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Friday, May 08, 2009

Planet Antares Tips For Value Pricing

With the help of new management tools such as handhelds and Plano grams, Planet Antares vending operators as well as other operators get the means to track product turns with minimal extra labor. As a result, some vending operators are revising their product pricing strategies.

Since a long time, Planet Antares vending operators have complained that they are unable to raise vending prices to the same level as the retail channels. Generally, vending prices are based on competition level and customer contracts. These are not determined on the basis of customer needs. Most vending operators would agree that a more specific pricing strategy would improve sales and profits. Still historically, few operators have possessed the resources to monitor results in a manner that would provide them the necessary information to do this.

Recently, a vending operator named Roger Monnin developed an academic theory. He argues that by discounting secondary products, vending operators can improve customer choices and enhance customer satisfaction.

The savings should not be passed on to the customers so that you can keep the pricing simple and increase your Planet Antares vending business bottom line. The price of certain items can be lowered and you can still produce a gross margin similar or higher than the branded items.

Your Planet Antares vending machines should be able to draw attention. If the snacks are priced at 25 cents, you will see that customers stock up on these items at the end of the day and take them home. The ‘take out’ customer presents a huge opportunity in the vending industry. If Planet Antares vending operators support secondary suppliers, they would lessen their dependence on big manufacturers.

The current economic slowdown has provided a good time for planet Antares vending operators to experiment with value pricing. The reasons for this include:

• Consumers are more price conscious, and are paying more attention to special offers.
• Location sales have decreased because of downsizing, making it an opportune time to buy less from established suppliers.

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