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location purchasing their own machines


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Just randomly, I'm thinking about why locations, once they see a few service cycles, don't just buy their own machine. They can see it's making money, the return on investment would be very long, and it's not a huge deal buying product. Anyone got an idea why? I'm just trying to have a good idea in case I can persuade someone to not kick me out for this reason in the future..

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But if they bought used, it would be the same recoup as us. Even new the return wouldn't be too bad since they get all the profit and probably already have a license to operate a business.

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Most don't delve into it because they are focused on running their main business. They're also smart enough to know that all that money isn't profit and goes towards product and other expenses. 

There are the few that see dollar signs and go at it themselves. Sometimes they make it work, other times they are selling new machines to the real vendors at a discount. I have a location, a small Mexican food restaurant, that I acquired on a route purchase that had their own rack. He has a 5-way and I have a single head selling seedlings gumballs. He gets a small commission, but still insists on running his own rack. 

I'd say reminding then of how convenient it is for you to do it and offering a commission if possible.

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I think cost and aggravation with getting the candy and toys. The business likely thinks they can't buy the candy for as cheap as we can and that they can't turn a profit. It's easy for them to say yes just hand us free money every month for no cost and no liability. Or if it's charity, they feel good that they're benefiting the community.

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  • 4 weeks later...

Where I work there are two soda machines and two snack machines. The company owns them and buys the product. I fill them and maintenance is contracted. I can't figure out why they want the trouble.

The company that maintains the machines offered 20%.

My boss has a job, and so do I. The machines are extra. We take a van to get vending supplies every 6 weeks or less. A room that could be used for something else is used to store supplies.

I would have taken the 20% and concentrated on helping addicts recover. Let the vending company do what they do best and concentrate on my core business.

 

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