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Advice on a Craigslist Deal


rachelb5499

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So I've thought about bulk candy vending for many years, but always chicken out. Once again, I'm thinking about it. We live in a rural area with a lot of geography between each little town. I'm not sure this is the type of area that vending would do well...I also just have concerns about how long 25 cent vending machines might turn a profit or stay popular.....(like pay phones, never see them anymore after EVERYONE kid and adult alike having a cell phone).

 

Anyway, I then come across this "lazy" craigslist ad where an adult daughter is listing a bulk candy/gum vending business for $1,100 for her mom. Apparently, her folks (In their vending hay day) made quite a decent amount of income. But 8 years ago, her dad passed away and mom has had less and less heart to keep it going.

 

So....daughter doesn't know how many machines they're selling, there's no "proof" of current or previous income. Only 9 machines are placed. She knows there are at LEAST 14 "new in the box" machines in the garage that are 25 cent machines. Here's another crazy one....the other machines are FORD gumball machines that only take a dime! The other machines are "Astros" that were bought from the FORD company as well.

 

Mom won't go lower than $1,100 according to daughter. I've gathered that for me to really see what I would be getting, I'm going to have to drive over an hour to check out the garage. Again, I have NEVER done vending before.....on one hand, SO many machines for "only $1,100" AND having 9 placed so I'd be making at least SOME money right away and that they would all be keyed alike are the things that appeal to me.

 

The machines appearing to be so old/outdated even though "never used," has me sketchy/nervous. And the fact that I can barely find ANYTHING about these machines and possibly no parts. Is this CRAZY? Priced too high? Good idea? Terrible idea? I figured (but PLEASE tell me if I'm wrong) that I should just look at the Ford 10 cent machines as a novelty to just try to sell on ebay and only look at the 25 cent machines as the "investment" and to work on getting placed?? I'm assuming there just wouldn't be any profit in selling any gumballs out of this machine for a dime? HELP PLEASE! I don't want to be "stupid."

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So I've thought about bulk candy vending for many years, but always chicken out. Once again, I'm thinking about it. We live in a rural area with a lot of geography between each little town. I'm not sure this is the type of area that vending would do well...I also just have concerns about how long 25 cent vending machines might turn a profit or stay popular.....(like pay phones, never see them anymore after EVERYONE kid and adult alike having a cell phone).

 

Anyway, I then come across this "lazy" craigslist ad where an adult daughter is listing a bulk candy/gum vending business for $1,100 for her mom. Apparently, her folks (In their vending hay day) made quite a decent amount of income. But 8 years ago, her dad passed away and mom has had less and less heart to keep it going.

 

So....daughter doesn't know how many machines they're selling, there's no "proof" of current or previous income. Only 9 machines are placed. She knows there are at LEAST 14 "new in the box" machines in the garage that are 25 cent machines. Here's another crazy one....the other machines are FORD gumball machines that only take a dime! The other machines are "Astros" that were bought from the FORD company as well.

 

Mom won't go lower than $1,100 according to daughter. I've gathered that for me to really see what I would be getting, I'm going to have to drive over an hour to check out the garage. Again, I have NEVER done vending before.....on one hand, SO many machines for "only $1,100" AND having 9 placed so I'd be making at least SOME money right away and that they would all be keyed alike are the things that appeal to me.

 

The machines appearing to be so old/outdated even though "never used," has me sketchy/nervous. And the fact that I can barely find ANYTHING about these machines and possibly no parts. Is this CRAZY? Priced too high? Good idea? Terrible idea? I figured (but PLEASE tell me if I'm wrong) that I should just look at the Ford 10 cent machines as a novelty to just try to sell on ebay and only look at the 25 cent machines as the "investment" and to work on getting placed?? I'm assuming there just wouldn't be any profit in selling any gumballs out of this machine for a dime? HELP PLEASE! I don't want to be "stupid."

Thats not a terrible deal. Its not the best but its a decent deal. If they are brand new Astro machines they are equivalent to the Oak machines. Parts will interchange. You are correct on the Ford machines. They are better off sold as collector items. The money you can get for them should pay off the rest. I would go for it were the deal in my area. Stands for all machines would be a plus.

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Agree with everything said above.  Also, you can hedge your bet a little bit by asking what type of locations these 9 machines are sitting in (bar/grill, laundry, local grocery, hair salon, etc) and I know the ad says there's no proof of income, but if this lady has been doing this for years she knows within $20-$30/month what they do.  If the 9 locations average even $15/month you can service it every two months for $120 net profit (if they carried these locations for years my guess is they average at LEAST that).  Sounds like the perfect route to get your feet wet.  Hope you post the results.  

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I would bet that the ford machines placed are doing one of two dollars a month each, that's pretty typical of these situations. The good stuff was probably sold off long ago and now it's clean up time. The most valuable part of the placed machines is the stands. If you could get this for $500 you could put the Astros on the stands and ebay the fords one at a time.

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I have bought several of these old neglected ford routes and they are usually pretty low earners. After thinking about it though if each ford machine had a stand you won't get super burned on the deal but don't do it if $1100 is important to you, this could be a real crap shoot.

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If the Ford/Astro machines are the Oak machines made for Ford distributors then you can change out the 10c coin carrier with a 25c coin carrier and use them. If the machines are the old Ford round ball head machines then this is a good deal and you should resell the ball head machines on EBay.

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If the Astro mechs CAN be changed its going to cost you       300.00 . If they cant be changed     now what? Like the rest said above, its not a BAD deal , but also not a good deal . You may be able to recoup 1100.00 or close to it , but I understand your goal is to get in the vending biz , not buy equipment you don't have all the facts on and may not be able to use to make a profit.  If you have 1100.00 to play with , why don't you get single machines new (A&A for example) on stands and find your own locations. That way , you have NEW equipment you know you can get parts for. The deal you described could be a waste of time to possibly break even on.

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If the Astro mechs CAN be changed its going to cost you       300.00 .

Bad info. I don't where you got a figure of $300 but the last time I bought Oak .25c carriers they were $3 and change each. So if the 9 machines on location are singles and the carriers are $3.50 each then the cost would be $31.50 plus maybe $10-20 shipping.

Usually in these "selling everything" deals there are some boxes of parts, be sure to ask about them.

All business is risk, if you're not willing to assume the risk of a couple of hours of your time and some gas, then you probably should not be in business for yourself.

Carry cash and if you look things over and don't like what you see don't be afraid to offer what it's worth to you, the worst she can say is no.

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Thanks, Everyone. I really appreciate your knowledge/advice. Of course, part of me wishes you didn't have good pros and cons in your thoughts like I did. Would have been great to just know: "No, run for your life." "Or yeah, GO FOR IT!" But at least this way, I know my thinking isn't/wasn't majorly flawed. :)

 

The ad doesn't say a lot, and I'm communicating with the "daughter" so that makes it even harder. I pretty much know I need to travel the 1+ hours one way to SEE everything, but since I have no experience, I won't really be able to tell what's working/not working/what parts are, etc. This purchase would definitely start out as a learning experience. I CAN afford the $1,100, but really don't want to just "throw my money away" so it's reassuring that you guys think if I gamble on this, I should at least make my money back.

 

When I asked the daughter about profit and proof of it, I said: "When you say she "makes" $2,000/year without putting much effort into it after her husband passing away because she just isn't interested...is that "profit" or is that literally just what she pulls out of the machines?" I got this: "Yes that is profit." I'm wondering if she really still knows/understood the question and that maybe the profit is more around $1,000/year.

I DO know the 9 locations....the mom doesn't pay any percentage or anything to have her machines there. I don't know which type of machines are placed....I just kind of assume the 25 cents ones, but I was thinking when I drive up to see them, I should ASK where the machines are placed and go SEE them in person, etc. before buying the business and what's in the garage...?

 

I asked if the machines were complete "stand and all," and daughter said not sure since they are taken apart to store all over the garage, but that I could probably buy stands if needed. (I'll do what I have to do, but obviously prefer for her to have said, "yes, they all have stands."

 

I know "mom" does sell gumballs because she orders them online ("they cost a lot in shipping") so she has 5 or 6 boxes of them to give with the "business" and buys M&M's from our local Costco as the other product vended.

 

Now on to THE MACHINES... ;D

The daughter said the "new 25 cent machines" came from Ford in Akron, NY according to a packing slip. I'm going to attach the craigslist photos so maybe you guys can help me see what I've got. I saw a "Blue Oak Vista Astro" listed on ebay that I think looks similar to the limited photo information I have so maybe they ARE interchangeable with Oak parts like someone said? IF so, does that mean that these "newer" machines would have the potential for me to upgrade to 50 cent mechanisms in the future? Based on what you see, do you know if these could also vend toys if I bought certain parts for them (if I needed to) or is the chute to small? Any thoughts/help would be greatly appreciated. I think I'd like to stick with just gum and m&m's to start off with so its kept simple while I'm learning etc., but I always like to know what my future potential with things is. (I don't want to buy something that is going to be completely outdated/useless in 2-5 years...unless I can make enough money before they are outdated to help me buy new updated machines, etc.)

 

The ad has been up for about a month but daughter said mom's asking price had already dropped $400 (So I guess she'd been asking for $1,500) and when my initial inquiry asked if they were negotiable on price, she asked mom who said she was not. IF mom was really making a NET income of $2,000/year and there are all these machines in the garage that I MIGHT be able to sell to help get back the $1,100 spent it seems like her asking price of $1,100 is reasonable, BUT I know nothing about the value of these machines, parts replacement, how easy they are to vandalize, etc. etc. That's why I'm wondering if I post ads if you guys can give me more of an idea on the machines. Doing google searches for "Astro" really got me nowhere. Someone here mentioned getting them for $500. I would LOVE to get a GREAT deal and none of you seem to think it's that, but none of you seem to think it's terrible either. Should I push for a lower price and just let them go if they don't go for it? Should I just accept that there's no negotiating and take the plunge? 

 

Personally, I don't "need" income from a vending machine route. I CAN afford to pay $1,100 for one, but would love to pay less. My storage availability on my property is limited so having so many unplaced machines seems like it could be a real blessing or a curse. However, "locally" within a 200 mile radius, I've never seen a single vending machine go for less than $100 and most people around here don't seem to sell routes, just machines. I drove around yesterday in my own tiny little town....and couldn't find a single bulk vending machine. (My roommate and I both thought that there was one at this place and that place, but when we went....None. Zero. Zip. I felt like that good be good news or terrible news. :) (Other people either didn't do well and pulled machines OR they just lost interest and the market might be an open one for me down here.)

 

I've considered buying ONE machine and just slowly growing...no storage issues, not a lot to keep track of, etc. but it seems like with bulk vending, you really need several placed to make it worth it....and I'm always looking at costs...if I buy a used machine, and then another, and then another....how much would it cost to have everything keyed the same or would I have to remember which key went to every machine, etc?

 

Sorry this is so long winded again!!!! I'm just dying for info., opinions, angles I may not have considered, etc. THANKS guy! I look forward to more responses! Shoot! I'm so new....HOW DO I ATTACH A PHOTO when it only asks for a link???

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Well if the ford machines are indeed all Astros it's not a bad deal because you can change to 25 easily, going to 50 requires a whole new mech. After reading all you wrote and it seems as if you can stand a loss I think you should go for it. If you do this let us know what size gum they are selling at a dime.

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Okay, I still can't figure out how to attach the photos, but I DID figure out how to start an album so I'll post that link here so you guys can SEE what the garage looks like/what the machines are. http://vendiscuss.net/index.php?/gallery/album/302-machines-for-sale-that-im-thinking-about-buying/

I see a LOT of Ford Globe 10 cent machine pieces on the shelf, but also some Astros. And I've been told that the 14 new in box machines are 25 cent Astros. (there MIGHT be more than 14 astros, but I feel like since it's so disorganized, I need to just count this as if I was buying a route that makes $500 to $1,000/year in profit as it is, that I get 14 MORE astro machines that I could work on placing in my more local area and more the hour up north where the other 9 are placed, and that MAYBE I could sell the old ford globe machines to help cover some of the initial business purchase. I always like to be conservative.  B)

 

Any thoughts on how much I could get for each 10 cent Ford GLOBE machine if I try to sell them on ebay? Any other suggestions of where it might be better to sell these? If I DO buy it, and find that ANY of the Ford Globe machines ARE placed, I'll definitely post back and let you guys know what size/brand, etc. of gumball they were using. 

 

I'm more than willing to assume the risk of a few hours of time and gas, Bravo. I drive up that direction about once every 2 weeks so I know servicing those machines won't be an issue or an "added burden" for me. The daughter said mom services them about every 6 weeks. I'll probably be up that way this coming Friday or Saturday so plan to go and meet with them, see the garage, etc. I just know it'll probably be somewhat of a crap shoot what I come away with if I buy it so curious about more experienced vendors knowledge, opinions, their estimated value of the route, the machines, etc.

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I have seen the Ford machines go anywhere from $50 to $250 depending on the machine and how it is advertised. If you buy these PM me and I will tell you how to make them a penny again and how to modify the locks so you wont need to send keys with them when you sell them. Also the Ford cross bars can be made to accept the Astros so don't just throw them away. If you get this and you come across any Ford machines that are NOT chrome you really have something a collector will want.

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Thanks, Musser! Not having to send keys with them would be a major blessing! I'll definitely pm you if I buy it and thanks for the "value estimate" on the ford globe machines too!

 

Now questions about the Astros...

So do YOU know by the pictures in my album, if the Astros DO have interchangeable parts with "Oaks" so I'll still be able to get parts, etc.? (The daughter DID say that her DAD had kept everything so there should be at least some, if not a lot, of parts for the machines given in the purchase too.)

 

In the long run if I can change those to 50 cent machines instead of 25 cent machines how much might that cost? Seems like you said I'd need a whole new mechanism, but it might be possible? Maybe too much work and expense though so wouldn't make it worth it in your opinion? --Meaning at that point, might as well sell them for whatever possible on ebay as a novelty and buy new 50 cent machines down the road?

 

Also, do you know if these jam a lot, are more vulnerable to vandalism, etc. Basically, if they are "trash" machines or are "good machines" in general? I could barely find ANYTHING online about Astros! (It appears these must be pretty old....1980-1990s machines?)

 

Does anyone know what the estimated "value" of each Astro machine might be (considering there should be at least 14 of them)?

 

Can these particular machines be modified in anyway to dispense toys somehow later on?

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Wow ! I am fairly new here , so due to my "bad info"  (as Bravo Duck called it) I am going to sit by and not actively participate here.  I  thought this was an open forum, a place where we all contribute input, and share ideas.  I thought input , aka ideas , is what this was all about. I had felt guilty at times when I didn't have an answer or suggestion to actively participate in a specific post, but after being ridiculed for my ideas , I'll keep my opinions to myself !

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Wow ! I am fairly new here , so due to my "bad info"  (as Bravo Duck called it) I am going to sit by and not actively participate here.  I  thought this was an open forum, a place where we all contribute input, and share ideas.  I thought input , aka ideas , is what this was all about. I had felt guilty at times when I didn't have an answer or suggestion to actively participate in a specific post, but after being ridiculed for my ideas , I'll keep my opinions to myself !

You were mistaken...learn, and live...Bravo duck wasn't being harsh at all

Thanks, Musser! Not having to send keys with them would be a major blessing! I'll definitely pm you if I buy it and thanks for the "value estimate" on the ford globe machines too!

 

Now questions about the Astros...

So do YOU know by the pictures in my album, if the Astros DO have interchangeable parts with "Oaks" so I'll still be able to get parts, etc.? (The daughter DID say that her DAD had kept everything so there should be at least some, if not a lot, of parts for the machines given in the purchase too.)

 

In the long run if I can change those to 50 cent machines instead of 25 cent machines how much might that cost? Seems like you said I'd need a whole new mechanism, but it might be possible? Maybe too much work and expense though so wouldn't make it worth it in your opinion? --Meaning at that point, might as well sell them for whatever possible on ebay as a novelty and buy new 50 cent machines down the road?

 

Also, do you know if these jam a lot, are more vulnerable to vandalism, etc. Basically, if they are "trash" machines or are "good machines" in general? I could barely find ANYTHING online about Astros! (It appears these must be pretty old....1980-1990s machines?)

 

Does anyone know what the estimated "value" of each Astro machine might be (considering there should be at least 14 of them)?

 

Can these particular machines be modified in anyway to dispense toys somehow later on?

These aRE PRACTICALYY

oaks and thus parts are avialbe

toys can be vended, get cap wheel and brush for 10 bucks

.50 mechs are 21 something... I think

good machines, worth 25 a pop in good shape

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The Astros are a great machine, one if the best. I don't have a current price on the 50 cents mechs but really 50 cents for gum won't work and probably not for candy. So I don't think that should be a worry for you right now.

The astro is an oak machine btw. So all parts will interchange. A&A makes a PO 89 that is a knock off of the oak so they are another part source.

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Rachel....You idea of starting small and simple is a good one. I know alot of long term operators (myself included) would be interested in this deal but I am not sure if it is worth all of the time and travel. Do you really want to fool around selling things on EBAY? Was that your plan? Probably not. I would tell them that you are interested in the route only (offer no more than $500.00). If they don't like it then move on. There is a good chance that "Mom" hasn't been doing a bang up job servicing these locations either so you never know if those 9 locations are even viable. Why not start small with some single head machines (Oak, Northwestern, Beaver) and place some equipment close to home. This way you have new equipment that is ready to go, you can get a taste of what bulk vending is like and you are not breaking the bank. Just my opinion...good luck with what ever path you choose.

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Thanks for all your ideas, advice, and information guys! Since I don't know what I'm getting into. Obviously, I need to look when I'm in that general area on Friday or Saturday...That being said, knowing what the real "value" of the two machine types helps a lot with my considerations, and I wouldn't have gotten those values without you guys!

 

I like that by selling the Ford gumball machines on ebay and having 9 locations set (whether they are bringing in much or not) is 9 machines I don't have to place to just get started, and having at least 14 more machines I CAN place seems like a real good start. Like thought it MAY be a hassle for not a lot of gain. I won't "lose my shirt" so ta speak. I could regain hopefully, all $1,100 by selling machines, working the existing route/hopefully growing it, etc. 

 

I was hoping the Astros might be worth more than $25/each, but it's nice to know they aren't "garbage" and actually good machines AND that they CAN be modified to take 50 cents and vend toys if that was a direction I wanted to try/go in the future.

 

That being said, without any real proof of income, seem like $1,100 might still be asking a bit much...obviously, "mom" isn't into it and the ad has been up for a month and isn't written in a way that could catch the attention of every person who might be interested. Guess I'll take my negotiator with me and see if she can save me a couple hundred bucks at least.

 

I'm IMPRESSED with how much you guys can get for so little of a price (been reading the forums)! Things are expensive here and no one ever seems to want to give anything away for cheap. I'm pretty sure I'm going to spend a minimum of $100/machine (plus shipping) and still have to start locating myself just to start bringing money in....so really debating.

 

Of course, I'd rather get a cheap route, no extra machines to have to hassle and sell just to break even and not have to worry about storage at my place, BUT the ad was pretty clear too: "You must take it all or no sale." So I'm sure they don't want the hassle either...nor do they want to piece meal or even pay for "dump fees" or whatever. Maybe I should just make an offer....walk away and let them spin a bit if they don't accept. Some of you have said $500....which is less than half of what they are asking (apparently, they already reduced it $400 from original asking price). Some of you have said you personally would do it.

 

If anyone else has any advice/suggestions, I'd LOVE to hear. THANKS for all of your responses!

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After looking at your pictures I would definitely take this deal. The Blue Astros can be upgraded to 50 cents and will vend toys with the proper wheel.  The 10 cent Ford machines can be sold off. Looks like there are quite a few stands as well.

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Rachel, how mechanically inclined are you? Or do you have someone in your life who is mechanically inclined?

My wife is a full time bulk vendor and she is a great at many aspects of vending, but she also struggles with some too, especially mechanical stuff. It takes her longer and she gets more frustrated with it.

This looks like it could be a good deal, but it's also a mess that has to be cleaned up, machines to be assembled/repaired, sold, product changed, stands painted, etc... . Are you up for that/can you do it?

The biggest question when starting a bulk vending business is "Can I locate?". Most people can run routes, order product and keep the books but can you go into twenty-four businesses, make a pitch, be told NO, and still go into number twenty-five. Once you have the answer to that question, you have a pretty good idea if bulk vending is for you.

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Thanks, Guys. Hillbilly, thanks for looking at my photos and giving me your thoughts again!

I'm quite frustrated with the "daughter" & her lack of specifics, etc. I MAY walk away because of her, but my hope is to meet "mom" on Friday a.m., talk to the actual person direct, see garage contents in person, etc. & then make a decision.

Daughter said last night if I buy, mom will take me to placed locations, introduce me to employees, show me how to open machines, etc. I really don't know that I want that introduction & alerting everyone to someone "new" doing the machines.

What's your guys' thoughts on that?

Bravo, funny you should ask about mechanics. Here at my "real job," I'm the "jill of all trades" & the 1 reading tutorials, assessing issues, etc. with espresso equipment, credit card machines, blenders, cash registers, printers, laser engravers, etc. so I think/hope I'll be able to handle that part. I've also dabbled in minor car maintenance/repair: oil changes, radiator replacement, sensors replacement, etc.

Locating/placing is my biggest concern, but I have a fantastic roommate who's great at talking to people, etc. that I was going to rope into this endeavor. :)

While I'm getting your guys' ideas and advice...with "toys" for 50 cents, what do you feel does best? I was wondering about tattoos for kids in the long run....how much do the plastic balls cost? Do you have to buy temp tattoos anywhere in particular? (I'm manager of a retail store & was shocked at how cheap it is to buy tattoos and what a great markup they could be.)

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