antares vending machines. Price point should not be a deterrent for you as the operator, because people will buy these products for their health, not for how much they cost. When understanding a customer’s needs, price should not be an issue in your Antares business. You only need to consider the opportunity at hand.

The number of consumers who will actually put the money in the Antares vending machine to purchase a low carb item will determine its long term availability.

The meaning of words ‘low carb’ on a label is highly inconsistent. The FDA has not yet defined low carb for the consumer. A product may be labeled low carb because it has lower carb content than a traditional product, but may still contain too many carbs for Atkins dieters.

Diets will always come and go, but it has been observed that low carb has set a new bench mark among the health conscious consumers. Interest continues to grow as more Americans become more health and nutrition conscious. Antares operators as well as other operators are divided on how long the demand will last, but most are realizing that it cannot be ignored.

There are options in vending machines that have always been low carb, like nuts. Operators need to take advantage of this, and then wait to see an increase in sales, partially due to the low carb issue.

Selecting a Mix that will Drive the Profits of your Antares Business

You always need to be sure that you are offering the most successful product mix in your Antares business. If subordinates are responsible for filling the machines, you need to make sure that they are placing the “must have” items in every machine. The products also need to be rotated frequently since you will be offering a variety of products. All this can be accomplished by category management.

Category management is a system that simplifies product selection at the route and warehouse levels, and also enables the operator to control the machine menu. There are some products that only turn quarterly, and this costs the company in terms of tying up warehouse space. These are just some of the reasons that some experienced Antares vending operators have been implementing category management.

There are some operators that resist using category management because it requires a different way of selecting products from the traditional practice. Previously product selection was based on the hunches of the owner or the route driver. The problem with this selection process is that it is actually costing the operators more in sales and profits. Category management should be a preferred selection choice for Antares vending operators as well as other operators.

Operations that implement category management reap significant savings. The savings come in three areas:

· Increased profitability from higher location sales.

· Reduced cash investment in inventory from a reduced number of stock keeping units in the warehouse.

· Improved route and warehouse labor efficiency and productivity.

Higher sales for your Antares vending business will be achieved by selecting the fastest turning products. Reduced investment is also achieved by inventorying fewer, yet faster turning products. A 40 % reduction in inventory will be achievable in your Antares business, once category management is implemented.

By having fewer products to manage, it means fewer inventories and thus less chance for error. Fewer stock keeping units bring about the added benefit of larger volume purchases. This will allow the operator to reach rebate targets much faster.

Vending Machines with State of the Art Capabilities

Technology has allowed vending machines to keep up with new customer benefits with retrofit kits, controller boards and peripherals. There have been cases where vending operators such as Antares vending operators, have been able to win business because they offered a piece of equipment that has new features. These can be guaranteed product delivery, higher denomination bill acceptance or cashless transaction capability.

Purchasing a new machine that includes some of these features is quite hard for some vending operators, especially during this challenging economic period. The good news is that there are a host of kits, controllers and peripherals that will make the choice to stay with an older vender easier.

Most of the older vending machines can now be upgraded, to be DEX and MBD capable. They can also be upgraded to offer guaranteed product delivery, large bill acceptance and debit and credit card acceptance. As an Antares vending operator you can upgrade the vending machine to some of the new technologies.

Guaranteed delivery options

One of the most popular new capabilities is guaranteed product delivery. Most of the new vending machines like those offered by Antares Corporation, offer this feature. Today there are controllers and kits that offer this same functionality for many of the other older glass front vending machines.

Since Antares vending machines have the capabilities if guaranteed product delivery, they can be competitive with other companies offering brand new equipment. This is why this capability is a plus point in your vending machines. Guaranteed product delivery is a strong selling tool.

Retrofit kits have been used to extend the bill acceptance on changers, but the retrofit kit has to be compatible with the specific changer model. It can also reduce refunds and unnecessary service calls. The kit can re-establish credit in the Antares vending machine for a failed vend, thus allowing a second purchase attempt. After two failed attempts it can then refund the customer’s money.

Reducing Delivery Trips for your Antares Business

One obvious way of lowering fuel costs for your Antares vending business, is to use less gas by reducing the number of deliveries. Doing this will make better use of the driver’s time and provides more value to the operator for the same wages and health care costs.

If you have not been optimizing your routes, let those rising costs be a catalyst to do it now! The best way is by looking at certain “metrics” for each Antares vending machine and then plan on updating both the Plano grams and delivery schedules.

A modern vending software system will make collecting and analyzing the appropriate metrics much easier. In spite of this, the job can still get done without one. Start by looking at the most recent services at each Antares vending machine and then consider the following metrics:

• Percent deleted – How empty was the Antares vending machine when the driver arrived to service it?
• Percent filled – How full was the machine when he left after servicing it?
• Number of sold out columns – The number of columns in the Antares vending machine that were sold out.
• Number of sold out products – The number of products (not columns) that have sold out.
• Value of dollar sales (even if not collected).

The goal in fine tuning schedules and Plano grams is to service the Antares vending machine when it is as depleted as possible with no sold out products. Usually there is a certain amount of sold out columns that may be acceptable because studies show that you will only “lose” the sale if the product a consumer wants is not available.

As if a 60 % increase in the cost of energy wasn’t damaging enough, operators are facing rising healthcare and labor costs and lower manufacturer rebates. All these factors together can seriously hurt profitability. Fortunately Antares vending operators can adopt the practice of reducing delivery trips, to mitigate the impact of rising costs and falling rebates.

Rising Candy Costs Cause Operators to Consider New Strategies

Rising candy costs couldn’t have come at a worse time, with gasoline and other costs rising. Vending operators are being forced to rethink plans in one of the most important product segment: candy bars. Vending operators have already gone through rounds of price increases.

Operators reconsider buying plans

Costs rising in such an important category have caused Antares vending operators to reconsider their buying plans. Most operators feel that they cannot raise prices more than they already have, due to competitive pressure.

The rebate change, which doesn’t take place until the fourth quarter, has caused some operators, including Antares vending operators, to consider larger sized bars. Larger size products will allow the Antares operators to provide greater value in exchange for a higher price.

Many operators have agreed that there will be more changes in the candy bar offerings, than there ever has been. This is the reason why many have decided to sell larger size candy bars.

Some operators resist change

The rise in price of candy bars has been blamed on cocoa and sugar costs which have been raised enough to justify the increases. Some vending operators have simply opted to reduce candy bars to the top selling standbys in order to reduce costs. This raises questions about what to do with the remaining candy slots. Some operators have decided not to raise prices on the top sellers, out of fear of being undersold by competitors, and to add more of the larger size offerings.

Larger size confections sold in Antares vending machines as well as other vending machines, have been slowly gaining acceptance in the last few years. These offerings have allowed Antares operators to make an acceptable profit margin at $1. 00.

Operators find consumer acceptance

As an Antares vending operator, you will find that the higher priced items will not compromise on your profitability. Very few customers will complain about the higher prices. Despite this, not everyone is convinced that the time is right to charge $1. 00 for candy bars.

Tips for Handling Customer Complaints

Route drivers as well as owners and operators usually have to deal with customer complaints. You have to handle these complaints strategically. At the time of the complaint, you have the opportunity to turn an unhappy customer into a patron for life.

Remaining calm is essential

Angry customers are very hard to deal with, but the key is not to get upset. It helps to remember that the customer is frustrated with something that has happened.

Apologize for something

There are ways to do this even if you did nothing wrong. You can apologize for the convenience caused to the Antares customer. If the problem is still unclear, try to ask for more details. This will assist in assessing the severity of the grievance and of course, help you find the best solution.

The Call Back option

There are different types of complaints which you as an Antares operator or a route driver can handle, and then there are some that you will be unable to handle. In that case you can ask for the contacts of the customer, so that the person that can address the complaint can give a call back.

Consider the long term consequences

Antares vending operators as well as route drivers can always refund money incase of a machine malfunction, or maybe offer the product to the customer for free. There is no advantage to upsetting him or her and perhaps cause that person to stop patronizing the vending machine, especially when they are regular customers.

Thanking affirms the customer

End the conversation by expressing appreciation for the feedback. Remember, the complaining customer is giving the Antares vending operator an opportunity to make things right instead of simply changing the service. To maintain the provider-customer relationship, it is important that you follow up on the complaints.

Ineffective handling

Some of the ineffective ways to deal with complaints are s simple apology with no follow up action, or a rejection of the complaint by a simple denial or shifting of the blame. Remember that rudeness never works.

Keep in mind that complaints in your Antares vending business will not mean the end of a business relationship; it will be a chance to renew it. The way you will handle any complaints in your Antares vending business, should convey that you care.

Should Vending Operators Upgrade to Large Size Candy Bars

If you considering upgrading to large size products for your Antares vending business, you must then commit yourself to selling only large size products. Studies have shown that if a smaller product is offered to a large product, then the success of conversion is limited. Customers would often stick with the traditional size product rather than the large size product. In order for the trade up tactic to work with candy bars in your Antares vending machine, the product must sell for at least $1. 00. There are some certain cases where price points above one dollar are required if the large size product line is to be financially beneficial.

A traditional candy bar sells for $0.75, while a large size candy bar sells for $1. 00. The product cost for a traditional candy bar is $0. 37, while the product cost for a large size candy bar is $0. 60. This means that the gross profit for a traditional candy bar is $0. 38, while that of a large size candy bar is $0. 40. If you sell large size candy in your Antares vending machine that means that you will make more profit than you would have with traditional candy bars.

Being a leader in the candy bar size upgrade process may come at a risk. If you are offering large size candy options, a competitor can easily come in behind you and offer customers the traditional products at the old price. Although most of the large size candy bars will fit into existing spirals and shelving arrangements of your Antares vending machine, some products will require adjustments. This might require you to purchase additional spirals, which can at times get costly as products don’t fit into higher count spirals. If the large size conversion is being done to minimize expenses, vendors are probably unwilling to purchase equipment or use incremental labor hours to make all the necessary adjustments.

You will also need to consider the payments made to the drivers. If they are being paid on commission rather than on an hourly rate, then you will need to pay the drivers more money to fill the spiral, since you will be upgrading to large size candy bars in your Antares vending machine.

Generally, the conversion to larger products has been favorable for candy and snack vending machine operators. As an Antares vending operator this conversion will be favorable for your business. You will be able to earn more money without having to invest in new accounts or vending machines.

Benefits of Contactless, Cashless Vending

Contactless, cashless payment options can come in many forms: plastic cards, flexible tags, mini cards or key chain fobs. This payment form only needs to be within the proximal range of the device reader for a vending machine transaction to take place. This is unlike credit cards, which must have a working magnetic strip that is properly inserted into a card reader. Contactless cards do not require direct contact or the line of site. That means that you can purchase a soda from an Antares vending machine while your contactless card remains in your purse or wallet. Here are some of the benefits of using this form of payment.

1. Increased consumer convenience: Payment media comes in different forms that are tailored to a consumer’s preference. You can easily purchase any product from Antares vending machines as well as other machines, without having to smooth out crumpled dollar bills

2. Faster transactions: the transactions are rapid. This will come in handy for someone on their way to work who wants a cup of coffee. It also will be convenient for those who have no time to sit and grab a snack.

3. Extended media life: since there is no direct contact, there is little wear to the payment media

4. Increased security of transactions: the payment media will never leave the possession of the consumer. Information exchanged via the contactless media is not account information but a fully encrypted identifier which offers more security than conventional credit cards.

Contactless, cashless vending may help the vending machine industry to catch up with the rest of the retail sector. It will give your Antares vending customers the extra convenience of quick transactions. It will also give you the operator, the benefit of reduced cash management. If you are interested in adding contactless, cashless payment options to your Antares vending machines, you must be careful of where and how you implement the new technology. Adding payment options to individual Antares machines will not be effective because a consumer who must use cash to purchase snack from one machine will most probably not use their credit card to purchase an item from an adjacent vending machine. You need to be smart in your selection of locations to increase average vending machine purchases by 15-20%.

Vending Commissions—What Good Are They?

Most vending machine operators acquire locations by offering proprietors the best deal in terms of service and commissions. Commissions are a small portion of vending machine profits that are given to the proprietor for the exclusive right to place a vending machine in the location. Most vending operators earn 3.8% return on assets (ROA). This means that the standard 7% commission tends to be a financial drain. As an Antares vending machine operator you can decide to do away with the commissions.

Doing away with commissions does not mean that the financial burdens of a struggling vending machine operator would be solved. The top 25% of all vending machine operators earn an average 22% ROA and usually pay higher commissions than the lower 75% of vending machine operators. As an Antares vending machine operator, first ensure that your anticipated profit will cover your return on assets requirements. Any expected vending machine profit beyond the ROA can be offered as commission.

With a 22% ROA, in 10 years an invested $1 million would become over $6 million! Returns this high would not last in a free economy. Instead of commissions, an Antares vending machine operator should find ways to invest their money to retain their clients, like maybe offering other incentives.

Antares vending operators can increase their share of vending machine market by offering higher commissions. An increase in commission rates can be covered by a unit price increase in vending products. Increasing vending machine prices and commission rates usually pleases proprietors who will eventually more than double their profits. By increasing the prices of your products, the sales would usually drop at first. After some time they would come up again once the customers adjust to the new prices. An increase in unit prices also means that each machine serviced will have higher revenues and profits.

Commissions are not the Achilles heel of vending machines. Instead, they are a tool that can be used by savvy Antares vending operators to increase their market share. Operators who are finding it hard to pay commission rates because of low ROA, should look at their overall management.

Vend Counters

A vend counter is a device that counts the number of sales made from a vending machine. This helps to prevent theft by employees servicing the machines. Vend counters are most common in full line vending machines like the Antares vending machines.

Some operators of vending machines that lacks vend counters compensate for this by occasionally checking the amount of cash in a machine ahead of time and then sending an employee to service the machine.

There are many types of vend counters that you can place in a vending machines. For efficiency in your vending services, vend counters are necessary in your vending machine. They are electronically programmed to maximize vendible products. It will also ensure the correct space to sales for each specific location. They usually have user friendly features.

Vend counters count the number of your Antares vending machine transactions. In this way it can keep a report of all that happens. At times you might have employees who will not give you an accurate report of the machine transactions, however if you have a vend counter, you will not need to worry about that. The employees will not manage to cheat you in any way. As the owner of the Antares vending machine, you can compare the accumulated count from the counter with receipts collected from by the employee.

There are some vending machines that can be purchased when already equipped with vend counters. That means that there is no need to install one. Unfortunately there are some dishonest individuals who disconnect vend counters, to make the vending machine appear to be making fewer sales than it really is. For your Antares vending business, you will need to take care of this.

The counter usually has a solenoid for triggering the count mechanism. The counter operation sensor functions by detecting the fly back signal that normally appears at the conclusion of the count cycle. The functioning of the vend counter is quite a process.

Vending Machine Security Enclosures

The problem that comes with vending is vending machine vandalism and theft. This is one major problem. This problem has been countered by certain security measures. As a result of this you can prevent damage, theft, wear and tear being caused to your machine. In addition to this you can also have expensive machine turnovers eliminated as well as decrease liability costs.

As you start your Antares vending business, you have the option of ordering custom built vending machines security cages that are designed to be wrapped around the machine allowing access only to the small openings at the strategic areas designed for the insertion of coins, receiving products, receiving change. These cages are available to protect either side of the machine or all six sides to include the bottom and four sides of the vending machine. It all just depends on the level of security concern. The protection of your Antares vending machine should be of utmost concern.

If you are using security enclosures for your Antares vending machine, you will have peace of mind because these are designed specifically to last the whole life of the machine. They usually have a 5mm to13mm thick polycarbonate front panel and are fitted with internal anti-tilt brackets that prevent your Antares machine from being rocked and tilted. Anti-tilt brackets can contain two wall brackets, four foot brackets and all fixings.

Vending machine enclosures fully protect the machine from vandalism and misuse. They can be better bolted from the ground, or wall (or both) depending on the location. All vending machine enclosures are coated with the appropriate two pack paint for all weather environments and can be supplied in any color. You can obtain one that will suit your Antares vending machine, since they can also be made to specification.