Don’t Get Caught in a Contract: Benefits of Subsidized Vending in Los Angeles, CA

Getting the right products to your customers on time, keeping your vending machine stocked and having the flexibility to change products as necessary is part and parcel of operating a vending machine on your premises—but if you’re dealing with a rollover contract for your vending machines, you might be caught in a never-ending lease that isn’t serving you or your guests.

However, there’s a great solution to this problem. Read on to find out how these rollover contracts work and the benefits of subsidized vending in Los Angeles, CA.

How rollover contracts work

If you’re not interested in purchasing a vending machine outright, you’ll usually work with a vending machine company to lease and stock a machine on your property. The supplier provides the machine and all the food available based on the terms of your contract.

The contracts are usually a year or two in length, and specify exactly what the vending machine company will provide, their maintenance and repair services and the other terms of the agreement. Then the machine is installed on the property and the vendor makes a commission based on the total sales of the vending machines they’ve leased.

The problem with this type of contract is that they continue to “roll over” automatically, which means you could be committing to another period of time without realizing it. On the other hand, if you break your contract early, you almost always owe money to the vending machine company.

In order to break this type of contract and avoid rollover, the vendee has to send a certified letter to the partner company saying they wish to cancel the automatic renewal and end the contract at the end of the term. This means the vendee won’t have to deal with the 30-day renewal period that tends to pass without their realizing it and winds up unintentionally committing them to another year of service.

The solution: Subsidized vending

If that doesn’t sound like your idea of a good business venture, there’s a solution: subsidized vending. You can lease the machine from your partner company, but the payment for snacks is different.

What exactly is subsidized vending in Los Angeles, CA? Subsidized vending allows you to offer items to your company or guests at a discounted price, which is billed monthly based on what your buyers purchase. As a company, you can decide what subsidy you’d like to pay, like a certain dollar amount off the purchase price or a percentage. This is added to your monthly bill and you can find out which items are the most popular.

Even better, this is a good way to offer free products for the employees and guests you care so much about—all you have to do is deem that item “free” to guests and pay the full price to the vending machine company on their behalf.
If you’re interested in learning more about the benefits of subsidized vending in Los Angeles, CA, call VSI Vending & Coffee Services to talk about your vending machine options.

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