Are Vending Machine Location Contracts Important?

You may not think you need a vending machine location contract because you have been working well with the person that owns the area. You may even be friends with them or perhaps you once worked with the individual. None of this matters at this point though because you are involved in a very different type of relationship with them now. This one is going to determine the success or failure of your vending machine business.

You need to do all you can to ensure your business is as successful as it can be. Don't leave anything to chance. Sadly, many owners of vending machine businesses have had theirs destroyed because they were too trusting. They didn't have a vending machine location contract in place. As a result, they had to deal with numerous issues that ended up costing them both time and money.

Consider the length of time of the contract very carefully. You can specify a particular time period such as one year. You can also have the vending machines in place on a basis where either party can cancel it at any time. While this type of option allows you to move your vending machine if it isn't doing well it can also work against you.

Consider this issue very carefully. You may want to go for a long term contract period, but what if the location turns out not to be as good as you thought it would be? The amount of profits you are going to make will be much lower than you had anticipated. However, with an open end contract term the owner of the location can choose to have you remove your vending machines at any time. If it is profitable you may not want to move when they ask you to but you will have no recourse not to.

Do your calculations before you enter negotiations so you can have a reasonable idea of how much you can pay for the vending machine location. You may want to choose a set amount of money you are willing to pay each month. Try to get the owner of the location to agree to a price that is going to leave you with plenty of profits left over.

You can also have the contract set up where you agree to pay the owner of the vending machine location a commission each month. This will be a percentage of the money you earn from it. The more money your vending machine makes the more you will be paying out. However, if your vending machine isn't doing well in that location you aren't going to owe them very much either.

Be open to issues that the other party needs to bring to the contract as well. This needs to be a mutual contract that both parties are in agreement with. They may only want you to access the vending machines during specified times. They may also have restrictions on the days of the week. They won't want to be held liable for anything that happens with your vending machines. They aren't going to like to be asked by customers to offer refunds either.

It is very important that you take the time to write up a vending machine location contract. You don't want to lose money or be taken advantage of due to issues that come up later. The chances of you having conflicts over the vending machines will be greatly reduced if you have such contracts in place. You are putting your business at risk if you don't pay attention to this important detail.

Robert Farnham - veteran vending business operator and author. He now writes articles and gives advice to new operators to help them avoid vending locating company nightmares, and the best way to find great vending locations.

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