LGarcia Posted August 17, 2012 Share Posted August 17, 2012 Hi I'm a new member here my name is Luis I've been doing bulk vending for about 4yrs part time nothing big my route went down from 45 machines to 23 due to me going out of state for work Well I recently talked to a guy selling some big routes he sold the cheaper ones already and currently only has one for sale but it is very expensive this is what I'm working with 45,000 vending route He has them in only 1 location very high traffic Chinese buffet Machines: Entrance of restaurant he pays 30% commission on these (Rack with 6 heads 25cents 4 heads 50cents 4xcolum tattoo/sticker) 1x gacha machine 4 heads 1 machine with 2 heads of 50cents Game room he pays 1,000 per month for these machines 1 toy chest crane machine 2 coin pushers 1 stacker electronic machine 1 gumball pinball machine 1 gacha machine 4 head 1 8 column tattoo sticker 1 rack with (1 bill changer 3 50cent heads 5 25cent heads) I figured all the machines are worth about close to 10,000.....he says every month he does about 5,000 in sales from this location what do you guys think? Is something like this worth it?? I personally went to check the route out on August 10 he has just taken the money out on July 31 these were our numbers 2 coin pushers 663 Stacker 119 Rack + tattoos 190 Pinball + gacha 250 Crane machine 672 Overall $1884 in 10 days of use supposely I was really surprised Link to comment Share on other sites More sharing options...
Rick Posted August 17, 2012 Share Posted August 17, 2012 Boy that's a lot of money to sink into ONE location! I'm not saying it's not worth it, but I would personally have to pass for 45 grrrrrrrr. If he pays 1,000/month on the game room and 30% on all others (let's call it an even grand) minus several hundred for product I'd ballpark $2,400-$2,700 net per month. You're looking at a year and a half before you recoup your investment. I'd assume this loc obviously comes with an iron-clad long term agreement? I couldn't do it. But I'm a noob - that probably has as much to do with my answer as anything. Wishing you the best of luck with whatever you decide! Also, is there ANY possibility work will take you out of state again? You pull the trigger and you'd better be ready to dance with this lady for the long term. Link to comment Share on other sites More sharing options...
LGarcia Posted August 17, 2012 Author Share Posted August 17, 2012 Boy that's a lot of money to sink into ONE location! I'm not saying it's not worth it, but I would personally have to pass for 45 grrrrrrrr. If he pays 1,000/month on the game room and 30% on all others (let's call it an even grand) minus several hundred for product I'd ballpark $2,400-$2,700 net per month. You're looking at a year and a half before you recoup your investment. I'd assume this loc obviously comes with an iron-clad long term agreement? I couldn't do it. But I'm a noob - that probably has as much to do with my answer as anything. Wishing you the best of luck with whatever you decide! Also, is there ANY possibility work will take you out of state again? You pull the trigger and you'd better be ready to dance with this lady for the long term. Hi thanks for the reply your opinion is great..... He has had them in that location for 6yrs, and I feel the same way on too much money in one location but if it is generating this much sales it should make its money back in 2yrs which really doesn't seem bad... I agree with you fully no the responsibilities this route comes with it would somehow become my main source of income since we are assuming our profit estimates.... Link to comment Share on other sites More sharing options...
Nate9303 Posted August 17, 2012 Share Posted August 17, 2012 I'm pretty new to this too, but I certainly wouldn't pay him his asking price. Seems like you should be able to negotiate a lower price if he really wants to sell. If I could make my money back in a year (and depending what the contract with the location is) I would go for it. Even if you are out after a year you have 10,000 worth of equipment. Link to comment Share on other sites More sharing options...
ronsidney Posted August 17, 2012 Share Posted August 17, 2012 is it a friend??did he make you sign a non-disclosure agreement?? is the location in a iron clad service agreement?(not a cancel with 30 day notice crap agreement) You could easily take those 2 location and put brand new equipment in both for a lot less than 45K.. that equipment list is less than 10K all new really..but the stacker is outdated and a keymastere or barber cut will double or triple the income in that same stop...pinball gum ball is a waste really but if you want you can pick up a used one for a few hundred.. just a scenario...offer location 5K cash and all new equipment and you have the arcade location for about 16K... with a 6K key master, a couple good used $1000 cranes that would be like new for that price,a couple blazing quarters coin pushers for 2K, 3-4 5-7way racks and spirals etc for about 1500... or basically about 16K with a 5K payola bonus for location to swap to you....now the location will make a lot more because the kymaster will triple the income of that stacker.. 45K is biz op price...if you do it tell me how many more locations just like it you want to buy and ill fly in and set those all day long for you. ron www.blazingquarters.com Link to comment Share on other sites More sharing options...
mission vending Posted August 17, 2012 Share Posted August 17, 2012 Hi I'm a new member here my name is Luis I've been doing bulk vending for about 4yrs part time nothing big my route went down from 45 machines to 23 due to me going out of state for work Well I recently talked to a guy selling some big routes he sold the cheaper ones already and currently only has one for sale but it is very expensive this is what I'm working with 45,000 vending route He has them in only 1 location very high traffic Chinese buffet Machines: Entrance of restaurant he pays 30% commission on these (Rack with 6 heads 25cents 4 heads 50cents 4xcolum tattoo/sticker) 1x gacha machine 4 heads 1 machine with 2 heads of 50cents Game room he pays 1,000 per month for these machines 1 toy chest crane machine 2 coin pushers 1 stacker electronic machine 1 gumball pinball machine 1 gacha machine 4 head 1 8 column tattoo sticker 1 rack with (1 bill changer 3 50cent heads 5 25cent heads) I figured all the machines are worth about close to 10,000.....he says every month he does about 5,000 in sales from this location what do you guys think? Is something like this worth it?? I personally went to check the route out on August 10 he has just taken the money out on July 31 these were our numbers 2 coin pushers 663 Stacker 119 Rack + tattoos 190 Pinball + gacha 250 Crane machine 672 Overall $1884 in 10 days of use supposely I was really surprised I would go back with him the next time it is serviced and see the money being pulled to verify the income. Don't know about the values of the equipment as I work in full line vending. My only comment mirrors parts of previous posts, if he does not have a solid contract that can be assigned to you that will last as least long enough to recover your investment then it is not worth doing...... at any price. Link to comment Share on other sites More sharing options...
LGarcia Posted August 18, 2012 Author Share Posted August 18, 2012 I'm pretty new to this too, but I certainly wouldn't pay him his asking price. Seems like you should be able to negotiate a lower price if he really wants to sell. If I could make my money back in a year (and depending what the contract with the location is) I would go for it. Even if you are out after a year you have 10,000 worth of equipment. I'm just a little afraid what if for whatever reason he doesn't like my management on the machines and decides to kick me out I'm out 35k just like that lol there's just a verbal agreement between them for yrs I would go back with him the next time it is serviced and see the money being pulled to verify the income. Don't know about the values of the equipment as I work in full line vending. My only comment mirrors parts of previous posts, if he does not have a solid contract that can be assigned to you that will last as least long enough to recover your investment then it is not worth doing...... at any price. Yup I'm planning on going again next week that should verify the income within my eyes I would assume and I agree I need a agreement with paper Ronsidney: I don't know it's a tricky move theyve been in biz for 6yrs maybe it could work....who knows.... Do you do locations? Link to comment Share on other sites More sharing options...
Rick Posted August 18, 2012 Share Posted August 18, 2012 A written contract would be an absolute must. Just to play devil's advocate, I know it sounds far fetched, but who's to say this Chinese buffet owner and your friendly vendor aren't cousins and this is now the 5th time they've ran this scam on some poor unsuspecting person. We're talking 5-figures of money here. I'd need some assurances and if either the vendor or buffet owner were to hesitate for even a moment in giving them to you that would be my cue to leave the deal. Link to comment Share on other sites More sharing options...
LGarcia Posted August 18, 2012 Author Share Posted August 18, 2012 A written contract would be an absolute must. Just to play devil's advocate, I know it sounds far fetched, but who's to say this Chinese buffet owner and your friendly vendor aren't cousins and this is now the 5th time they've ran this scam on some poor unsuspecting person. We're talking 5-figures of money here. I'd need some assurances and if either the vendor or buffet owner were to hesitate for even a moment in giving them to you that would be my cue to leave the deal. Yes it Is a lot of money it is in a sense a turnkey biz for that price...., by the scam I don't know seems like it's just something you always have to be aware of I assume... Link to comment Share on other sites More sharing options...
dogcow Posted August 18, 2012 Share Posted August 18, 2012 Ron beat me to it u would have to be insane to pay that much the equipment ain't worth near that amt and there's too many ways to fake revenues. Plus that equipment ain't just gumball machines they are gonna expect a certain level of service in terms of keeping the game machines running hope u r a quick study. Sounds like ur mind is made up and ur just hoping for someone to agree with u. Link to comment Share on other sites More sharing options...
LGarcia Posted August 18, 2012 Author Share Posted August 18, 2012 Ron beat me to it u would have to be insane to pay that much the equipment ain't worth near that amt and there's too many ways to fake revenues. Plus that equipment ain't just gumball machines they are gonna expect a certain level of service in terms of keeping the game machines running hope u r a quick study. Sounds like ur mind is made up and ur just hoping for someone to agree with u. Oh no my mind isn't set I'm still going to do another sample run to see if it's worth it... I'm just seeing what other users opinion was with the same info I have.... All opinions are welcomed I don't want to make a mistake in this Link to comment Share on other sites More sharing options...
PerformaVending Posted August 18, 2012 Share Posted August 18, 2012 I wouldn't touch anything like this without a written contract. Without it, you are one whim from losing big time. If you're new to tings like electronic redemption/amusement machines, I wouldn't recommend considering this at all- this is a lot of equipment which you will need to know how to maintain and service from day one- and that's a tall order for anyone. If you discover this business isn't for you, as many discover, you are now stuck with a huge investment. My opinion is to pass this one and move along. Whatever you do, Good luck! Link to comment Share on other sites More sharing options...
musser Posted August 18, 2012 Share Posted August 18, 2012 Every contract can be broken. Can you afford to lose the money? If not leave it alone. Link to comment Share on other sites More sharing options...
lurtsman Posted August 18, 2012 Share Posted August 18, 2012 Edit to avoid inflaming some people. The suggestion to attempt to steal someone's locations is stupid. If you want to be a thief, you can try to break into his machines, or get into his house and record his online banking info when he's not in the room. Trying to steal locations that were shown in good faith is no better than trying to steal his car. Link to comment Share on other sites More sharing options...
ronsidney Posted August 18, 2012 Share Posted August 18, 2012 Edit to avoid inflaming some people. The suggestion to attempt to steal someone's locations is stupid. If you want to be a thief, you can try to break into his machines, or get into his house and record his online banking info when he's not in the room. Trying to steal locations that were shown in good faith is no better than trying to steal his car. I won't be inflamed because evidently your mistaken on the definition of "stealing" to steal something is to take something that belongs to someone else..A vending location is not property and therefore can't be stolen??? You might think of it unethical but that is your opinion ..I was merely suggesting that "poaching" of a location to show him that it would be crazy to pay that much for those 2 locations! you never OWN a location in vending, unless you paid the location for a contract,,then its between you and the location,not you and the other vendor.. but to say taking away a location is stealing?? now that my friend is stupid!!! ron www.blazingquarters.com Link to comment Share on other sites More sharing options...
LGarcia Posted August 18, 2012 Author Share Posted August 18, 2012 I won't be inflamed because evidently your mistaken on the definition of "stealing" to steal something is to take something that belongs to someone else..A vending location is not property and therefore can't be stolen??? You might think of it unethical but that is your opinion ..I was merely suggesting that "poaching" of a location to show him that it would be crazy to pay that much for those 2 locations! you never OWN a location in vending, unless you paid the location for a contract,,then its between you and the location,not you and the other vendor.. but to say taking away a location is stealing?? now that my friend is stupid!!! ron www.blazingquarters.com True true,.... Still Would feel like an golpher considering he been a good guy showing me the location lol...if you have any experience and think you can secure this location with new equipment come on in I'll pay you for locating it Link to comment Share on other sites More sharing options...
dogcow Posted August 18, 2012 Share Posted August 18, 2012 True true,.... Still Would feel like an golpher considering he been a good guy showing me the location lol...if you have any experience and think you can secure this location with new equipment come on in I'll pay you for locating it he just told you what to do, why do you want to give away your money LOL just go do it yourself,what he said in the previous post. you can get the equipment from a dealer on a lease even,i know betson runs lease specials a lot of 35 a week on keymaster 36mo lease. this is a bad deal, IMO , i wouldnt go in for it. you are paying a lot of money for a few grand of equipment. Link to comment Share on other sites More sharing options...
ronsidney Posted August 18, 2012 Share Posted August 18, 2012 True true,.... Still Would feel like an golpher considering he been a good guy showing me the location lol...if you have any experience and think you can secure this location with new equipment come on in I'll pay you for locating it I don't think you should feel like anything bad,,he is the one trying to scam you it seems to me.. He doesn't own that location unless its in a "PAID FOR" ironclad contract,,any other type of contract is easily broken.IF i have a great location I always give them a "signing bonus" as that is only thing that will hold up in court.. It looked fishy to me from the start with that high price.. People who say "A route is worth 10 months gross" etc. doesn't apply to 2 locations! 2 locations is not a route! now if it where 70-80 locations with all different owners and types of locations then it could be considered a route...even say a route of 70 taco bells all owned by same guy is not a route when it comes to selling,,because the real value is that you "sold" 70-80 minds on your service,and have relationship with that many locations,,if its just one man then its not worth the value of a true "route" ron www.blazingquarters.com Link to comment Share on other sites More sharing options...
bulkjake Posted August 18, 2012 Share Posted August 18, 2012 Bad deal. What happens if they go out of bussiness in 4 months? I agree with Ron...that is not considered a 'route'. I lost several locations within the last 3 months due to bussinesses going under. Link to comment Share on other sites More sharing options...
LGarcia Posted August 18, 2012 Author Share Posted August 18, 2012 Bad deal. What happens if they go out of bussiness in 4 months? I agree with Ron...that is not considered a 'route'. I lost several locations within the last 3 months due to bussinesses going under. I fully agree, that is my biggest risk, the place has been open since 2004 dough Im just considering using the money to expand on my own Link to comment Share on other sites More sharing options...
FrCorey Posted August 19, 2012 Share Posted August 19, 2012 I agree too. it's not a route. it's some locations. and it's too much. like the others said, if they close, you have to eat it. Link to comment Share on other sites More sharing options...
bbeckl Posted August 19, 2012 Share Posted August 19, 2012 fully agree ,to many eggs in one basket . what if the guy passes away in 3 weeks and the new owner wants to make the place a church ? im not wishing ill will on anyone ,im just sayin . stranger things have happened Link to comment Share on other sites More sharing options...
LGarcia Posted August 20, 2012 Author Share Posted August 20, 2012 Little info on the biz is located in a business area in McAllen Tx....it's on strip mall location it's a well know restaurant always packed..... It's not a mom and pops shop it's a biz well worth on the upper 500,000+ I domt know if the info will change anything just something to consider Link to comment Share on other sites More sharing options...
sherlock Posted August 20, 2012 Share Posted August 20, 2012 Routes are available in many cities wherein the purchase price can be recouped in well under 2 yrs. And all without having your cash outlay dependent upon only ONE location. So, if it would take you 2 yrs to pay off the purchase price of this so called "route", it isn't that great of a deal. Walk away from this. There is some truth to the old adage that says, "You shouldn't put all of your eggs in one basket". Link to comment Share on other sites More sharing options...
LGarcia Posted September 1, 2012 Author Share Posted September 1, 2012 Routes are available in many cities wherein the purchase price can be recouped in well under 2 yrs. And all without having your cash outlay dependent upon only ONE location. So, if it would take you 2 yrs to pay off the purchase price of this so called "route", it isn't that great of a deal. Walk away from this. There is some truth to the old adage that says, "You shouldn't put all of your eggs in one basket". I walked away from this guys just a little info to share with you all lol Link to comment Share on other sites More sharing options...
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