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Coca-Cola Bottlers Japan has announced plans to introduce several thousand more vending machines featuring dynamic pricing. This innovative technology allows the prices of items to change based on demand.
According to Japan Times, the company began testing the concept in May, installing vending machines with digital price displays that can be controlled remotely. After assessing consumer response and profitability, Coca-Cola Bottlers Japan is considering a full rollout in 2024 or later.
Improved Profitability
Jiji Press noted that companies are exploring ways to increase profitability in vending machines within the beverage industry. Some strategies include price hikes and collaboration with competitors for supply and repair operations. Dynamic pricing is emerging as a critical option for beverage companies, providing potential opportunities in an increasingly competitive market.
With around 700,000 vending machines operating in the country, Coca-Cola Bottlers Japan aims to enhance profitability in its vending machine business. The dynamic pricing scheme allows for increased prices during periods of high demand and lower prices at nighttime when sales are typically low. By incorporating this strategy, the company aims to optimize revenue and meet evolving consumer preferences.
The rise of convenience stores and the declining population in Japan have posed challenges for soft drink vending machines. Research firm Inryosoken reports that the number of soft drink vending machines has decreased from 2.47 million in 2014 to 2.15 million in 2022. Additionally, labor shortages have become an industry concern. Despite these challenges, Coca-Cola Bottlers Japan remains optimistic about the future of its vending machine business.
Exploring Price Setting
Coca-Cola Bottlers Japan recognizes the various possibilities for price setting in vending machines. As they analyze and refine their dynamic pricing approach, the company aims to balance profitability and customer satisfaction. By continually examining consumer responses, they can adapt and make informed decisions regarding pricing strategies.
The introduction of dynamic pricing technology signifies a step towards the future of vending machines. Companies like Coca-Cola Bottlers Japan can respond dynamically to market fluctuations and consumer demands by leveraging AI-powered systems. As the industry evolves, dynamic pricing is expected to play a pivotal role in shaping vending machine operations.
Photo: James Yarema/Unsplash
