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Contracts and Locators


rodney69

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Are you starting to have trouble with people paying you now?  That would be too bad since I've seen all good reviews of your service.  If this is happening, it's a shame that some vendors continue to keep reminding us all how cheap they are and that this isn't generally an industry known for spending money.  I do hope that this isn't a warning of the future issues you might have as you grow your business.  I have wondered how good the pay rate was with your customers not having to invest anything prior to receiving a location. 

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I hope people are paying.  I don't have a lot of money, so to not have to pay until the box or machine has been placed is a tremendous benefit to me, so I hope other people who are too sorry to pay for services provided to ruin it for the rest of us that are honest business people

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So we are having some issues, but nothing that will stop us from continuing. I won't let a few ruin the needs of the many or the needs of the industry. I will however start to enforce the contract and if we're not paid, we will make an example out of them. Actually, I will hire someone else to do it, because I'm to nice to. I'll hire a collection agency or something like that. 

It's just as much our fault as the others. We tried to make it easy and get all locations in a short time without stopping at 5. Both times we've had issues, we've gone over the amount that we have found as a safety net (5 locations or 10 boxes) and just tried helping the vendor.

 

The biggest part is in our contract it says that the vendor has 2 days to install and 2 days to pay. If you don't install your machine with in 2 days, you still owe the money because we are not technically responsible for the locations after 2 days as also stated in the contract.

People are starting to take 3, 5, or even 7 days to install and won't pay us till they install. It's not our fault that they aren't installed as agreed. 

 

The reason we do this is after 2-3 days, managers get busy, forget, another vendor comes in, or any other reason that as a vendor myself has had issues with! So we put a cap on it because that's the limits that we are comfortable with!

 

Also, when you contract us for a number of machines, you can't just decide all of a sudden that vending isn't for you! The bill is due no matter what!  In the most recent case, after a week of not installing the machines, or calling the locations like instructed, they went out and said the area's were bad, or the owners were under the understanding it was something else....... and so on. First, if you give us a zip code, we find locations there. If it's a bad area, don't give us the zip code! LOL! That's why we search by  zips. 

 

Anyways, I could go on, but the idea isn't necessarily about the money. It's about the contracts. If someone signs a contract, it is a legal and binding contract. If a person doesn't like whats in there, then you go over it, discuss it and if both parties agree, then you modify it and initial it. This industry is like any other business.

 

In the future, I won't mess with collecting myself, I don't have time and I have to big of a heart to hold someone to it. What I learned in business over the years, is that you lose money badly if it becomes aware that you have a soft spot! So, that's why we will start to hire that part out and add the fees on the end if we aren't paid.

 

So, the bottom line is this: We won't stop offering the service by any means. 99.9% are great! The happiness that we create, and the friends along the way are more than worth it to me to continue. We're even looking into starting up a full line locating service with in the next year that will be similar to what we do now, no money upfront! I just have to hone it in so that I don't lose on that. Losing a few hundred dollars is way different than thousands! I pay my staff and they are responsible for the relocates if they don't go in or some other reasons, where I get into trouble is when we have to relocate due to how much it makes. I pay for that to be relocated! So that's why our standards are so high on what we give the customers.

 

We do use a persons wish list, but no guarantees on the vendors list if it doesn't fit in our criteria.

 

This is way more of an answer than needed, I went off on a tangent I think. Sorry about that. I take it personally when I get taken advantage of or something goes wrong on either side. We're here to help.

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I have a question, I live in thee heart of the Amish community and was curious if a road side vending would be profitable?

I have no idea on that. That would be interesting to find out. I think anything that fills a need is worth trying.

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Wonder what Harrison Ford would have done with a single head machine in Amish Country?  

 

Maybe would have made a good locator?  Locating (a fist) HIS WAY.  Oh "sweet" revenge from "Ohio"

 

Sorry to get off topic Rodney, but just couldn't resist.

 

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Wonder what Harrison Ford would have done with a single head machine in Amish Country?  

 

Maybe would have made a good locator?  Locating (a fist) HIS WAY.  Oh "sweet" revenge from "Ohio"

 

Sorry to get off topic Rodney, but just couldn't resist.

 

 

Doesn't bother me a bit! It's a forum, I'm not a hardliner to that. I was just making a statement and letting people know they need to read contracts and adhere to them. Nothing major. It was bound to start happening sooner or later. Either the customer takes a chance or the other way around. Vending needs a change on how things get done on the locating side. That's what I'm going to do for as long as I can do it.  I enjoy helping others.

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I think you should pay 100% up front minus the number of locations you've bought and paid for in the past.  After your 100th location, you've earned the right for no money down.   :)

 

Rodney, I think you're getting to the point (or pretty close) that you've earned the reputation to demand that 100% up front.  And if people don't want to pay it they can go with Eddie, Locators R Us, First Choice or whoever else and roll the dice.  

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It is! I just believe in it that way. Most people that have used other locators have had issues. The only time it's bit me is when I don't stick to my own rules. That's where I get into trouble! 

Other than that it works great. I just need to stick to my 2 day policy and no leeway! 

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  • 5 weeks later...

It is! I just believe in it that way. Most people that have used other locators have had issues. The only time it's bit me is when I don't stick to my own rules. That's where I get into trouble! 

Other than that it works great. I just need to stick to my 2 day policy and no leeway! 

I think you have found a system that works for you. That is what is important. It looks like you found ways to limit your exposure, by giving them 2 days to install and only locating 5 before requesting payment. You don't need to change your system.

 

Having a good heart is great but you also have to make a living. Stick to your guidelines and you will be fine.

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I think you should pay 100% up front minus the number of locations you've bought and paid for in the past. After your 100th location, you've earned the right for no money down. :)

Rodney, I think you're getting to the point (or pretty close) that you've earned the reputation to demand that 100% up front. And if people don't want to pay it they can go with Eddie, Locators R Us, First Choice or whoever else and roll the dice.

Especially with Rodney's reputation, I'd say it's reasonable to pay up front.

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I appreciate it guys, but I won't be changing anything any time in the near future. I'll be taken care of one way or another. We've gotten most of the kinks worked out. As long as I stay to my guidelines that I have set for myself, we don't have any issues. 

 

I truly am glad that everyone is happy with our services. 

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