Vending route brokers?

[cavjett]

I was wondering if any has had experience purchasing an existing snack/soda route through a business broker. If so, which companies are recommended? I came across this listing, (without too many details) seems like 2 years profits + equipment. (Profit seems low for the # of machines.) What does everyone think?

 

 

COKE / SNACK VENDING  nets $400 PER WEEK IN JUST 4 HOURS PER WEEK.....ONLY....$65K total
Service ONLY 2 Commercial Stops and net after all operating expenses $400/wk! 100% All Cash Business. Includes 13 Machines (8 Soda Machines, 4 Snack Machines and 1 Combo Machine). Equipment is only One (1) years old and approximate value $25K. The 2 Stops are right across the street from each other. Great area and GREAT start up business. Can easily be expanded. Full training provided by Experienced Seller.
 

 

[mission vending]

Run Forrest Run!!

[Poplady1]

Stay away from this one.  The price is so over blown.  My best offer on the package would be somewhere around $15K (if the equipment is newer).  And that would be after running the route several times.  My two cents.

[AZVendor]

There is no way that those 13 machines were bought new for an average of $1923 unless they are junk imports.  If the soda machines are really Coke machines they might be owned by Coke and even though the accounts might be 1 year old, I will bet that the machines are going to be used or imports.  IF the 2 accounts actually net (more likely gross profit) $400/wk, this would take over 3 years to pay off.

 

You will always pay more to a broker because they will tack on an outrageous commission for brokering the deal.  A broker should be a last resort kind of thing and you should always low ball them to get to a more reasonable price.  Brokers are regional or local to your area, so you won't find anyone here who might have dealt with this broker unless they are from your area.

[moondog]

Business brokers are usually not the best source for buying vending routes.  Most of us check craigslist (constantly) and sooner or later a good deal will pop up.

 

The price of the machines is not out of line considering they're fairly new - providing that they're US made, 25 grand wouldn't bother me near as much as the extra 40 grand which is nothing but good will and outrageous.

 

The formula I use to value a route or single location is fair value of equipment plus three months gross receipts.  In this case that would be $25,000 for the machines plus 9,600 for the good will which does not add up to $65,000.

 

Basically, this route is grossing $3,200 a month which would be acceptable for thirteen machines.  The price is way too high and you'd really need to see some proof of income even if you did talk them down to fair value.