I was looking for some small and easy to handle business that I can help my children to earn some pocket money. It turned out to be a learning lesson that I'll never forget.
I saw an ad runnning in my local paper which had every indcations that their were vending routes available in my local area. I responded to it by leaving my contact information at their 800 number (1-800-877-1335 EXT 240).
The next day, Heather from the company (Flagship Marketing Group, Inc.) called me from New York and told me that there was a 5 location route and a 10 location route. He also told me these locations would turn the machines at least once a week and some even more. Heather then went on to say that I would make $200-$300 per week per machine. I told him on the phone I need time to think it over. So, he hung up.
He called back 4 days later and told me that good prime location will go very fast, it I don't pay now to secure them, someone will take it in the next day. Then, I told him I do not have the money to pay for 5 or 10 vending machine. So, at the end of the conversation, I paid US$2500 for one combo (sell drink and snack) machine with my credit card. He also mentioned that the machine can be kept in the factory until the placement locator (charge US$500) help me find the location to put the machine. (THIS IS A LIE).
The factory called me the next day, and asked me to provide the shipping address. And since the machine will be shipping from US to Canada, I also need to contact a custom broker they provided to help me fill-in the necessary documents to import the machine to Canada. And almost at the same time Ed Erdody from the company (Flagship Marketing Group, Inc.) contacted me and provided me with the contact information of the placement locator. I called the placement locator rightaway, he said he'll charge CAN$700 for placement service (THIS IS ANOTHER LIE). Heather said before, it is US$500, and I don't remember the exchange rate was that high US$1: CAN$1.4). He asked me to buy a money order CAN$350 for deposit and provided me his mailing address for sending the money order and said he will contact me when a location is available.
So, on Dec. 15, the vending machine was transported to my house, and the driver collected CAN$172.77 broker fee plus CAN$397.44 shipping charges. WHAT A SURPRISE, the vending machine came with an invoice from FORTUNE RESOURCES INC (http://www.fortunevendinginc.com) stated that the machine cost US$650. Flagship marketing pays only US$650 per machine and sells them for $2,500 what a mark up what a ripp off.
X'mas went by, the vending machine was still sitting in my garage for 1 month until Jan 13 when the placement locator finally called and said a location has been found and asked me to meet him to sign an agreement for his service and collect the balance of CAN$350. I asked him to show me the location first before I paid, but he wouldn't release the address until I paid him the money. I am also reliable to pay CAN$3/month to a charity company for donation to use the location to put my machine.
To make my story short, I did a final check on the machine before shipping to the location. GUESS WHAT, 3 knots out of the 9 in the snack portion, and 2 knots out of 4 in the drink portion of the machine didn't work. These machines are junk. I have to contact Fortune resources and asked for replacement to be shipping over the borders, and of course need to pay for custom import duty, CAN$ 26.17.
Finally, I repaired the machine and shipped to the location. And started to make some money from the vending machine, I wasn't so happy as I have collected a total of CAN$100 in the last 6 months, averaging to be CAN$4 per week. And now the owner of the premises has requested me to move the machine. So, I contacted the placement locator, he was very nice to offer me to pay him CAN$250 to find me a new location for the machine.
In this lesson, I learnt that everybody is making money EXCEPT ME. And I would like to share this lesson to everyone who are thinking of going into the vending machine businesses.
Similar cases have been posted here too:
Case 1) http://usacomplaints.com/Advertising-Deceptive/Flagship-Marketing-G/flagship-marketing-group-kel-z6798.htm
Case 2) http://usacomplaints.com/Miscellaneous-Companies/USA-Canada-Flagship/usa-
canada-flagship-marketing-9c4dz.htm
Elizabeth
BC, Canada
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