The industrial vending market is expected to grow to $1.4 billion by 2025, according to recent analysis by Grand View Research. Reports like these, and the vending initiatives of high-profile distributors like Fastenal, have generated excitement among other industrial distributors who want to enter the fray. They have also generated fear, as some distributors have learned the hard way that their customers will move forward with vending with or without their help.
But anticipated ROI, not emotion, should be the impetus for any new business initiative. In How to Calculate Vending ROI, published by Modern Distribution Management, 1sourcevend Founder Mark Hill highlights Fastenal’s struggle to maintain the profitability of its vending program and outlines the potential costs and returns distributors should consider before providing vending capabilities to their customers.
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