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.