Question 1

How much do I need to get started?

Accepted Answer

Great question! VendingCollab has made it super simple and affordable for anyone to get started owning vending machines. You have the choice of financing a vending machine or vending machine location through Affirm, or you can purchase a vending machine outright for about $600-$2,000.

Question 2

What happens if parts on the vending machine break?

Accepted Answer

This is a great question. As part of our partnership agreement, you will be responsible for the financial aspect of the machines VendingCollab manages. So if something on it breaks, you will be responsible for covering the cost to fix it. VendingCollab will be responsible for networking with repair shops local to the vending machine to coordinate the fix, and we will quote our partner ahead of time to obtain their approval to cover the cost of fixing the machine.

Question 3

Can persons pool together to purchase a vending machine?

Accepted Answer

Yes. However, they will need to all agree and sign a partnership agreement between all expected partners (NOTE: VendingCollab does not help with drafting that kind of agreement between persons). Once they all have an agreement signed between them (that must also cover equity splits, etc.), they will need to provide that signed agreement to VendingCollab so that we can enter into our agreement with just their newly formed partnership. Their partnership will need to designate a single contact person. This will be the person mainly speaking directly with our staff on behalf of the partnership. Anything that will require a vote (such as location changes, purchases of new machines, etc.) will need to be made in writing by all members, but on a day-to-day basis, for decisions like what products to fill the machine with when it runs out, we will defer to communicating with the partnership’s main contact.

Question 4

If I have a location pre-arranged for my vending machine will you place it in that location?

Accepted Answer

Yes. However, currently we are only placing machines within Massachusetts.

Question 5

Can persons not in Massachusetts still take part in this?

Accepted Answer

Yes, we accept partners from all 50 states.

Question 6

Do partners have to continuously pay for inventory?

Accepted Answer

Yes. The cost of restocking the vending machine(s) is our partner's responsibility, and as they start to generate sales, they can also allocate some of those proceeds to go toward restocking the machines. VendorCollab will not participate in covering the cost of products. We are responsible for helping to secure machines and locations, negotiating contracts, going to wholesalers to purchase products on our partner's behalf, coordinating repairs with third-party service providers, conducting research, helping strategize on product selections for vending machines, communicating with city and state agencies on our partner's behalf, and ensuring that the vending machine business remains in compliance with state and federal laws (including permitting and tax laws).

Question 7

What fees does VendingCollab charge?

Accepted Answer

We charge a $19.99/per month management fee, and split the location net profits with partners 50/50. So, for example, if net profits are $800, VendingCollab would receive $400, and our partner would receive $400. The $19.99 per month fee is billed to our partner's preferred method of payment each month.

Question 8

What happens if I no longer want to partner with VendingCollab?

Accepted Answer

You can choose from one of two different options:
OPTION ONE: You can choose to manage the vending machine on your own, but you will have to wait until any existing vending machine location contracts that VendingCollab secured for you have expired before you can take over managing the vending machines on location. This would also mean that you would have to secure a new vending machine contract with that location owner. NOTE: This provision does not apply to locations where you are not the only vending machine owner at that location. 
OPTION TWO: You can sell your stake in the vending machine, but you have to give VendingCollab the “First Right of Refusal.” The first right of refusal means that VendingCollab will be asked first to buy the vending machine off of our former partner, and if we decline, they can ask someone outside of our partnership to purchase the vending machine business.

Question 9

Does VendingCollab help vending partners set up a corporate entity (e.g. LLC, Inc., etc.)?

Accepted Answer

No.

Question 10

How does VendingCollab keep track of vending machine revenues?

Accepted Answer

VendingCollab uses a tracking device that can be monitored remotely. The tracking device keeps track of revenues, product inventory levels, and product popularity. All of this information can be viewed by our team remotely (via mobile app or website), and we can also make this same access available to you.

Question 11

How frequently does VendingCollab pay out to partners?

Accepted Answer

Once per month.

Question 12

What happens if the product we put in the machine doesn’t sell?

Accepted Answer

We can either reduce the price on the product to make it more attractive to customers, wholesale the product(s) to other vending machine owners within the VendingCollab network who might have better success selling the product, or donate unsold product to a local soup kitchen or charity. Because it is our partners that purchase the products, we leave it up to them to choose what to do with products that we can’t sell.

Question 13

Can I have family and friends manage my vending machines?

Accepted Answer

Unfortunately, no. In order to ensure that machines are well taken care of, when VendingCollab is managing the machine, we do not allow anyone outside of our team to manage the machine.

Question 14

In what state will my vending machines be placed?

Accepted Answer

VendingCollab is a Massachusetts-based company. For the time being, all vending machines will be placed in and around the Massachusetts region. However, we will eventually expand our reach to other states across the country as the demand for our services grows.

Question 15

Does the property owner get a cut of the revenues?

Accepted Answer

Yes. Typically, the property owner would get 10%-20% of the revenues, depending on the volume of sales.

Question 16

What kind of agreement do your partners sign with VendingCollab?

Accepted Answer

We sign an equity share joint venture partnership agreement with our partners. It is essentially a partnership agreement between our company, and the individual personally (as a sole proprietor) or their corporate entity (if they have one). The agreement explains that they will own 50% of the earnings from their vending machines, that they own the machines and are responsible for their repair costs and inventory, and that VendingCollab will own 50% of the earnings in exchange for our sweat equity in managing the machines, covering payroll to our employees, etc.

Question 17

Can someone pay for me to start buying vending machines?

Accepted Answer

Yes.

Question 18

Who decides where the vending machines are placed?

Accepted Answer

Our partner and VendingCollab decide together.

Question 19

Does VendingCollab help partners purchase new or used vending machines?

Accepted Answer

Both. However, new vending machines can cost thousands of dollars, so we prefer to help our partners get started by purchasing only used vending machines because the idea is for them to get a return on their investment sooner rather than later.

Question 20

Does VendingCollab inspect machines that it helps partners purchase?

Accepted Answer

Yes. We plug-in the machine, we make sure the doors open and close, we make sure all of the coils that control the dropping out of products works, we make sure the payment options on the machine work (and that includes making sure that it can take any and all coins values), we check the buttons, look for rust and damage, etc. We complete a checklist that is signed by our team member and shared with our partner, so that they can see that we covered all the checkpoints on the list.

Question 21

Does VendingClub provide insurance for the vending machines?

Accepted Answer

Yes. However, insurance will not cover broken parts due to normal wear and tear.

Frequently Asked Questions

Frequently asked questions