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Handling costs are substantially lower for small spiral product
Small spirals deliver more profit than large spirals
True profit - Considering machine space required.
Small spiral products have a 2-for-1 footprint versus large spiral
products. Operators must consider the profit contribution of
two small products against each individual large spiral product
when comparing profit levels.
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Products must deliver profit based upon machine shelf space
used
A full-sized glass front merchandiser actually has 65 product positions
- 60 potential small spirals (10 per shelf, 6 shelves) and 5 gum
and mint positions. Considering only the 60 spiral product opportunities:
- Small spiral products require only one product "position," or
1.67% of the machine
- Large spiral products require two product "positions," or 3.33%
of the machine
Every snack product must deliver total profit based upon the percentage
of the machine space it requires. Due to their double space requirement,
large spiral products must generate twice the profit of small spiral
products to optimize machine profits.
Source: Vend operator/ Candy/Snack Category Profit
Analysis, Bachtelle and Associates, Spring, 1998.
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