Purchase small route?

[F J Vending]

I am considering purchasing a couple machines. 4 - Seaga 9/5 mechanical combo machines and 1 - Seaga snack 11 selections. The machines are about 1 year old and on location. Gross sales for all machines is about $100-125 per week. Current owner runs every 2 weeks. Asking price is $3500.

I have seen mixed reviews about these machines, mostly negative but if used in the right locations they are okay. I would probably not even consider them if it was not for the fact they are already established and have been earning for about 1 year.

Several years ago I had about 75 bulk machines and 15 snack machines. I sold out and now looking to get my feet wet again. For the record, the current owner wasnt looking to sell, I started asking around this was one opportunity that presented itself. I have ideas to grow another route of snack/drink/bulk but feel I need to establish my business before I start trying to land bigger accounts.

Thanks in advance

[moondog]

The price is too high even with good equipment. Mechanical combos belong in a museum or scrap yard and I doubt if anyone on this forum would have anything good to say about Seaga, Genesis or Antares machines or any others of that ilk.

If this is one location, a basic multiprice stacker style soda machine and 5 wide snack machine might be okay - if we're talking about more than one location, there's not enough revenue to justify the servicing required.

I'd check Craigslist in your area for small accounts for sale (be patient). The formula I use for determining a location is market value of equipment plus three months gross. In this case that would be 10 cents for the equipment and $1,300 on the gross. If this route had decent equipment I'd pay $3,000 tops

[TKK]

Mechanicals suck. $400 a month is like $250 gross. It would take u over a year to pay off worthless machines. They r worthless granted that's not bad revenue for them but u should offer like $1500 max if they r in good shape. Those things missvend and jam a lot. I have one im trying to sell for $150 both snack and coke almost new and no bites. I don't want to locate it at all.

If u want to gross $250 easier just buy 1 used singleprice machine for about $300-$400 locate it in an apartment compelx or laundromat etc and ur done. Or buy 10-15 triples for about $500 place them in decent locations and make that just servicing once a month.