Value Pricing In Planet Antares Vending Business

The Planet Antares vending operator has now become empowered to track product turns with minimal labor with the help of management tools such as handheld devices and planograms. As a result, some of the operators are evaluating their pricing strategies.

Since a long time, Planet Antares vending operators have complained about not being able to raise prices to the same level as other retail channels. Generally, vending prices are determined by competition and by consumer contracts, not consumer needs. To improve profits as well as sales, a more scientific pricing strategy will be required. In the past, only a few operators have possessed the resources to track results in a manner that would provide them with the necessary information to do this.

Several theories have evolved ways to improve product pricing. One theory states that by discounting secondary products, operators can improve customer choices and they enhance customer satisfaction. It also states that if managers considered the suggestion, it would result in higher profitability.

Planet Antares vending operators are of the view that simplicity continues to be important in pricing, in terms of driver execution and sales accountability. They think that the benefits derived by strategic planning would be minimal in relation to the risks associated with more complicated pricing strategies.

In the current economic situation, it is a good time to experiment with value pricing due to many reason, such as:

1) Greater price consciousness among customer who pay a lot of attention to special offers.

2) Decline in location sales due to downsizing, making it the ideal time for buying less from established suppliers.