Price Point for the Large Size Candy

With the introduction of larger sized candy in your Antares vending machines, it will mean that you will need to raise the price of the candy bar. First of all assume a $1. 00 vending price and then a $. 57 blended cost on the large size candy and $.75 on its smaller counterpart with a blended cost of $.38. You will also need to consider the 6 percent commission paid to the drivers. The driver commission as a percentage of gross profit is 15 percent on the large size candy and 12 percent on the smaller size candy.

Minimum price point is needed

In order for the large size candy proposition to work in your Antares business, the product must sell for at least $1. 00. In certain instances, price points above a dollar are required if the larger size line is to be financially beneficial. Higher price points for your Antares business would be a positive move. Incremental price points of $1. 10 and $1 15 will wreak havoc on your coin mechanism, but that is all part of the vending business as we strive for greater revenues.

The operating expenses for your Antares vending business are fixed in the short term. Rent, insurance, depreciation, amortization and interest are just a few of the examples. You will need to find a way for your Antares vending machine to produce more with each route driver stop.

The introduction of large size candy in your Antares vending machines will provide you with this opportunity. This of course would not be without some few concerns. The proposition that the candy companies are promoting is almost identical to what we have heard before from the salted snack companies and the bottlers.

The conversion to the larger product has been favorable for those Antares operators who have made a commitment to change. This conversion has not been easy for everyone.

Those who choose to be the market leaders will expose themselves to the possibility of lost business as the competition solicits their accounts with the “old” program.