adog Posted March 14, 2013 Share Posted March 14, 2013 UP FOR SALE SET A 2 VENDING MACHINES - SNACKS & DRINKS WITH LOCATION IT IS UP FOR SALE A SET OF 2 VENDING MACHINES ALREADY LOCATED IN A OFFICE BULDING DRINK MACHINE IS A DIXIE NARCO MULTIPRICE CAN MACHINE WITH $ BILL (Monster Graphics) SNACK MACHINE IS A " LEKTROVEND VS99 4 WIDE WITH $BILL BOTH MACHINES ARE IN EXCELLENT WORKING CONDITION THERE IS NOT CONTRACT AND NO RENT EXPENSES AVERAGE GROSS SALES IN 12 MONTHS PERIOD IS AROUND 4500 TO 5000 AVERAGE PROFIT IN 12 MONTHS IS 2200 TO 2500 They said it gross about 200-250 a month. I am looking to start out and think this might not be a bad deal!! I mean I am new new like don't even know how to fill a vending machine let alone operate it. I have done a lot of research and a can machine seems pretty easy to operate. I am pretty good with handy work so let me know what you guys think. Thanks Link to comment Share on other sites More sharing options...
indiana Posted March 14, 2013 Share Posted March 14, 2013 Welcome to the forum. There is definitely a learning curve in operating and filling machines. Generally it seems to take a few months before you start to feel acclimated with it--I've been vending since November of last year, and I'm just now (finally) feeling comfortable with my machines and the work that's involved in servicing the route--a large part of that is interacting with community members here. For the route you're looking at, it definitely sounds like a manageable location to get your feet wet and learn more about the business and the ins and outs of vending these types of machines. Make sure you are able to verify the income the owner is claiming. Ask to see bank statements that verify regular cash deposits. Also ask to see the past two years of tax returns for the business. Base your offer on the income you can verify. Everyone has their own valuation method; for a vending route/location, I like the monthly net income times 10 equation. Assuming the numbers you provided are verifiable, I would pay no more than $2000, with an initial offer of around $1000-1500. That's me. Good luck, and definitely let us know what you decide and how things go! Link to comment Share on other sites More sharing options...
moondog Posted March 14, 2013 Share Posted March 14, 2013 Let me guess, it's in Chino right? This one's been up for sale for a long while. The gross is low (generally what you'd expect for an office building), the soda machine is okay and the snack machine is a dinosaur. I'd pass. Check out that one for sale in Upland with eighty people for $3,500 and two machines. The guy who's selling it, Nick Martinez, is a pretty straight shooter. Link to comment Share on other sites More sharing options...
AZVendor Posted March 14, 2013 Share Posted March 14, 2013 Welcome to the forum adog. The first thing about this account is that the numbers don't add up. You need gross sales (before any expenses) of $400+ per month just to gross $4800 per year. If they are grossing $250/mo then it's doing only $3000/ yr. You need clarification of the numbers and then if you pursue it further you want them to substantiate the numbers with good records. Now with that out of the way, the gross profit they claim is 50%. This is rather low and indicates the prices in the machines are not high enough. You ideally want to achieve a ROI that pays for the machines in one year or less, so once you figure out what the sales are you will be able to make an offer to get the ROI that you want. Now the price you pay won't necessarily get you that ROI if the seller isn't flexible in price or if you pay more for this. The most you should pay is one year's gross which is more than the equipment is worth, but you have to expect to pay something for the location. This is called blue sky or goodwill. The equipment is worth what you would pay elsewhere for comparable machines. This snack is worth no more than $200 - $800 and you need to know that Lektrovend has been out of business for 20 years though some parts are available from aftermarket suppliers. Dixie Narco parts are readily available, but you need to provide the model of the machine to determine a value for it. Also tell a little more about the account. If the machs are in the common area vs. in an office per se, how many employees, how full is the parking lot, etc. This could be good start for you but you have to do your due diligence. Link to comment Share on other sites More sharing options...
adog Posted March 14, 2013 Author Share Posted March 14, 2013 Thanks for your guys inputs. And yes Moondog in Chino! Have you checked out this account already? And which one is Upland. I actually live in the Upland area so I would be interested. It is alittle more then I wanted to spend. How many machines are at this Upland location? Do you know? And they said about 80 employee's in an office building. I have seen the account up for a while. And I was guessing what they said it grossed was probably exaggerated. Link to comment Share on other sites More sharing options...
moondog Posted March 14, 2013 Share Posted March 14, 2013 Thanks for your guys inputs. And yes Moondog in Chino! Have you checked out this account already? And which one is Upland. I actually live in the Upland area so I would be interested. It is alittle more then I wanted to spend. How many machines are at this Upland location? Do you know? And they said about 80 employee's in an office building. I have seen the account up for a while. And I was guessing what they said it grossed was probably exaggerated. I did not go to look at this account - office building and Lectrovend is all I needed to pass on it. Office buildings have not been good accounts for me as they're usually full of secretaries who, if they eat snacks at all, will stop by the local bakery on their way to work. There are few things more depressing in vending than collecting 40 bucks a month from your snack machine while everytime you go to service the account, there's cakes, pie, donuts and cookies all over the lunch room. Here's the link by the way http://losangeles.craigslist.org/sgv/bfs/3577204257.html Link to comment Share on other sites More sharing options...
adog Posted March 14, 2013 Author Share Posted March 14, 2013 Oh alright thanks for your input. Like I said I am completely new to this. I am a college student that was looking for a part time business. I was trying to follow what alot of the forums said about getting the basic single price dixie narco's can machines since they are work horses and easy to operate. I was thinking about trying laundry mats, some business, etc. Any Suggestions Moondog? Are you into more bulk candy machines or soda and snack? I really do appreciate the input. Link to comment Share on other sites More sharing options...
moondog Posted March 14, 2013 Share Posted March 14, 2013 Oh alright thanks for your input. Like I said I am completely new to this. I am a college student that was looking for a part time business. I was trying to follow what alot of the forums said about getting the basic single price dixie narco's can machines since they are work horses and easy to operate. I was thinking about trying laundry mats, some business, etc. Any Suggestions Moondog? Are you into more bulk candy machines or soda and snack? I really do appreciate the input. I don't do bulk - just soda and snack accounts. A $600, 500 capacity soda machine in a body shop or transmission place is an excellent way to get started vending. Running a soda machine is a no brainer. Read back through this forum and you'll find a lot of info about the pros and cons of soda only vs soda/snack accounts - snacks are much harder to do well profitably. Link to comment Share on other sites More sharing options...
adog Posted March 14, 2013 Author Share Posted March 14, 2013 So I checked ut that add you sent me Mondog and tried to contact the guy but craiglist said the add was taken down :/ So Probaly sold. Let me know if you find anymore for sale in Upland! Thanks Link to comment Share on other sites More sharing options...
dogcow Posted March 14, 2013 Share Posted March 14, 2013 I don't do bulk - just soda and snack accounts. A $600, 500 capacity soda machine in a body shop or transmission place is an excellent way to get started vending. Running a soda machine is a no brainer. Read back through this forum and you'll find a lot of info about the pros and cons of soda only vs soda/snack accounts - snacks are much harder to do well profitably. could not agree more,but on the otherside a soda only route is hard to construct in a really profitable way unless you just want a few bucks on the side. i like soda only accts but the problem is once you have a val blow out your profit for the month is shot. i agree tho its a great way to learn vending especially to learn to locate somewhere bev (blue moose) talked about doing this kind of vending by using all full-service bottler set ups,basically telemarketing the locations then having the bottler show up and install the equipment. they cut you a check you never even have to SEE the location or touch a can of soda. i think she used a prepaid gift card as a signing bonus to entice them to take the deal, that is the best idea i have ever heard for making a soda-only route. Link to comment Share on other sites More sharing options...
moondog Posted March 14, 2013 Share Posted March 14, 2013 So I checked ut that add you sent me Mondog and tried to contact the guy but craiglist said the add was taken down :/ So Probaly sold. Let me know if you find anymore for sale in Upland! Thanks Give Nick a call at CNA Vending - he's a repair guy now who's getting out of the route biz Link to comment Share on other sites More sharing options...
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