Rising Costs Of Running A Vending Business

Planet Antares vending operators have raised their prices in some product categories, but the price increases are not enough to offset the losses in pre-location sales as well as machine placements.

Usually, the price gains are only a few cents on average. This reflects selective increases on an account basis as opposed to “across the board” increases. Retail vend prices took low percentage point increases in some of the major categories.

In other sectors as well, the operating costs have increased. There has definitely been an increase in product pricing, but at the same time there has also been an increase in fuel. Vending operators have suffered a double assault with rising prices because besides raising their own operating costs, these increases also hurt consumers’ disposable incomes, which have made people reluctant to spend on refreshments.

Moreover, the currency upgrades continue to add costs. In 2003, the government introduced a new design for the $20 bill. Upgrades of bill changers and validators continued at certain percentage points. Planet Antares vending operators viewed higher denomination as a way to support higher product prices. It also necessitated dollar coin payout, which in turn required more 4 and 5 tube coin changers.

Historically, rising operating costs drive market share to both the extra-large and small operators. The larger vending operators have the financial resources to meet rising costs and offer a vast range of products and services to customers. The small operators enjoy the advantage of low overhead.

Your ability to invest in new technologies that offer new customer benefits can also be limited by suppressed revenues. Convenience stores and other sectors have already introduced more cashless options and broadband wireless internet connectivity to allure customers. In this competition, vending operators fall behind them in offering new technology to customers.

There has been no significant change in the percentage of vending operators that are using DEX (digital exchange) handheld computers for enabling more accurate cash accounting and the ability to match selections to account preferences based on line item sales.