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What is market value of a route?


geneva
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Hi everyone, this is my first post.

I was wondering how does one determine the market value of their route. Do you go by yearly gross

times one year or two years? Or is there another method?

Thanks,

Geneva

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Welcome! Hey, someone new than we are!

I think I read somewhere that a rule of thumb is ten times the monthly average of the last 12 months. So if over the last 12 months, the route averaged $10 per month, per location, then the route would be worth $100 per location.

I'm not sure if that was net or gross and I'm not sure if that is the value of the locations only or location plus machines. I can't even remember where I saw it. I've read so much about this stuff recently, I forgot. Sorry.

We turned down a chance to buy a 50 location route with 8-selection U-turns that the owner said grossed $1,200/mo. He wanted $8,000. By the method I described, the route would be worth $12,000. However, the machines were 4-5 years old and I am not a fan of U-turns.

Maybe someone else can shed some light.

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geneva,

First of all, welcome to the site. It's great to have you aboard. For an answer to your question, take a moment to visit the "vending 101" tab at the top of the main page. There you will find the following threads that discuss value of a route.

Whats the value of a route? - http://www.vendiscuss.com/forums/view_topic.php?id=53&forum_id=1

Purchase Existing Routes - http://www.vendiscuss.com/forums/view_topic.php?id=33&forum_id=1

Buying exsisting route - http://www.vendiscuss.com/forums/view_topic.php?id=104&forum_id=1

Valuing a Route - http://www.vendiscuss.com/forums/view_topic.php?id=291&forum_id=1

Happy reading and once again, welcome!

Steve

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