Selling 8 bulk vending routes in Arizona

[VenDana]

Well, after much consideration and thought, I am selling off the routes I acquired a couple years ago. It has been so fun and rewarding teaching my children and friends about this industry. I've met quite a few interesting people along the way and everyone here at VDF has been more helpful than you know. I'm keeping my Mesa Route so we'll see what happens in the future. 

 

Just an FYI, I've had at least one inquiry every single day since I posted this so I know the price is right. However, EVERY person felt the need to tell me I was asking too much and "being crazy." This tells me that perhaps it's the right price but the wrong market. I've tried selling routes to each town they are in but then I'm met with specific requests and demands from people. So, I'm posting here to try to gain some perspective from people who won't call me crazy (at least I hope you won't) and from others who have been at it longer than I. 

 

So my questions are:

1. Who wants this beast? haha

2. Am I asking too much?

3. Should I consider financing with 10k down? 

4. What would you do?

 

All replies are greatly appreciated!

 

http://phoenix.craigslist.org/evl/bfs/4636269259.html

[Lake Cities Vending]

$150.00 for 12 hours work? I must have misunderstood. I can usually stop at 3 or 4 locations on my way home and make $150.00 in an hour or two.

[musser]

Wow , ok, how many machines on location?

I think you are servicing way too often. The used price in equipment is ok IF it is all NW 60s, and they are route ready.

[BouncyBalls]

I have purchased routes before and with my experience it is my opinion that you are asking at least $10,000 too much. Am I correct to believe the majority of route is candy? Please don't take my post as an insult just trying to help.

[Rick]

There's information missing from this ad.  Number of locations, any commission, service hrs/week, monthly gross.  I agree with Lake Cities, how on earth are you making $150 for 12 hours of work?!? Is that net?  Gross?  That's driving 50 minutes between locations and grossing $12.50. If that's a true representation I wish you luck selling this route AT ALL to anyone other than a LARGE bulk vendor who already has routes established in the same territories (in which case, your target audience is one...two people at most).  

 

Also, you could improve the "curb appeal" of this ad by taking better pictures of the equipment.  The pics provided are of non-route ready machines piled up in a storage unit (when I look at the pics in your ad I should be thinking "cha-ching!" and not "...boy that's a lot of work"). Instead, maybe some pics of your clean, well maintained equipment ON LOCATION.

 

For arguments sake, I'm going to assume your numbers provided are correct.  You asked what I would do?  If this was my situation, my line of thought would be that there is more value in the sum of the parts than there is in the whole.  I would sell each of the eight routes as a standalone entity and begin selling those NW60's and other equipment in lots of 5, 10 and 20 on TVF, CL, eBay and UsedVending.com  

 

Cliff's Notes:  Your total price is high, but not laughable.  There's just TOO MUCH windshield time.  You could probably triple or even quadruple the value of this route filling in the gaps of these territories by placing the 500 extra machines.

[bhfisher]

I would have to agree 100% with Rick.  The ad is terrible.  The pictures make it look like you are selling a pile of junk.  

 

You don't provide machine count/collections per route. Are amounts are Net or Gross?  But then you say there is 500 machines in storage; how is that important?   All Buyers would want to know their "Return on Investment" (ROI).  I'd would need to ask 100 questions to get to a buying decision and your ad is not helping me.  Got documentations? I could go on and on.

 

After reading, I'm left with the thought “If you can't dazzle them with brilliance, baffle them with bullshit.”  What is this guy hiding?

 

This might be the best route in Arizona at a great price but I would not know that from the ad.

 

Please don't take anything above as an insult to you personally

 

Bart

[MatthewMMorrow]

I grew up one major road over from there. Those routes are some long drives from Mesa (some 4 hours).

[VenDana]

This is all great feedback and what I needed to hear. I do leave out a LOT of information because I want actual inquiries and not people wasting my time. I can tell who serious or experienced by the questions they ask. I probably will add more information including number of locations and gross/net. Net for me is higher than most probably ~ I have a van, childcare costs, etc, etc, etc. They determine what the net will be for them after their costs after they have more info. That's how I figured my costs... Hm

 

Rick and Bhfisher, excellent points!  I'll take some photos, and post them, re-list routes by areas and with more info, try to fill in more gaps by adding more locations while there, and perhaps indicate there is wiggle room on price. 

 

No, not offended. I did speak with two business minded individuals (not in the vending industry) for some advice prior to posting and overall, this experience and your advice has been great ~ I really appreciate it. I'll keep you posted, if you're interested!

 

Dana