Things to Consider Before Entering the Payphone Industry

The payphone vending business is highly complex and highly regulated. It is not a passive investment. You need to fully understand it before investing. The California Payphone Association suggests you spend six months studying the industry and do the following:

• Attend meetings with other payphone owners to familiarize yourself with all aspects of the industry. Look for meeting schedules for National and Regional Associations in trade magazines.
• Know the market! Learn what pay telephone equipment and locations are worth. Call several equipment suppliers and manufacturers and compare prices and features -- just as you would for any other purchase.
• Develop a good working relationship with your supplier. Be convinced this company will be there for the long haul -- providing you with the support and technical information you will need.
• Ask for a contract from your supplier and study it carefully, or have it evaluated by legal counsel.
• Look for a recision clause in the contract which allows you to change your mind within three business days. This is the law in most states. If the supplier is not operating within the law, you should not be doing business with that company.
• Get a copy of the tariff that governs the industry in your state from your state's Public Utilities Commission.
• Call the Payphone Service Provider Service Center for the telephone company or Competitive Local Exchange Carrier (CLEC). Learn how to do business with them.
• Find out about location contracts. Standard contract law applies.
• Check with the State Attorney General's office or the Secretary of State to see that the company you are doing business with has the necessary registrations, licenses, and/or certificates required to operate in either party's state of residence and is in good standing with those offices.

If you have any questions before going further, feel free to call the California Payphone Association at (925) 602-5367. You can also request a membership application today or print and fax our online membership form.

Your support makes all private payphone vendors in California stronger.