anyvendingcom Posted August 20, 2012 Share Posted August 20, 2012 I just want to know how you calculate a price for purchase/sale for an existing location? Ignoring other factors and going purely on income it generates... What times gross? Or What times net? Thanks in advance Link to comment Share on other sites More sharing options...
mission vending Posted August 20, 2012 Share Posted August 20, 2012 I just want to know how you calculate a price for purchase/sale for an existing location? Ignoring other factors and going purely on income it generates... What times gross? Or What times net? Thanks in advance With equipment or without? For me, with equipment average previous 12 months times 6. Without, depending on desirabilty of location, I would look at 1-2 months avg gross. For both that would also need to include a assignable contract from the seller. Link to comment Share on other sites More sharing options...
anyvendingcom Posted August 20, 2012 Author Share Posted August 20, 2012 With equipment or without? For me, with equipment average previous 12 months times 6. Without, depending on desirabilty of location, I would look at 1-2 months avg gross. For both that would also need to include a assignable contract from the seller. It is with equipment. Are you saying 12 times gross or net? Link to comment Share on other sites More sharing options...
amc-vending Posted August 20, 2012 Share Posted August 20, 2012 It is with equipment. Are you saying 12 times gross or net? I believe he is talking about taking the avg over 12 months and times that by 6 so if it averages 200 a month over 12 months - take 200 * 6 = 1200 Link to comment Share on other sites More sharing options...
anyvendingcom Posted August 21, 2012 Author Share Posted August 21, 2012 I believe he is talking about taking the avg over 12 months and times that by 6 so if it averages 200 a month over 12 months - take 200 * 6 = 1200 Ok, I got it...I missed read initially. Link to comment Share on other sites More sharing options...
WillisNYC Posted August 21, 2012 Share Posted August 21, 2012 Missions formula is correct in the current business environment. For locations with equipment in place, 50% of annual gross is the current going rate. I have made purchases in the last three years where the price was as low as 25%. The 50% price represents good locations with good equipment. The 25% price represents so so locations with so so equipment and perhaps limited history and/or lack of contracts. In the days before the ongoing recession (pre 2008) 100% of annual gross was a common price. If a seller wants more than 50% of gross currently, he needs to be holding a LOT of paper (50% plus) and have premium accounts with long term contracts. Owners in our area (New Jersey) realize that they are only going to be able to sell at greater than 50% of annual gross to vending newbies. Don't be one of these guys! Link to comment Share on other sites More sharing options...
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