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Looking at this, got me to thinking if I should take a chance.

This is Canada so I know the numbers seem high, my question is, does the math work?

I read so many different ways to valuate a route, I just don't know enough about these machines to put a dollar figure to them.

FOR SALE: VERY WELL ESTABLISHED VENDING ROUTE WITH 7 LOCATIONS AND 13 MACHINES. ALL MACHINES ARE IN EXCELLENT CONDITION WITH NO SEAGAS. ALL MACHINES FULLY ELECTRONIC AND UPGRADED TO ACCEPT NEW COINS. 2 MACHINES WITH VALIDATORS UPGRADED TO ACCEPT NEW BILLS.

ALL MACHINES ONLY TAKE BETWEEN 4-5 HOURS PER WEEK TO FILL

AP SNACK MACHINES

AP COMBOS

CRANE COMBOS MILLENIA STYLE

CRANE SNACK MACHINES MILLENIA STYLE

DIXIE NARCO/VENDO/ROYAL POP MACHINES

USI COMBOS ONLY 2 YEARS OLD

GROSS SALES PER YEAR $35,000 WITH NO COMMISSIONS TO ANY LOCATIONS

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I agree. Find out the age of the equipment. The millennia styling for the Crane combos is fairly new (167/168 series), so at least that's good. $35k a year for 13 machines is certainly possible - that's only $224 per machine per month.

 

How much is he asking?

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That comes to a cost of $3,461 per machine........ You could replace all that equipment with New for that price at $45,000.....  That is about $40 a week per machine. 

 

Are the pop machines leased or owned?

 

No one ever gets 125% of sales. You start with the $35,000 and Figure 40% to 50% of the $35,000 and that is what you offer..... I wouldn't pay more than  $20,000 and would start at $15,000.

 

If he is on the level with his taxes he should have tax returns or he should have his cost of goods for at least a year....

 

Never buy  air..... And it looks to me there is a lot here. Equipment is only worth 1/2 its value sitting in the garage...

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That is about $40 a week per machine. 

 

 

I come up with about $51 per week per machine (35000/13 = 2692.30 then 2692.30/52 weeks = $51.77 per week) I also think he's asking to much money for it and would start the offer out at 15k. Sounds like it might be worth investigating, which is more than most routes that come up for sale in my opinion.

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If someone offered me 35k, I'd sell it off... not because I want out but because it would give me time to reset. I would consider moving to a different area to start another route.

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A friend of mine just bought a route of 6 locations making approx $1,000 a week for $8,000. Most of the equipment was in poor shape do to not being repaired. The guy didn't fix anything. Took trays out and left them that way. One example was a YMCA that was not doing more than $100 week. National 168 with 2 trays missing. Fixed the vendor and now makes $400 week.

 

The plus side of this was this guy had a warehouse with 8 D/N 501-e's several National 168's an assortment of polyvend's (don't look bad) 1 Royal 552 and 3 Live front Royal 550 or 560's. Didn't have time to see if they were 550 or 560's.

 

Plus a 86 1/2 ton Ford pickup with tommy lift. and boxes of spare parts.

 

Was a steal....

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That reminds me of the route i bought it pretty much made me part timer to full timmer. 8k for 5 locations all had late usi equipment chill centers, usi newer combos etc. Just the 10 machines were worth 15k plus. He left the inventory and about 1200 in the weeks cash. The machines were full to the top of product, and left all escrow about 600. So just in extras i easily got an extra 2500. Like if i paid 5500 for it. He threw in a location w a crappy seaga which i sold for 2800. It would make about an extra 300 a month and some kid wouldnt stop bugging about buying it. So i bought a 50k a year route for about 3k lol. He was paying about 1100 a month in comission and i dropped it to 300 a month. Pricing was high at a dollar a can 1.25 a water etc.

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There are good deals out there you just have to have patience. It will come along when you don't expect it. There are people that should never get into vending. I saw a big sign in a business today that made me think about vending.

 

20140724_125106_zps2r8djs0g.jpg?t=140615

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Yeah, I think that's true for almost any business unless you find something that is completely proprietary to where there is no competition. Everyone has a choice of where they spend their money and who they want to do business with. I think that sign says it all.

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A friend of mine just bought a route of 6 locations making approx $1,000 a week for $8,000. Most of the equipment was in poor shape do to not being repaired. The guy didn't fix anything. Took trays out and left them that way. One example was a YMCA that was not doing more than $100 week. National 168 with 2 trays missing. Fixed the vendor and now makes $400 week.

The plus side of this was this guy had a warehouse with 8 D/N 501-e's several National 168's an assortment of polyvend's (don't look bad) 1 Royal 552 and 3 Live front Royal 550 or 560's. Didn't have time to see if they were 550 or 560's.

Plus a 86 1/2 ton Ford pickup with tommy lift. and boxes of spare parts.

Was a steal....

This wasn't a steal......it was a robbery......holy crap!

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Every route is worth a different amount depending on all the variables. One years gross is a common valuation starting point with value added for contracts, high prices, low commissions, newer machines, all validated, etc. Subtract value for low prices, high commissions, older machines, missing or obsolete validators, handwritten labels and missing lights, etc.

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The last route I brokered was grossing $140,000 yearly. I don't remember the number of stops. It had some stops doing $200 hundred a week and some that did at best $25 a week.

75% of the equipment was in excellent  condition. The rest was fair but clean and working good. AP studios, AP 113, Coke and Pepsi leases. 

 

I took all the equipment and valued it at is value on location. Example AP Studio $1,500, AP 113 $1,200, AP 7600 $750. Owned Can $750 owned Bottle $1,100. Pepsi and Coke loaners at $500 a piece.

 

Then we estimated inventory in the vendors, inventory in truck, and averaged the coinage in all the machines. The truck was to big GMC 5500 top kick with a 20 foot box. Ran on Propane... Worth $21, 000. 

With everything added up $140,000.

 

In my mind I felt this was a steal because even tho there were some low volume accounts these accounts had excellent equipment that could be redeployed to other locations.

His pricing need raised. Most candy at 80 to 90 cents, Bottles at $1.00 to $1.25. Cans .60.

 

He wasn't buying right or taking advantage of rebates. This was at best a 3 day a week route that he spent 70 hrs a week on. 

 

He had a few accounts to far out for what they were bringing in.

 

He is carrying the note. $10,000 down and $1,000 mo for ten years no interest.

 

A great route for a beginner with the willingness to learn and a go getter.  

 

I would have bought it myself except I don't like vending. I don't like moving a candy bar 6 times before you are done, Not being able to take a vacation. Just too tied down. Just when you think the day is over you get that call its broke or we are replacing the flooring and need the machines moved or picked up.  :huh:  :angry:

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