DI Route

[kulza]

Here's the ad:

http://winnipeg.kijiji.ca/c-buy-and-sell-business-industrial-A-GREAT-BUSINESS-OPPRTUNITY-DENTYNE-ICE-MACHINES-W0QQAdIdZ3109734

The deal is 39 machines on location and 5 extra. The locations are in factories, restaurants, lounges, retail, etc.

He says the machines are new as of May 2007.

The route averages $500 a month, according to him.

He's asking $200 per machine, which includes the product in the machines.

So it works out to ~$8000 for the route, which makes ~$6000 annually.

What is everyone's opinion on this?\

Thanks,

Michael

[Big Mike]

Never buy the location. Only the machine.

 

Mike

[kulza]

I'm new to this.

Why not just buy the location?

Thanks

[ANDERSONVENDING]

I'd offer 80% of yearly sales or $4800, but thats just me.My other way of making an offer is $100 per machine.Remember that there's a reason he's selling.

John

[The Master Key]

Remember that there's a reason he's selling.

[vendamania]

It is really not a good deal don't waste your money.You can get DI  locations that do 12.82 a month yourself.Even though the numbers he quoted you are low enough to believe they may be lower as most selling don't give you the true numbers.

Think about it you are going to write a check for $6000 of your hard earned money for 39 DI locations that do supposively 12.82 a month.

Take my advice don't waste you money buying his crap.If you really want that horrible route offer him no more then $50 a machine.

This sounds like a blue sky promoter selling a biz op route to me.

After you come to your senses send me my fee for this advice.LOL

Fred

[davidsurvz]

I'd offer 80% of yearly sales or $4800, but thats just me.My other way of making an offer is $100 per machine.Remember that there's a reason he's selling.

John

I agree with John about offering 80% of yearly sales. I would even try offering 75% you can always offer more. The key to negotiating is to be able to walk away from the table at any time. (Start low and work your way up) Remember if you are going to spend that much money anyway you can build up a successful route on your own, that should give you some objectivity about negotiating.

Also, I would insist that the owner of the route take you around and show you the machines and introduce you to the locations as a potential new owner of the route. I would also pay no more than 60% of the final sale price upfront and try to finance the rest from the route itself. See if he is comfortable with breaking up the remaining ammount over 6 mos. or a year, That may help give you an idea of how the route is actually doing.

Or you could just ignore my advice completely.......

I am not an attorney, doctor, sales rep, judge, Law enforcement agent, free lance photographer or grocery store manager. Any advice I give is simply heresay and "stuf off the top of my head" I do not offer any legal advice and I am not a business consultant, tax preparer or an accountant........ (Sorry, I had to put some kind of disclaimer on here after having to deal with these 2 legal messses over the last 5 months I'm having to look at everything from a legal standpoint. Plus I just figured I'd throw a littlle humor into the post.)

[vendamania]

Offering 75% is way to high for this crappy route and probably what he really wants.That is the way sellers price their route expecting you to offer a little less.At that price it will take you years to get your money back and maybe you will still have some of the locations by then.

Like I said offer 25% of the asking price if you really want this route.Don't worry it's not like they are lining up to buy this route.Don't be the sucker he is looking for.

Been in the vending business for 16 years and routes these days are going for about 6 months gross if that.Economy is bad locations closing up.

Again sounds like a biz op rip off to me.

Fred

[joshbrooksflorida]

I agree with the other posts...  it smells fishy.

You need to ask this guy why he's selling.

Think about it this way:  if you were making ~$450 per month IN CASH in net profit on a passive income system, would you sell?  Me neither.

The other remark about not buying the location is important.  When I started out (just three months ago), I paid a locator $800 to spot 20 machines.  A week later, five of my machines were kicked out, and the locater 'can't seem to make it back to your area' to do the free respots.  This caused me to try a little locating myself (the fear of locating was less than the pain of seeing full candy machines in my garage not earning money), and I soon found out that I can do just as good (if not better) a job of locating.  With the $800 I paid the locator, I could have bought eight additional machines.  Instead, I have very expensive lesson learned.

My advice would be to take the $8,000, spend it all on buying new machines and product, and locate them yourself.  If you bought Northwestern Super 60 double heads (which are doing pretty good for me), you could probably get 30 new ones.  If you bought Amerivend triple vends (which are also pretty good, but not as well built as the NW S60), you could buy 70!  That would be, in my opinion, money better spent.

Either way, good luck, and have fun.

[polecat]

Here's the ad:

http://winnipeg.kijiji.ca/c-buy-and-sell-business-industrial-A-GREAT-BUSINESS-OPPRTUNITY-DENTYNE-ICE-MACHINES-W0QQAdIdZ3109734

The deal is 39 machines on location and 5 extra. The locations are in factories, restaurants, lounges, retail, etc.

He says the machines are new as of May 2007.

The route averages $500 a month, according to him.

He's asking $200 per machine, which includes the product in the machines.

So it works out to ~$8000 for the route, which makes ~$6000 annually.

What is everyone's opinion on this?

Thanks,

Michael

Michael:

I can give you some details on this situation. This route of DI machines was established by a former distributor of ours in Winnepeg Canada who does biz op/locating deals. We do not sell our DI machines to Distributors for resale, and especially not to Biz Ops. He resold our SuperPro tri-vends in Canada.

This particular distributor wanted to add these to his personal route in northern North Dakota. The route has been established for several months. 

A couple of considerations:  1) With the VENDiscuss discount, you could buy over 60 machines for the same money, product included. 2) At $12.82 per month, per machine, this route is averaging significantly below what we're seeing these machines do on average. In fact, Marjorie with Midwest Distribution guarantees at least $20 per month (I believe) or she'll offer to relocate them. If you're interested in the DI/Certs program, we can help you get established with good locations at a lower price, or offer him significantly less, as suggested in other posts.

By the way, do you live in the ND city where these are located?  You can reach me at (800) 288-0958 if you have further questions about this, or if I can help in any way.

Steve,  spvg

[kulza]

Thanks for all the helpful replies.

I'm definitely not going to be buying anything this expensive without a lot of research.

By the way, what is a "biz op"? Business opportunity, operation?

Thanks again

[Faith Vending]

"biz op"? Business opportunity, operation?

Yes

Good luck what ever you decide to do.  Sounds like too much to me.  Offer less.

[caserri]

kulza wrote:

By the way, what is a "biz op"? Business opportunity, operation?

I love it when I get an opportunity to plug other areas of the forum.

check here for our "glossary of terms" used on the forum. ==> http://www.vendiscuss.com/forums/view_topic.php?id=547&forum_id=2

Steve