Hello
I would recommend against any business that operates with the honesty boxe formula, please take my advice as sound and from personal experience.
Having been in vending now for over 20 years, we trialled honesty boxes some 10 or 11 years ago and done a pilot of 100 boxes in Thetford, Norfolk, way before honesty boxes were in existence. We bought good plastic containers with a lid which contained a cash box. We called our scheme "Nosh Box" and we placed good quality sweets in there, Cadburys chocolate, Walkers Crisps, Giant Cookies, small KiOra orange juice drinks and many other popular lines of confectionery and drinks.
Placing the boxes is dead easy, you just walk into the site and leave them the box and tell them that you will be back next week to service it, we got 100 boxes out within days.
We done our first visits just one week after we dropped them off and we did collect a lot of money with relatively little shortage, the odd pennies that were short we just ignored. We replaced the contents of the box and came back the following week. On our second and subsequent visits, the level of theft grew. When a site initially has a small shortage they normally replace the odd 30p or 50p or take it out of petty cash. Those sites subsequently suffered enormous losses and they were very reluctant to replace the monies and suggest we remove the box from site which we gladly did.
We had 1% success rate of the box being spot on! I recall this site as it was a small printing company by a level crossing and the wife of the owner used to be our 'Nosh Box Monitor'.
Unless someone takes FULL responsibility for the honesty box the business does not work and it will be VERY rare to find an individual in any company who will take that responsibility - how can they, they can't be at their desk all the time.
All our honesty boxes were removed from site and we gave all the surplus stock to our local Children's Hospice in Norfolk who were having an opening day which they were very grateful to receive the goodies.
Honesty boxes appear in many of our sites, and the sites of our Franchisees. They appear and within a few visits they disappear. I speak to many honesty box operators who share their experiences with me and believe me
NOTHING HAS CHANGED.
I have noticed many companies offering this form of so called Franchise and they do rely upon new entrants coming into the market and their churn rate is massive. Just look at businesses for sale and you will find many Franchisees trying to offload their businesses.
The only person who makes money on this scheme is the confectionery packer who will buy very cheap and make good margins on the confectionery they sell to their Franchisees.
If you were to look into the Charities Act, you will see that quoting a % of profits is ILLEGAL and I do know Trading Standards are trying to clamp down of this form of selling as it is misleading.
The Charities Act states that you have to confirm the exact amount of the £1 which is going to the charity. Quotiing 'profits' is meaningless, misleading and illegal.
Think twice before parting with any money for the honesy box type of business. You can find out yourself for relatively little money by following my advice:
- Why not trial the business on 10 boxes.
- You can source these types of boxes for relatively little money.
- Place any products you wish into the box and have a menu so people know what they should pay or keep your offering to £1.00
- Run those 10 boxes for two months and then you will find out for yourself what does happen in reality.
- This will cost you less than £200 to do.
Trust me, you will thank me and your money would not be lost and you will not be another statistic of someone who entered into a business model in good faith only to find that it is flawed.
If the honesty box model worked, we would have launched it as a franchise
MANY years ago.
If you have any further questions on the honesty box forumla, please post your questions here and I will do my best to answer them so that everyone can benefit from the information.
Kind regards.
Barbara Fellowes
ps - I do know the MD of one of the major honesty box franchises who has now retired and we used to speak very frequently. He knew the model was flawed and now they do offer vending machines as part of their franchise.