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.