Need For Cost Cutting In Vending Business

The simple equation used for arriving at profits is by deducting expenses incurred from revenue generated. This is no doubt a simple equation to look at but when it comes to practical implementation part, its quite challenging. Since, a healthy profit margin ensures quick growth and survival in the long run. This does not mean that operators can cut down or avoid essential expenses. An established business will be able to withstand all the tough times in the business.

Modern technology also comes handy in such a situation. Automated vending is most useful in cutting down unnecessary costs. How does this work? Automated vending machines provide the operator with a complete control over inventory thus minimize stock loss and wastage. Besides this, this system also uses less storage space, prevents damage of goods and thereby brings down inventory carrying costs. Planet Antares vending machines are equipped with modern circuitry to enable operators provide unmatched features to customers.

The first and foremost step for increasing profits is to identify avoidable expenses. These can be arrived at by carefully jotting down business expenses, keeping a track of monthly expenses and close monitoring of them in order reduce maintenance costs/ product costs. Next most important thing would be purchase of new vending machine. This would increase performance efficiency and also reduces your maintenance cost. If possible operators should try to resolve smaller errors by themselves by following the service manuals. This can keep a check on overhead expenses.

Care should also be taken while handling inventory. Operator should try and buy stock in bulk because this helps them in procuring more quantity at lower per unit cost. Besides all these things operators can reduce costs by the following methods:

• Increase sales: An increased sale generates more revenue that can compensate your costs.

• Operate in new and untapped markets: Try to identify markets where no or few competitors exist. If you are a first entrant in the market, you stand more chances of milking the market.

• Try to introduce new products: Customers always have fancy for new products. So try to make use of this and introduce new/high demand products whenever possible.

• Use new technology: Usage of vending software is another way of cutting down costs. Office Deli is one of the unique innovations which enable multiple types of vending machines to be installed together on common circuitry.

These methods if tried out can increase your profit margins and thus reduce costs. You can also get in touch with support staff of Planet Antares who guides vending operators with tips and tricks to reduce costs and maximizing profits.

Latest Technology In Vending Industry

Advances in science and technology has no doubted made our lives a lot easier. Vending machines are also a part of such revolution. Vending machines which were used to vend selected products in the beginning are now being use to vend almost every product. Technology has made this industry all the more profitable. Thus more and more operators are keen in taking up this business. There are few operators who are even willing to invest in latest technologies like Global Positioning. This is a satellite based monitoring system that can help you by providing updated information about your route driver, his vehicle, number of stops made during the day and similar information.

However it is always advisable to make a careful move before using any software. Operator needs to do lot of ground work which would help him in deciding whether it is worth investing in that particular software or not.

GPS system can be broadly classified into two kinds:

• Active system: In this system data is submitted using cellular telemetry to the main office or website where the subscribing company can view its route driver’s activity in real time.

• Passive system: In this system data is not transmitted directly. It is stored for retrieval and uploaded in the main computer as soon as the vehicle returns from its vending route trip. You also have a two way tracking system that makes use of low orbit satellites and allows communication between driver and manager.

GPS saves fuel for the operator by monitoring every moment of the vehicle and thus makes sure that the vehicle is not misused. Some of the other benefits of this system are its quick response time, better customer relations, improved employee accountability and reduced wear and tear of the machine. Besides the benefits mentioned above, there are several other merits that make it worth investing in GPS system.

So if you are looking at establishing yourself in this billion dollar industry, then make use of latest technology available for enhancing your performance efficiency and thereby your profits. To understand about the technology and other solutions, get in touch with the planet Antares staff who can advise you and help you find the best solutions in the vending industry.

Features of Planet Antares

Planet Antares is the largest and the most reliable vending machines manufacturer in the industry. Since its inception in 1986, the company has never looked back and has worked always to create something new.

Vending, is one business that can sustain on its own once started on a thriving platform. It provides you opportunities and else all depends on you how you make the best out of that opportunity. If you provide better services and better products you will definitely generate lucrative revenues.

Planet Antares has invented some of the most excellent machines meeting the requirements of the customers and distributors. It has invented many hassle free vending machines for smoother functioning and better productivity.

Planet Antares is the only vending machine manufacturer that holds the only Patent Pending application for ‘Office Deli’ with the United States Patent and Trademark Office because of the fact that it is one of a kind machine. This machine consists of multiple machines that can store drinks and snacks both. Both these machines have been connected to a same circuit board making it an efficient machine that requires lesser space.

With such a vast experience in the vending business that spreads over more than 21 years, Planet Antares has provided the best services to one and to all. It has not left any stone unturned to provide total satisfaction to its customers and distributors in terms of product and services.

Planet Antares offers time to time guidance and support to its distributors for the expansion and establishment of their vending business. It supports them in acquiring their preferred location and assist them in purchasing products at reduce prices from some of the best wholesalers. And it even gives additional benefits to its old distributors like exclusive re-order pricing on new ‘Office Delis’.

Since machines manufactured by Planet Antares are convenient to use, high in productivity, equipped with the latest and the newest technology, your business is bound to get beneficial income in a short span of time.

Planogram Design in Vending Machine

Vending is undoubtedly most profitable business. But success can be gained without hard work. In order to become successful vending operator, a lot of planning and strategic implementation of plans is required.

Usually vending operators do a lot of market research before arriving at the product they would like to vend in their machine. Category management has proved to be highly beneficial in this regard. This is designed to enable you to get benefited by the market research while choosing products for your machine. Planogram can be designed in three steps:

• By identifying product categories

• Allocating space to each product category.

• Segregating specific products under each category

Once all items are broadly classified, they need to be further divided into smaller categories. The lower the number of categories, the easier it would be to design a planogram. On the contrary, the more the number of categories, the greater would be the variety in planogram.

Post categorisation, you also need to allocate space in your vending machine. At least one facing should be available for each category. The number of categories will also depend on the category sales and how well these products fit in your shelf.

Another important aspect is product selection and for this you need to consider the below:

• Core products: These are the products which are always in demand. 20% of product mix offered in vending machine usually represents its core products.

• Cycle products: These are filled in each machine during menu cycle.

• Choice products: Few items are offered in one particular location.

Separate planograms are created by vending operators for each location. This design allows vending operators to have complete control over the products they would like to stock in their vending machine. It is advisable for vending operators to make use of latest technology for ensuring smooth sales and thus incur stable revenue.

Quality Control-Key To Successful Vending

It quite natural for most of us to get motivated and take up vending business after hearing so many success stories. Vending business is no doubt a gate way to financial stability and individual prosperity. It has been observed that vending industry has witnessed drastic growth in the last few years. The main reason for this tremendous growth is change in lifestyle and food habits of individuals.

Experts predict that this growth is only going to continue in times to come. Careful planning and strategically designed approach is sure to help you in reaping substantial profits from this business. The main factor that would influence the success of this business is quality of products you stock in your machine.

Irrespective of what operators have to offer, customers only look for best quality products. They will not only get disappointed but also spread bad reputation if standard products are not offered. Therefore the most important step an operator need to take up after installation of his vending machine is to stock it with best quality products.

Vending machines need to be stocked with quality products at all times. If you compromise on the quality, you will lose repeat customers and also good will among the market. Since word of mouth spreads faster than anything else, this is going to drastically affect your sales and hence your profits.

Few tips on maintaining quality in vending machine:

• Always buy new vending machines of reputed brands from established companies like Planet Antares.

• Service your machine regularly following the service manual.

• Try to vend branded products in your machine as their manufacturers comply to strict quality control norms during their production.

• Keep your vending machine and its surroundings clean. Hygiene is very important especially if you are vending food products.

• Check for expiry dates and replace stocks that have gone pass their expiry dates.

• In case of any breakages, contact manufacturing company for taking up necessary repairs.

• Avoid purchasing of used and refurbished machines as they are more prone to malfunctions and break downs.

These tips can help you in offering quality products to your customers at all times. Serving customers with quality food products will not only generate repeat business but also boost up your sales and create an identity for you in the market.