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Monopolizing the Vending trade


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#1 Malibu07

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Posted 14 February 2011 - 06:50 PM

Hello all, this is my first post to this forum. I have been in the vending business for 16 years. It seems once I get a great location, a company hundreds of miles away wants to run things. I got an email from such company stating they are now managing the coin operated machines for the company I have my machines in. They told me;


New or like new equipment

Beverage machines should be Energy Star Rated (mfg w/in last 3 yrs)
Snack and combo machines must be less than 5 years old
25-35% of snacks should be healthy
Vendor must provide type, model & SN (if available)


Commission

15% (payable to them) on soda, snack, and coffee, no commission on food


Is there any way I can fight this? It seems VERY unfair that a company wants to dictate what I can and cannot put into MY MACHINES! :blink: On top of that wants 15% of what is made. I don't charge much to begin with and I don't even get paid to do it. All the money made goes back into the business. Please HELP!

#2 RJT

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Posted 15 February 2011 - 03:17 PM

Hello all, this is my first post to this forum. I have been in the vending business for 16 years. It seems once I get a great location, a company hundreds of miles away wants to run things. I got an email from such company stating they are now managing the coin operated machines for the company I have my machines in. They told me;


New or like new equipment

Beverage machines should be Energy Star Rated (mfg w/in last 3 yrs)
Snack and combo machines must be less than 5 years old
25-35% of snacks should be healthy
Vendor must provide type, model & SN (if available)


Commission

15% (payable to them) on soda, snack, and coffee, no commission on food


Is there any way I can fight this? It seems VERY unfair that a company wants to dictate what I can and cannot put into MY MACHINES! :blink: On top of that wants 15% of what is made. I don't charge much to begin with and I don't even get paid to do it. All the money made goes back into the business. Please HELP!


At the end of the day vending is no different than any other business and we have to decide what makes sense and who we do business with. It would be no different if you were doing car repair, mowing lawns, etc. If you were a mechanic and a customer demands you use premium oil, oil filter, wash, wax and rotate their tires for the same price as a regular oil change then you would most likely say no.

It all depends if the account turns enough revenue for you to adjust to their demands. It has to fit what you know works for your company. Worst case scenairo is try it their way for a few months and if it is not working , explain to them the issues and if they dont work with you then pull out. ONLY do that if it makes sense to even try it....

Let us know how it goes and what you decided.


BTW: Did a vending management company take over "managing" the account or is this coming from their own corporate people?? Did you have a current contract with them??

#3 Malibu07

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Posted 15 February 2011 - 08:30 PM

At the end of the day vending is no different than any other business and we have to decide what makes sense and who we do business with. It would be no different if you were doing car repair, mowing lawns, etc. If you were a mechanic and a customer demands you use premium oil, oil filter, wash, wax and rotate their tires for the same price as a regular oil change then you would most likely say no.

It all depends if the account turns enough revenue for you to adjust to their demands. It has to fit what you know works for your company. Worst case scenairo is try it their way for a few months and if it is not working , explain to them the issues and if they dont work with you then pull out. ONLY do that if it makes sense to even try it....

Let us know how it goes and what you decided.


BTW: Did a vending management company take over "managing" the account or is this coming from their own corporate people?? Did you have a current contract with them??


No contract with them. Yes a vending management company took over managing the account, which is crazy. I mean, it's MY machine and MY stuff that I put in it and they expect me to give them 15%??? For what? The problem I have is giving them the SN number. With that, they would know which key to use to open the machines. It's like giving a stranger my bank account number. Another problem I have is they require machines to be 3-5 years old.....it's because they sell machines and know every 3-5 years new machines need to be purchased. That's why I say it's wrong for vending companies to monopolize on the vending trade.

#4 RJT

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Posted 16 February 2011 - 10:13 AM

No contract with them. Yes a vending management company took over managing the account, which is crazy. I mean, it's MY machine and MY stuff that I put in it and they expect me to give them 15%??? For what? The problem I have is giving them the SN number. With that, they would know which key to use to open the machines. It's like giving a stranger my bank account number. Another problem I have is they require machines to be 3-5 years old.....it's because they sell machines and know every 3-5 years new machines need to be purchased. That's why I say it's wrong for vending companies to monopolize on the vending trade.


I would express these concerns with the account. It probably wont do you any good but might be worth a chance.

#5 Steve Fischer

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Posted 24 February 2011 - 08:28 PM

The problem I have is giving them the SN number. With that, they would know which key to use to open the machines. It's like giving a stranger my bank account number.


Have you ever changed a lock in a vending machine? For most of them, it's one of the easiest things you can do.

#6 Ricky008

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Posted 04 September 2011 - 03:51 PM

Just ran into a similar situation myself here in CA - how did you deal with it in the end? Any advice?

#7 angel123

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Posted 09 December 2011 - 12:27 AM

Hi steve..No..I did not find it easy..It is the most hectic job i feel..Any advice on how to change the lock??

#8 RJT

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Posted 11 December 2011 - 03:41 AM

@ angel123

STOP SPAMMING the forum to get your signature line shown. You have posted in old threads, posted usless, "good info" type threads, or the "I will pass this along to my friends" ,claimed to have read my book but I know you havent because you havent bought one from me.

You are not fooling anyone with what you are doing. Go find a forum that suits your needs for advertising you bits and such. By the way this is a closed forum and the web crawlers does not pick up any info to show your information on the web.