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

Saturday, September 30, 2006

Benefits of a Budget in your Vending Business

In business, a budget is generally defined as an itemized summary of estimated or intended expenditures, for a give period of time, coupled with an estimate of the sources of revenue to support the expenditures.

The real benefits

The main aim of a budget in your Antares business is to keep the company out of financial trouble. In addition to this there are many more benefits available to the business that implements budgeting. Some of the obvious benefits include goal setting, capital and debt planning, early warning of problems, early warning of opportunities, employee incentive and bonus management, contingency planning and the ability to ask the right questions when problems or opportunities arise.

The budgeting process

In an annual budget for your Antares business, you can start with a current set of financial statements (that presumably show how the business is presently performing) and then you plug in the realistic improvements that you would like to achieve during the next 12 months for each line item. As the year progresses, you must post your actual, monthly or quarterly operating results, and compare your actual performance with the amounts you budgeted for each revenue and expense line item, and each balance sheet item. After you have done all this, you can then calculate the differences. These differences are referred to as budget variances. An astute Antares operator should be able to look at the budget variances to identify and act upon any problems or opportunities.

A key benefit: extra lead time

If you’re budgeted increases in sales requires that you take on additional debt to finance the purchase of equipment, this reality will show up as soon as you have constructed your budget. It would be an added advantage to know that you will need to purchase equipment, so that you can borrow additional funds long before you actually need the Antares equipment or the money.

Professional managers will use the additional lead time to source equipment and debt at the most advantageous cost, and the best available terms. This will make him do much better than his less sophisticated competitor.

Thursday, September 28, 2006

Method of Data Transmission Based on Location

All your Antares vending machines may be equipped with a data capture device, however the decision about the method of transmission, (wireless or less expensive handheld) is based upon the characteristics and needs of the location.

Transient locations, with fluctuating sales levels and locations that involve long travel times, can obviously profit from online delivery of data. Business and industry (B & I) locations, with stable, predictable work forces, can generally function with less expensive handheld data delivery. However, if the B & I locations works occasional second shifts, or weekends, with a fluctuating work force, wireless transmission may be indicated.

Regardless of the method of transmission, the primary benefit of the system is the ability to capture and report the quantity of sales, by individual brands, in each Antares machine, without the route person having to manually count product placements by hand. It is much more expensive for the driver to manually count product placements by brand, because typically the cost of running a route is at 40 to 50 cents a minute. This can make the cost much greater than the benefit.

If you are armed with this brand preference information for your Antares operations, you can perform the same function that a merchandiser manager performs at a supermarket; i.e, stock the shelves in a manner that maximizes the profitability of the store. What they usually do is eliminate products that the location has demonstrated that they do not want to purchase and have them replaced with test products they think the location might want. Product mix is determined using space to sales analysis techniques.

Consideration should be given to enabling products to sell at uniform rates. This would require you to allocate double (or triple) columns in your Antares vending machines, for the top selling brands. This will get you increased sales and longer intervals between servicing of the accounts. This puts more money in the cash box for the cost of each service.

Since the system knows the brands and the level of sales in each Antares machine, it can predict what the route person should pull from his truck. Unnecessary double trips to each machine would then be eliminated.

On those machines equipped with wireless transmission of data, the driver doesn’t have to enter anything into his handheld if the predicted order proves accurate.

Monday, September 25, 2006

A Vending Proposal Gives Structure

A written proposal is not only a desirable in a complicated sales process like full-line vending, it is necessary. Not many years ago, it could take two full days for a sales person and a clerical person to prepare and type a 30 page proposal. Today, a proposal can be produced in matter of minutes, thanks to technology. It can be so simple that the salesperson in your Antares operations can actually prepare the proposal. Let’s examine the content of a well drawn proposal.

The cover letter

The first page should be a cover letter, typed on the company letterhead, thanking the prospect for the opportunity to submit the proposal

About the company

Write a one page description of the Antares operation, its place in the community, and the services that you offer. If you are locally owned and managed, this should be stressed. In short, discuss anything that sets you and your business apart from the competition.

The employees

Describe the people employed in your Antares operation. Describe anything that you can think of that will paint a positive portrait of the organization and its people, such as their uniforms and their name tags.

The products

Describe the products that you distribute in the commissary. This would include the quality standards that you maintain; health food programs; product rotation standards; nutritional content; signature items. If you do anything that is unique, such as brand preference analysis by location, discuss it.

The services

List and describe the services that your Antares operation is offering.

Client’s expressed needs

In this section, list all of the service and product improvements that the client hopes to achieve by changing suppliers

The proposal

In the section, describe how you intend to accomplish solving the client’s problems listed in the previous section.

Equipment maintenance

In your proposal you would need to list the specific equipment to be installed. After this, discuss how you communicate, respond to and clear service calls.

Client responsibilities

List any of the responsibilities that you expect the client to assume. For example, the client will provide all water, power and building maintenance functions.



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Wednesday, September 20, 2006

DEX Benefits to the Operator

Vending machines are manufactured as DEX-enabled and are often labeled DEX-compliant. From a sales perspective, DEX provides the Antares vending operator the ability to track column/product preferences at the point of purchase.

In order to know which products are selling, DEX data must be correlated to a planogram, or product map, to interpret column vends into product movement. Effective use of DEX data has been found to improve sales performance, reducing operating expenses and alert Antares operators to machine malfunctions.

In addition, DEX enables space-to-sales analysis for machine level column allocation optimization in vending management software. The main benefit of line item tracking is accountability and machine planogram (i.e. rotating menu of product offering) development.

DEX allows data polling

A DEX compliant Antares vending machine relies upon DEX architecture to enable vending machine polling. The vending machine usually exports its unique identification number and stored data to an external system for analysis and processing. An optional element of this data stream is the machine’s service history, including the last date the machine was serviced. Once DEX data is exchanged with a vending management system, various transaction audits can be performed. Since captured data is not accessible or editable prior to interfacing to an auxiliary, cash accountability will be accurate and complete. With DEX data, it is possible to know how much money awaits collection; such information helps simplify the detection of cash skimming and sales volume falsification.

DEX utilization will take time

Since vending machines usually have an average life of 10 years, it may take a generation of new installations to fully realize the DEX potential. DEX technology in your Antares vending machines will provide an indisputable, auditable accounting method for cash collections, units sold and product price recordings that are capable of enhancing route efficiency and improving warehouse operations.

Saturday, September 16, 2006

Steps to Follow When Carrying Out an Opinion Research

How likely would your Antares customers recommend you over one of your competitors? How likely are they to stay with you in the future? To find out all this you will need to carry out an opinion research, which will involve the following steps.

Step 1: Identify objective of research

Failure to define clear objectives for your research is often the key reason why a research project does not live up to its strategic potential.

The first question is: What is the business objective behind the research?

Research should always be designed to meet a clearly defined and agreed upon business objective. If you can’t answer questions any questions that will meet your Antares business objectives, then that will mean that you are not ready to launch a research project. Setting a clear objective ensures that each step of the process ties back to fulfilling these objectives.

Step 2: Define your audience

Customer research is only good as the people giving you their input. Defining the appropriate research participants is a critical step in making sure that the results represent the opinions and behaviors of the people you want to impact. You will need to know whether they are current customers or potential customers of your Antares operations. It is important that you know who the target audience to be surveyed is.

Step 3: What do you want them to do?

Defining what action you want customers to take is critical to designing the types of questions that they should be asked. The questions that you need to focus on the areas where you have questions about you’re your Antares operations. This can be attitudinal-what do customers think about your business. Sometimes this is behavioral-getting customers to take a desired action like purchasing more of your products.

Effective research for your Antares operations needs to clearly define in what context a respondent should be participating in the research to make sure that the feedback is in line with the business objectives you have outlined.

Once you have made the commitment to conduct a survey and have a clearly defined set of answers to your questions, then it means that it is time to settle on an approach.

Thursday, September 14, 2006

Defining Sales and Marketing Strategies in Vending

Sales and marketing strategies are no longer optional to succeed in vending. In the past, many successful vending operations mainly enjoyed growth through word of mouth referrals and luck. This will not always continue to work.

Yesterdays sales techniques don’t work any more

Just as carrying out your Antares vending operations the same old way won’t work in today’s marketplace, neither will selling the same old way. More aggressive competition in a market place with a dwindling number of potential locations necessitates a more deliberate, systematic approach to growth. Creative, hard hitting sales and marketing strategies must be in place if you are to have any chance of growing your Antares vending business.

Winners single-mindedly and relentlessly pursue the competitive advantage. We long ago reached a stage where the only business to get is the business someone else already has.

Sales and Marketing: You need to do both

To create a winning Antares vending operation, you will need to incorporate clearly defined sales and marketing functions in your company. People often confuse marketing with sales. Sales is a day to day tactical issue, marketing looks down the road and addresses how you get the word out, how you package your goods, how you identify your market and other strategic issues.

A decision to bring on a new product line in your Antares business, for instance, is part of your marketing strategy. It needs to be understood in this in this context in order to succeed. Successful sales and marketing strategies also require a good product.

Understand your customer base

Finding prospects is probably the easiest aspect of sales. There is no longer any need to buy expensive data bases and mailing lists. With your local library card, you can access numerous data bases on the internet that contain details on all potential new accounts in your market

Target the accounts you want for your Antares operations by name, then make a detailed plan for each, prioritize the opportunities and work by appointment. When you do all this you will make more vending sales.

Tuesday, September 12, 2006

Vending Purchases Made in the Improved Economy

As economic conditions slowly improve, Antares operators are making plans to offer more of the latest and most improved vending equipment. While customers are not adding workers in large numbers, most operators agree that the conditions have improved.

To secure new locations and improve customer relations in existing accounts, Antares vending operators realize that they need to offer new equipment. In the past few years, operators have had more aggressive purchasing plans than they did when economic conditions were less promising.

Operators prefer new machines

Surveys that have been conducted have revealed that more operators have been buying more vending machines, as compared to the past years. The vending industry has attracted a lot of interest because of the cash benefits that come with the business. Antares Corporation offers snack and beverage vending machines for sale. Snacks and beverages have always remained popular vend products for vendors as well as first time vending operators.

Rising interest: combo machines

In the past few years there has been a growing interest in combination machines like the Antares Refreshment Center. These machines are designed for locations not large enough a full bank of equipment. One explanation for this could be that more Antares operators are taking an aggressive look at smaller locations. Operators overwhelmingly agree that while account downsizing has slowed, locations are not re-staffing to the pre 2000 levels. Many Antares operators feel that they have no choice but to find ways to serve less populated work sites profitably.

Operators to invest in more trucks

As for purchasing plans by Antares operators in other areas, small increases were planned for route trucks and currency handling equipment. For certain purchases, the Antares operator has to be willing to invest capital in the technology that is required.

Overall, the survey reflected rising optimism about the industry’s future. Experienced Antares vending operators realize they need to continue to invest in more modern machines to meet customer expectations

Saturday, September 09, 2006

Strategies for Growth through Acquiring Business

At one point, almost every Antares operator will have an opportunity to acquire a competitor’s business. It is often possible to acquire business from a competitor at a lower cost than handling the business in-house. You will find that it is less expensive to grow by acquisition. There are some elements that are important in structuring an acquisition. Successful acquisitions usually proceed through seven defined stages:

Nondisclosure agreement Before divulging information to a potential buyer, most sellers will require the buyer to execute a nondisclosure agreement. This agreement requires the buyer to keep any information learned about the seller’s business confidential. This can be during the negotiation or even after the negotiation if the acquisition is not consummated.

Define the offering Is the seller offering to sell the capital stock in his corporation in a situation where the Antares buyer will be expected to take over all the corporation’s assets and liabilities? Even if the seller is offering to sell his operating assets to your Antares business, they should include the seller’s personal automobile or personal computer.

Financial and operating records The seller will normally be willing to produce financial and operating records to enable the Antares buyer to evaluate the worth of the offering. These should include current and prior financial statements. There should also be a complete list of all the operations, accounts and locations that gross more than 5 percent of annual sales.

Negotiation of value and terms As the Antares operator who wants to buy the business, you will need to carry out some analysis to value the business, in order to come up with a fair and viable offer for the business

The letter of intent When the parties have verbally agreed on value and terms, a letter of intent will be prepared and signed by the Antares buyer and the seller.

The due diligence In this part, the buyer is given the opportunity to examine the entire operation of the seller’s business, to assure himself that he will actually receive what the seller has represented.

The closing When all parties are satisfied, the closing agreements are drawn and the closing date is agreed upon. In addition to a purchase and sale agreement, the closing documents will include other documents.

Thursday, September 07, 2006

To Raise your Prices, Argue the Facts

Raising prices has always been a major challenge to U.S vending operators. Antares vending operators bemoan the fact that their customers expect the on site vending machines to be always a low cost alternative. The two competitors of vending, convenience stores and fast food restaurants have enjoyed hiking their prices while vending prices have trended flat.

Caught in a bind by suppliers charging more for cookies, chips or candy, Antares vending operators find themselves caught between a rock and a hard place when they come after the end consumer for commensurately higher prices. An Antares operator should have the courage to stand in there and demand higher prices even if it means loosing a few accounts.

A dual challenge

The strategically thinking vending operator will recover the accounts he looses on account of price increases. This is what you need to remember as you try to refashion yourself from a universal crowd pleaser barely making ends meet into a shrewd selector of drink and food options who understands the art of regular, rolling price hikes.

The challenge is twofold: 1) to demonstrate to the account manager that the need for a price hike is driven by the Antares vendor’s own rising costs, and 2) to show the raises are in the interest of assuring all customers of continued service excellence.

The challenge never ends

The effort among Antares operators is to navigate between the relentless penny price hikes inflicted by the bottlers and other suppliers and the touchy world of demanding more from the customers.

If you are not making any profit from a certain account, then you will be better off without the account.

When there is a need for price increases, you can send a sales/PR person to each account to explain when it will be effective. On that date, route people should post letters on the fronts of the relevant Antares vending machines, explaining the price hike as kindly but as firmly as possible. You will also need to explain the fact that in order to continue to provide good service, you must recover your own costs.

Vendors that don’t have the courage to assert themselves tend to wind up getting swallowed by bigger fishes.

Tuesday, September 05, 2006

Web Based Technology Improves Vending Operations

As internet based technology creates better external and internal communications, Antares vending operators are beginning to reap some benefits.

Computer network technology can be used to reduce paperwork and improve both internal and external communications. Vending operators have witnessed these improvements. Some have even gone a step further and implemented state of the art, network communications in their operations.

While automatic merchandising has gained a reputation for being slow to utilize new technology, a handful of operators have implemented state of the art communication networks in recent years. These operators have reported improved operating efficiencies, with further benefits on the horizon. You can implement communication networks in your Antares operations, so that you can enjoy the benefits that come with this technology.

Large operations take the lead

Most of the experimentation has been by large companies. These companies usually have multiple branch operations. Network communications are especially beneficial on a cost benefit basis to companies with high operating costs. If you have a large Antares operation, then network communications will be of great benefit to you.

Network communications, led by computer and telecommunication providers, has made significant strides in recent years, thanks largely to the Internet and the technologies it has unleashed. Vending companies that have used network communications will hasten the pace of consolidation among operating companies.

Technology supports consolidation

Virtually every vending operation that has been on the acquisition trail in recent years has implemented a network communications system. These systems are destined to play a bigger role in automatic merchandising.

While the large companies stand to gain the most from network communications, feedback indicates that the new technology will benefit any company with multiple operating facilities. These systems would be ideal for your Antares vending operations. Being an evolving technology, network computer communications will play a role in any industry where services are delivered from multiple locations. Antares vendors can learn more about this technology over the Internet.

Friday, September 01, 2006

Customer Service and Quality

There is a need for vending operators to change their operating procedures, given the more competitive environment and the fact that the industry has moved beyond its maturity phase and is actually in a decline phase.

There are ways of achieving excellence in your Antares vending operation. This can be achieved by leadership.

Your Antares business should be about managing customers for loyalty and for profits. No one should ever confuse the concept of managing customers for loyalty with the concept of managing them for profits. The only way that you can strengthen the link loyalty and profits is to manage both at the same time.

Eyeball to eyeball contact with customers is needed to build relationships. You need to understand that your Antares vending business is a relationship business and that people will buy from people they like.

In reality, the perception of quality and price/value relationships by the economic buyers of vending services is hugely influenced by personal relationships between the buyer group and the seller group.

There are different customer groups that you as an Antares vending operator will need to be cognizant with. You will need to find out what motivates them and how you can meet that customer group’s specific needs.

How much contact is enough? Customer fatigue is becoming an issue, and the only cure for customer fatigue is for you to get to the point and provide that “perceived” value. It all starts by being a good listener. It’s not what you say to them, which is important; but it’s what they say to you. Always remember this in your Antares vending business.

There are direct linkages between employee satisfaction and customer satisfaction, customer retention and employee turnover.

The demise of any business is an insidious process, and it may seem that you are just having a streak of bad luck. You will need to check on this condition, incase it happens in your business. If it remains unchecked, it will rob you of not only capital, but will leave you emotionally drained.

If such a situation occurs, there will be no need to worry because you as an Antares vending operator will have plenty of resources available to start working on creating both excellent controls and thus developing a culture of excellence.

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