Sweetird Posted July 9, 2013 Posted July 9, 2013 For this location we are asking $3,400 for the 4 machines including the location. All of the machines have been updated with mars equipment. The sodas make $3840 a year. (2 older model Coke machines) The snacks make $3360 a year. (1 junior Rowe and a full size Rowe machine) ROI in less than one year. All of the machines are located in the same building and 5 minutes from where I live. Please get me your input and remember I am a newbie to full line vending, thanks so much.
Sweetird Posted July 9, 2013 Author Posted July 9, 2013 Sorry I meant to ask please give me your input, is this something to buy or pass on, thanks.
moondog Posted July 9, 2013 Posted July 9, 2013 For this location we are asking $3,400 for the 4 machines including the location. All of the machines have been updated with mars equipment. The sodas make $3840 a year. (2 older model Coke machines) The snacks make $3360 a year. (1 junior Rowe and a full size Rowe machine) ROI in less than one year. All of the machines are located in the same building and 5 minutes from where I live. Please get me your input and remember I am a newbie to full line vending, thanks so much. This account is grossing $600 a month which is not bad for two machines - for four machines, it's an under performer but at least they're all in the same building. The Rowe snack machines are good machines and well made, but Rowe was bought out by Automatic Products several years ago and parts are getting a little scarce. I'd like to know what brand and model the soda machines are. In addition. gets the make and model of the validators and coin mechs. If you've been reading this forum, you know the pitfalls of only two snack machines - but hey, at some point you've got to "pull the trigger" and jump in. You'll find that snacks become easier to manage when you get at least five machines. From what I know to date, I'd give this deal a thumbs up for someone just getting started - you could certainly do a lot worse.
Sweetird Posted July 9, 2013 Author Posted July 9, 2013 This account is grossing $600 a month which is not bad for two machines - for four machines, it's an under performer but at least they're all in the same building. The Rowe snack machines are good machines and well made, but Rowe was bought out by Automatic Products several years ago and parts are getting a little scarce. I'd like to know what brand and model the soda machines are. In addition. gets the make and model of the validators and coin mechs. If you've been reading this forum, you know the pitfalls of only two snack machines - but hey, at some point you've got to "pull the trigger" and jump in. You'll find that snacks become easier to manage when you get at least five machines. From what I know to date, I'd give this deal a thumbs up for someone just getting started - you could certainly do a lot worse. Hello Moondog, The soda machines are Cokes Dixie Narco 501E and all the mechanisms have been updated to accept $5.00 there is no commission on the location an an automatic yearly renewal contract and from reading the post I do know a contract really doesn't mean anything. I have been pondering on buying the location since Wednesday because I was trying to learn all I can from this site and I am still nervous but I think I am going to give it a shot and jump in, I have a repairman lined up incase something goes wrong with the machine. I will keep you all posted thanks so much.
AZVendor Posted July 9, 2013 Posted July 9, 2013 Contracts can be good as a disincentive to terminate a relationship, so use it as a tool to solidify an account. A contract will make an account more valuable depending on how it's written and what protections it affords the new owner, such as how much time is left on it. I would be concerned with this location that the Coke machines might be bottler-owned. If they are not then a location with 2 DN E-models and 2 Rowe snacks in good condition will be a good value at $3400 if the numbers stand up. The equipment alone is worth approximately $3000, depending on condition. The only things I would wonder about are: how long have the machines been there, are they in a public area for the entire building to use, why are they being sold, can the numbers be substantiated, and what prices are in the machines? No matter the sales figures, if the prices aren't high enough to generate a good profit you won't make money. Can you post a link to the ad for us? Good luck with this.
Sweetird Posted July 9, 2013 Author Posted July 9, 2013 Contracts can be good as a disincentive to terminate a relationship, so use it as a tool to solidify an account. A contract will make an account more valuable depending on how it's written and what protections it affords the new owner, such as how much time is left on it. I would be concerned with this location that the Coke machines might be bottler-owned. If they are not then a location with 2 DN E-models and 2 Rowe snacks in good condition will be a good value at $3400 if the numbers stand up. The equipment alone is worth approximately $3000, depending on condition. The only things I would wonder about are: how long have the machines been there, are they in a public area for the entire building to use, why are they being sold, can the numbers be substantiated, and what prices are in the machines? No matter the sales figures, if the prices aren't high enough to generate a good profit you won't make money. Can you post a link to the ad for us? Good luck with this. Hello AZVendor, Thanks for the input yes the machines are in a public area and it has 80 employees I went to look at the location on Friday and I also met the manger as well. The Coke machines are owned by the seller he did show me the paper work and the income of the machines the machines been at that location for 3 years. He is selling the machines and location because its too far his company is based in Baltimore county and the location is based in Prince George County which is a long commute.
mission vending Posted July 9, 2013 Posted July 9, 2013 If all checks out, it sounds like a fair deal for you to begin your vending business.
moondog Posted July 9, 2013 Posted July 9, 2013 I agree, go for it. It's got decent equipment, decent numbers (if correct) and is nearby so all-in-all a good place to start. One thing I didn't mention earlier is that's it's always good to figure out the seller's motivation. If he's retiring or condensing his route that's usually a positive for the buyer. More often you'll find that sellers are just dumping their dregs and you'll want to avoid those deals. Regarding repairs; It never hurts to have a good technician lined up but you'll want to do the most common repairs yourself (validators, coin mechs and motors). It's far cheaper and much faster than waiting for a tech to do it. Plus it impresses your customers when you can open the machine up and fix the problems yourself.
Sweetird Posted July 10, 2013 Author Posted July 10, 2013 Thanks everyone for your input.....I bought the location today!
Sweetird Posted July 10, 2013 Author Posted July 10, 2013 Sounds like a good deal to me too. Thanks Poplady1 I couldn't have done it with you all. I will keep everyone updated on how the location is doing.
moondog Posted July 11, 2013 Posted July 11, 2013 Thanks Poplady1 I couldn't have done it with you all. I will keep everyone updated on how the location is doing. Good job - focus on those snack machines as that's where you can improve your numbers
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