Brand Analysis Benefits for the Route Driver

There are a number of benefits that will come with brand analysis for the Antares operator. The operator will receive a number of benefits that he doesn’t presently receive.

Significant time saved

The driver saves time in the following ways: 1) the driver only makes one trip to the location. 2) The driver doesn’t have to pick orders from the truck if they are pre packed at the warehouse. 3) The driver doesn’t have to manually count any product at the machine level. 4) The driver doesn’t have to write anything on a route ticket.

The result of all this is lower route labor and vehicle cost percentages, since the driver will be scheduled to service more Antares vending machines.

Improved office functions

Office functions benefit as follows: 1) Route data entry functions in the office are eliminated since the data is automatically uploaded from the handheld. 2) Cash is automatically posted from the cash room by bar code. The net result here is lower office costs.

Fewer data input errors

Antares operators stand to improve their office functions in other ways as well. Such as: 1) data entry errors due to driver counting or writing errors are eliminated. 2) Accountability reports and sales analysis reports can be made available as soon as the cash is counted. 3) For the first time ever, management can directly impact the level of sales at each Antares machine by using cost effective, brand analysis reports.

The advantages here should be obvious. Most professional operators will agree that the biggest problems with existing accountability reports are the errors caused by counting or writing errors. With this system, human intervention is eliminated. It is important that these reports are available, at worst, by the next business day so that they can be acted upon in a timely manner.

Audit boxes obsolete

This new technology, such as wireless transmission will ultimately make audit boxes obsolete. There are a number of operators who will hold back on making a capital investment if they feel that the solution to the problem will be short term.

Any solution to the problem of transmitting the data, cost effectively will all depend upon some basis for capturing the data. Brand analysis will improve sales for your Antares business; this will be the largest benefit.

Wireless Communication in Vending

If you want to build your Antares vending business for future success then you would need to implement a unique data capture and delivery system that uses wireless transmission. This can be developed together with route driver carried handhelds, to deliver the data on a timely basis. This system utilizes both methods based on the needs of the accounts served. This system can come with a number of benefits for the Antares operator:

1) Improved sales based upon brand preference analysis by location, fewer sold-outs due to intelligent double –columning of best sellers, and reduced machine downtime based upon faster response to out of order calls.

2) Lower route service costs based upon scheduling machines for service only when they have sold a predetermined percentage inventory.

3) Instant cash accountability at the Antares vending machine level.

In addition, hard data regarding brand preferences at individual machine level could be profitably sold to product manufacturers. There are some operators who have tested the systems, and they had all generally agreed that a 10 percent increase in sales per machine was attainable, due mainly to the benefit of brand preference analysis. The concept is that, you will sell more products if you stock the Antares vending machine with the appropriate quantities of brands that the location has demonstrated it wants to buy.

There was less of a consensus among these operators regarding the potential savings from improved route productivity. Many professional operators have already achieved higher route averages by paying close attention to historical sales, using existing technology, and scheduling their routes accordingly. This can work well in business and industry locations with stable, predictable work forces.

The ability to provide product sales information, in real time, did not significantly improve scheduling, since these locations tend to sell at the same level, week after week.

The ability to provide Antares vending sales information in real time, in transient locations would be very beneficial. All this can happen in spite of fluctuating levels of sales. The transient locations include colleges, hospitals, hotels, airports etc. They are difficult to schedule efficiently because the location population changes day to day.

A Professional Vending Proposal

The vending business is very competitive. Good prospects for the services that vending offers are tough to find. When a salesman is finally able to schedule an appointment with a legitimate prospect, he typically shows up and sells his heart out. He has to describe the advantages that his company will offer over the competition. However, even when the salesman performance is faultless, all too often the prospect will ask for a proposal. This should not deter the salesman. Putting together a proposal for your Antares vending business is a positive and necessary step in the sales process. A professional salesman should understand the reasons why the prospect wants a written proposal and he should also welcome the benefits that will accrue to the Antares operation from a well drawn proposal. Here are some of those reasons.

An opportunity, not a setback

1) Both parties will benefit from a written document that clearly defines the rights and responsibilities of the parties to the transaction. Significant capital investments must be made, and the parties contemplate entering a long-term relationship that involves a number of other financial considerations, such as pricing, commissions and hours of service.

2) The presentation of a well drawn proposal enhances the sales process by ‘stroking’ the prospect. It essentially says that the salesman and the Antares operations business have so much to offer in terms of services over the competition.

3) A well drawn proposal also demonstrates a professional approach to solving the prospect’s problems. In fact, many professionals view their first meeting with a prospect as an intelligence gathering mission. They refuse to make an offer to the prospect until they have had an opportunity to carefully analyze the prospect’s needs.

4) A written proposal is a wonderful sales opportunity. It gives the Antares operator the ability to present, in logical order, every persuasive argument that he can dream up to book the account. Professionals understand that it is difficult to control the sales process in a verbal presentation.

The prospect keeps interrupting you with questions, and he may have a limited amount of time for a face to face verbal presentation. A written proposal, on the other hand is usually read by the prospect, in its entirety.

Vendors Purchasing Intentions

The economy remains challenging, but Antares vending operators aren’t taking a defeatist attitude. They are giving themselves the benefit of any doubts, and have aggressive purchasing intentions. Vending operators have been expressing more aggressive equipment purchasing plans over the past years. Of late, there has been an improved business climate, so Antares vending operators want to take advantage of this by offering state of the art equipment.

Newer equipment helps sales

Antares veteran operators have learned from experience that newer and better equipment traditionally results in higher sales. When it comes to purchase intentions, operators typically set goals but wait until their sales figures justify following through on purchase intentions.

Sales must justify investment

Previous surveys have indicated that operators do not always follow through on their stated purchase intentions. This goes to show that business conditions did not improve enough for operators to follow through on their purchasing intentions. The most obvious example in which 2004’s purchase intentions were not followed was in the case of handheld computers. At that time 25 percent of the operators planned to purchase new handheld computers. A report later revealed only marginal change in the percentage of operators using handheld computers in 2004.

Plans more aggressive in all segments

Purchase intentions were more aggressive in almost every equipment category in 2005. Intentions are most optimistic in the candy/snack machine segment, the machine that vending operators traditionally spend most on. Purchase intentions were higher for both new and used candy/snack Antares machines in 2005.

Intentions were also noticeably more aggressive in the cold drink business in 2005. Many Antares operators noted exceptionally strong cold drink sales in that year. Combination machines were the one segment in which operators planned to buy more used than new equipment.

Whether or not vending operators follow through on their purchasing intentions all depends on how much the business climate improves. Most economic forecasts indicate a stronger economy this year than in the previous years.

Opinion Research can be a Competitive Advantage

All vending operators at some point of time would want to know what their customers like best about the services that they are providing. As an Antares operator you will need to know specifically what you can do to keep your customers happy. By doing this your customers should be able to recommend you over one of your competitors.

Information is power, but it is good information that leads to good decisions. You will need to know a few details from your customers, such as how likely are they to stay with you in the future or what they think about a new service idea or a product that you are considering for your Antares operations. Some of this information may be readily available, but some of it lies hidden in the form of people’s opinion. Opinion research is often the only way to uncover this kind of information.

Competitive advantage

Research can help you identify opportunities for a competitive advantage and also helps you to avoid potential pitfalls. Engaging customers through research lets you test the impact of decisions before you actually make them. Before you spend a lot of money to introduce a new product, service or develop a new strategy for your Antares operations, you can see what the reaction from your key customers will be first.

Research is the critical tool that lets you listen to the most important people in your business- your customers. The success of your Antares business will depend on how well you listen and respond and how you will react in the marketplace. They might include the general public, current or former customers, potential customers, employees and other businesses. These groups are vital to your success, researching their opinions should be very important to you.

Principles of good survey questions

1. Questions should ask about first hand experiences or perceptions.
2. Questions should focus on one subject at a time.
3. Questions should use words that ensure all respondents will answer the same questions.

New Currency Payment Systems

Antares operators have given mixed reviews on how much the dollar coins are circulating back into the machines. The one thing that they have all agreed on is that consumers are spending more dollar coins than they initially did. Some have even stated that it usually takes a few months to start seeing the dollar coins come back when you have introduced a 5 dollar bill acceptance to a location.

Counterfeit coin detection improves

The Antares vending machines have a mechanism that can detect counterfeit coins. There have been cases where quarters have been pressed together to expand in size so that they can be used as dollar coins. The Antares vending machines can detect such problems.

Validators versus Changers

The cost of adding a bill acceptor to a vending machine will not be much different then simply placing a small bill changer. Antares vending machine comes with a bill changer that is usually mounted on the side of the vending machine.

Many operators still find bill changers more economical for larger locations. It is more economical to have one changer than to have a bill acceptor on every vending machine.

Antares operators will need to invest in bill Validators if they want them installed, but they will still need to make upgrades every time a new currency design is introduced.

Enhanced Par Level Management

The 5 tube MEI Cashflow Series 7000 automatically manages coin levels in the changer to optimize payout and advises the driver of par values and optimum change configurations.

Another feature in this system is “change override.” If a customer puts in a dollar for a 7 cent product and the Antares machine is low on nickels and high on dimes, it will pay out three dimes rather than a quarter and a nickel. The Antares operator has the potion of disabling this feature, if he chooses not to use it anymore.

Operators have more validator and changer options available today, with more on the way, so they need to keep abreast of new capabilities of currency payment systems to maximize sales.

Vehicle Inspections for Route Trucks

It has been estimated that the vending industry has 100,000 route delivery vehicles and drives over 120 million miles a year. So even though your main work is servicing food and beverage Antares vending machines, you are also a truck driver subject to specific state and federal regulations.

In order to ensure trucking regulations are the same state to state, the Federal Motor Carrier Act is used by every state to regulate trucks and drivers.

First of all, you will need to establish a driver qualification file for each driver you employ. The file should contain a job description; application for employment; a copy of the driver’s license; a copy of the current motor vehicle report on the driver’s driving and a copy of the medical examiner’s certificate for a physical qualifying the driver to drive a commercial motor vehicle.

Safety reporting procedures

For your Antares operations, it will be the responsibility of the driver to prepare a safety report in writing at the completion of each say’s work. This report must identify the vehicle and list any defect or deficiency discovered that can lead to the trucks mechanical break down. If no defect is discovered, the report must also indicate this. Upon completion of the report, the driver must sign the report and turn it in.

Deficiencies must be repaired

If there is any deficiency listed on the report that can affect the safe operation of the vehicle, it will; need to be repaired before the vehicle is taken out the next day. The smooth operation of the truck is vital for the running of the Antares vending business. These vehicle inspection reports have to be maintained for three months from the date the report was written.

Maintaining records regarding your vehicle inspections is very important, because if you fail to do so you can end up being fined and your trucks can also be taken off the street.

Prevention is the best medicine

The best advice is for the driver to practice defensive driving and he should also fill out the daily safety reports. On top off all, this keep in mind that an ounce of prevention is certainly better than the long arm of your state.

Promotions Work Great in Vending

Branded products are now dominant, so Antares vendors must cash in on supplier advertising. We live in a world of sales promotions. From a free toy in the bottom of a Cracker Jack box to beanie baby giveaways at ballparks. Promotions are used extensively and effectively to increase customer awareness, boost sales and edge out the competition.

The retail restaurant chain, a competitor of the Antares vending operator, has been using sales promotions effectively for years. The vending industry has already incorporated these ideas into its business landscape in some unusual, inventive and surprising ways.

Product bundling works

This sales promotion technique has recently been used by some Antares vending operations. The idea for this promotion is simple and effective. Similar to a “value meal,” the vending operator can place a sandwich and a bag of chips together in one shelf and sell them at a value based price. Antares vending operators have found various levels of usefulness and success using this promotion.

Vendors must plan like other retailers

For many operators, product bundling is not currently being utilized, but it will become part of their marketing plan in the near future. Vendors must have a plan.

Bundling to reduce shortages

Some vendors who have utilized product bundling have found success, but not as they expected. This type of program can be an effective tool to reduce shortages. You can find success in your Antares business by using bundling to sell items that are nearing their expiration date.

Product handling can be an effective tool when put in place in an organized and planned manner. The long term success will depend on the commitment of the Antares and their route drivers to use this type of promotion and pricing strategy.

The vending industry, being customer satisfaction oriented, would seem to be fertile ground for fun, unique and successful promotional programs. Antares vending operators are using effective promotional ideas. Some spend a fair amount of money on their promotions while others make do with inexpensive items such as t-shirts and hats.

The Future of Automatic Merchandising

Per capita purchasing from Antares vending machines will grow faster than overall consumer spending. The machines are becoming more reliable, and the product selection is better. This is important, because consumers appreciate the efficiency that comes with a successful transaction. People are tired of dealing with poorly trained service personnel and would prefer to do business with a machine

Technology, and the speed with which it is employed in our channel of trade, will define the winners. Route efficiency for your Antares business will increase, and product merchandising will become more scientific. In addition to this inventory will improve, and with all this, profitability will be enhanced. All this means that marginal operators will no longer be able to compete, and thus with reduced competition will come grater profitability for your Antares vending business. This scenario favors the larger operators.

All vending operators understand that big brands sell better. The reason for this is because a brand product has already been promoted, so it is quite popular with the public. For you to have a successful Antares vending business, always make sure that a large percentage of your products are branded. This will boost your sales.

The vending business is getting more scientific, and Antares operators are beginning to understand that there is a cost associated with managing too many stock keeping units (SKUs). Manufacturers are going to have to accept their responsibility in managing the number of products they offer the trade at any one time. If they do not do this then that means that the vending operator will do it for them. This is what category management is all about.

In the not too distant future, automatic merchandising will be a fully mature retail channel of trade. The vending industry should capture information about the consumer and report this information to the manufacturer. This will enable the manufacturer to understand their consumers’ buying behavior. By doing this, you will be doing what the supermarkets have been doing for some time. When this happens, Antares vending operators will be sitting on an exiting new revenue source.

Currency Handling Technologies in Vending Machines

New currency payment systems have more features to eliminate ‘exact change only’ situations. Some can even recycle bills which allows for multi vending. As currency handling technology evolves, vending operators are finding new tools to offer customers more convenient payment options.

Antares vending operators have found that giving consumers the ability to use whatever change they have on them, increases sales. These can be dimes or a twenty dollar bill.

Technology is enhancing the versatility, reliability and durability of bill acceptors and changers in Antares vending machines. There are some benefits that come with this technology, such as, reduction of consumer price resistance and at the same time wider variety of price points in the machine. This is very important for Antares vending machines because they carry product variety.

Dollar coin payout expands

Most bill acceptors accept denominations over one dollar and most pay out coins as change. A five dollar bill acceptance is a customer convenience that will help sales in your Antares business. Consumers are now getting used to putting five dollar bills in vending machines.

Fewer bill changers needed

Many Antares operators feel that higher bill denomination makes cash counting easier, since there are fewer bills to count and stack. This is all thanks to the increased capacity of the new coin changers.

Five dollar bills increase bill sorting

Five dollar bill acceptance does create the need to sort 1s and 5s. This can be easily overcome with a dual pocket coin sorter. While consumers have gotten into the habit of carrying dollar coins in their pockets, Antares operators nonetheless find it worth their while to offer dollar coin payouts to support higher denomination bill acceptance. This has created a need to continually replenish coin changers with dollar coins. Antares operators have also noted that they are carrying fewer coins to the bank than they used to.

All in all operators have given mixed reviews on how much the dollar coins are circulating back into the machines. Most also agree that consumers are spending more than they initially did.