Research: The Vending Machine Market in Australia 2002-2004 (BIS Shrapnel)

Vending machine investors warned.

Mum-and-dad investors in vending machines who are lured by advertisements to "run your own business" were being duped by unscrupulous firms, an industry report has found. "Our desk research indicates that people taking up these offers can often be sold machines at inflated prices, often reconditioned older models and the sites are not as profitable as expected," report author Michael Beder said.

Mr Beder said the Australian Competition and Consumer Commission had warned investors in the $650 million vending machine industry to "avoid bogus franchising-related scams".

By dealing only with members of the Australian Vending Association (AVA) customers could avoid being duped, Mr Beder said.
"While customers (site owners) can feel protected form unscrupulous operators by dealing with members of the AVA, our research reveals that the usage of formal, written contracts is fewer than one-in-two," he said.

Sourced from: ninemsn.com.au/business, 13 November 2002