rwc38 Posted June 7, 2017 Share Posted June 7, 2017 I'm looking at a couple options, both are healthy (I know I know, but hear me out). By the way, I'm a newbie to the business, hopefully I'm not making a huge mistake. The first route is grossing ~$100K (netting around $45K) on 17 placed healthy machines located mostly in schools. It's the only healthy vending in the area it sounds like. Purchase price is a bit above $140K, which seems really high to me. No idea what the machines are, as I know that matters, but probably the usual chinese made I presume. Second option is $12K for 10 unplaced healthy vending machines that are a couple years old (Naturals2go?). Guy who is selling had an accident and can no longer service the machines (paid $70K for them) and I'd relocate the machines to my area. If I did option two, I'd actually stock the machines based on what would sell well, (20/80 healthy to junk). I don't see why I would need to stick with healthy, but it seems like a decent deal for the machines. They are combo machines and from what I've read on here that might not be the greatest option. By the way, I have never been in the business so I am not sure exactly how hard it would be to place 10 machines, but from what I hear in talking to the guy selling the first route is there is plenty of opportunity in the area, he's kept it at 17 because he has other businesses he is dealing with and wants to simplify. I would enjoy hearing your thoughts. Link to comment Share on other sites More sharing options...
Snickers Posted June 7, 2017 Share Posted June 7, 2017 A guy payed 70,000 for 10 machines?! Neither deal sounds good. Link to comment Share on other sites More sharing options...
rwc38 Posted June 7, 2017 Author Share Posted June 7, 2017 He bought in to the Naturals 2 Go franchise, or maybe it's just expensive machines. Said he bought some entree side units for $2k a piece, then threw them out. His route was not well cared for. He has no records, so the $70k might be off. The other guy selling the route has impeccable records due to the CC system he uses. Link to comment Share on other sites More sharing options...
Snickers Posted June 7, 2017 Share Posted June 7, 2017 17 Chinese machines are not worth anything. Link to comment Share on other sites More sharing options...
AngryChris Posted June 7, 2017 Share Posted June 7, 2017 From what you have provided, the second route sounds like an absolute waste of money. He may have actually paid close to 70k for it all, but it's not worth the 12k he's asking for in my opinion. It's unfortunate for him. The first route sounds too good to be true. If it really does net 45k, then It may very well be worth the 140k+ he's asking for it. It sounds high, but that's a lot of density. The questions I would advise you to ask are: how often do you service each account, and what kind of vehicle do you use? Link to comment Share on other sites More sharing options...
Southeast Treats Posted June 7, 2017 Share Posted June 7, 2017 Combo machines are a problem for a serious business. Here's the deal: you have half a snack machine and half a drink machine. Product takes space, and combo machines only hold half (or less) of a normal machine. Half capacity = double the service visits. That means double the service costs (time, fuel, wear and tear, etc). The established route in the schools is priced far above what I would pay for any route. Questions abound - do they have a contract with the schools and will it transfer to you? Many government contracts with small business do not allow the contract to transfer. If it does, how much longer does it run? There are no guarantees with govt bids, you could lose out by pennies when time comes to renew. If that one set of locations is most of the business it must be stable to have value, and it's still a risk. And yes, imported machines are good to avoid. Bad or no tech support, parts support, poor designs especially in the combos. Lots of goof threads on here about getting started from scratch. Or at least look for a better deal on buying an existing route. Good luck! Link to comment Share on other sites More sharing options...
rwc38 Posted June 7, 2017 Author Share Posted June 7, 2017 By the way, the route with 17 machines are "AMS Sensit 2 and 3". Not sure where those are made or if they are any good. and just to clarify, the guy with the 10 Naturals 2 Go combo machines is selling the machines which I would place 150 miles from where he is at. And yes, I believe they are seaga machines which I don't read good things about on this board. Link to comment Share on other sites More sharing options...
AngryChris Posted June 7, 2017 Share Posted June 7, 2017 Pass on the 2nd option with 10 machines. The only one worth discussing is the first option. Link to comment Share on other sites More sharing options...
AZVendor Posted June 7, 2017 Share Posted June 7, 2017 The AMS machines are US made and highly recommended. They just put graphics on them. I'd work that guy for a deal. The second vendor where he threw away the side mount entree units means those are Seaga garbage and you don't want anything to do with them. Link to comment Share on other sites More sharing options...
lacanteen Posted June 7, 2017 Share Posted June 7, 2017 First deal: Pay 140% of annual sales?- #nope. A food route that nets 45%? Not possible. 17 AMS machines? $34-$42K. Make a living or good income just on food vending? #nope. Second deal: Seaga machines? Not #nope but hail #nope. If you have $140K burning a hole in your pocket and want to get into this business, buy some regular snack and drink machines and do it right. Link to comment Share on other sites More sharing options...
Corvus Corax Posted June 7, 2017 Share Posted June 7, 2017 Buy some Vendo 720's or some DN501E's for drinks. They hold a good amount, have 8-10 selections, are reliable an have MDB.Use AP machines with MDB, 112/113 or 122/123 (I can never remember which) and start placing machines. I trust AMS combo s but not much else. Try to stick with only MDB machines so you won't have to scrap them for upgrades late. Once you get 10 or so machines placed, talk to coke/pepsi/Dr pepper about becoming a third party partner. Find a reliable mover. Buy nothing sight unseen or that's not plugged in to prove it vends. Reliable vehicle to start with, ford ranger with locking cap, suv or van with seats removed. Have fun.Sent from my SAMSUNG-SM-G900A using Tapatalk Link to comment Share on other sites More sharing options...
rwc38 Posted June 7, 2017 Author Share Posted June 7, 2017 OK, it sounds like I should stay away from the 10 unit deal for $12K. I would LOVE to hear what a fair price is on the existing 17 placed machine route. Records are great. Machines are made in USA. Seems like a good way to break into the business - I don't have time to go around placing machines so I'm a little leery of that. Lacanteen said $37-$45K, is that the going rate? 1 X net income? I don't get the feeling the guy really wants to sell it that bad, which is why he has priced it high. It's been a great income for him and the only reason he is exiting is his main job is a General Contractor and he won a bid to keep him busy for 5 years, so I doesn't want to deal with the hassle of both businesses. The more and more I read, I will say, the more discouraged I become of entering this area. I love the idea, but it sure seems like alot to worry about for something that in concept is pretty simple. Link to comment Share on other sites More sharing options...
taysha Posted June 8, 2017 Share Posted June 8, 2017 I bought a route of 8 healthy machines (former HUMAN franchise, Jofemar machines) placed in YMCAs and schools. They gross ~ $40-45k per year, I've had them for 7 months and am a 1 woman shop operating out of my home. I paid $32k, which I feel was a very fair price. I think $140k is way too high.Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
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