6 replies to this topic

[coinvestor]

Alright guys, I need some input again. I got a call from a blue collar location with about 90 employees. They are a manufacturer in our fleeting textile manufacturing industry. The problem is they have been very slow paying there bills to suppliers lately. I doubt that they will be there for more than a year or two (maybe less). I have the drink and snack machine, but would need to buy a cold food machine. I don't currently do cold food and I'm trying not to as long as I can.

What would you guys do? Take it and let it ride for as long as I can, or just leave them with their Canteen service?

Thanks for any input,

JD

[tedk]

Alright guys, I need some input again. I got a call from a blue collar location with about 90 employees. They are a manufacturer in our fleeting textile manufacturing industry. The problem is they have been very slow paying there bills to suppliers lately. I doubt that they will be there for more than a year or two (maybe less). I have the drink and snack machine, but would need to buy a cold food machine. I don't currently do cold food and I'm trying not to as long as I can.

What would you guys do? Take it and let it ride for as long as I can, or just leave them with their Canteen service?

Thanks for any input,

JD

JD
Do you move your own machines or pay someone else to move them for you?

[coinvestor]

JD
Do you move your own machines or pay someone else to move them for you?

I pay to have them moved usually.

JD

[BVI]

I would probably go for it because you never know... they might end up being there for a long time. Question - how did you find out they are slow payers? Did someone there tell you? If they did, they might also tell you if there is a plan to close the facility, and I certainly would ask if they've already volunteered information to you. I there is a plan to close, I would run away.

The reason I ask is that often, companies go into a bankruptcy that allows them to re-organize while staying in business. If this is the case, you might pass up a great account if you don't strike while the iron is hot.

[coinvestor]

I would probably go for it because you never know... they might end up being there for a long time. Question - how did you find out they are slow payers? Did someone there tell you? If they did, they might also tell you if there is a plan to close the facility, and I certainly would ask if they've already volunteered information to you. I there is a plan to close, I would run away.

The reason I ask is that often, companies go into a bankruptcy that allows them to re-organize while staying in business. If this is the case, you might pass up a great account if you don't strike while the iron is hot.

One of the employees that I know told me they are slow payers. The company has made a promise to the employees that they would be paid first before the suppliers. As a result they often go without any coffee since they didn't pay their OCS bill and sometimes the grass will be a foot tall in the front of the building. They have no plan that was discussed with the employees to shut the doors.

[tedk]

Alright guys, I need some input again. I got a call from a blue collar location with about 90 employees. They are a manufacturer in our fleeting textile manufacturing industry. The problem is they have been very slow paying there bills to suppliers lately. I doubt that they will be there for more than a year or two (maybe less). I have the drink and snack machine, but would need to buy a cold food machine. I don't currently do cold food and I'm trying not to as long as I can.

What would you guys do? Take it and let it ride for as long as I can, or just leave them with their Canteen service?

Thanks for any input,

JD

JD:
I have a friend who is plant manager at a place that has 100-150 employees and usaually works 24/7. He offered me the vending because they were very unhappy with the coffee truck. I had to give them cold food. I, like you, did not want to do cold. The place was 15 miles from my nearest account and 45 miles from my house so I decided not to take the location. The fellow they got, went in with snack and pop in Seaga combo's (which is what I had at the time) and has never given them cold food.
My point is, if you go in with snack and pop you may not have to give cold at all. If they continue to press for it see if you can find a good used one at a fair price. This will allow you to test cold food and see how it does. If it doesn't work you can sell the machine and get back all or most of your cost.

The statement: "The company has made a promise to the employees that they would be paid first before the suppliers" makes me think they are not going to be around too long. So chances are if you do give them cold food it will be a short lived test to see what it is like. You have the snack and pop available so the risk here is only the cost of moving the machines and the possibility they will get locked inside the building for a while when it closes. If you decide to go for it, make sure you have the machines clearly marked "Property of ...... Vending" and get a location agreement signed that shows they provide the space only, that you are providing the machine and service, and ownership of the machines remains with you at all times. Then tell your friend of your concerns and ask him to give you a heads up if the situation worsens. Pay close attention to what is going on there, and be prepared to get the machines out on short notice.

Ted

[BVI]

Jeremiah, let us know what you decide.