catch me if you can Posted January 20, 2012 Share Posted January 20, 2012 I have the oppurtunity to buy a route that has 26 u turns. The route is located approx an hour north of me. The current owner of the route has already given me keys and addresses and said to service them and see what I think of the route. He admits he has not serviced the route in 4 months and states his job, family, school, etc... is preventing him from maintaining it the way he should. He claims the route brings in approx $930.00 per month gross. He also said I could service the machines wait 30 days go service them again to verify the kind of money their making and purchase the route then. My question to all of you vending geniuses is how much would a route like this be worth and what should I be aware of. He said he made good money over the years but is graduating in May and already hasa job offer and is moving on to bigger and better things. Help me out here team............. Link to comment Share on other sites More sharing options...
dperry Posted January 20, 2012 Share Posted January 20, 2012 but is graduating in May and already hasa job offer and is moving on to bigger and better things. Bigger and better things? Bigger and better than vending? I think not! Link to comment Share on other sites More sharing options...
treadmill Posted January 20, 2012 Share Posted January 20, 2012 I have the oppurtunity to buy a route that has 26 u turns. The route is located approx an hour north of me. The current owner of the route has already given me keys and addresses and said to service them and see what I think of the route. He admits he has not serviced the route in 4 months and states his job, family, school, etc... is preventing him from maintaining it the way he should. He claims the route brings in approx $930.00 per month gross. He also said I could service the machines wait 30 days go service them again to verify the kind of money their making and purchase the route then. My question to all of you vending geniuses is how much would a route like this be worth and what should I be aware of. He said he made good money over the years but is graduating in May and already hasa job offer and is moving on to bigger and better things. Help me out here team............. How old are the machines? Are these the 4 or 8 cannister machines? This route is averaging $35+ per machine per his figures. Based on his figures I would offer $3250 but not go any higher than $3700. Link to comment Share on other sites More sharing options...
RogerFolzFan Posted January 20, 2012 Share Posted January 20, 2012 I've seen some routes for sale on Craigslist and called about them. Some of these "owners" refuse to even produce a copy of a profit/loss statement to show the bank (in case one needs a loan). Thats a red flag for me. Also, I usually try to google their name or the name of their company. Sometimes I find absolutely nothing, and some times not-so-good news about them. If I could go in the locations to service the machines, I'd try to ask them about any contracts (verbal or written) concerning how long the machines are to be there, and if the current owner has been paying any commissions. But, that is cool he gave you the keys and said go service them yourself to see for sure. Still, I'd check him out as best I could before giving him my hard-earned money. There are so many scammers out there that use vending. Craigslist and the whole internet are full of them. Link to comment Share on other sites More sharing options...
gumball guy Posted January 21, 2012 Share Posted January 21, 2012 LOL..... You don't hear of a seller handing the keys over to a "possible" buyer very often. I assume he is giving you the $ out of there as well and after 4 months there should be some decent jack in there. This is a distressed route and he wants out. IMO U-turns are horrible machines but they seem to do well in some locations. Since he already gave you the keys and a 60 to 90 day trial run it just reaffirms my earlier statment that he wants out. I would give him no more than $70(at the most)per location. You are going to have to invest in this neglected route so don't overpay. Beieve me.....if he gave you keys he will take a low offer. Link to comment Share on other sites More sharing options...
catch me if you can Posted January 21, 2012 Author Share Posted January 21, 2012 I agree and appreciate the response. He seems like a nice guy but he flat out told me he is throwing in the towel. He is starting to loose accounts due to poor service and is looking to make as much as he can off the route. Link to comment Share on other sites More sharing options...
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