Recently, we talked with J Supply Company about their success with implementing our industrial vending and inventory control software solutions. You can read the full case study to hear how they grew customer spend. One thing that really jumped out at us was that J Supply had been reluctant to offer vending solutions to their customers – partly out of fear.
The truth is, there are many independent distributors who feel the same way. Vending can seem like a big risk. But the benefits of vending far outweigh the risks. Incorporating vending into your business plan for 2019 and beyond will help you stay ahead of the competition.
Here are five reasons why 2019 is the year for distributors to embrace vending as a strategy for growth.
- Implementing vending is easy. Many other vending providers have complex software that is difficult to learn and hard to implement. Our VMI software is powerful and easy to set up and use. We can have customers up and running in a matter of hours.
- The cost of technology is falling. Cloud-based technology has become an equalizer between small and mid-sized distributors and larger companies, driving down costs and making it easer for independent distributors to compete and provide the experience customers are looking for.
- Vending will increase customer retention. Vending programs are a proven example of an effective customer retention strategy. Distributors who are proactive about offering vending to customers avoid the situation of walking into a customer to find a competitor’s machine already installed. Once vending machines are in place, they also defend against competitors hoping to gain a foothold in the account.
- Vending offers critical tax benefits. The recently passed Tax Cuts and Jobs Act (TCJA) doubled the amount that businesses can write off for equipment purchases, including vending machines. This helps businesses reduce their taxable income in the year they purchase equipment, offsetting some of the cost. (Talk to your CPA.)
- Vending improves efficiencies for distributors and customers. Vendor-managed inventory programs, especially those that include vending, can save end-users time and money by reducing carrying costs and safeguarding against stock-outs, all while providing distributors with improved efficiencies and greater customer security.
In 2019, distributors must embrace vending as a strategy for growth or risk getting left behind. J Supply Sales Team Leader David Woodard summed this up best when he said: “Working with 1sourcevend has assured me that there’s nothing to be afraid of, and I was very afraid of vending.”
Give us a call today at 901-345-6011 to learn more about how 1sourcevend takes the fear out of vending. Contact us today.