Fraudulent Commision Reports II

Vencoa's prices are lower than machines from Selectivend, Fawn, Federal, or USI.

Vencoa is a vending machine vendor for all State of California and across United States. With offices in Palo Alto, Vencoa distributes vending machines across United States.

DISHONEST VENDING OPERATORS Part Two

How a Dishonest Vendor Conducts Business

So, how does a dishonest vending operator do business? A dishonest vending operator reports fictitious lower sales to the client. In turn, the actual sales record gets altered at some point in the collection, counting, data-entry, or commission calculation process. Therefore, unless this is a one-man operation, all other members of the vending operator's team are aware of the scam, from the office manager to the route driver. If the vending operator is comfortable running a dishonest business, then his only concern is for the client not to find out. The dishonest vending machine operator thinks that his client is his biggest concern, when the client should be the least of his worries. Sure, if caught in a scamming operation, a dishonest vendor can not only lose the account, but could possibly face a lawsuit to recover lost commissions. Although the loss of an account or a possible lawsuit would be expensive, it would be manageable. The dishonest vendor, however, could be faced with the possibility of blackmail from an employee. An employee who is aware of the dishonest vendor's cheating cannot easily be fired or disciplined. Additionally, the employee can choose to work for a competitor and expose the dishonest boss. By exposing the vending operator's dishonesty to employees of the company, the entire vending operation is placed at risk.

Nearly everyone on a vending operator's team handles cash, or products that can be converted to cash, on a daily basis. With this said, there are really only two reasons why people avoid stealing:

1. The fear of getting caught and the possible consequences, or
2. Ethics, morals, integrity, and a conscience.

However, since members of the dishonest vending operator's team are working for someone who cheats and steals from clients, what is stopping them from cheating and stealing from their boss, the dishonest vending machine operator? Just like honest vending operators, many of these employees do not steal from their boss because of their level of integrity. There is a basic social contract that is contained in virtually every ethical system and body of law, and that is: I will not steal from you, if you do not steal from me. The dishonest vending operator has chosen to blatantly disregard and violate this basic social contract. As a result, the potential of employee theft in the company is greatly increased. Moreover, an environment is created where the respect from employees is lost. The dishonest vending operator cannot lead by example, cannot inspire his employees, and cannot expect or demand performance from his employees, thus losing his effectiveness in managing his business.

The dishonest vendor also ends up facing a real market risk. Every single vending operator, whether reputable or dishonest, occasionally loses clients. Oftentimes these losses have nothing to do with commissions. When a location is lost due to under-reporting of sales by the dishonest vending operator and a reputable vending operator takes over the account, the sales at that location will appear to dramatically increase. With the sudden increase in sales, it will be obvious to the reputable operator and the client that the previous vending operator had been stealing. With this gained knowledge, the reputable vending operator and/or the client could potentially drive a dishonest vendor out of business. The reputable vending operator could contact the dishonest vendor's other locations, pointing out that sales significantly increased at the location he recently took over. That client would then call the location to verify the reputable vending operator's claim. Additionally, the client who is now working with the reputable vending operator could potentially tell other facilities and personnel managers of the dishonest vending operator, while recommending the reputable vending operator. As a result, the dishonest vending operator will gain a negative reputation and continue to lose business, while the reputable vending operator will gain a positive reputation and continue to increase business.

The dishonest vending machine operator puts the future of his business at risk. What happens if the dishonest vending operator decides to sell the company after cheating clients out of a lot of money? A reputable vending operator who is considering purchasing the company would not continue scamming clients and would recalculate the bottom line by calculating the cost of reporting and paying accurate commissions. Since the purchase price is based on a multiple of earnings, the purchase price would be reduced by a multiple of the amount gained or saved by cheating clients.

Since the risks of cheating outweigh the so-called reward, cheating is not how you get ahead in the vending industry, or in any industry. Despite this, dishonest vending machine operators will continue to taint the industry. So, how exactly do you bid against a liar and a cheat? To learn how to proceed against a dishonest vending machine operator please click here.

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

Buy Soda Vending Machines from Vencoa

All vending machines are priced lower than the identical machines from Selectivend, USI, Fawn, or Federal.

Plus we offer:

• Zero Down Financing
• Lower Interest Rates

Questions? (800) 223-4101 or contact us through our Info Request form