New to the Business

[jwh770]

Hey, I'm considering joining the bulk candy business and had a few questions that I hope some of you may take the time to answer.

1.Do a majority of the vendors pay a % commission to the businesses where the machines are located or do you mainly go with the charity technique?  I have a locator telling me to offer 30% to the businesses and just wanted to see if that was the norm.

2. Do you have liability/property insurance on the machines?

3.  Are you required to pay sales tax on the sale of your candy?

4.  Do you get a license/permit in each city/county that your machines are located in?

5.  Does anyone know a locator by the name of Dennis Burdick in the mid-west and does he have a good reputation?

6.  Does anyone know Tom Kiernan, a broker for A&A Parkway, and does he provide good service/machines?

Thanks for your responses

[The Mage]

I am still fairly new to this myself, but I would recommend spending a little time here reading the posts on the forum, old and new.  There is no time frame you are required to follow to start this business, so don't rush in.

1.  There are a variety of opinions on the charity vs commission.  Some only do commission, some only do charity, and many do both.  I have read that many people start out with charity, and move to commission, and that your more likely to lose a charity location then a commission location.

Now 30% commission, is this gross or net?  Some people like to pay on the net, and not the gross, because they can offer a higher percentage.  When I bought my route, I found out I had 3 30% gross commissions, and wasn't too happy about that.  But 30% gross is doable.  I just don't want to go above 25% gross myself.  (Right now I am only doing candy and this may be different for different types of machines.)

It is a good idea to get liability insurance.  It is also a good idea to either incorporate, or create an LLC. (Limited liability company.)  Personally I prefer the idea of an LLC.  As long as you follow the rules, and don't mix personal and business money, it should keep any lawsuits from hitting your personal assets, though it may wipe out a business account.  Generally bulk candy machines are low risk in this area.

(Not a lawyer, so don't take legal advice from me.)

3.  Sales tax depends on where you are, and what you sell.  We don't pay sales tax on food in my area, so I don't have that problem, yet.  It's best to check with the local tax revenue offices.

4.  And again this depends on where you live, and the type of machine.  There isn't anything in my state for bulk candy machines, but there is for other certain types of machines.  So check with your City/County/State.

Now I don't know these names.  The locator name is not in our locator review section. 

I am still learning all this myself, but it looks like A&A Parkway is part of A&A Global, and a lot of people do business with them.  A lot of people only buy used machines too.

[West Coast Vend LLC]

Welcome to Vendiscuss.com, we are glad you have joined our forum.

1. Charity for smaller accounts, (mom & pop accounts) commission for corporate & chain accounts.

2. It's not a bad idea. It will protect you personally if you are not a corp or LLC. Insurance will protect you in case of injury.

3. If you are earning money for selling candy/toys/stickers/tattoos you will have to file at the end of the year.

4. If the county, town or city requires permits for vending machines, you should have them. Business Licenses are also required in some areas. Check your location city for the laws.

Gary