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whats this route worth?


dragstarchad

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74 units in 2 routes asking 125 for each unit.(9250) and the are all in location   first route 1050 every 6 weeks  2 route 600 dollars every 3 months   the units are 1-800vends   vendstar   lypc 2 head  and 4 hershey nugget machines.  what do u think?:huh:???

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If my calculations are right that's about 975 per month averaged out. The machines are not that great of a machine. But are decent. I would say somewhere around the 7000 dollar area. Give or take 1000.

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Be very careful here.  74 locations averaging $900 gross/month = $12.16 a month average and if the majority of these are triples you can assume there are 5-6 locations doing $60-80/month and 20-30 locations doing less than $5/month.  I've found two things are universally true about routes like this: 1) 50-70% of the sales are PMM, Reeses or other chocolate, so your true net isn't very good and 2) there's a lot of product spoilage that's watering down the value that you'll never hear about from the seller either.  

 

In fact, I wouldn't be afraid to point those things out to the seller and tell him, "Look, sincerely I wish you luck selling this entire route for what you're looking to get - I'm genuinely rooting for you.  But if you have a hard time selling it all, I'm interested in working with you to come up with a number we can both live with for your top 8-10 locations."  

 

The value of these candy routes are the top 10% locations (which are probably doing 50% of the route's gross by themselves) and the equipment.  Everything else is crap.  

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  • 3 weeks later...

Any price above $5K would be a stretch. Ask to ride along with him on his next collection month and see for yourself on average how much he is profiting. At his price, I bet he will be reluctant to agree on such notion. If that's the case, wish him luck and walk away.

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