Vending is an ideal vehicle for VMI, offering both distributors and their customers many benefits. By adhering to the following vending-contract best practices, distributors can get vending programs off on the right foot and assure their long-term profitability.
- Realize that customers don’t need to pay for machines for you to achieve ROI. Approaching vending as a value-added service has tremendous profit potential, helping you to greatly increase your share of customer spend. 1sourcevend’s powerful yet affordable machines make it easy to achieve ROI. If you can secure less than $250 in new customer business (profit) each month, you can more than justify the cost of placing a machine. Contact us to learn how.
- Be flexible but clear. Will inventory stocked in the machines be consigned? If so, how often will the customer be billed for vended items? How quickly will they be expected to pay? To answer questions like these, sit down with each customer to learn about their unique needs, then accommodate them as closely as you can. By working out these details in advance, you can avoid assumptions and misunderstandings down the road. (The VMI software included with 1sourcevend machines is flexible enough to accommodate a variety of customer preferences. Request a demo to see it in action.)
- Don’t be too controlling. End-users who agree to have a vending machine placed in their facility are looking for more inventory control, not less. Yet some distributors lock customers into contracts that control the types or even brands of products to be stocked in machines. Instead, look at the big picture as you set agreement terms. Remember that so long as customers spend enough overall to justify your investment – through the vending program, spot buys or otherwise – how they do so doesn’t really matter.
- Recognize the power of what you’re offering. Distributors we work with are often surprised by how much new business their customers are willing to commit to in exchange for access to a vending machine and VMI capabilities. The benefits of vending are so compelling for users that they are usually more than happy to agree to move over some of their spend, so a lengthy contract or lawyer’s involvement are typically not required to keep them in compliance.
- Strike while the iron’s hot. Once you’re set up to offer vending to your customers, train sales reps to proactively let customers know about your program. As reps discuss vending’s benefits, encourage them to pay attention to which benefits resonate most with customers. In our experience, customers at some point will experience a “lightbulb moment” when they realize just how powerful vending-powered inventory control can be. That’s the perfect time to shoot for the stars in terms of asking for additional spend. If you get pushback, you can always settle for less.
Contact us today to get started offering this value-added service to your customers.