Fraudulent Commision Reports III

UNDER-REPORTING OF COMMISSIONS BY DISHONEST VENDING OPERATORS

How to Proceed Against a Dishonest Vendor

When competing against a dishonest vending machine operator, rather than proving that he is a cheat, demonstrate why you are a more qualified vendor and why your competitor is incompetent at maintaining the account. You should present to the client that the true measure of quality and satisfaction in a vending operation is the level of patronage by customers. Clearly, the operator who provides clean, well-stocked vending machines is going to generate the most sales. The emphasis should be on who can do the most business by satisfying the client's vending needs. You should also request the client to provide you with information reporting the location's current reported sales. With this information, you can calculate a per capita number by dividing the total sales by the average number of customers. This will allow you to compare your actual per capita sales in locations you currently operate that are comparable to the client's.

Additionally, the honest vending machine operator should review with the potential client the cost of each product sold, the retail vending price of each product sold after subtracting sales tax, the cost of equipment, and the cost of servicing each vending machine on location. In doing so, the honest vending operator should be able to demonstrate how a current operator or potential competing operator would surely lose money if the product sales reports were accurate.

For more information, please contact Peter LeVine or any one of his talented colleagues at (800) 223-4101, (650) 493-2258, or contact us through our Info Request form

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