anyone use usi distributers?

[TKK]

So i was approached by a local dealer. Hes offering a location with 80 employees 24/7 place. Says i gotta buy a bc10 and a mp32 from him plus 700 for the location. Says they finance with fawn. Or i can jut pay cash. Has anyone used someone like this before? R these prices alot higher than just going straight through usi? He said ill get the black diamond ones for the price..

Prices

[orsd]

Might as well just pay a locator like pop lady 700 bucks for the same location and use your own stuff

[AZVendor]

That's the questionable tactic that some USI distributors use to sell their machines.  They go out and solicit the locations, some from mailers, some from phone banks, some are leads from USI themselves.  They present new machines to locations which, of course, they all want.  This allows the USI distributor to pad his numbers.  They place the machines and usually have a friendly operator run them until the distributor can find a buyer for it.  These accounts are usually over-equipped because the distributor makes more profit the more machines he sells.  The locations are often times questionable whether because they don't warrant new machines or the sales are nowhere near what's needed to support new machines.  You will probably be fed some made up gross sales figure as well which is based on nothing as the account hasn't been serviced for very long. 

 

The red flags here are that he called you to begin with.  It means that he's not getting any bites on whatever methods he's been advertising it in.  Another is that he's charging you a location fee on top of what you are paying for the machines.  I think you would agree that that is BS.  Whether he paid for the lead himself or not, I would never pay that on top of the inflated machine prices.

 

These tactics are truly geared toward people who know nothing about vending so they are easier to sell this to.  Most people don't want to do the dirty work to find locations so this is "turnkey" for them, even if they are take advantage of.  For someone like you, you don't need that kind of location at those terms.  Don't be surprised if there is commission paid to this location as well, and if there is it will be through USI's own vending management company or maybe through the distributor himself.  You don't want anyone else in your pocket.

[TKK]

Well there is no comission there, he said that they wanted the new machines with readers. My biggest competitor is in there. He said its a usi lead he will sell used machines now and then and u can get locations sometimes as long as they arent usis leads. The way i saw it is it should make atleast say 600 a month lets go low, most vendors would value that location at 6k if they sold it. But w 2 brand new black diamind machines to top it off it sounded like a good deal. Ofcourse i can put an ap lcm1 and a vendo live display and only spend 1,000 on both machines, but the location sounds worth it? He said they wanted cofee service that id have to take a pot and just sell them the cofee at 50% markup. Ive also never done cofee

[ANDERSONVENDING]

I use one at times and none of mine get commission and I move machines for the guy and there's no charity involved.He has called me about accounts that he can't find a vendor for and gives me the opportunity to take.My top account came from him in 2010 and I have grown machines 3 times from a GF19 with a BC6 to a HR40 with a BC10 grossing250 per week.

John

[TKK]

Well aperently its not 24hr its a news channel Station i guess 80 employees obviously in and out. Anyone have one of these to compare?

[AZVendor]

I wouldn't count on strong sales at a location like that, though it would be considered a high profile location to a vendor so you would need real good machines there.  The last thing you would want is for them to use your machines in some kind of story and have the machines  looking less than professional.  I also doubt that there are more than 3 or 4 people there overnight for keeping the station on the air.

 

I have done service work at the local ABC affiliate here and the vendor had a soda and snack along with coffee service.  You would definitely want to do the coffee too just to keep anyone else out of your account and coffee should do pretty well.

[TKK]

Do you know how many sales they would make az?

[Poplady1]

Is that 24/7 with 80 each shift or is it 28 per shift?  Offices with those numbers just don't bring in enough to cover those costs.  I know that Sun Vending in Phoenix often finds locations by promising them all new equipment then they try to find a vendor that will set it up. You really have to have larger numbers to purchase new equipment.

 

If we had found that location (80 employees on site all day, no shift)we have would charged $660.  We never would have suggested new equipment.  Then we would have suggested you talk to a local equipment seller about some refurbished stuff.  Trying to keep your total investment to $2500. including our fee.