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7/29/2008

ADVANCED VENDING
(866) 722-2047
515 Oak St., Suite C
Conway, AR 72033
www.advancedvending.us
Mr. Daniel Kercsmar, Principal

This company offers vending machine distributorship business.

Based on BBB files, this company has an unsatisfactory record with the BBB due to a pattern of pending complaints and has failed to correct the underlying reason for the complaints.

Advanced Vending came to the attention of the BBB in January 2008. Callers inquiring about this company state they had responded to a classified ad in their local newspaper regarding a vending machine business opportunity. They were asked to wire a 50% investment of $4,000 to $16,000 upfront and the other 50% when the machines are delivered. The promoters of the business expressed a sense of urgency, saying they wouldn't hold the exclusive rights to that region very long, because there were many other interested parties. They are also given contact information for several references who, when called, enthusiastically conveyed that their vending business was very successful.

Mail sent to the business' address in Conway, Arkansas, was returned by the US Postal Service. After some investigation, the BBB discovered the company did not exist at the address they claimed to be their headquarters.

According to BBB records, consumers are told once the vending machines arrive, a locator service will do all the work to get them placed; however, they are later told that Advanced Vending no longer has a locator in their area but, for a fee, an alternate locating service could provide the service. According to consumers whose vending machines had been placed, they were put in small volume businesses, and they were not able to achieve the earnings advertised by this company. Consumers have also stated that some of the machines were not reliable and had experienced mechanical problems.

The BBB has requested additional information from this company due to concerns about their promotional materials and selling practices. The company has yet to respond or substantiate the earnings claims made in its promotional materials. The BBB has also requested the company clarify discrepancies in various physical addresses being used by the company as well as seemingly inaccurate information on the company's website. A company address used in their promotional materials belongs to an answering service in Conway, AR, but there is no business at that address under the name Advanced Vending. The company's fax number is linked to an additional address in Little Rock, AR. Although the company was asked to clarify these discrepancies, no response has been received. An individual claiming to represent the company has notified the BBB that the company does not currently have a physical business address anywhere in the United States.

BBB ADVICE Don't Get Short Changed: Be Aware of Vending Machine Scams

In tough economic times, consumers often look for ways to supplement their income. The Better Business Bureau warns consumers about help wanted ads that promise large profits for little effort servicing automatic vending machines or display racks. Although some business opportunities that offer servicing vending machines or display racks are legitimate, many are not trustworthy. Potential investors should get all the facts or they may end up being short changed.

Although some ads convey the impression that the advertiser is offering a job, the actual proposal is to sell equipment and merchandise. Many advertisements fail to disclose that vending machines are even involved in the offer. They mention vague generalizations about an "opening" or a "money-making opportunity" rather than disclose that the proposition is for the outright sale of machines for which the purchaser assumes full responsibility.

People responding to such ads usually receive by mail, email or telephone, invitations to meet a representative of the company. At the meeting, a salesperson will paint a glowing picture of the profits that can be made, and typically, the salesperson will apply pressure for a quick decision to prevent a careful study of the offer.

The following are some common tactics fraudulent promoters might use:

• Inflated profit projections, including elaborate charts that may have no basis in fact.
• Locator services where the company claims to employ an expert locator to find prime locations for its machines. The service usually ends once any establishment willing to have a machine on its premises is found, regardless of how many potential customers that area attracts.
• Training programs that are generally superficial or non-existent. And it should be noted that it is impossible to learn to be a successful vending operator in one or two weeks from an out-of-town salesperson.
• "Good deals" on machines, which may turn out to be machines sold for two to three times their actual value. Potential investors should be wary of buying any machine that they cannot look at in person since catalog pictures and descriptions may not tell the whole story.
• Repurchase plans, in which vending promoters offer to buy back inventory from the investor. Unfortunately, the promoter is usually long gone by the time an investor tries to exercise this option.
• Guarantees offered by sales agents often are worthless because the agent cannot be located and the manufacturer will not honor them.

Before investing your money in a business opportunity, check the company out with the BBB. And, keep in mind that fraudulent business opportunity promoters are likely to use high-pressured sales tactics to get you to buy. If the business opportunity is legitimate, it will still be around when you are ready to decide.