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Vending Business Information, Issue #023 -- Niche Markets
July 02, 2011

Niche Markets

Dictionary.com defines a niche market as a specialized and profitable part of a commercial market; a narrowly targeted market. Why should you be interested in a niche market? (Money)

Snack food is the business we are talking about at vending-business-information.com and one of the niche markets of snack foods is the snack box industry.

In the vending industry the full line vending companies are the mainstream niche. When competing in the main stream niche prices are commonly lower because of the volume of product moved and the large base of competition one faces.

How Does The Snack Box Industry Fit In?

The snack box industry is a niche market of the vending business. The accounts are smaller and the large full service vending company is not interested in them because they do not feel there is sufficient volume to go after these accounts.

In a narrow niche market such as the snack box industry prices for products are normally held at a higher price than at the volume accounts that the full service vendor is going after.

The narrow demographics (small business) the snack box operator is looking to invest in have a start up cost that is minuscule when compared to the full line vendorís start up cost. This small amount of capital that is needed to start a snack box business is the reason many of us choose the business.

Pricing Your Product

When a snack box operator begins to understand the value s/he provides they begin to understand that competing with the full line vendor with price is not something they should be concerned with. The snack box operator is more like a convenience store, which holds their price higher.

Remember the full line vendor is not interested in your accounts and that makes it a niche market of the vending industry. Niche markets normally receive higher prices for their product.

In Closing

My opinion is that the full line vendor could be the niche market of the snack box industry when you look at government statistics small business employs more of the work force than large business.

There is a huge niche market for Honor Snack Box operators and the operators should hold their prices a little higher because of the niche market they serve.

Iím going to start a new section in the newsletter today and that is to welcome all new comers to the Snack Box Directory.

This weeks newest member is:

Mike Anderson, owner of Snack In the Box out of Elkhart IN.

Drop Mike and his wife a line and welcome them to our community.

PS When ordering honor snack boxes enter (4th of July) in the coupon and promotions block at check out for a special price that ends Tuesday July 5th.

Vending Business Information

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