Shauna Posted March 7, 2012 Share Posted March 7, 2012 In my area, it seems that every place I walk into to has machines and most of the locations are currently in a service agreement. How do I get around a service agreement if the quality of service is not up to par for the locations? For example, I approached a lumber yard earlier this week and took a look at their raggedy-a** vending machines. Their snack machine is old, wood-panelled front, missing keys on the selection board, cracked plexiglass and what looked to be snacks dating back to the seventies (maybe the original snacks that came with the machine). Their Coke machine is fairly new, but several selections were sold out. When speaking with some employees before approaching the manager, they stated that the drink machine is almost always out of something and that no one buys from the snack machine. I don't blame them. I felt like I would contract gonosyphillitis just standing next to it. When I approached the manager, he seemed interested in what I had to offer, but told me he was under a service agreement with the current vendor. Now, I didn't ask when the last time he renewed was, which I probably should have done. My question is this: How can I convince a location to break a service agreement if I truly believe I can fulfill their needs? Is it wrong to suggest to a location to break a service agreement? Also, even if there is nothing obviously wrong with a current setup at a location, if I know I can provide additional service, additional selections, better quality, etc., would it be wrong to encourage the location to break the service agreement? I have service agreements in several of my locations, but I feel that since this is a service industry, the location is the ultimate customer, and they are always going to look for the best deal for them. If I lost a service agreement location, I would not be happy, but I would see that as the way the business is, and make sure the location is satisfied with our professionalism moving out so that if and when their new vendor flops, I can sweep back in and save the day. Link to comment Share on other sites More sharing options...
Poplady1 Posted March 7, 2012 Share Posted March 7, 2012 I am told that a company can break a vending agreement for poor service. I have had a few accounts that did break agreements when they were so fed up they just wanted the machines out of the operation. If you do have the opportunity to talk to someone at the account, you should ask if they know when the agreement is up for renewal. Ask if they would be open to a bid. You can also mention that poor service is a reasonable reason to change vendors midstream. Most companies will just put up with it because they don't feel its worth fighting about vending. Bev Link to comment Share on other sites More sharing options...
AngryChris Posted March 7, 2012 Share Posted March 7, 2012 A service agreement should not be able to to state that the vendor is able to keep their machines on site for the length of the contract even if the service is bad. A silly agreement like that is probably not really legal. Basically, if I signed an agreement with your company and my service is terrible, I cannot laugh at you and say "Haha I have a contract! There's nothing you can do!" My contracts state that, if the service is absolutely poor, the contract may be voided. If their contracts don't state it... it's probably not a valid contract anyway. However, I will say this. If a vendor did have such a contract and was willing to go to court over contractual reasons, I would probably not even bother with them. I would tell the location that the current vendor is being a major pain in the butt and that I am not willing to go to court over the location. This would take the problem off of you and allow the customer to deal with the problem if need be. If the location is a good location, they'll get the bad vendor out of there. One thing concerns me though... it doesn't sound like the location is a very good location. Some selections may be sold out... but is that because everyone's buying everything or is that because no one has ever bought it and the current vendor simply took those selections out and only keeps the ones that people buy? Link to comment Share on other sites More sharing options...
Shauna Posted March 7, 2012 Author Share Posted March 7, 2012 Considering that the contract would be between the location and the original vendor, it would not affect me legally because I was not part of the original contract. This location would not be considered an A location, but it is in close proximity to some of my other accounts and would be a good opportunity to continue building my brand in that area of town. We have been able to build our reputation among several of the business owners in the area, and are receiving a lot of good feedback from the industrial businesses around where we currently have locations. From what I understood when talking with the employees, they purchase items from the drink machine on a regular basis, it is just that the vendor does not actually come out often enough to keep the machine stocked. So not only is it bad customer service, but he is losing money by not having product available for purchase. Link to comment Share on other sites More sharing options...
mission vending Posted March 7, 2012 Share Posted March 7, 2012 Most managers don't want to mess with changing vendors because of this you will sometimes have a lot of inertia to overcome. This is one of those times where patience and persistence pays off. Followup once a month or so, preferably in person, find the manager introduce yourself again and ask if they would be open to looking at a proposal from you. Bring a couple of snacks that are not in their current machine, bring a referral letter, some pics from existing locations and keep doing it until you get the location. Just bring one piece of literature with each visit so you don't oversell yourself. While waiting to see the manager talk up the employees, get them to help with getting the existing vendor out using some giveaways with them as well. Link to comment Share on other sites More sharing options...
havending Posted March 8, 2012 Share Posted March 8, 2012 I use contracts and trust me they are not worth the paper their written on. My attorney to me that. But what they do is make an owner feel like they can't change vendors. Pop lady is right all they have to do is say the service is bad. Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
Shauna Posted March 8, 2012 Author Share Posted March 8, 2012 That's what I was thinking. Thanks for the input guys. I'm trying to revamp my own service agreements, but I understand that it is more for the proof of ownership for the machines than any actual security in the location. Especially with this economy, I would hate to lose a machine because a business closes down and I can't prove the machine is mine in some type of bankruptcy hearing. Link to comment Share on other sites More sharing options...
Walta Posted March 8, 2012 Share Posted March 8, 2012 Especially with this economy, I would hate to lose a machine because a business closes down and I can't prove the machine is mine in some type of bankruptcy hearing. Shauna I have seen it happen business closes doors are locked. Will you pay a lawyer hundreds an hour and days sitting in a court room? Even if you win you louse. When you ask nicely they say no you should understand you are dealing with thieves. They will lie in court. They will substitute junk for equipment. Walta Link to comment Share on other sites More sharing options...
mission vending Posted March 8, 2012 Share Posted March 8, 2012 That's what I was thinking. Thanks for the input guys. I'm trying to revamp my own service agreements, but I understand that it is more for the proof of ownership for the machines than any actual security in the location. Especially with this economy, I would hate to lose a machine because a business closes down and I can't prove the machine is mine in some type of bankruptcy hearing. Yep, been there, done that, got the tattoo to prove it. Got your PM, will send it to you tomorrow. Link to comment Share on other sites More sharing options...
Poplady1 Posted March 8, 2012 Share Posted March 8, 2012 One of the most frustrating parts of finding new accounts is being invited in to talk with them at contract renewal, then after you have spent time preparing a great proposal, thinking it all through in your head, offering all of your bells and whistles they say, we like it. You call back in a week to see if they are going to change vendors they say the current vendor has agreed to make changes so we are keeping them. They use your proposal to make the current vendor step up and make the changes you offered....I am sure some of you guys have been "black mailed by proposal" at contract renewal. But then again, sometimes they make a change so be sure to get that renewal date when you get the chance.. Link to comment Share on other sites More sharing options...
Shauna Posted March 8, 2012 Author Share Posted March 8, 2012 Yep, been there, done that, got the tattoo to prove it. Got your PM, will send it to you tomorrow. Thanks! Link to comment Share on other sites More sharing options...
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