Food for thought

[Limitless76]

A few general questions -

Question 1 -

There seems to be a good number of threads regarding insurance, especially in the bulk vending category.  The risk of incident grows proportionally to the number of machines one operates.  Thus, would a written notice be useful to some extent, if any?  Something indented on the machine along the lines of "We do not assume any liability for any injury, loss, or accident when machine is being used.  By touching this machine you are acknowledging and accepting the inherent risk of using this machine."

Question 2 -

When reading the experiences of members on this board, one finds that machines are occasionally vandalized and sometimes stolen.  There are numerous factors that lead to this, with location being one of the primary factors.  Should one say the primary solution to this would be to place machines indoors or in locations which are difficult to obstruct without being seen?  What would one suggest as other alternatives, besides bolting down the machine, making it heavier, or using a protective cage?

Question 3 -

In a commission based agreement between an owner and a route runner, what is an effective way to ensure accurate commissions, besides trust?

For example, If one agrees to split revenues 8-2, what protection does the owner have against the route runner pocketing some of the total and giving him/her a smaller split? 

Question 4 -

Hypothetically, if an operator of a bulk vending business decided to expand and hire several route runners to operate and service machines, freeing up time for him/her to expand and locate new machines, how would the operator ensure that the amount collected was accurate, and that the new route runners were not pocketing a portion of the revenue?  Assuming the machines do not report sales, and that these route runners were not people who are already trusted and known by the operator, what alternatives would one suggest?

Question 5 -

In bulk vending, machines are typically inexpensive.  Even if a machine was stolen or went missing, it would not spell a huge loss to the operator.  However, what of those who own more expensive machines, such as hurricane simulators, or larger machines seen here worth tens of thousands?

Should one invest in insurance for that sole purpose, and would that even be covered?  If there is no condition addressing such an occurrence in the owner-operator contract, is it solely the liability of the machine operator?

Thank you for your response.

[mizugori]

1.) I'm not a lawyer but I'm guessing that wouldn't mean anything in court. You can get liability insurance cheap.

2.) It really depends on the setup. It is possible to break into a machine and steal the money without removing the machine from the premises, so unfortunately bolting down or chaining up the machine doesn't guarantee anything. If they crack the lock open with a screwdriver and wreck the machine to get to the coins, you could lose the money and have to repair or replace the machine. Also, the way the machines are configured may play into how difficult they are to steal outright (meaning walk away with the entire machine.) A single head could be carried off, thrown into a car, etc, but a double might be more difficult. Also, a rack on wheels could be pushed away! Not saying it will be, but just keep this in mind! I would definitely want a rack on wheels to be chained.

3.) It all depends. Some vendors even count the money in their car, or take it home and then pay the business owner the commission during their next service visit. It's really going to depend on the business owner - some will want you to count right in front of them right when you open the machine. If that's the case, you better have a coin counter.

4.) There are devices you can buy that fit most of the main brands of bulk machines, that are electronic and in theory cannot be tampered with, that keep track of the number of coins that have been deposited in the machine. So you could check all your locations every few months and compare the numbers to see if someone has been skimming. Telling them you have these devices might discourage them from stealing in the first place. Many machines also can have two locks - one for the product, one for the money. So you could have someone else refill the machines and you collect the money - saves you some time, and these machines can hold an awful lot of coins so you probably could get away with collecting the money far less often than the toys need to be refilled. However, if someone broke into your machine you'd potentially lose a lot more money.

5.) The insurance companies offer coverage on the actual machines. Most bulk vendors decline it because as you said, the machines are cheap enough, but for an expensive machine, it may be worthwhile. Check with your insurance broker to find out exactly what it covers (ie maybe it covers damage but not theft, maybe it covers theft but not vandalism, etc etc) and how much the premium would be.

Hope that helps...

[Limitless76]

Yes that helps alot, thank you mizugori.

In reference to those devices that count coins, do you think they have ones for dollar bills as well, and would they fit a wide variety of machines, such as a hurricane machine?

[mizugori]

No idea, they're called ez-count or something like that.

Just my 2 cents, I wouldn't invest the kind of capital required into something like hurricane machines... With the way the economy is now, people are cutting back on their daily luxuries and splurge/impulse purchases left and right. A year or two ago starbucks took a massive hit because all of a sudden people realized hey, I really can't afford that $5 latte every morning... Do you really think they're going to spend several dollars on a simulation of what a hurricane feels like?

I'm not trying to crush your dream here, just giving you something to think about. Also, fad type things overwhelmingly fail - tried and true lasts. The odds are stacked against you in that, in all likelihood, hurricane simulator vending machines will never really take off and become popular. Conversely, people have been buying gumballs, candy, toys, beverages, and snacks out of vending machines for many decades.

[NinnJinn]

When reading the experiences of members on this board, one finds that machines are occasionally vandalized and sometimes stolen.  There are numerous factors that lead to this, with location being one of the primary factors.  Should one say the primary solution to this would be to place machines indoors or in locations which are difficult to obstruct without being seen?  What would one suggest as other alternatives, besides bolting down the machine, making it heavier, or using a protective cage?

A lady in my area has machines every where on charity.  She is supporting Riley Children's Hospital.  about 2 months ago she went to do her route and had 3 machines missing.  Every business MGR/Owner said that someone came in and said they were with Riley Children's Hospital Charity Division and removed the machines, but in fact they were actually stealing them!

So now she does the route every other week instead of every 4-6weeks.

[mizugori]

I also make a point to get to know all the business owners I deal with, know them by name and make small talk every time I'm there so they know me too, and I make a point of telling them that only I will ever come to service the machine, no one else. I get to know the staff too.