Influential Factors Responsible For Vending Location Profitability

The success of your Planet Antares vending business requires you to stay on top of numerous factors at the locations that spell the difference between profit and loss. The relationship can survive only when both parties derive some benefit from it and professional managers understand this. Even though this sounds easy, it is difficult to desing effective win-win relationships because by nature, business relations are adversarial in form.

The sad part is that in service industries like vending, many deals can be long term in nature. Over time, it is likely that the needs of one or both parties will change. As a Planet Antares vending operator, you need to understand that every location agreement, verbal or written, is or should be subject to renegotiation, at any time.

Just imagine the changes that may occur in the typical operator/location relationship over a period of time. The cost of some snack or soft drink can rise unexpectedly, which eans that the operator will have to increase prices. Then, the location will add a second shift and thus, require additional service hours or more equipment. It will cancel the existing second shift and unless changes are made in service hours, selling prices, comissions or vending machines, the account will not be profitable anymore.

At this stage, competitors may come along and offer lower prices, higher commissions or additional services. These problems must be identified and dealt with in due time so that the Planet Antares vending operator can remain profitable.

A lot of vending operators never solve the original problem. That is, building a realistic profit and return on investment into the terms of the original contract. Usually, the Planet Antares vending operator seems willing to give away the store without any thought to the bottom line. This happens in their haste to book the location and build the top location.

In reality, every location deserves a careful pro-frma analysis to determine the terms that can be offered in order to maintain the bottom line because location profits margins to deteriorate over time.

So, vending operators need to pay attention to the basic details of all the influential factors that can render a vending location successful or failure. After all, your vending machines and locations are two of the most critical features of your business and you must ensure their profitability.