Purchasing vending machines "FACTORY DIRECT" makes more
sense than purchasing from a middleman. When purchasing factory
direct, you will get the best prices and direct answers to your questions.
You will be purchasing machines for the same factory direct price that
resellers pay. If you purchase from a reseller, you will be buying a
machine that has had a hefty markup on top of the factory
price.
Also, when comparing different vending equipment companies, make sure that the
people you are dealing with are reputable and honest. When you read
sales literature, pay attention to your initial reaction. Are
earnings claims reasonable, or do they seem "too good to be
true?" Because inflated earnings claims have been used by
unscrupulous salesmen to scam unwary investors in the past, the Federal
Trade Commission (FTC) has strong rules regarding their use. The FTC
is a federal agency that has enacted laws to protect those considering
investing their money.
Earnings claims are only a company's representation of
how much you MIGHT make. They want that number ($$$) to be as
big as possible. Even though the numbers may look good, there is no
guarantee that you will be able to duplicate their
"success". Your profits will be affected by any number of
unpredictable factors such as the economy, product cost, the amount of
traffic at your machines' locations, the number of hours-per-day and
days-per-week that your location is open, commission paid to your
location, and how well you keep your machines cleaned and stocked.
It is impossible for anyone to predict or guarantee how much any
investment will make for you.
follows the FTC's rules, and makes no earnings claims or
projections. Some vending equipment salesmen try to get around the
FTC's earnings claims rule by implying potential earnings in tables with
profit per unit on one axis and unit sales figures along the other.
They place disclaimers in fine print that say they aren't making earnings
claims but rather are only providing calculations for the convenience of
their clients. They know that when you invest your money, you are
looking for the largest return, and will tend to use the figures at the
high end of the table. Even if you are a "cautious"
investor they know that you will believe you should at least be able to
make somewhere in the middle of the table. The problem is that often
what is represented as the middle of the table is still an unrealistic,
inflated "blue-sky" projection.
In recent rulings, the FTC has stated that this type of
table is an earnings claim. Companies that use this type of
table without a formal, legal earnings disclosure are skirting on the edge
of the law. Questionable sales literature should raise a red flag
about the company that is offering it.
You will notice a lack of earnings claims in our
literature. It is not an oversight. Our machines sell
themselves. When considering which vending equipment to invest your
hard earned money in, compare them on their true merits rather than on
overly optimistic earnings claims. Also, when you are starting out,
remember you don't have to start out big. Salesmen from other
companies may try to push you to buy hundreds of machines that they know
could end up collecting dust in your garage. We are not
high-pressured, but instead recommend that you start out part-time with a
route of 30 machines. We know you will then become a believer!
When you are talking with other vending sales companies,
some may promote that the type of machines you use doesn't
affect sales, and that buying their cheap, inexpensive machines will make
you more money because you can get more locations. While having more machines seems like it should be a good thing, don't buy
into this myth.
First, someone will have to find good locations for all
those machines. Thanks to our many years in the vending business,
we'll be able to give you some good strategies if you want to locate on
your own. If you prefer to use a locating service to assist you we have good business relations with some world-class
locators that will get the job done for you. However, good
locations are easy to lose if you are using inferior equipment.
Cheap machines will not withstand the abuse that vending machines must
endure. If they start to malfunction or fall apart (and they probably will), the locations will want your machines removed because they are too much trouble for them and their patrons.
When investing, there are common sense things you can
do to protect your hard earned money: Don't get scammed by promises
of easy money. Don't be in a big hurry. Anything that is
truly a good deal today, will be there tomorrow. Don't rush into
something you have no expertise in. Start out small, figure out how
to be successful at first in a small way, then you will be able to be
successful in a big way. Thoroughly research the products and people
you will be working with.
Make sure to read our article on Why
Buy Interactive and the reprint of Vending Times article
excerpts on how interactive machines have redefined bulk vending.
Also, check out 's
operating philosophy here.
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