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Getting around a contract


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A store owner that I have a good relationship already has an exclusive contract with another operator. It has the standard definition of bulk vending i.e. sale of unsorted confections gumballs, toys, stickers, tattoos and novelties (in capsules) dispensed at random.

There is not enough room for a crane machine. There is only room on the front end or exit lobby for something that is less than 2 feet deep.

Can anyone think of a good machine to place in this supermarket that wouldn't be covered by the contract?

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All the owner has to do is yell the company he's not happy with the service. Vending contracts are easy to get out of. Or have him keep out of order signs on them and in a few months they will pull it. You could cover his loss comm

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I agree with havending.what would you do if a location with a simple contract booted you??I don`t think you would pursue any legal action.I dont think it would be worth the time and effort.you also risk losing other locations in that town if you sue a business owner imo. I wouldn`t want machines in a location where they are not wanted.machines get roughed up in locations where they are wanted,worse can happen in locations that dont want them.

I think the biggest obstacle would be convincing the business owner to actually break the contract,or breach it by letting someone else put machines in too.

another thing,I think it would be easier to just flip the other rack around instead of putting it all out of order.

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he wouldnt lose revenue if you replaced said machines.theres not a lot you can do I guess but wait it out.make sure the contract doesnt auto renew.

That's the key element, the auto renewal, Probably your best bet is to offer go after all the business available, to replace the rack and add whatever you plan to add. Make it clear that he will see an increase in commissions as a result and then just make sure the cancellation letter goes out before the auto renew date.

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He doesn't want to break the contract or lose the revenue from the machines.

If the location owner reads his contract it's likely there is an out-clause somewhere in there.

If not, he should never have signed the contract to begin with.

Not a very smart move to sign a contract that doesn't give him a means to terminate the contract before its expiration

Yet, you can use even that poor decision in his favor if you point out the fact that the existing vendor is not being very business-friendly by "forcing" the location owner to keep machines in HIS business.

I'm willing to guess there is an out-clause, though.

On the 2nd point -- as already mentioned: there will be no loss of revenue to the location if your swapping similar set-ups (and maybe more).

Consider offering encouragement by way of an up-front bonus to let you in the door.

Some very experienced/successful vendors here give money upfront in order to get a location....and it's not much different on your budget than paying a locator to get you a location.

You say you have a good relationship with this guy -- a little folding money on the front-end may be all the incentive he needs.

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I have had 3 conversations with this guy already and he is not going to kick him out. His brother, who is not even involved with the store any more signed the contract about 5 months ago and it is a 3 year deal. I'm pretty sure I will get the store then. There is even the possibility that I can get this guy moved to another part of the store where he will do no business. But, to repeat, I will not be allowed to put any machines in the store that qualify as 'bulk vending'.

So, any ideas on a profitable machine that isn't a bulk vending machine?

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Since you can't sell "unsorted confections, gumballs, toys, stickers, tattoos and novelties (in capsules) dispensed at random", you pretty much can't vend anything that's widely available today.

So what kind of vending doesn't actually sell anything?

First thing I thought of was something like a scale, true grip, love tester, etc made by someone like Impulse.

Of course, it's hard to say what kind of novelty machine will likely work in the place without knowing what kind of store it is.

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It's a supermarket. And the key is it's not just the list of items, nit the words unsorted and dispensed at random. So a crane machine isn't bulk but there isn't room for a crane. Unless I can find one small enough. Also any machine where you can definitely know which product you are getting is not a bulk machine. Like a candy bar machine where you see the candy bar you are getting

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