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Blue Sky Scams Vending scam that is also found in ATM Industry Most industries have their own inherent scams. For years, the used car industry received the bulk of the abuse. Today, however, many industries have their own inside scam stories. In the vending industry, for instance, scamming is so prevalent that it has a name: blue sky scams. “In this industry, if you get a few good locations, you can make a living. That’s the basis of the blue sky schemes,” says industry expert and Vending Times editor and chief Tim Stanford. “Companies try to convince you to spend alot of money on machines and they’ll find you good locations and set it all up for you. Then they don’t come through.” In 1987, Beverly Bowers found herself the victim of a blue sky scheme. “I bought a vending machine package from what I later found out was a blue sky company,” says Bowers, now owner of Blue Moose Locators in Cincinnati. “I spent three times what the equipment was worth and basically lost my shirt on the deal. “But I got lucky and found some good locations on my own and eventually dug out from under and made the business work,” adds Bowers, who built up a vending business, which she ran for 20 years before selling it and starting a locating business to help other businesses find prime locations for vending machines. Unfortunately, many people aren’t as resourceful as Bowers and instead wind up deep in debt, with thousands of dollars of equipment--for which they’ve grossly overpaid--and no prime locations in which to put them or guidance from the operators who promised them the world, then disappeared. Smart Tip:If it’s the vending machine business you’re interested in, do your own homework and contact companies you’ve done your research on. And be leery of local ads for new vendors that offer a toll-free number and a chance to make "big bucks." Source: http://www.entrepreneur.com | |||
