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What is market value of a route?


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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?



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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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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!


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