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Machines Value


vendtan

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I need some help valuing the below machines, some dont have model numbers - so a range would be great.

 

1 Vendo 10 sel can/bottle soda machine 
1 Brio 250 Coffee/Latte/Hot Chocolate, etc...
1 AMS Sensit cold food/beverage/snack machine..
1 Ap snack machine...
1 USI can/bottle Machine...

 

The whole account does about 35K gross/yr and the guy has numbers to prove it. 

 

What I am trying to do is go the other way and value the machines, locations, and any other value adds.

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Without model numbers there is nothing hard and fast about this.  If you put a price of $1000 to $1500 on each machine you won't be undervaluing them.  Don't try to insult this guy with a lowball price as it sounds like a real nice account.  Try to feel out why he's selling and if there is any reason for him to be bailing out, such as the account is going out for bid or they have already been shopping it around.  Does he have a contract, for how long, and does he pay commission?  Are his prices good or under market value?  Those types of things can change the value of the account.

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This seller has a contract, has been there 5 years, pricing is

 

.85 for small snacks (Chips/Cookies/Candy/Cheeze Its)

1.00 for bigger snacks/novelty (PJs/Pop chips/Pop Tarts)

1.50 for Danish/Donuts

2.00 for burritos/Triangle sandwiches/lunchables

2.75 for rib sandwich/chicken sandwich

 

Beverages

 

0.85 Can

1.00 Sunny D, V8

1.50 Soda/Snapple/Gatorade

2.50 16oz energy, Red Bull sml can

 

Coffee 

0.5 Blk/Blk Crm

1.0 French Van/Hot Choc/Mocha

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Yes, the candy is too low, especially in light of the recent increase in chocolate costs.  His candy needs to be $1 at least.  If he's been there 5 years on a contract is the contract expired now or has it been renewed for a specific term.  What's the commission rate he's paying them?

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Year  Month  Location1 Location2 Total

2013 July $2,863 $223 $3,086 

Aug $2,925 $226 $3,151 

Sept $2,895 $252 $3,147 

Oct $2,780 $193 $2,973 

Nov $2,510 $185 $2,695 

Dec $2,575 $223 $2,798 

2014 Jan $2,650 $215 $2,865 

Feb $2,596 $195 $2,791 

Mar $2,756 $210 $2,966 

April $2,695 $187 $2,882 

May $2,745 $205 $2,950 

June $2,821 $238 $3,059 

July $2,875 $215 $3,090 

 

Total $35,363 

 

Those are the numbers that the vendor gave.

 

He said he is retiring and wants to sell 3 total routes totalling over 100K gross, I can only do one of those as its closer to my location

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