SELLING A ROUTE??

[K services]

If i were to want to sell my route, how would i go about this??? Its a really good route, makes really good money just don't know if i want to continue to mess with it or not as its a side business. Who do you contact for something like this??

[Chard]

What do you mean by good route? You would have to define what are revenues, what are profits, what sort of equipment comes with the sale, etc. 

[AZVendor]

Your idea of a very good route and someone else's idea of that could be entirely different.  List the number of accounts, the number of machines, the model mix, the annual gross sales and some idea of your annual net and we can give you some ideas. One year's gross is a good starting point but many factors determine if that's valid or not.  The true value is only what someone will pay you for it so all the figuring can be a moot point until you get an offer that you will accept.  If you have no monthly records that you can prove it will be hard to sell at the price you want.

Using a business broke is the most expensive way to sell and it requires records.  Advertising on Craigslist is the cheapest way to sell.

[musser]

Craigslist, local paper, etc. the biggest problem you will have is weeding out the "beggers", the wanna be's with no money. 

[Southeast Treats]

You basically have the same two choice as selling a home:  List with an agent or sell it yourself.  A good business broker can help you determine asking price, advertise the business discretely, and weed out unqualified buyers.  They will of course expect a fee that will be some percentage of the selling price; if the business lists for too small an amount they may want a fixed fee regardless of the final sales price. 

If you sell it yourself you will have to deal with all of the above, plus find a good closing agent if the paperwork gets too complicated.  Most business attorneys will handle a closing for a reasonable fee. 

Knowing your annual sales will be the starting point.  You are not likely to get more for the business than that amount.  Most experienced vendors will pay in the range of 50 to 80% of annual sales; depending on quality of accounts, equipment, and other assets included like vehicles and tools.  Inventory and included change banks are a small factor also.  

If you are 50K or less a year, your best bet is to list it yourself on the local craigslist.  If you have some good accounts another local vendor may want to buy you out to add to their business, and that may be best for you.  A buyer who is new to vending will expect you to help train them and get them up to speed.  You may want to list it in the classified section on here as well.  Good luck!

 

[brendio]

I have been wondering about whether approaching another vendor in town first to see if they are interested before you advertise publicly is a good idea? My thinking is that an add-on route is more valuable in terms of economies of scale, so the business should be worth more to them than to someone starting out.

I'm thinking Pros are they will understand the business so you don't waste time explaining things like you would with tyre kickers; save on advertising fees if they do decide to buy; and the sale does not become public knowledge. Cons that I can think are that they would probably negotiate harder on price than a green vending newbie with ideals about "passive income for no work" (I've been there myself and feel I have overpaid for acquisitions); and they may not require some of the extras that go with the business like vehicle, warehouse shelving etc, which would need to be sold separately (no biggy)

[Southeast Treats]

Nothing wrong with approaching another vendor, just don't reveal too much about individual accounts unless he is serious and signs a Non-Disclosure agreement....