Planet Antares Scam Alert | Planet Antares

PLANET ANTARES SCAM ALERT

Wholesaler Delivery Scam Alert
Wholesaler Double Charge Scam Alert
Wholesaler Expired Product Scam Alert
Wholesaler Lost Leader Scam
Wholesaler Unproven Product Scam Alert

Distributor Alert: Potential Wholesaler Scam

Planet Antares warns its distributors about the following scam practiced by some wholesalers. Some of our distributors have indicated that certain wholesalers are invoicing them for products that are not delivered with their orders. Large distributors who have made delivery arrangements with a wholesaler are advised to implement the following procedures immediately:

With the driver still present, immediately reconcile your delivery with the invoice to determine that your invoice matches your order, and the resulting delivery. Some distributors have found that they are not receiving all of the items on their invoice, and once the driver leaves, it becomes much more difficult to prove your case to the wholesaler.

Mistakes may occur from time to time, however if you notice a continued pattern of missed delivery quantities, consider finding a new wholesaler or supplier.

The following comes from a distributor who fell victim to this fraud:

"I have been a distributor with Planet Antares for 11 years and operate more than 150 machines. My weekly order from the wholesaler is very large and due to the volume of product I order, the wholesaler delivers my products to my home. At one point, I stopped cross-referencing the order I received with my invoice. What a huge mistake! When I discovered that my gross profit margins were off, I did a full audit of my business for the previous two years. I quickly discovered that I was paying for products that were not getting delivered.

Immediately I called my wholesaler and was told that since I signed off on the invoice that I accepted delivery of all the items on the invoice, even if the actual items weren't there. I ended up paying for a lot of product that I never received.

Today, I always review my deliveries and verify my invoice all with the driver before he leaves. I still catch an occasional error but I have it corrected on the spot. Please tell everyone who receives deliveries at home that it is worth the extra five to ten minutes to make sure you are getting what you pay for. Not doing so can erode profit margins and lead to losses in the thousands of dollars, like it did for me. "

G. S.
Arkansas

Among wholesales, these practices aren't common. In our experience, the vast majority of vending wholesalers are honest but costly mistakes can and do happen.

Distributor Alert: Potential Wholesaler Scam

Planet Antares warns its distributors about the following scam practiced by some wholesalers. Some of our distributors have indicated that certain wholesalers are invoicing them for products that the distributor did not order or double-charging for products on order. Distributors are advised to implement the following procedures immediately:

Take a few moments to examine your receipt before leaving the wholesaler's place of business with your order. Verify that you have been charged accurately for every item you have purchased. Log all items you place on your cart and match your log to your receipt before you leave the wholesaler's location.
One of our distributors describes his experience with this issue:
"My name is Paul. I have just had an unpleasant experience with my wholesaler and I want to share it with you so you can let others about it. I have been vending for about two years and have always gone to the same wholesaler. I always found it odd that I seemed to come up short on some inventory, but I assumed that my teenage son was sneaking snacks! When I confronted him, he denied it.
I kept great books. I took my receipts each week and created a log so I always knew what I had. I quickly compared my receipts to my inventory log and then to my actual inventory. I discovered that I was short by several cases on a number of items. I made a mental note of this.
The next time I went to the wholesaler I carefully logged everything I was going to purchase. Once I got my receipt I took just a minute to compare it to my list and was shocked to see several items that did to match up. I was charged for an extra case of soda and two cases of chips.
It is easy to lose track of on such a large order. The cashier gave me a credit but at this point, I was suspicious. I followed the same procedure the next week and was shocked to see a similar occurrence. Again the cashier gave me a credit. Carelessness on my part had cost me thousands of dollars. Fool me once shame on you; fool me twice I don't think so! I no longer shop at that wholesaler.

P. W.
Florida

Please note that these practices are not common. It is our experience that the vast majority of vending wholesalers are honest but mistakes can happen.

Distributor Alert: Potential Wholesaler Scam

Planet Antares warns its distributors about the following scam practiced by some wholesalers. Some of our distributors have indicated that certain wholesalers are placing expired product in the center of a pallet containing fresh product. Distributors are advised to implement the following procedures immediately:
Inspect all pallet products for freshness. Even if you are not keeping a large inventory this is an absolute necessity. You promise fresh quality products to your locations and it is part of your obligation to make sure the products you are vending are the freshest they can be. Take the extra five minutes and check the expiration dates. It will be worth it. One of our distributors describes his experience with this issue:
"I thought I could trust my wholesaler and did not expect what happened to me. Unfortunately, it was one of my locations that helped me discover this error and I am thankful I did not lose that location over the incident.
I got a call from the office manager saying that she had gotten several complaints about expired items in my Office Deli. I found that hard to believe because I have to fill it almost completely each visit and I had just purchased the products in the machine from my wholesaler. I visited the location and discovered that several products were well past their expiration date. I pulled the expired items and restocked the location with fresh items.
I returned to the wholesaler and complained. They denied that they sold expired products. I returned to the wholesaler the next week to buy my products but this time I checked each case I put on my cart. Right in the middle of what looked to be a new pallet was an expired case of chips. Then I found the same thing in a case of Snickers. I was flabbergasted! I left my cart where it was and walked out. I have now found a new supplier and I am very happy with them. Please let others know of this scam so they can avoid the embarrassment I had to go though."

R. S.
Washington

PPlease note that these practices are not common. It is our experience that the vast majority of vending wholesalers are honest but mistakes can happen.

Distributor Alert: Potential Wholesaler Scam

Planet Antares warns its distributors about the following scam practiced by some wholesalers. Some of our distributors have indicated that certain wholesalers are offering loss leaders and covering the cost by overcharging on other products. A loss leader according to Wikipedia is defined as: "A loss leader or leader is a product sold at a low price (at cost or below cost) to stimulate other, profitable sales. It is a kind of sales promotion, in other words marketing concentrating on a pricing strategy. The price can even be so low that the product is sold at a loss. A loss leader is often a popular article. Sometimes leader is now used as a related term and means any popular article, in other words one sold at a normal price."
Offering loss leaders is a standard business practice in most retail outlets. Unfortunately, a wholesaler may entice you to shop at there warehouse by offering you deep discounts on a few top products, then overcharge you on everything else. Once you do the math you discover that you are actually paying more for the overall bill then the savings gained from the loss leader.
Always know what your costs of goods are. Keep a journal so you know what each item should cost. Always take a calculator with you when you shop so you can verify per-item costs. Stock up on the loss leader products if the prices are good, but go to your regular wholesaler for the balance of your order.
A loss leader is just a marketing tool. You must always practice sound business principles and be diligent in monitoring your costs. Small shifts in the cost of your goods sold can have a large impact on your gross profit margins.
One of our distributors describes his experience with this issue:
"I have shopped at the same wholesaler for years and I have been very satisfied with the prices and service I receive. I got a letter in the mail from another wholesaler that was a little farther away from my home and route but they were selling cases of Coke, and Snickers for about 25% less than what I was paying for at my usual wholesaler. I thought that if I could get my products that much cheaper I could improve my profits.
I headed across town to my new wholesaler. I was delighted at first as I loaded Coke and Snickers on my cart at prices I've never seen before. I was so taken by this that I just grabbed the rest of the items from my list and hurried to the check out. A week later when I was reconciling my inventory and calculating my profit margins I discovered that while I got a great deal on my Coke and Snickers products, I paid a lot for the rest of my inventory. I spent significantly more than I saved! I will take advantage of those discounts from the other wholesaler but I will not be fooled into overpaying of the rest of my inventory!"

V. R.

Please note that these practices are not common. It is our experience that the vast majority of vending wholesalers are honest and mistakes can happen. However, if you spot a pattern of issues please consider finding an alternate supplier.

Distributor Alert: Potential Wholesaler Scam

Planet Antares warns its distributors about the following scam practiced by some wholesalers. Some of our distributors have indicated that certain wholesalers are steering them into purchasing "the hottest new product" only to find out it is a poor seller.
While being the first to sell a hot product is great, don't be fooled by the hype a wholesaler can put on certain unproven products. You are not a guinea pig; you are a savvy businessperson. Let the market be your guide. Before you buy any product, make sure it will sell.
Here is a simple tip to aid you in determining the marketability of the product. Get to know a few clerks at your local convenience stores and ask them what people are buying. What is your best seller for women over 30? What are blue-collar workers spending on? Five or ten minutes in a Circle K or 7-11 is time well spent and will pay you back in multiples by helping you avoiding bad products and spotting new trends before your competitors do.
One of our distributors describes his experience with this issue:
"I cannot believe I fell for this one! Every week I noticed a nice big display for a new energy drink at the front of my wholesaler. I finally asked the owner what is that all about. He told me it is the next "can't-miss" mega hit. He got a great deal being one of the first wholesalers and was able to sell them to me at much less than what the market leaders are charging for competing products. Without really thinking about it I stocked up.
The wholesaler said the product was going fast and would soon be out of stock on the drinks. I wanted to be ready for the pending shortage, but the only shortage was on sales. This stuff was not moving. I eventually tasted one and immediately I could see why. I think all energy drinks take funny but this was bad!
No one recognized the brand and customers were not willing to pay $3 to find out. I should have offered refunds to the few who did. This lesson cost me hundreds of dollars. Let me offer another lesson. I took them to the Local Boys and Girls Club and donated the remaining supply. I took it as a deduction so I can at least save some face on this dark day.
By the way the display is still up and there are still a ton of cases. Looks like I was not the only one burned. My wholesaler is stuck with a bigger loss than I was. I did not tell him to take the write off because I still have not fully forgiven him."

D. J.
Pennsylvania