Is This A Good Idea?

[2dudes]

So I walked into an establishment that happened to have two beautiful machines in it, AP 933 and DN Bevmax 2.  Bone dry.  We reached out to the owner and found that they had the best intentions of servicing these units themselves but they don't have the time.  Even better, they have another location we can also service with the exact same machines.  I am thinking we stumbled upon two great locations that are open 24 hours a day and get alot of foot traffic.  Here is the catch, both locations are cashless due to the neighborhood and type of business it is.  They are outfitted with proprietary card readers that supposedly generate reports in which we would be paid our agreed on percentage for profit and cost of goods.  We will change the locks to our locks but the owner would like a copy of our key.  What issues do you foresee in this? Is this a good idea?  Are these good machines and have you dealt with proprietary card readers on machines?  Any other things I should be thinking about?  Appreciate it in advance.

[moondog]

So I walked into an establishment that happened to have two beautiful machines in it, AP 933 and DN Bevmax 2.  Bone dry.  We reached out to the owner and found that they had the best intentions of servicing these units themselves but they don't have the time.  Even better, they have another location we can also service with the exact same machines.  I am thinking we stumbled upon two great locations that are open 24 hours a day and get alot of foot traffic.  Here is the catch, both locations are cashless due to the neighborhood and type of business it is.  They are outfitted with proprietary card readers that supposedly generate reports in which we would be paid our agreed on percentage for profit and cost of goods.  We will change the locks to our locks but the owner would like a copy of our key.  What issues do you foresee in this? Is this a good idea?  Are these good machines and have you dealt with proprietary card readers on machines?  Any other things I should be thinking about?  Appreciate it in advance.

The safest way to approach this would be to make an offer on all four machines and only offer commission on anything over $500 a month.  I'd be a  little concerned about the cashless situation - how bad is this neighborhood and what were you doing there?  Setting some sort of profit split is usually a bad idea as one partner never makes the harvest but will always show up for the feast.

[AZVendor]

Those are awfully advanced machines for a rough neighborhood. Are the machines secured so they aren't vandalized? If not then the AP933 is a bad choice because many parts aren't available for them. I know this sounds weird for late model AP machines but they were in production when Crane bought AP, and Crane has decided that they don't have an interest in supporting them with parts. Because so few of them were built there is no aftermarket parts support for them either. If the locations are secure then keep the machines there.

It sounds like the location still wants the bulk of the profits as they originally intended, but that's not how it works if you buy the machines from them. That's not a way that you want to do business. You also need to have your own merchant account for any card readers on the machine so the money goes to you first. I don't know what constitutes "proprietory" card readers, but maybe they are normal ones that can be moved to your own merchant account. If the location won't trust you to give them an agreed upon commission then don't touch this account. The same goes for the keys - no location needs your keys. Both of the machines have guaranteed vend options on them which will prevent a loss of money to the customer.

Now if the location wants to continue to own the machines and just have you stock them, then why not just charge them for the product up front when you fill the machines? That way they can keep their merchant account and you only need access to a copy of their key so you can fill them. In that case make sure you get paid on the days you fill the machines or they will screw you.

If you buy the machines from them then it's your keys, your merchant account for the card readers, you will pay them a fair commission and they get no keys to the machines because they are yours.

[Walta]

I thing you should be careful anytime someone else wants a key to a machine full of product you own.

 

You should not set up a system where the cost of any pilfered items comes out of your pocket when others have the keys.

 

If he needs a key you get paid for what is load in the machine each week.

 

 

Walta

[2dudes]

This is a laundromat that has its own card system.  Not credit card but you have to charge up the card and can use it to wash as well as for the vending machines.  It is in a bad neighborhood but the machines are inside and out of harms way so no issues there.  My full time job happens to be in the next town over and I was scouting and said what the hell and walked in. They do not want any machines inside that have ANY cash whatsoever due to past handling issues with employees.  Understandable.  I don't want to miss out on an opportunity that could be big payouts but this seems complicated.

[AZVendor]

Okay, then this a value-added card system. If he insists that you use his card system then do not buy the machines and only offer to fill them in return for payment for the product at the time you fill them. The cash handling issues he mentioned occurred because he owns the machines and mistakenly allowed his employees access to the machines and the cash. If you own them and use your own locks and DO NOT give them a key, then you have control of YOUR cash and his employees won't be involved. Then remove his card readers and just use validators and coin mechs. Your own card readers won't be needed at this type of account. You will have some vandalism even if it's an attended laundry because people will be bored and see an easy target in your machines. That might also be a reason the machines have been left empty.

[allen watson]

Never give up your keys and never let anyone else handle your money.

[rmorris1953]

My gut tells me this is a bad idea for several reasons. Most of all is they have keys and control of the money. If there is a discrepancy you will loose every time....