Jaijai Posted January 2, 2015 Share Posted January 2, 2015 Hi guys! I've been lurking around the forums for a few months, and I've finally decided to start building up a vending route. I read through the pinned threads, but still have a couple questions--for one, do any of you write up a contract for the store you're setting up in? And do you pay the person whose space you're renting in person, or through a different method? As far taxes go, did you register your business as an llc or did you use an alternative business type? I'm pretty new to this, so advice is appreciated! Link to comment Share on other sites More sharing options...
shepherdsflock Posted January 5, 2015 Share Posted January 5, 2015 I write checks and mail them to most of my locations; but I have a few that want to be paid at time of service and I count out the quarters and give them their share. My business is a sole proprietorship; though I'm considering a large expansion this year and if I do that I will likely make the business an llc or S corp. I do not have contracts with any locations. Link to comment Share on other sites More sharing options...
GagesVending Posted January 5, 2015 Share Posted January 5, 2015 You're wasting your time with contracts for bulk vending, unless it's a huge account. Since you're just getting started, you likely won't have any big accounts for awhile. I always count out the quarters on the spot and pay them with a receipt stating total sales, commission rate and their share amount. If it's a location that has competition, I always describe on the receipt using easy terminology as to which machines are mine (blue toy vending machines, etc). If the location gets upset because of not getting paid by another vendor, you can prove with your sales book that you paid to stand a better chance of staying in. Link to comment Share on other sites More sharing options...
moondog Posted January 5, 2015 Share Posted January 5, 2015 Hi guys! I've been lurking around the forums for a few months, and I've finally decided to start building up a vending route. I read through the pinned threads, but still have a couple questions--for one, do any of you write up a contract for the store you're setting up in? And do you pay the person whose space you're renting in person, or through a different method? As far taxes go, did you register your business as an llc or did you use an alternative business type? I'm pretty new to this, so advice is appreciated! As a start up stick with Sole Proprietor Status and download a Schedule C business tax form so you'll understand the deductions ahead of time. For bulk vending I would have some stickers made with your name on them that adhere to the inside of the globes so you can prove that these are your machines (they do sometimes tend to wander) I doubt you'd need any contracts for bulk vending. Link to comment Share on other sites More sharing options...
rodney69 Posted January 5, 2015 Share Posted January 5, 2015 I don't use contracts on vending. Even if you did, it would cost more to enforce it than it's worth, then just a head ache! I also am a Sole Proprietor and at some point will file an llc. Not yet though. Link to comment Share on other sites More sharing options...
Dmkraz Posted January 6, 2015 Share Posted January 6, 2015 I think getting hung up on the word contract is incorrect. Sure, a real contract is not useful in bulk. But a Commission Agreement or a Vending Agreement or anything similar has value in my opinion. Signed by both parties. It spells out things like the commission, who owns the machines, etc. I've never tested it, but I believe it will help resolve an honest disagreement and may even cause the other party to back down in a difficult situation. The way I look at it I'm running a small business here - paperwork should be in order. Link to comment Share on other sites More sharing options...
Rick Posted January 6, 2015 Share Posted January 6, 2015 I think getting hung up on the word contract is incorrect. Sure, a real contract is not useful in bulk. But a Commission Agreement or a Vending Agreement or anything similar has value in my opinion. Signed by both parties. It spells out things like the commission, who owns the machines, etc. I've never tested it, but I believe it will help resolve an honest disagreement and may even cause the other party to back down in a difficult situation. The way I look at it I'm running a small business here - paperwork should be in order. Smart. I couldn't agree more. At least a Commission Agreement or Service Agreement is a clean, professional way to go about your business. Link to comment Share on other sites More sharing options...
Makes Cents Posted January 6, 2015 Share Posted January 6, 2015 The idea of 'no contract' is just a sales tactic used when locating because it removes any hesitancy the business owner may have based on fear of signing up and not being able to get out of it. That being said just because theres no original paperwork dosent mean you have no contract, you have a verbal contract and when you pay commission and get signatures on payment recipes then you have a document verifying that contract every time you service. Link to comment Share on other sites More sharing options...
musser Posted January 6, 2015 Share Posted January 6, 2015 A lot of people use "placement " agreements basically just a short firm that says the machines are yours and you are paying rent for the space they take up. Some have teeth ( like service vending) some don't. They are handy when a location closed and you are trying to get machines back and dealing with a bank or realestate company. Banks and real estate agency's are a pain. I have also shown up at auctions to save machines. You need to have unique identifiers on your machines too. Link to comment Share on other sites More sharing options...
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