Costs of Distributing Milk through Vending Machines and by Retail and Wholesale Routes, Martinsburg, W. Va

Excerpts from the report Introduction: This study of the costs of operating vending machine routes was made concurrently with work carried on by West Virginia University and the Marketing Research Division, Agricultural Marketing Service to determine the impact on total milk consumption of introducing milk vending into a market. The study is a part of a broad program of research intended to reduce costs of marketing farm products. This report describes the operations and compares the costs of milk distribution by vending machine, home delivery, and wholesale routes, when vending is carried on as a marginal method of distribution that complements rather than competes with wholesale and retail route distribution. It is based on observations made of delivery operations and costs obtained from three milk handlers and one specialized vending company operating in and around Martinsburg, W. Va. The objective of this report is to present both the physical and monetary costs involved in milk vending that would serve as guides in determining the feasibility of instituting vending operations under similar circumstances. A secondary objective is to indicate the cost of vending relative to the costs of the distribution system in that market.