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Frequently Asked Questions
About Automatic Merchandising
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The
vending business has been in existence for over 150 years, and currently
generates nearly 33 billion dollars in sales each year. It consists of many
dedicated "Independent" professionals committed to providing the
finest service possible to their locations. Your interest in this business is
evidence of your commitment to your own betterment, and in turn, to the
betterment of your future customers.
Q. Can I operate from my home?
A. YES. There is no need for an office or warehouse, until
your business outgrows your home.
Q. How big is the automatic merchandising industry?
A. Last year, approximately $36 billion was spent to
purchase products from vending machines.
Q. What are the top vended products through vending machines today?
A. Cold drinks/juices, Candy/snacks and Ice Cream and
other frozen products.
Q. Is this a fad business?
A. NO. Automatic merchandising has been growing every year
since its beginning in the 1930s. Consumers have come to depend on the
convenience offered by vending.
Q. Is there currently a potential market for new vending operators?
A. YES. New businesses are opening daily, many of which
would be great locations for vending. Also, many locations that currently have
existing equipment are good prospects due to the possible lack of personalized
service or outdated equipment being provided by the present vending operator.
Q. Is financing available on new equipment purchases?
A. YES. Our finance partner, Inland Finance Company,
provides in-house financing to all qualified purchasers of their equipment.
Even start-up operators.
Q. Why is it necessary to have state-of-the-art electronic machines equipped
with dollar bill changers?
A. Most people do not carry adequate change to make the
purchase in a vending machine. In fact, the average person rarely has more than
$.58 in change in their pocket at one time. You can expect up to a 30 percent
increase in sales from a machine with a dollar bill acceptor.
Q. What do I do for service and parts?
A. When you use FAWN equipment, you can work with a local
authorized service technician (Available in over 450 US cities.) who will teach
you to load and operate your equipment. Should you need parts for a machine,
they're as close as a call to us.
Q. What about equipment warranty?
A. All equipment we sell is backed by a factory warranty.
Q. Where do I get the products to go into the machines?
A. We will assist you by recommending local wholesalers
for the purchase of your products.
Q. Do I need experience in vending?
A. NO. Training is available in all aspects of the vending
business.
Q. Do I have to sell?
A. NO. Vending machines are "silent
salespeople." They do all of the selling. Once you have a secured the
location, your job is simply to keep the machines filled and clean and
maintained.
Q. Where do I locate my equipment?
A. Today's opportunities in vending are limitless.
Consider locations close to your home.
Manufacturing plants · Billiard parlors · Industrial parks
· Real estate offices · Car dealerships · · Hospitals · Nursing homes ·
Factories · Skating rinks · Golf courses · Offices · Tech Schools ·
Warehouses · Service centers
Q. What should I get first - a
vending machine or a location?
A. Don't be pressured into purchasing vending
machines before securing locations. There are sales groups out there that try to
make it sound like the only way to buy is in quantity. If you
let them convince you of this, then you will end up with a garage full of
vending machines and "less money in your pocket"!
Get your location committed to you, your
equipment and service first! Then order the proper size
equipment to service the location. From a cash flow standpoint alone, this will
put, "More Money In Your Pocket".
Q. Do
I need to have a "Contract" with my location/s?
A. It's always a good idea to have
something in writing with the owner/s of the location where you will be placing
your vending machines. Basics need to be covered including starting prices for
the products to be sold, commission to the location (If applicable), terms of
the agreement and cancellation provisions. If nothing else, this will eliminate
"surprises" for both you the owner/operator and your location.
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To view a standard "Full Service Vending
Agreement", CLICK
HERE! To download a Microsoft Word version, CLICK
HERE! |
Once you have a signed agreement in your possession,
then and only then is the time to order the vending machine/s required to
service that agreement. Most location owners don't mind waiting a few weeks for
new equipment to arrive. While you are waiting for the new machines to come, it
is always a good idea to give the location a "Product Preference
Survey"... so you can get an idea of the specific items they would like to
see sold through the vending machines you will be placing there.
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To view a standard "Product Preference
Survey" form, CLICK
HERE! For a Microsoft Word version, CLICK
HERE! |
Q. What size vending machine/s should I
purchase?
A. If your equipment is too large for the location,
then you will be throwing product away because most vended products available
today have a shelf life and a "sell by" date. If your equipment is to
small for the location, then you will be making too many trips to refill and
most of your profit will go up in fuel and time expenses. Let us help you
fine-tune your site.
Q. Should I finance my vending machines?
A. Whether you really want to finance or not, it is
a good idea to establish a "credit line" with someone who will finance
your machines. This way, you can take delivery before you begin to make
payments. This also protects you in case the equipment is damaged in shipment
and needs to be replaced by the manufacturer.
Additionally, most organizations that offer finance
and/or lease options to vending operators today, usually allow an initial period
of up to 60 days payment free. So even if you intend to pay cash, a "credit
line" will save the inconvenience of doing without your money until your
vending machine/s are in place and working.
Q. Should I set up a credit line with a
financing source?
A. If you don't already have a line of credit set
up with your local bank or other financial institution, then we highly recommend
that you actively seek one. Once you have an amount to work with, then it is not
too difficult to determine how much money that amount of equipment can generate
for you on a monthly basis.
This will open an application form on our secure server
(so you won't have to worry about other people seeing what you are doing). Fill
in the information fields, click on the "Submit" button at the bottom
of the form and you will get an answer back, usually, within two (2) working
days.
Downloads:
• Full Service Vending Agreement • Product Preference Survey •
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