Tuesday, September 05, 2006

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.

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