bil10219 Posted December 7, 2011 Share Posted December 7, 2011 I'm doing some retirement planning and thinking about retiring or cutting back a few years down the road and wonder what is involved in selling a route. How do you value it. Bulk, Soda, snack, etc. Also, where do you find Buyers, etc. Any advice? Thanks, Bill Link to comment Share on other sites More sharing options...
BarnettVending Posted December 7, 2011 Share Posted December 7, 2011 I don't know about the soda and snack stuff, and I'm very new at this, but I can tell you what I have seen looking into and actually buying a route from someone. I mostly looked on the classifieds website for a local news channel ((KSL.com). On there, I found some people trying to sell their routes for about 3-4 times the market value of the machines, and others trying to sell them for 1.5 times the market value of the machines. I bought one that was about at the 1.5 value level in my area. Granted, my route was not taken care of as well as your route probably is since the owner had his teenage sons taking care of it for the last couple of years without checking up on them much. Like I said, I'm no expert on this, but if it were me I'd list it for between 1.5-2 times the value of the equipment and then have some room to negotiate. Link to comment Share on other sites More sharing options...
dperry Posted December 7, 2011 Share Posted December 7, 2011 I don't know about the soda and snack stuff, and I'm very new at this, but I can tell you what I have seen looking into and actually buying a route from someone. I mostly looked on the classifieds website for a local news channel ((KSL.com). On there, I found some people trying to sell their routes for about 3-4 times the market value of the machines, and others trying to sell them for 1.5 times the market value of the machines. I bought one that was about at the 1.5 value level in my area. Granted, my route was not taken care of as well as your route probably is since the owner had his teenage sons taking care of it for the last couple of years without checking up on them much. Like I said, I'm no expert on this, but if it were me I'd list it for between 1.5-2 times the value of the equipment and then have some room to negotiate. How do you valuate the equipment? Do you go by new replacement cost, or depreciation? For instance, a NW super 60 is about $70 new, so I would value a used one to be about $35. But that's just me. Link to comment Share on other sites More sharing options...
dogcow Posted December 7, 2011 Share Posted December 7, 2011 I'm doing some retirement planning and thinking about retiring or cutting back a few years down the road and wonder what is involved in selling a route. How do you value it. Bulk, Soda, snack, etc. Also, where do you find Buyers, etc. Any advice? Thanks, Bill craigs list or a business broker.. as for valuation 60% of gross or equipment value whatever is higher is the metric i see thrown around a lot for full line valuation How do you valuate the equipment? Do you go by new replacement cost, or depreciation? For instance, a NW super 60 is about $70 new, so I would value a used one to be about $35. But that's just me. why would u value used equipment at a new equipment price that doesnt make sense Link to comment Share on other sites More sharing options...
dperry Posted December 7, 2011 Share Posted December 7, 2011 why would u value used equipment at a new equipment price that doesnt make sense I agree. That is why I was asking for the clarification. I have found that many sellers believe that because they paid the new price, that they can sell it for that same price, even though it's used. Link to comment Share on other sites More sharing options...
bil10219 Posted December 8, 2011 Author Share Posted December 8, 2011 Thanks all for your input. Some of these amounts are lower than I might have expected but that is why I'm doing this excercise. I don't want any surprises down the road. What would a business broker charge and what would they say for an amount? Link to comment Share on other sites More sharing options...
BarnettVending Posted December 8, 2011 Share Posted December 8, 2011 I agree. That is why I was asking for the clarification. I have found that many sellers believe that because they paid the new price, that they can sell it for that same price, even though it's used. You have some of those people on classified sites like this that think their used machine is worth $150 because they paid $300 for it new, even though a few adds earlier someone listed it for $80. I just go off of the most common price of that type of machine and what they seem to be selling at. Around here, at least, the average 3-head is going for about $75-80, depending on brand, so I'd start with trying to sell the locations for about $120 each and go from there. But, like I said, I've never sold a route, that's just what I was able to piece together from shopping around. Link to comment Share on other sites More sharing options...
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