Vending route value

[MLC Vending]

I was wondering how you value a full line vending route? I am interested in buying a route that does 1800.00/month on average for 3 locations, 6 machines. The machines are AP/Dixie Narco with one combo and are all 10-15 years old.

What would you value this route at and how does one value a route?

[ruff84]

Do u have proof of the sales or are you just going off what seller is saying

[mission vending]

I was wondering how you value a full line vending route? I am interested in buying a route that does 1800.00/month on average for 3 locations, 6 machines. The machines are AP/Dixie Narco with one combo and are all 10-15 years old.

What would you value this route at and how does one value a route?

There are many ways to determine a route's value. I use 6 months VERIFIED gross as a starting point and go up or down from there. In this case that's $10,800. If income can't be verified deduct 10-20%. take another 10% for old equipment, a little more if there is no contract. So for me, with inventory I'd be around 5-7K

[MLC Vending]

I have 1 years worth of bank statements and was able to verify the 1800.00 average over the last year. Also the locations dont have a contract. Now would that 5-7k price include the inventory or would that be seperate?

[TKK]

Can you be more specific. What they are asking. What type of machines. Etc

[moondog]

I was wondering how you value a full line vending route? I am interested in buying a route that does 1800.00/month on average for 3 locations, 6 machines. The machines are AP/Dixie Narco with one combo and are all 10-15 years old.

What would you value this route at and how does one value a route?

That might be a good deal. I purchase routes based on the value of the machines plus 3 months gross. Based on that calculation, your looking at $5,400 for the gross and at least $2,000 in equipment.

These are the type of accounts that I target. They're averaging between $500 and $1,000 per month. You service them every other week and around here they're slightly below the radar of the big vendors - but still allow for a gross margin of $150 each time you service them.

What's the asking price?

[MLC Vending]

He is asking 18995. I dont plan on paying that much which is why I was asking how you value a route. I have seen a couple of ways.

1. 70%-100% of annual sales based on age of machines.

2. 6 months of sales plus machine cost

Then the valuation Mission posted above.

Then the valuation Moondog posted.

Based on these, there is a lot of variation in the value of the route.

He has 2 snack machines that look good, probably around 10 years old. He has 2 20oz soda machines that look good, around 10 years old probably. 1 can soda machine that was made in 1987 and works but doesnt look great. Then he has 1 combo machine that works but is old as well.

The 20 oz soda's are Vendo, the can soda is Dixie Narco. Not sure what the snack ones or the combo are.

[TKK]

I personally don't like or vend bottles. Cans are soo much easier. Based on that I would personally offer $7,000-$9000 if income is proven.

Also ud have to make sure they r stable. Last thing u want is him getting kicked out soon. Then you'll be left with old machines worth 1/3 of what you paid

[moondog]

He's way high on the price - so high that I doubt there's any reason to even bargain with him. He's either dreaming or looking for a sucker.

I'd sit on this one for awhile - unless he finds that sucker the location will still be there.

[MLC Vending]

Here are the machines:

2 x Vendo 540 / AP6000, Dixie Narco 476? / AP7000, Seaga Combo GO-127

Would having 1 years worth of bank statements and adding up deposits be a good way to verify sales? If not, what is a good way to verify sales?

Here is probably a dumb question, but does being in the Chicagoland area do anything to the price? The reason I ask is that I keep seeing a lot of routes for sale that are around the 1 years sales amount on craigslist, buybizsell.com, and some othere sites.

[TKK]

Also ud have bank statements don't do much. I could sell my bulk route and show my total deposits for full pine and bulk and say that's what it makes. It's like he may have more machines too and he's selling his low performers and is showing you total gross deposits. Those machines aren't worth a lot

[moondog]

The APs, although older, are good machines as are the V Max 540's. The Dixie is a single price machine and I wouldn't want the Seaga. I can't speak to the situation in Chicago but I wouldn't pay a dime over 8k.

I constantly hunt for good accounts to buy and it's a patience game for sure. For every 10 accounts I see for sale, I might inquire about 1 of them. For every 10 I inquire about, I end up buying maybe 2.

Most often, guys selling locations are just dumping their dregs. The best people to buy an account from are the ones looking to get out of the business and usually even they want twice what the account is worth.

Learn the equipment and keep looking. At some point you will find a good deal - in the meantime, keep your powder dry

[MLC Vending]

Thanks for all the insight. It is very much appreciated.