hulksmashu00 Posted June 30, 2014 Share Posted June 30, 2014 ok i just found a vending route for sale about a hour from me. i am waiting to talk with the owners now but the info i have is this. Established candy machine Business with over 120 machines on location This vending business is servicing small business owners, grocery stores, convenience stores, restaurants, and specialty retailers. As of December 1st 2013 there are over 50 active accounts. Over 120 multi-coin operated machines are currently on location Estimated value of coin operated machines on location is $7,000 ($50.00 each) - New machines typically cost $100.00-120 eachAdditionally over 40 candy/toy vending machines are in storage ($2,000 value)3 large toy cranes are included in sale 3,600 ($1,200 each)These machines are great for high volume locations These machines retailed for close to ($2,500 each)Inventory:All machines sold will be on location with existing inventory. There will either be cash or product in each machine. Either way this is a huge value. A Quick estimate is close to $25.00 per machine in stock/cash (Value $3,500) Limited stock is available with purchase. (Estimate $300.00-$500.00 value) Details:Asking Price: $13,000.00 or Best OfferYearly Sales Volume: $15,000.00 (2013) Equipment Value: $12,600.00Inventory: $3,500.00 Owner will be provided the following:Keys to equipmentList of routes and business namesStore Addresses and machines on location.List of suppliers and contact names Note: All machines are marked with our logo/business cards for easy transitionReason for sale: Owners are currently struggling with their health and have been unable to manage the accounts on consistent basis. It's believed that an individual willing to invest their time or money on new business development would be extremely effective at growing the business. Note: This is not a full-time business. This is a great business for the do it yourself owners looking to work 1 or 2 days per week. i need some pro advice on whether this would be a good investment. im going to offer the 10k i have. the only issue i have is i am new to this and i dont know if this is doable learning the businesss. any advice would be great thank you. Link to comment Share on other sites More sharing options...
cashman Posted June 30, 2014 Share Posted June 30, 2014 I'd offer, 6500.00 if all looks good and the equipment in storage and locations are good machines. Just remember you can always go up with your offer but pretty hard to go down . Good luck Link to comment Share on other sites More sharing options...
hulksmashu00 Posted June 30, 2014 Author Share Posted June 30, 2014 I'd offer, 6500.00 if all looks good and the equipment in storage and locations are good machines. Just remember you can always go up with your offer but pretty hard to go down . Good luck I will offer 7k and go up from there. With the info listed do you think its worth the 13k not saying I will pay that just want a idea? Link to comment Share on other sites More sharing options...
Rick Posted June 30, 2014 Share Posted June 30, 2014 hulksmashu, please don't take this the wrong way but - since registering on 6-27 you've gone from "Hey - new to vending looking forward to learning" to buying some used equipment to now buying a route in a matter of three days. Feel free to tell me to take a hike, but from the outside looking in it feels like this $10,000 is burning a hole in your pocket. I know this is contradictory to my advice in the other thread - to buy multiple racks - but I think you need to slow down and read...a lot. There, I've said my peace. Now, regarding this route specifically I think we're looking at a dud. I wouldn't even bid on it unless you feel it's fair value for the equipment alone (it's close). 120 machines grossing 15k annually is $10.41/month per machine. I'm assuming these are triples which is a horrible average and you're looking at an inventory/spoilage nightmare especially if this route is heavy on chocolate. With all due respect, that's just an example of you "not knowing what you don't know yet". You're looking at the numbers and failing to account for equipment type, product, travel time and sweat equity. 120 machines doing 13K? 120 machines should gross a MINIMUM of 25k annually - otherwise you have a location problem. Keep asking questions and doing research my friend! Link to comment Share on other sites More sharing options...
hulksmashu00 Posted June 30, 2014 Author Share Posted June 30, 2014 hulksmashu, please don't take this the wrong way but - since registering on 6-27 you've gone from "Hey - new to vending looking forward to learning" to buying some used equipment to now buying a route in a matter of three days. Feel free to tell me to take a hike, but from the outside looking in it feels like this $10,000 is burning a hole in your pocket. I know this is contradictory to my advice in the other thread - to buy multiple racks - but I think you need to slow down and read...a lot. There, I've said my peace. Now, regarding this route specifically I think we're looking at a dud. I wouldn't even bid on it unless you feel it's fair value for the equipment alone (it's close). 120 machines grossing 15k annually is $10.41/month per machine. I'm assuming these are triples which is a horrible average and you're looking at an inventory/spoilage nightmare especially if this route is heavy on chocolate. With all due respect, that's just an example of you "not knowing what you don't know yet". You're looking at the numbers and failing to account for equipment type, product, travel time and sweat equity. 120 machines doing 13K? 120 machines should gross a MINIMUM of 25k annually - otherwise you have a location problem. Keep asking questions and doing research my friend! first i would never tell you to take a hike unless it was well warrented. i am posting these questions for answers just like this one. i am the type of guy that gos hard all or nothing and i can get way to excited and it either works out great or dosent so advice like this opens my eyes to some of the smaller details. thank you for the insight on the numbers it should of been the first thing i figured out and yes 10 a month per machine is horrible. bare with me here guys im all in on this right now and i might bounce around but your advice will help keep me some what on the right path lol. thank you very much for telling it like it is! Link to comment Share on other sites More sharing options...
FrCorey Posted June 30, 2014 Share Posted June 30, 2014 hope it isn't made up of all Chinese machines. new parts are hard to get depending on the brand. unless they got them from a local importer that stocks parts. Link to comment Share on other sites More sharing options...
GagesVending Posted June 30, 2014 Share Posted June 30, 2014 I'd be excited about this. Sounds to me too, that it's candy triples and if the route truly is made up of grocery stores, C-stores, restaurants, etc then there's great opportunity that you can upgrade some to bulk racks. There is value in this route; but it's hard to determine what it is because we don't know the machines types, locations, etc. Get more info before making any kind of offer. Link to comment Share on other sites More sharing options...
hulksmashu00 Posted June 30, 2014 Author Share Posted June 30, 2014 I'd be excited about this. Sounds to me too, that it's candy triples and if the route truly is made up of grocery stores, C-stores, restaurants, etc then there's great opportunity that you can upgrade some to bulk racks. There is value in this route; but it's hard to determine what it is because we don't know the machines types, locations, etc. Get more info before making any kind of offer. I am meeting the guy tomorrow night to check out equipment ttalk price and visit a couple random spots on the route. I will keep u guys posted. Link to comment Share on other sites More sharing options...
hulksmashu00 Posted July 2, 2014 Author Share Posted July 2, 2014 ok so i met with the owner and i must say he is a really nice guy. the reason for them selling is legit and there is some really nice equipment. he has a ton of different stuff but alot of it that i saw was northwestern and aa as well as 1800. he does have a couple vendstars but all the equiptment is in great condition and he has stock for the machines. he is including contacts and advice in getting the route right. also the cranes are like new. i am seriously considering buying this route. it is a mix of about half toys and half candy with a full storage of unplaced machines and spare parts. about 5 sticker machines as well. im talking to him again thursday and most likely going to buy. Link to comment Share on other sites More sharing options...
Action Vending Posted July 2, 2014 Share Posted July 2, 2014 What kind of cranes are they? This ad has been on craigslist for a loonnngggg time. Be careful. Link to comment Share on other sites More sharing options...
hulksmashu00 Posted July 2, 2014 Author Share Posted July 2, 2014 What kind of cranes are they? This ad has been on craigslist for a loonnngggg time. Be careful. Treasure chest I believe. They look new. I know its been listed for at least 2 months but the guy was very sincere. He is in bad health and needs to sell. Link to comment Share on other sites More sharing options...
rodney69 Posted July 3, 2014 Share Posted July 3, 2014 I will say one thing, I just bought a route that was listed for 10,000. I walked away with it for only 5000. I'm a lot like you on the all our nothing! This time I took my time and kept listening to what everyone had to say and before I even showed up he was down to 7. Then it was like a big garage sale to me and walked away with it for 5000, and in payments of 200 a month with a 200 down. The route pays for itself, plus extra, and I've already put out several of the machines. My point is, take a step back, breeeeath, if it's been on there awhile, and he knows your interested, but the price is to high, he'll come down just to get out of it. Hopefully enough so the machines are cheap cuz it sounds like you'll be moving a bunch of them and lots of elbow grease! Good luck Link to comment Share on other sites More sharing options...
hulksmashu00 Posted July 3, 2014 Author Share Posted July 3, 2014 I will say one thing, I just bought a route that was listed for 10,000. I walked away with it for only 5000. I'm a lot like you on the all our nothing! This time I took my time and kept listening to what everyone had to say and before I even showed up he was down to 7. Then it was like a big garage sale to me and walked away with it for 5000, and in payments of 200 a month with a 200 down. The route pays for itself, plus extra, and I've already put out several of the machines. My point is, take a step back, breeeeath, if it's been on there awhile, and he knows your interested, but the price is to high, he'll come down just to get out of it. Hopefully enough so the machines are cheap cuz it sounds like you'll be moving a bunch of them and lots of elbow grease! Good luck ive been just doing a ton of reading on here lately and really taking it slow with this deal because it is a huge decission doing this. when i talk to the owner again today i am going to request that he comes up with a day that we can travel the whole route so i can see exactly what the route entails. deff not going to jump on this unless its right but on the other end if its good it will be a great start for me in this business. also how hard are those cranes to sell? just currious. Link to comment Share on other sites More sharing options...
LandJGroup Posted July 3, 2014 Share Posted July 3, 2014 Unless your getting this thing for half of what he's asking I wouldn't touch it. Like Rick said the avg is horrible. Your dealing with inferior machines which in the short and long run stink. The heart beat of bulk vending is placing High quality equipment in High traffic areas. Until you get somewhat comfortable/effective with what I just said you imo should start small. Buy a couple doubles and only focus on two products. Let's just say gum and toys k.i.s.s. Link to comment Share on other sites More sharing options...
hulksmashu00 Posted July 3, 2014 Author Share Posted July 3, 2014 Unless your getting this thing for half of what he's asking I wouldn't touch it. Like Rick said the avg is horrible. Your dealing with inferior machines which in the short and long run stink. The heart beat of bulk vending is placing High quality equipment in High traffic areas. Until you get somewhat comfortable/effective with what I just said you imo should start small. Buy a couple doubles and only focus on two products. Let's just say gum and toys k.i.s.s. I am shooting to get it for 8k. The equipment is not really inferior for the most part its northwestern and 1800 which from what ive read is decent. I am in no way rushing the sale as stated im going to do the whole route with the guy to see exactly where the accounts are and machines are. The guy is not in good health that is why hes selling and that tells me the low average could be because he cant put in the necessary work. After I see the full route in person I will have a better idea of if its something I want to take a shot at. Truthfully I really want to get into the business and this would put me right in it but the name of the game is profit so I cant say either way untill I see the route and accounts. Would you at least agree that it is worth the day it will take me to see the route in order to see what it has to offer? Im new to this but im not new to businesses and sometimes the best opportunity is the one that no one else sees the value in and sometimes you need to just walk away and either way I am prepared to either buy or walk so the power of decision is in my control that in my opinion puts me in a good position. By no means take this as me blowing your advice off because of the advice ive got on this thread I am taking a very cautious approach but in all fairness I still have to explore lol. Thanks guys for all of your help with this Link to comment Share on other sites More sharing options...
treadmill Posted July 3, 2014 Share Posted July 3, 2014 Unless your getting this thing for half of what he's asking I wouldn't touch it. Like Rick said the avg is horrible. Your dealing with inferior machines which in the short and long run stink. The heart beat of bulk vending is placing High quality equipment in High traffic areas. Until you get somewhat comfortable/effective with what I just said you imo should start small. Buy a couple doubles and only focus on two products. Let's just say gum and toys k.i.s.s. Since when is northwestern and aa junk? Link to comment Share on other sites More sharing options...
moondog Posted July 3, 2014 Share Posted July 3, 2014 first i would never tell you to take a hike unless it was well warrented. i am posting these questions for answers just like this one. i am the type of guy that gos hard all or nothing and i can get way to excited and it either works out great or dosent so advice like this opens my eyes to some of the smaller details. thank you for the insight on the numbers it should of been the first thing i figured out and yes 10 a month per machine is horrible. bare with me here guys im all in on this right now and i might bounce around but your advice will help keep me some what on the right path lol. thank you very much for telling it like it is! I'm a full line vendor but Rick's observation is spot on - when buying any type of route, whether it be bulk or full line, the first thing you need to realize is that most people selling routes are dumping their dog accounts - this appears to be the case here. DO NOT load yourself up with a bunch of marginal locations and don't even think about paying somebody for them! It sounds to me that if you end up with this route you'll be culling a lot of loser accounts - be prepared to move some equipment around. Link to comment Share on other sites More sharing options...
LandJGroup Posted July 3, 2014 Share Posted July 3, 2014 Since when is northwestern and aa junk? I didn't read his third or fourth comment. I run a ton of N.W. And they are awesome. I was just making sure he didn't get involved in junk equipment, and have upgrade to quality. Link to comment Share on other sites More sharing options...
agrantha Posted July 3, 2014 Share Posted July 3, 2014 Hulk You should pass on this route due to your lack of experience in bulk vending. You should buy a few double Northwestern machines (Gumballs/Skittles) and place them in restaurants. See if you like being a bulk vendor first before making this type of investment, because if this investment turns south like I think it is, then you may end up a psychological and emotional wreck. Link to comment Share on other sites More sharing options...
hulksmashu00 Posted July 3, 2014 Author Share Posted July 3, 2014 ok so here is the update. after researching and seeing all of what this route had to offer and after seriously considering all of the advice ive recieved from you guys i have decided not to buy this route. to explain here are the reasons for this decision. 1. lack of experience, this route has potential and the equiptment was right but with my experience or lack of i dont know if i would be able to turn the route around before it collapsed. 2. the average is very low for the size of the route. 3. i think that jumping into this big of a route well trying to learn and maintain my jobs and family life would be overwelming and that might destroy this experience for me. 4. i am not set up for this massive ammount of equiptment yet. i want to thank you all very much for helping me to come to this decision and i will be buying some machines and placing them soon. if anyone has a good supplier of used bulk equipment let me know. Link to comment Share on other sites More sharing options...
jerrybrooks vending Posted July 3, 2014 Share Posted July 3, 2014 You need aspirins...120 machines will take a long time to service..15 took a long time to get right. I lost one customer and 2 other ones are closed for what I don't know! Be careful and be prepared to take some losses.. Sent from my Ally using Tapatalk 2 Link to comment Share on other sites More sharing options...
pjvend Posted July 6, 2014 Share Posted July 6, 2014 Its a big mistake to have the NEW equipment price anywhere near the valuation formula. Link to comment Share on other sites More sharing options...
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