Leased route

[o2btanner]

Hi All

Looking to purchase a all drink route with 17 Pepsi 3rd party machines and 2 owned machines for a total of 19 machines.

Asking price is $25,000 owner saids that's one years income. It sounds way over priced.

Any help would be apprieated. Thanks

[TKK]

So if Pepsi decides to take the machines u paid $25k for 2 machines. Pass.

[mission vending]

25K 19 machines, that is about 110 per month per machine, that sucks.

Unfortunately some sucker will probably pay that.... Sure hope its not you.

[Sparta_Automation]

As already said.....if the site shuts down....or Pepsi wants their machines back, then the only thing you have to show for it is 2 machines and a $25,000 debt!

I would pass without consideration!

Travis

[o2btanner]

Thanks Guys

I thought I might be missing something.

What price would be fair for this route?

[TKK]

$2,000.

[vendingbid]

Leased route? So you don't actually own it? Pass....

[TKK]

thats why i think its stupid to have 3rd party machines, ESPECIALLY paying for them lol.

[mission vending]

I feel dirty even saying this. 1000-1500 for the two owned machines plus money in coin mechs plus non expired inventory at cost. Finally, 100-200 per machine location fee AFTER bottler agrees to transfer.

Ok, its shower time.....

[AZVendor]

I agree with mission and I don't feel dirty for saying it. There have been several routes like this sold in our area over the years and they are always in apartment complexes and always sold by a broker in order to find a buyer. No experienced vendors will pay close to the asking price for these routes, they're always sold to newbies. If this route has apartments then you will also have to expect lots of vandalism.

That being said, there's nothing wrong with using bottler equipment to build your route with as long as you know what you're getting into. First you have to inquire with the bottler of your choice as to whether they are adding any third party operators and tell them how good your accounts will be so that they want their machines on your route. Remember that a Pepsi bottler requires only Pepsi products and the same for Coke, no foreign product. Then the bottlers expect a certain number of case purchases from "approved sources" such as the bottler themselves or Vistar, usually something along the lines of 14 cases per month per machine, and/or a monthly lease payment per machine, or in the old days, an extra payment for a validator because they were the latest thing. You usually get late model equipment that is nicely refurbished with new labels, lights, etc. Sometimes a new machine!

If you can hook up with Coke and Pepsi you can use their equipment to help you cover all your flavors in larger accounts without the financial layout, giving you financial freedom to buy the other equipment for the account. This is how I built my business up in 1990-1993. I spent $100K for new equipment each year, not including soda machines because I was putting out Coke and Pepsi leases in all my accounts. This saved me tons of money, but I also knew that the leased machines couldn't be sold and when I did sell, I never included the equipment value of those leases. The only soda machines I bought after 1989 were for specific accounts that needed Coke and Pepsi on one machine due to space constraints.

Bottler machine can be a boon to a growing vending company if you follow the rules and utilize the equipment properly.

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