BluePlate Posted June 1, 2008 Share Posted June 1, 2008 I'm sure this has been discussed before, what is the best way to determine the value of a route? If I was to use a fictional route like 30 machines placed within a 20 mile radius. The machines are doing an average of $14 per location a month. The route comes with product and the machines are Vendstar 3000's. How would you value? How much value difference if they were Beaver machines or 1800 vend machines? Thanks Link to comment Share on other sites More sharing options...
naraol Posted June 2, 2008 Share Posted June 2, 2008 I don't remember the formula on how someone figured this out but it did make sense. I read it in a post sometime this past week. I think I have now read every single thing on the board. I am sure someone will post the link to that thread, I don't know how to do that if I did find the thread. Link to comment Share on other sites More sharing options...
MountainMan Posted June 2, 2008 Share Posted June 2, 2008 I recall reading it also. Maybe the poster can fill in the blanks. IIRC it was basically that the value of a route was the money the route made in a year. I don't recall if that was gross or net. I don't think it took into account machine type, age of machines or product in the machines. Link to comment Share on other sites More sharing options...
novacane Posted June 2, 2008 Share Posted June 2, 2008 70% of the 1 year gross is what has been posted in other threads on this subject. Link to comment Share on other sites More sharing options...
BluePlate Posted June 2, 2008 Author Share Posted June 2, 2008 70% of the 1 year gross is what has been posted in other threads on this subject.I come from a business (Credit Card Processing) where people build portfolios solely with the intention of selling the portfolio. So at 70% of one years gross, it does not seem like this would be a good "plan", just building to sell - unless you plan on dumping your dog locations or locations not in your target area. Link to comment Share on other sites More sharing options...
Jay-Son Vending Posted June 3, 2008 Share Posted June 3, 2008 I am new at this vending business...but I have to ask...If you value the "route at 70% of the 1 year gross...What value do you give the machines???....or do you figure that in the "route" cost.... In my Real Estate business...any commercial business venture is considered a good to better move if you can get your cost back in a two year period...Obviously the shorter the better... Jay Link to comment Share on other sites More sharing options...
BluePlate Posted June 3, 2008 Author Share Posted June 3, 2008 Jay, I'm new to this whole thing myself, but that is one of the things that excites me about this business, you can make a return on your investment within 5 to 8 months. As a new comer, it seems the key is locating the machines where you don't have to drive out of your way for a handfull of quarters. I'm really going to try to place my machines in a few mile radius. I'm finding there are enough people who have a garage or a storage shed full of machines, that supply of used machines are much greater then demand - driving costs the costs down. I would love a perspective of a veteran on this...... T Link to comment Share on other sites More sharing options...
Boazcat Posted June 4, 2008 Share Posted June 4, 2008 Good thread. I would live to see some other opinions on here to learn from. Great site! Thanks, Michael Link to comment Share on other sites More sharing options...
caserri Posted June 11, 2008 Share Posted June 11, 2008 Here are some threads that address this topic. All these have come from the "Vending 101" section at the top of the board. Steve Whats the value of a route? - http://www.vendiscuss.com/forums/view_topic.php?id=53&forum_id=1 Purchase Existing Routes - http://www.vendiscuss.com/forums/view_topic.php?id=33&forum_id=1 Buying existing route - http://www.vendiscuss.com/forums/view_topic.php?id=104&forum_id=1 Valuing a Route - http://www.vendiscuss.com/forums/view_topic.php?id=291&forum_id=1 Link to comment Share on other sites More sharing options...
Boazcat Posted June 11, 2008 Share Posted June 11, 2008 Great! Thanks Link to comment Share on other sites More sharing options...
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