The Latest Scams Circulating the Consumer World. Be warned. Be informed.
June 2006
Vending Machine Scams
Attention entrepreneurs: How would you like to work from home, be your own boss, set your own hours, and earn good pay? The vending machine business is hot right now, and you have the opportunity to receive a big return on a small dollar investment.
Does this sound too good to be true? Read on to find out more about vending machine scams.
How the Scam Works
Advertisements for vending machine sales often appear in the classified pages of daily and weekly newspapers, magazines, online, or in television infomercials. All advertisements claim to make you a generous, six-figure, side or full-time income.
The promoters will sell you the vending machines and promise you placement in highly-populated companies, malls, airport terminals, bowling alleys, or other public facilities. They'll convince you that these hot locations are going fast, so it's best to buy multiple machines from them now to secure the best locations.
Other than collecting huge amounts of money from the machines each week, your responsibilities as a vending-machine entrepreneur include: restocking, cleaning, and repairing the machines.
However, after investing thousands of dollars in vending machines and products for resale, victims of this scam reported that they:
- Received poor quality equipment or no equipment at all
- Received cheap, low-quality, or out-dated merchandise
- Received bad placement locations that got little foot traffic like rural gas stations, out-of-the-way snack shops, or stores in deserted strip malls.
People who've invested in vending machine sales rarely make the big money they're promised. In fact, these entrepreneurs generally lose their entire investment.
Play it Safe
If you are interested in the vending machine business:
- Buy one vending machine at a time and see how each one does. If you have success with the first one, you can buy another.
- Buy a vending machine from a place like Costco or another retail store that provides high-quality merchandise with no ties to placement.
- Beware of variations of the vending machine scam such as selling amusement games, or racks with items for sale such as small toys, greeting cards, or cosmetics.
Source: www.ftc.gov
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