bulkjake Posted May 26, 2012 Share Posted May 26, 2012 31 machine route for sale in my area. All machines are located however, I am still waiting on the income figures. He is asking 8,000. What would you offer? (I will update this thread with income figures when I get them) Link to comment Share on other sites More sharing options...
Donovon Posted May 26, 2012 Share Posted May 26, 2012 100$ per location.. Not worth much more .... Link to comment Share on other sites More sharing options...
TKK Posted May 26, 2012 Share Posted May 26, 2012 2500 Link to comment Share on other sites More sharing options...
PerformaVending Posted May 27, 2012 Share Posted May 27, 2012 I guess it would depend on location composition. If it's mostly barber shops and furniture stores, I'd pass on it entirely. If you can buy the locations separate from the machines, I'd pursue that. Link to comment Share on other sites More sharing options...
Vendelicious Posted May 29, 2012 Share Posted May 29, 2012 Here are my general guidelines for buying routes: Start by offering half of what the machines are bringing in in total sales per year and work upwards. In most situations, never offer more than what total sales are in one year. For every positive aspect of the route, increase your offering price; for every negative, decrease your offering price. In addition, evaluate the position of the seller and adjust your offering price accordingly. Why is he or she selling the route? Is it because of an emergency? Is he or she retiring? Is the person moving to another town? Is he or she tired of running a route? Positive and negative factors to consider when buying a route: +Newer machines -Older machines +Well functioning machines -Machines need work +Interactive machines (shootin' hoops) -Machines are difficult to service +High earning locations -Machines must be relocated +Location of machines -Machines are not in ideal locations for you +Seller has excellent relationships with business owners -Total sales are below national averages How to gauge the demand for the seller's route: In most cases, if the seller has received multiple offerings, he or she will tell you. Be careful, however, the seller may not be telling the truth. After the seller has stated that multiple offers have been made, ask him or her a follow up question such as: Are any of the other prospective buyers close to sealing the deal? If the seller seems overly excited, he or she may be trying to fluff up the price of the route. What to do if the seller is moving out of town: In this situation, try to get the seller to tell you when he or she is moving. If it sometime in the near future, start by offering a lower price. Expect to pay a higher price if the seller has plenty of time left before moving. What to do if the seller needs cash fast because of an emergency: Start by offering less than half of what total sales are in one year and work upwards. When to pay 100% or more of total sales in one year: -Machines are of high quality (Beaver, Northwestern, A&A Global, etc...) -Machines must be in excellent working condition -Total sales are well above national average figures When to pay below total sales in one year: -Machines are not of high quality -Machines are not in excellent working condition -Total sales are average or below national average figures What to do if you do not trust the financial figures provided by the seller: Ask the seller if he or she is willing to finance the deal over a 12 month period, stating that the revenues from the machines will be used to pay the deal off. The monetary figure offered to the seller is the average total sales in one year. If the seller is hesitant about accepting this proposal, it may indicate that the financial figures provided are not accurate. What to do if the seller is willing to show you his or her route: If you are willing to go around with the seller, keep your eyes peeled open and bring a pen and a pad. Be prepared to take notes on every machine and location. While examining each location, be as objective as possible. Examples of questions to ask yourself at each location: -What is being vended? -How clean are the machines? -Are the individuals that frequent this location primarily adults or kids or both? After visiting each location, you should be able to more accurately determine the dynamics of the route. Examples of questions to ask yourself while looking over your notes: -Are the products being vended at each location appropriate? -Should machines be relocated? Keep in mind that without detailed notes, you might pass on a route with tremendous hidden potential. With just a few tweaks, revenues may increase significantly. Link to comment Share on other sites More sharing options...
Pyrodude Posted May 29, 2012 Share Posted May 29, 2012 I like to price the route based on the value of the machines plus the cost to locate them. Kandy King's reviews has Locators R Us at the top of the locating heap and they charge about $30-$50 per location. Add in the value of the machine and you come up with what I would pay per location. I am not too big on valuing a bulk route based on sales numbers unless long-term contracts were included. Since a location can boot you out at any time, basing the value on annual gross sales entails more risk as you are not guaranteed a years worth or more of sales. If long-term contracts were included then it is easier to assume a long-term revenue stream would be generated which would make valuation based on sales more reasonable. That said, I do kind of like Vendelicious' idea of paying off the route over the period of a year and basing the route value/price on what is actually collected. That certainly helps reduce the risk/unknowns. Link to comment Share on other sites More sharing options...
PerformaVending Posted May 29, 2012 Share Posted May 29, 2012 Here are my general guidelines for buying routes: I didn't quote in the whole thing, but that deserves a sticky. That's a great guideline for route acquisition! Link to comment Share on other sites More sharing options...
bulkjake Posted May 30, 2012 Author Share Posted May 30, 2012 Thanks for the info guys. They finally emailed me back with the income figures: $700 Gross & $400 net per month which is about $22 per location gross...I am going to make them an offer...but they aren't going to like it since they are asking $8,000 HELLO!!! Link to comment Share on other sites More sharing options...
bulkjake Posted June 4, 2012 Author Share Posted June 4, 2012 Because everyone seems to hate servicing these U turn machines...I am going to wait it out (I have no experience sevicing these machines). But, I got them down to $4,500 for the entire route. (I think I can do better). Also, I aquired 28; 1-800 triple machines (which I love to service). I am thinking if I get this route for the right price, I will replace all the U turns with my 1-800 triples and sell off the U turns on CL, Ebay...ex. What do you guys think? Or should I scratch this U turn idea all together and just get my 800's out to new locations...? Link to comment Share on other sites More sharing options...
PerformaVending Posted June 4, 2012 Share Posted June 4, 2012 Because everyone seems to hate servicing these U turn machines...I am going to wait it out (I have no experience sevicing these machines). But, I got them down to $4,500 for the entire route. (I think I can do better). Also, I aquired 28; 1-800 triple machines (which I love to service). I am thinking if I get this route for the right price, I will replace all the U turns with my 1-800 triples and sell off the U turns on CL, Ebay...ex. What do you guys think? Or should I scratch this U turn idea all together and just get my 800's out to new locations...? Unless the locations are surefire winners, I'd just locate the 1800s yourself. If they are good locations that you can swap out or even upgrade, it may be worth pursuing. Good luck Bulkjake! Link to comment Share on other sites More sharing options...
musser Posted June 4, 2012 Share Posted June 4, 2012 A couple of very good post about buying a route guys!!! Link to comment Share on other sites More sharing options...
BigRedvender Posted June 16, 2012 Share Posted June 16, 2012 Thanks for the info guys. They finally emailed me back with the income figures: $700 Gross & $400 net per month which is about $22 per location gross...I am going to make them an offer...but they aren't going to like it since they are asking $8,000 HELLO!!! Link to comment Share on other sites More sharing options...
BigRedvender Posted June 16, 2012 Share Posted June 16, 2012 The expences seem a litlte high on it. some of the machines might need to ge tightened up a little bit. I am just starting a route with some vendstars also just got a couple of uturns. So I am going to give them a try and see how they work. What it is like to work on them. Good luck. I know the vendstars are pretty cheap machines Just trying to get in the door and then work up to some better equipment. As I build my route. Link to comment Share on other sites More sharing options...
PerformaVending Posted June 17, 2012 Share Posted June 17, 2012 The expences seem a litlte high on it. some of the machines might need to ge tightened up a little bit. I am just starting a route with some vendstars also just got a couple of uturns. So I am going to give them a try and see how they work. What it is like to work on them. Good luck. I know the vendstars are pretty cheap machines Just trying to get in the door and then work up to some better equipment. As I build my route. Well, when it comes to U-Turns, I hate to do this to you, but you deserve to know. JLM is our resident U-Turn operator, and his experiences are a great look into the "dark side" of U-Turn machines that the Biz-Ops won't tell you. Try THIS thread, or THIS thread, and that's a good place to start. I understand that these can be fine machines, but at the same time, a fair warning is due. Good luck! Link to comment Share on other sites More sharing options...
bulkjake Posted June 17, 2012 Author Share Posted June 17, 2012 I ended up just buying more 1800 triples because that is what I already have...and I saw way too many posts of quarters flying everywhere with Uturns... and I got a sweet deal on the 1800 triples... Now I just need to locate them. Link to comment Share on other sites More sharing options...
BigRedvender Posted June 17, 2012 Share Posted June 17, 2012 Well, when it comes to U-Turns, I hate to do this to you, but you deserve to know. JLM is our resident U-Turn operator, and his experiences are a great look into the "dark side" of U-Turn machines that the Biz-Ops won't tell you. Try THIS thread, or THIS thread, and that's a good place to start. I understand that these can be fine machines, but at the same time, a fair warning is due. Good luck! I have only bought 3 of the 4 head ones just to see how they work and I got them Cheep enough average price 65 each. We have a 8 space termanator at work and It might end up home with me no one has serviced it in months and Months. and no contact info on it I know it can't be making that much money unless you doing a 3 month cycle on it. I ended up just buying more 1800 triples because that is what I already have...and I saw way too many posts of quarters flying everywhere with Uturns... and I got a sweet deal on the 1800 triples... Now I just need to locate them. How do you like the 1800 triples I have been checking them out. seem like nice machines trying to see if I can score one at a good price on ebay. Link to comment Share on other sites More sharing options...
PerformaVending Posted June 18, 2012 Share Posted June 18, 2012 I have only bought 3 of the 4 head ones just to see how they work and I got them Cheep enough average price 65 each. We have a 8 space termanator at work and It might end up home with me no one has serviced it in months and Months. and no contact info on it I know it can't be making that much money unless you doing a 3 month cycle on it. Careful how you pursue that one. Some good information HERE. I am glad to hear they're working out okay for you- I know how it is- it's a known problem machine- but it's cheap, so you go for it. What I lose in some service issues I amke up for in profits- which I can roll into better machines down the road. It's a process. Keep us posted on how it goes! Link to comment Share on other sites More sharing options...
BigRedvender Posted June 18, 2012 Share Posted June 18, 2012 Careful how you pursue that one. Some good information HERE. I am glad to hear they're working out okay for you- I know how it is- it's a known problem machine- but it's cheap, so you go for it. What I lose in some service issues I amke up for in profits- which I can roll into better machines down the road. It's a process. Keep us posted on how it goes! well i got them before I found this and like you said it is a starting place to end up with more and better machines. Looking to make extra income not to get rich quick Link to comment Share on other sites More sharing options...
bulkjake Posted June 18, 2012 Author Share Posted June 18, 2012 I have only bought 3 of the 4 head ones just to see how they work and I got them Cheep enough average price 65 each. We have a 8 space termanator at work and It might end up home with me no one has serviced it in months and Months. and no contact info on it I know it can't be making that much money unless you doing a 3 month cycle on it. How do you like the 1800 triples I have been checking them out. seem like nice machines trying to see if I can score one at a good price on ebay. They are amazing machines. I am fairly new to the business. I bought an existing route of 1800 triples, and I am looking to expand it. I am sure they are not the best, but they are easy to use and very quick to service. Link to comment Share on other sites More sharing options...
valleyvend Posted August 17, 2013 Share Posted August 17, 2013 Does anyone know where to find the national average on bulk vending machine routes? I'm in the process of buying a bulk vending business but don't know if the revenue numbers I am being given are believable. Link to comment Share on other sites More sharing options...
sherlock Posted August 17, 2013 Share Posted August 17, 2013 Does anyone know where to find the national average on bulk vending machine routes? I'm in the process of buying a bulk vending business but don't know if the revenue numbers I am being given are believable. Best thing to do is share the details on your prospective purchase on a separate thread so that experienced vendors can chime in their thoughts and suggestions. The average per head of $7 is often tossed around here. But, that is data from a national study that was done several years ago. It's probably best to not rely on that study's results IMO. Link to comment Share on other sites More sharing options...
Ckane Posted August 19, 2013 Share Posted August 19, 2013 Hey guys Im new to the vending world and looking to purchase a route with 250 locations total 84 locations are bulk toys and the remaining are bulk candy... the purchase also includes 150 machines not placed on location all candy machines are 1-800s and the bulk toys are oak/A&A global machines. the gross on both routes are $7200per month and the net is $3500 the asking price he is asking is a huge 100K im meeting with him tomorrow to get in the paper work to back these numbers. can anyone help me determine if this asking price is anywhere close to what its worth?? any feed back is GREATLY appreciated. Link to comment Share on other sites More sharing options...
Jimoutside Posted June 15, 2015 Share Posted June 15, 2015 Hey guys Im new to the vending world and looking to purchase a route with 250 locations total 84 locations are bulk toys and the remaining are bulk candy... the purchase also includes 150 machines not placed on location all candy machines are 1-800s and the bulk toys are oak/A&A global machines. the gross on both routes are $7200per month and the net is $3500 the asking price he is asking is a huge 100K im meeting with him tomorrow to get in the paper work to back these numbers. can anyone help me determine if this asking price is anywhere close to what its worth?? any feed back is GREATLY appreciated. Sorry nobody got back to you, Ckane. If you're still around at all, let us know if you got into vending. That would be a pretty expensive route to buy for beginning with! Link to comment Share on other sites More sharing options...
NYCandyMaN Posted January 5, 2018 Share Posted January 5, 2018 On 5/26/2012 at 8:05 PM, PerformaVending said: I guess it would depend on location composition. If it's mostly barber shops and furniture stores, I'd pass on it entirely. If you can buy the locations separate from the machines, I'd pursue that. why do that, buy what ever is being sold, and then sell off the equipment while putting in your own equipment, buying a location without a machine is like buying a lace without a shoe. just bought 40 machines with 20 locations, yes I know, 2 machines per location, sucks! its been about 3 months now, I've gotten the feel for the route, and now I am ready to sell of the machines that came with route and install my beavers, paid 4k for them, have done 4 cashouts so far, another 4 months it'll be paid off, and as we all know, its slow and steady, one by one I will slowly install beavers into all 20 locations, not to mention the area I cover, I also try to place in other spots, so when it does come time to take out, I'm not hauling all 40 machines. Link to comment Share on other sites More sharing options...
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