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DUPREE

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  • Hey guys, I'm a small operator and i need some advice. i am offered a contract by a vending machine manufacturing company; In other words they are giving me the contract as long as i purchase the machines.

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    what RED FLAGS should i look for,

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The red flags are going to be the prices you pay for the machines, the over-equipped locations and the lack of long term sales figures.  This is not a manufacturer selling to you, it's a USI distributor and this is one of their most common tactics to selling machines.  They go out and solicit locations themselves promising new machines to the accounts and then commonly over-equip them so they can sell more machines.  They then turn them as quickly as possible so that they can get their investment back so there won't be any sales history for the accounts.  There might also be a commission paid to the location, or worse, to the machine distributor if he's representing himself also as a Vending Management Company - another red flag.

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