Buying an existing route

[stacey]

Hello all,  I have a question?  yesterday  I took a bold step and called a vendor about selling some of his routes.  The reason I did is because he had a snack machine that was neglected every time it was empty.  I took the number off the machine had no idea really what to say or how to say it but still called. I told him I was a vendor interest in buying existing routes and if he was ever interested in selling any could he give me a call. To my surprise..... He actually has 80-60 thrple head machines in storage and about 15 on site he wants to sell.  I informed him that I would talk to my partner and give him a cb. I got off the phone quickly because I had no idea where to go from there I even forgot to ask him what he wanted for them.  Please, any comments about what I need to find out before I make an offer would be great.   I already know to get some kind of proff of how much the machine makes and how old they are but thats it. I'll give more information as I will talk to him today.

Thanks. 

[G-man422]

If most of his located machines are neglected, he doesn't have much motivation to put out his other 85.  Make him a very lowball offer, and work from there.

I would offer $50 a machine (for the ones not located) unless they're vendstar 3000,  then offer less.  $75 for the ones that are (again unless vendstar 3000's).

So about $5,375.  Maybe even $5,000.  See what he says.  If the machines are old or in not too good condition, even lower.  You can always offer more.

Good luck!

[tedk]

I wouldn't offer anything. Ask him how much he wants for the route. Let him name the first price.

Once he gives you a figure you can give him a price you are willing to pay. I would start even lower than G-Man though. I'd try $25-30 dollars each. Like G-Man says you can always go up.

The man isn't servicing his existing locations, he has 4 -5 times as many not located as located, so I'd say he really is finished with vending. He isn't even motivated enough to list them for sale. I think you will be doing him a huge favor giving him something for these machines and taking away his headache. Just decide for yourself what is the most you are willing to pay. If you get to that figure and he says no, thank him and wish him luck. Tell him "I'll leave you my number, if you aren't able to sell them call me"

Keep some cash ready because he will probably call you back.

[stacey]

Thanks guys for the input.  I spoke with him today and got a little more info. I informed his that I was only intrested in buying  the ones he has on routes.  He is asking 75.00 for his triple heads and the route he has about 20 of them, He also has about 10 single or double. I don't think I want all of his routes because some are to spread out.  He said they gross between $15 and $30 per month.  They are located in  mostly offices, waiting rooms he has some in car dealerships. He said ebay sells the Triple for about $150 so 1/2 that is $75.  Should I offer to buy based on gross income made by the route and pay about 20%-30% of that or by the machines. I think if I pay by the gross revenue I may save some money but I don't know if bulk operators go for that.  Suggestions are greatly apprciated.

Thanks

  

[CraigMc]

When valueing a route the rule I go by is "What would it cost me to duplicate that route?" Figure what the equipment, locating, licenses, etc would cost you to replicate that route. Make that your top offer. Of course offer the seller less than that.

To me that way you can't over pay for someone elses business.

Craig

[remarcvending]

I've only bought used machines, and I've paid as low as $25 for most of mine and many of those were even located... not good locations of course, but located none the less.

[davidsurvz]

I would recommend going to check out the route also find out for sure what kind of machines he has. After you see the route and see the machines if you are still interested make a lower offer. I would also try to go meet with the locations with (or without) the current owner to get a good idea of how the locations will be towards you taking over the route. Also ge everything in writing.