benmaller Posted January 22, 2013 Share Posted January 22, 2013 I am a newbie to the vending business and have been considering starting a honor box business. I've come across a local route for sale on Craigslist and was hoping to get some advice. So far I've only spoken to the gentleman on the phone and will be meeting in person later this week. Here are the details I have so far: Route : 14 months old Stops : 20 locations (using the plasic box from Freedom Vend with a padlocked money box) Net Revenue : $610/wk (he says all documented and certified) Asking Price : $5650 Reason for selling: His wife and him started with intent to run for ~3 years before retiring to Florida. His dad's health is failing and they have decided to move to retire now and move to florida to be with his father. Questions I have: 1.) Is $610/wk net profit reasonable for 20 locations? From reading reports on this forum, it seem most folks expect an average box of $20-30 gross revenue in a week or so. 2.) what would be reccomended docs to verify income? tax records? product receipts? 3.) Asking price? I've seen a couple mentioning 4x monthly gross as a reasonable price for snack box route, in which case the asking price seems very reasonable. But still from a price per location, the price seems high (~280/location) especially given the length of time the route has been established. thoughts? 4.) has anyone used the Freedom Vend boxes before? Info on their cost? I've contacted the company but they've yet to return my call. http://freedom-vend.com/warrantee.htm Thoughts on these questions (and any other advice) would be appreciated. Thanks, Ben Link to comment Share on other sites More sharing options...
treadmill Posted January 22, 2013 Share Posted January 22, 2013 I am a newbie to the vending business and have been considering starting a honor box business. I've come across a local route for sale on Craigslist and was hoping to get some advice. So far I've only spoken to the gentleman on the phone and will be meeting in person later this week. Here are the details I have so far: Route : 14 months old Stops : 20 locations (using the plasic box from Freedom Vend with a padlocked money box) Net Revenue : $610/wk (he says all documented and certified) Asking Price : $5650 Reason for selling: His wife and him started with intent to run for ~3 years before retiring to Florida. His dad's health is failing and they have decided to move to retire now and move to florida to be with his father. Questions I have: 1.) Is $610/wk net profit reasonable for 20 locations? From reading reports on this forum, it seem most folks expect an average box of $20-30 gross revenue in a week or so. 2.) what would be reccomended docs to verify income? tax records? product receipts? 3.) Asking price? I've seen a couple mentioning 4x monthly gross as a reasonable price for snack box route, in which case the asking price seems very reasonable. But still from a price per location, the price seems high (~280/location) especially given the length of time the route has been established. thoughts? 4.) has anyone used the Freedom Vend boxes before? Info on their cost? I've contacted the company but they've yet to return my call. http://freedom-vend.com/warrantee.htm Thoughts on these questions (and any other advice) would be appreciated. Thanks, Ben I would send a PM to a member that goes by Dennis23. He has been in the business a long time. He would be the one who could help you out the most regarding this. Link to comment Share on other sites More sharing options...
Poplady1 Posted January 22, 2013 Share Posted January 22, 2013 $610 a week for this amount of boxes sounds very high to me. Just having a locked coin box wouldn't make much difference on a honor box. We found people just take the product and don't put the money in the box. On our honor boxes we just use a plastic lock on each one. So far no one has tried to open it. They just take the product. dogcow runs a pretty good size route. He can probably give you a little more information. We have very few that bring in $30 a week. We do have several countertop snack machines that do that much a week. Also do contact Dennis23. He is the expert. On the boxes we like the brown boxes the best for the honor box system. Link to comment Share on other sites More sharing options...
dogcow Posted January 23, 2013 Share Posted January 23, 2013 I am a newbie to the vending business and have been considering starting a honor box business. I've come across a local route for sale on Craigslist and was hoping to get some advice. So far I've only spoken to the gentleman on the phone and will be meeting in person later this week. Here are the details I have so far: Route : 14 months old Stops : 20 locations (using the plasic box from Freedom Vend with a padlocked money box) Net Revenue : $610/wk (he says all documented and certified) Asking Price : $5650 Reason for selling: His wife and him started with intent to run for ~3 years before retiring to Florida. His dad's health is failing and they have decided to move to retire now and move to florida to be with his father. Questions I have: 1.) Is $610/wk net profit reasonable for 20 locations? From reading reports on this forum, it seem most folks expect an average box of $20-30 gross revenue in a week or so. 2.) what would be reccomended docs to verify income? tax records? product receipts? 3.) Asking price? I've seen a couple mentioning 4x monthly gross as a reasonable price for snack box route, in which case the asking price seems very reasonable. But still from a price per location, the price seems high (~280/location) especially given the length of time the route has been established. thoughts? 4.) has anyone used the Freedom Vend boxes before? Info on their cost? I've contacted the company but they've yet to return my call. http://freedom-vend.com/warrantee.htm Thoughts on these questions (and any other advice) would be appreciated. Thanks, Ben 610 gross per week off 20 locs would set off my BS detector , 610 net? i dont think so ok lets assume that hes not making that up.... what products he running at what price, what type of locations are they whats the shrinkage like run the route a few times with him to verify income? is he willing to seller-finance? Link to comment Share on other sites More sharing options...
benmaller Posted January 23, 2013 Author Share Posted January 23, 2013 thanks for all the advice so far. good stuff. the $610 sounded high to me as well, running the route with him a couple times would be good verification. He claims to have all of the revenue well documented, I am hopefully meeting with him in a couple days to review these records. I'm not sure of the product price but from what he described, he's running the standard fare, candy bars, crackers, chips. I don't have full details on the locations yet but it sounded like mainly office building lunchrooms. he did indicate that they would seller-finance. Any ideas on reducing the buyers risk by tying the total sale price to its continued performance over a few months? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.