Planet Antares Incorporated | Planet Antares Vending | Planet Antares

A blog for people to know about how to manage and find information on vending business.

Friday, December 26, 2008

Price Point Decisions For Large Sized Candy

Planet Antares vending operators must raise the price of candy bars if they want to adapt to the introduction of large sized candy in vending machines. For example, if the vending price is $1 and $0.57 on large sized candy as blended cost and $0.75 on the smaller counterpart with blended cost of $0.38.

Apart from this, they will have to consider the commission paid to drivers which is usually 6%. As a percentage of the gross profit, this commission will come to 15% on the large candy and 12% on smaller candy.

It is a must to ensure that the product price is at least $1 for the products to perform well in terms of sale of your Planet Antares vending business. In certain cases, it may even exceed one dollar if the larger size line is to be financially profitable. As you strive for higher revenue, it may not bear a positive impact on coin mechanism but that is part of growth and expansion.

Usually, operating expenses of the Planet Antares vending operators remain fixed in the short term. These may include:

• Insurance
• Amortization
• Interest
• Depreciation

With the rising popularity of the large sized candy, Planet Antares vending operators can take advantage of the opportunity to make more money and upgrade the scale of their vending business.

Majority of the vending operators believe that the proposition promoted by the candy companies is identical to those offered by salted snack companies and bottlers. This is considered as an undesirable trait of the change in candy size and price points.

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