QuikVend Posted August 18, 2016 Share Posted August 18, 2016 Just looking for opinions on a route. 90 locations selling both toys and candy. Grossed $14,500 last year after commissions were paid. They also have charity locations present. Been in business for 5 years, getting out due to declining health. Machines are Richland, mixture of triples, racks with 1" and 2" as well as singles and doubles. Machines look to be in pretty good shape from the pictures I've seen. Also included is 60 additional machines. Link to comment Share on other sites More sharing options...
musser Posted August 18, 2016 Share Posted August 18, 2016 What do they have to prove the income? Talk is cheap only verifiable money counts. In all the years I have done this I have only come across one seller that could actually verify income. Link to comment Share on other sites More sharing options...
BCB434 Posted August 18, 2016 Share Posted August 18, 2016 $14,500 Divided by 90 locations = $161.1 $161.1 per location per year divided by 12 months =$13.4 average per month per location (gross after commissions). $13.4 gross per month for a single gumball sounds okay but for triples and racks to be included 13.4 for the entire location seems pretty low. I think there is two main methods of calculating the value, I got these methods buried deep from within this forum so somebody chime in their thoughts on these methods and help me modernize them a little bit more. Also consider things vary tremendously by region as well, so only use this as a guide or beginning estimate and do your own due diligence. Somewhere in this forum probably going way back I've read that the value of a route is usually somewhere between 6 to 12 months of the profit.However depends on how you feel about the value of the machines. I would assume to pay less than 6 months profit if they were all low quality junk machines/ off brand, and pay more if were any of the top 4 brands always mentioned. Also I think proof of location contracts would add to the value as well as the proof of income. Used machines in that qty I would do $20 per individual head, 30 $ per one-piece triple Plus however much you think the location is worth with contract and proof of income I would say up to 45 extra per location, without that stuff I would say you could get kicked out on any of them very first day so 10$ to 20$ two things not in either of the formula's though is cost of inventory and how spread out the route is. If the 90 locations are all in pods within certain zip codes that would be great but if they are in 5 different cities and all spread out that would not be great. So much to think about when trying to put a value on a route if anybody wants to add their opinion on those two methods, All of us rookies would greatly appreciate it. Link to comment Share on other sites More sharing options...
QuikVend Posted August 20, 2016 Author Share Posted August 20, 2016 They have tax records for verification. I've been wanting to hear back from them as far as what they were going to ask for it. I got that info today, and it seems way too high for me to even consider it anymore. $17,500 was what I got from them. Link to comment Share on other sites More sharing options...
rodney69 Posted August 21, 2016 Share Posted August 21, 2016 That's a little high even if it was doing better with better equipment. They probably bought new. Link to comment Share on other sites More sharing options...
QuikVend Posted August 21, 2016 Author Share Posted August 21, 2016 That's what I was thinking. I'm passing on this one. I'll keep building up my own until another one pops up around here. Link to comment Share on other sites More sharing options...
AMD Snacks Posted August 21, 2016 Share Posted August 21, 2016 Just wondering, how'd you find the route, Craigslist? ...I ask because I never seem to find routes for sale... Sent from my SAMSUNG-SM-G920A using Tapatalk Link to comment Share on other sites More sharing options...
QuikVend Posted August 22, 2016 Author Share Posted August 22, 2016 Actually, I found this one in the classified section here on TVF. They're rare to find near me as well, but that's how I started and how I've grown up to now. I just keep an eye out constantly. Link to comment Share on other sites More sharing options...
musser Posted August 22, 2016 Share Posted August 22, 2016 Looks as if they may be selling for one years gross sales. Could be a gem could be a dud. If it's all in a small area close to you with good stable locations and good equipment can you duplicate it for that money? Is the route all spread out with questionable locations and mediocre equipment? Sometimes the best way to grow is to buy. So, is it close, compact, good equipment, stable? Do you have the money? Will it return the investment in reasonable time? What would it cost you in time and money to duplicate the route? Very important is if the gross can be verified through taxes paid, I emphasize this because if verifiable this is a rare bird. Most sellers inflate sales 100% so a verifiable $18k is meaningful. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.