Vending Machine Profitability Challenges

The vending machine industry needs to change with the times. The economy has experienced a good degree of growth, but the vending industry is not sharing in its prosperity due to work site downsizing, outsourcing and increased competition from non vending retailers. The cost of vending machine operations seems to be rising faster than vending machine sales and vendors’ retail price points which greatly affect the profits. Additionally vending machine prices are not keeping up with inflation rates or wholesale products costs. Vending machine operators can maintain profits if they adopt new strategies.

Raise vending machine product prices;

When you take up an Antares vending business, as an operator you will face unique challenges when it comes to price changes because vending prices are based on overall profitability which includes taxes, commissions, costs of goods, service costs and overhead. Vending operators are usually reluctant to raise prices. They need to consider the impact of the consumer price index on the price environment and consumer confidence.

Consumers recognize that retail prices are increasing; therefore they will allow the increase in the prices of your Antares vending machine products. Also consumer confidence is up due to economic improvements. Vending operators can also offer incentives such as price reduction on products which are less popular.

Cut commissions;

By reducing commissions to your Antares vending machine customers is often the easiest change with the least impact to consumers. This strategy can be used to avoid raising vending product prices.

Partner with vending machine customers

Vending machine operators need to invest in employees who will be handling your Antares vending machines, because accurate accounting is critical to determine the profitability of an account.

New technology

New technology such as those being used by Antares Corporation will result in improved efficiency and profitability.

The bottom line is that if you want to maintain vending machine profits for your Antares vending business, then you will need to increase the efficiency of your vending machine and develop good working relationships with the customers.