Since their inception a little over a decade ago, micro markets have grown in popularity among operators and customers alike. The grab-n-go approach to offering food and beverages for employees fits the current demands on the workforce to be more productive, and operators are able to sell more products without the service issues that come with vending equipment. Micro markets really are a win-win.
But sometimes customers are willing to subsidize the cost of items. Such a request might surprise some operators, leaving them wondering how to implement that sort of strategy for a customer. Here’s how to go about implementing a subsidized pricing plan.
How to Implement a Subsidized Pricing Plan in Your Micro Market
Before we discuss how to implement a subsidized pricing strategy, it’s important to understand why a customer might ask for it in the first place. Knowing the reasoning behind the request will help you fully understand their needs as a customer so you can provide a more customized service experience for them.
Why Subsidize Pricing in a Micro Market?
1. Internal Budget That Supports Efficiency Efforts
Some companies have a special internal budget they use to help improve productivity and efficiency. This area of spend goes towards efforts that keep employees on site throughout the workday. Providing access to food and beverage options at low prices prevents employees from leaving the office.
2. To Lower the Costs of Healthy/Fresh Foods
Consumers desire healthier items these days, but those products are often more expensive than traditional snacks. Some companies will pay an operator a percentage of the costs for items such as salads, fresh foods as part of a greater wellness plan for their employees.
Steps for Implementing Subsidized Pricing in a Micro Market
1. Determine the Subsidy Rate
Find out what percentage the customer is wanting to pay towards the product. Keep in mind that some companies might even want to pay 100% of the cost as a perk for their employees.
2. Set Your Pricing
Once a percentage is determined, set the correct pricing in your micro market kiosks to reflect the subsidy. That way when customers purchase items they can see that they’re purchasing them at a lower cost.
3. Bill Location
At the end of each month you can generate a sales report from the kiosk Vend Management Service VMS to bill the location monthly and provide them with a detailed report.
Vend Purchase Group is a purchasing cooperative that helps vending operators receive rebates on purchases from authorized distributors. Contact us to learn more.