rodney69 Posted May 16, 2014 Share Posted May 16, 2014 Ok, so I have someone that has offered me a route in payments, minimal down (200). It's up my alley and the machines I'm used to. Yes, I understand there are people that don't like U-turn's but I'm looking at the whole picture and still plan on building racks, but wanted an opinion on if it's worth it or not. There are 20 on location, 5 being tall 8's, the other 15 are 4's. They are newer style and in good shape. The route currently is grossing 640 and change for the 20. After talking with him, it's not set up right. I could pull half that out of one of the locations, but that's besides the point. There is another 50-4 selection machines in the garage also in great shape, with about 2800.00 of spare coin mechs and parts. Gross net after product is about 410 on the low side. So in total there is 70 working machines and he wants 10,000.00 for it in payments over 2 years. With 200 down, it would be 400 a month for 24 months no interest. The locations are established and have been in place for 5 years. Is it worth it? That leaves 50 machines to put in place for the profit and whatever else I could make the current 20 go up. Link to comment Share on other sites More sharing options...
mission vending Posted May 16, 2014 Share Posted May 16, 2014 Few people want to buy idle equipment, full line or bulk, I'd be willing to bet that you could take another grand or two off that price without much effort. Link to comment Share on other sites More sharing options...
ska173 Posted May 16, 2014 Share Posted May 16, 2014 That price isn't unreasonable but the first question I have is, was that the initial offering or was that the settled on price...I never agree to the initial offering, second 50 extra machines requires time investment (and often money) for placement so that should be a factor also. You are very optimistic about this route and that is great but don't let potential value (may never be realized) dictate current value. I would start in the $7500 range and work from there. Link to comment Share on other sites More sharing options...
rodney69 Posted May 16, 2014 Author Share Posted May 16, 2014 This is the first offering. I'm going to go around to the locations and get a better look at everything next week or so. Originally, he wanted 2500 down. At that, I wasn't even interested, 200, I'll work with. Time is fine, I only work 4 days a week. Locations I will get myself unless I hit a wall, then worry about it. I'm only optimistic because of numbers. One location is in a rec center where they hold dances, and basketball tourney's all the time. That one he fills every 2 weeks and doesn't sell toys or anything. Just the standard stuff. That one would increase about 30% if worked right and maybe another machine. I'm looking for input because I can talk myself into it! LOL It sounds like it's over priced? Link to comment Share on other sites More sharing options...
ska173 Posted May 16, 2014 Share Posted May 16, 2014 Not necessarily but that may not be the lowest price he is willing to accept...and at a lower price your ROI accelerates and as you optimize the route just gets more and more profitable...I am a fan of Uturn quads. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
musser Posted May 16, 2014 Share Posted May 16, 2014 For $10000 I could put out ( if I located myself) a route of NEW machines that would gross ( if they only averaged $8 a month) $13714 a year. I would have ONE product (gum) that has a 10% product cost tops, I would work 2 days a month. Link to comment Share on other sites More sharing options...
rodney69 Posted May 16, 2014 Author Share Posted May 16, 2014 For $10000 I could put out ( if I located myself) a route of NEW machines that would gross ( if they only averaged $8 a month) $13714 a year. I would have ONE product (gum) that has a 10% product cost tops, I would work 2 days a month. true, but they don't take payments, and I would still have 50 machines to put out to work, right? What is the average on single heads? Is it 8? Just curious. Link to comment Share on other sites More sharing options...
musser Posted May 16, 2014 Share Posted May 16, 2014 I threw $8 out as a lowball example. Some guys will get more some less. My annual gross was based on buying new at standard price. Is the Oak sale still going on? Are there other guys selling singles cheap? You know, I bought a bunch of Oaks last year $35 with stands. Ok, how much a month do they need to do to get my money back in a year? Not much and THAT is the "secret" to this biz. People overthink this business. Link to comment Share on other sites More sharing options...
rodney69 Posted May 16, 2014 Author Share Posted May 16, 2014 I threw $8 out as a lowball example. Some guys will get more some less. My annual gross was based on buying new at standard price. Is the Oak sale still going on? Are there other guys selling singles cheap? You know, I bought a bunch of Oaks last year $35 with stands. Ok, how much a month do they need to do to get my money back in a year? Not much and THAT is the "secret" to this biz. People overthink this business. That makes sense. it would only take 5-7 months to pay it off. That's a good school of thought. I'm still looking for input and for all the wisdom I can gather from the forum. I want to get all that I can before making my decision. The one part that I like is that it's already making about 5000 a year profit, and been established for 5 years. I still will tour everything, and end result probably offer 7000 for it all and land on 8 or 8,500 if I decide to do it. 50 machines is a lot of sitting money, like others have mentioned. I like everyone's input. Our Father suggests finding wisdom in many. Link to comment Share on other sites More sharing options...
rodney69 Posted May 16, 2014 Author Share Posted May 16, 2014 I talked to him and he's open for negotiations. I'm going to shoot for 7,000, so I'm starting at 75.00 per machine (which is high end of what I would pay not on location. The nice part is that 15 of the 20 are on my current route! 5 are only 15 min out of it. Link to comment Share on other sites More sharing options...
rodney69 Posted May 23, 2014 Author Share Posted May 23, 2014 Just an update, he just offered me 7,000. All I did was tell him a few days ago that he was high. I'm going to shoot for 5500. Musser, I will run GB's in one of the canisters for sure, then M&I's and whatever else. I'm still working on the concept of single heads, but if he gets low enough for this purchase, then my next ones will be more singles and racks. I have about 12 singles now. Some on Saddles with a 3 column and pyramid stand. I'm changing those over to 4 and 6 way racks and putting out the 6 in storage as well. I'll admit, U-turns are comfortable for me, but will expand in to others. I do respect your sage advice, it helps me to look at the whole picture and keep from being to one minded. Link to comment Share on other sites More sharing options...
rodney69 Posted May 23, 2014 Author Share Posted May 23, 2014 Just an update, he just offered me 7,000. All I did was tell him a few days ago that he was high. I'm going to shoot for 5500. Musser, I will run GB's in one of the canisters for sure, then M&I's and whatever else. I'm still working on the concept of single heads, but if he gets low enough for this purchase, then my next ones will be more singles and racks. I have about 12 singles now. Some on Saddles with a 3 column and pyramid stand. I'm changing those over to 4 and 6 way racks and putting out the 6 in storage as well. I'll admit, U-turns are comfortable for me, but will expand in to others. I do respect your sage advice, it helps me to look at the whole picture and keep from being to one minded. Link to comment Share on other sites More sharing options...
PowerVendor Posted May 23, 2014 Share Posted May 23, 2014 Just an update, he just offered me 7,000. All I did was tell him a few days ago that he was high. I'm going to shoot for 5500. Way to work him, rodney69. Tell him he's still too high and that you only have $3,500 cash but you would really like his stuff. Give him a few days and i bet he will call you back with a lower offer. I bet that you get the deal for $4,500. Link to comment Share on other sites More sharing options...
rodney69 Posted May 25, 2014 Author Share Posted May 25, 2014 Well, I went today to meet for the route. The ones in storage aren't in as good of shape that I would like, but good enough that a little cleaning and we'll have about 40 good machines. He said they were 4's, but turns out about 16 in storage were 8's! There are in pretty good shape. I went to a few of the locations and he obviously didn't know what he was doing. So, I went to the best location, he serviced it, filled it and emptied the money less than a week ago and it already had over 100.00 in it! That's with one of the coin mech's not working. It's an 8 selection Terminator, but I'm going to approach the owner about a rack system in the gaming area and another 8 selection besides the one that is there. They have basketball tourney's there all year, roller derby, and all kinds of events. I got everything for 5000, and he offered me payments, interest free, for 2 years!!! Of coarse, I said yes. That will allow me to get everything out, and continue to expand with racks as I go instead of giving all the profit to him right away. I read Robert Kyosaki's books and he says to do this as "other peoples money" to grow so that your not out. I like the idea. Not it's time to work! Thanks again everyone for the input! Link to comment Share on other sites More sharing options...
ska173 Posted May 25, 2014 Share Posted May 25, 2014 Well done, good job being patient and "working" the sale...sounds very promising Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
dromero Posted May 26, 2014 Share Posted May 26, 2014 Well, I went today to meet for the route. The ones in storage aren't in as good of shape that I would like, but good enough that a little cleaning and we'll have about 40 good machines. He said they were 4's, but turns out about 16 in storage were 8's! There are in pretty good shape. I went to a few of the locations and he obviously didn't know what he was doing. So, I went to the best location, he serviced it, filled it and emptied the money less than a week ago and it already had over 100.00 in it! That's with one of the coin mech's not working. It's an 8 selection Terminator, but I'm going to approach the owner about a rack system in the gaming area and another 8 selection besides the one that is there. They have basketball tourney's there all year, roller derby, and all kinds of events. I got everything for 5000, and he offered me payments, interest free, for 2 years!!! Of coarse, I said yes. That will allow me to get everything out, and continue to expand with racks as I go instead of giving all the profit to him right away. I read Robert Kyosaki's books and he says to do this as "other peoples money" to grow so that your not out. I like the idea. Not it's time to work! Thanks again everyone for the input! Sounds a good deal, I would take it. Link to comment Share on other sites More sharing options...
FrCorey Posted May 27, 2014 Share Posted May 27, 2014 uturn parts cost a ton of money Link to comment Share on other sites More sharing options...
rodney69 Posted May 27, 2014 Author Share Posted May 27, 2014 Uhhh....... not for me. I've been a locator for their customers on and off for quite awhile. I don't pay much. Link to comment Share on other sites More sharing options...
musser Posted May 27, 2014 Share Posted May 27, 2014 Ta da! Link to comment Share on other sites More sharing options...
rodney69 Posted May 27, 2014 Author Share Posted May 27, 2014 Ta da! LOL! Fair enough Musser! Link to comment Share on other sites More sharing options...
Action Vending Posted May 27, 2014 Share Posted May 27, 2014 I thought they went to prison or was that vendstar? Link to comment Share on other sites More sharing options...
Pete Schweddy Posted May 27, 2014 Share Posted May 27, 2014 It was Vendstar I got a letter in the mail about a year ago for a class action lawsuit against them. I was a sucker and bought my first machines from them over 7 years ago. The lawsuit was for promising an outrageous vend per day guarantee. I don't know if that means I may be getting money back from them or why they sent me a letter 6 years later about this lawsuit. Link to comment Share on other sites More sharing options...
rodney69 Posted May 27, 2014 Author Share Posted May 27, 2014 It was Vendstar I got a letter in the mail about a year ago for a class action lawsuit against them. I was a sucker and bought my first machines from them over 7 years ago. The lawsuit was for promising an outrageous vend per day guarantee. I don't know if that means I may be getting money back from them or why they sent me a letter 6 years later about this lawsuit. Don't feel bad, I bought new from Uturn 12 years ago! Never bought a new machine since! One thing that was invaluable, my salesman was who trained me to locate my own machines, which saved me hundreds, and that's how I got started locating for others too. So it made me money and saved me money. It's paid for it self many times over! Link to comment Share on other sites More sharing options...
musser Posted May 28, 2014 Share Posted May 28, 2014 One of the best charity operators I ever met started out as a locator. He told me he just woke up one day and thought, why don't i do this for myself? He built a route of around 1000 heads, ran it for 20 years before retiring. Link to comment Share on other sites More sharing options...
rodney69 Posted May 28, 2014 Author Share Posted May 28, 2014 One of the best charity operators I ever met started out as a locator. He told me he just woke up one day and thought, why don't i do this for myself? He built a route of around 1000 heads, ran it for 20 years before retiring. That's awesome! I'm trying to do both, charity and commission. I'm 45 and got started a little late, but maybe just in time! LOL Link to comment Share on other sites More sharing options...
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