Planet Antares scam alert blog on tips & advice on various vending scams for entrepreneurs and operators.

Saturday, August 12, 2006

Trade Up Candy/Snack Marketing

Major candy companies are encouraging vending operators to upgrade to large size candy bars because it will be the next best revenue opportunity. Beverage companies were the first to offer this size upgrade in their in their product. This convinced other vending operators to upgrade from 12 ounce to 20 ounce beverages.

Major Benefits

  1. Customer benefit: The customer would benefit financially from purchasing a 20 ounce beverage because this means that he would receive 8 more ounces of product at a lower per ounce cost than if he chose to purchase a traditional 12 ounce beverage. As an Antares vending operator you can offer a larger ounce beverage from your vending machine instead of the traditional 12 ounce beverage.
  2. Vending operator benefit: in the long run the Antares vending operator would benefit from upgrading to large size bottles. Although the vending operator would realize lower gross margins, the gross dollar profit for your Antares vending business would increase.
  3. Beverage manufacture benefit: The manufacturer would benefit since margins would improve when they sold 20 ounce beverages instead of 12 ounce beverages.

Trade up marketing is a tactic that is used often, especially in the food industry. This of course is of great benefit to the vending industry. As an Antares vending operator you can choose to be part of it. This can bring in more success for your business. At many food chains, beverage sizes are increased dramatically for a small fee, allowing the consumer to get more for his money. This is the reason that the customer would benefit. In other cases, a small beverage option is completely eliminated. A good example is McDonalds which used to offer an 8 ounce beverage. This option is no longer available. Certain convenience stores no longer offer a 12 ounce coffee, but are now offering a 20 ounce coffee size. Consumers are demanding larger products at a small upgrade cost, so as an Antares vending operator you will experience success with trade up marketing. Many industries are already experiencing this same success. It has worked out quite well for the food industry so far.

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