MistaFrz Posted September 3, 2013 Share Posted September 3, 2013 Found this route on craigslist http://minneapolis.craigslist.org/ank/bfs/4041741386.html and am wondering what people think. Where the route starts is about 15 miles from where I live. I did the math and at 48 machines the average is 120 something a month. Is this a deal if we talked numbers down or should I stay away? Thanks guys! Link to comment Share on other sites More sharing options...
Golfdogs Posted September 3, 2013 Share Posted September 3, 2013 Found this route on craigslist http://minneapolis.craigslist.org/ank/bfs/4041741386.html and am wondering what people think. Where the route starts is about 15 miles from where I live. I did the math and at 48 machines the average is 120 something a month. Is this a deal if we talked numbers down or should I stay away? Thanks guys! It sounds like a school route. More snacks than drinks. I'd be interested to hear what types of machines. How big are you now? Link to comment Share on other sites More sharing options...
jerry1973 Posted September 3, 2013 Share Posted September 3, 2013 looks like the sales per machine are between $28 and $32 per week. (70,000/48)/52=28 on the low end, and (80,000/48)/52=32 on the high end. Not stellar with sales, unless some of those machines advertised are bulk. Need to know what equipment is included and if he owns the soda machines. If you figure about a 40% profit after all expenses and the sales were at $70,000 then you would expect a total payback on investment in about 1 year and 9 months if you paid the full asking price. He is obviously willing to negotiate, might be a good route. Link to comment Share on other sites More sharing options...
TKK Posted September 3, 2013 Share Posted September 3, 2013 Find out how far all accounts are and more than anything what machimes they have and if they own. If they r willing to negotiate im sure theyd take 40k under 950 per machine located isnt bad especially if its decent equipment. That is kinda low volume places tho. Link to comment Share on other sites More sharing options...
moondog Posted September 3, 2013 Share Posted September 3, 2013 It sounds like a school route. More snacks than drinks. I'd be interested to hear what types of machines. How big are you now? I didn't see any breakdown of the machines - how do you know it's not more Soda machines? Clearly some accounts have only one machine on site. Found this route on craigslist http://minneapolis.craigslist.org/ank/bfs/4041741386.html and am wondering what people think. Where the route starts is about 15 miles from where I live. I did the math and at 48 machines the average is 120 something a month. Is this a deal if we talked numbers down or should I stay away? Thanks guys! This doesn't sound like a bad deal. I'd like to know what type of accounts the guy's got and what type of equipment he own's. Look's like ten days work to clear 3K a month - you could do a lot worse! Link to comment Share on other sites More sharing options...
Golfdogs Posted September 3, 2013 Share Posted September 3, 2013 I didn't see any breakdown of the machines - how do you know it's not more Soda machines? Clearly some accounts have only one machine on site.! The revenue seems too low for soda accounts. It was my first thought, I hope he gets more info to share! Link to comment Share on other sites More sharing options...
MistaFrz Posted September 3, 2013 Author Share Posted September 3, 2013 Left a message to have them call me back. I'm nervous... Do you guys have specific questions I should ask? I see already that I should ask: What kind of machines are they, brand wise and are they combo machines? <--- Don't want combo if possible How many are pop machines, how many are snack machines? Are these can or bottle machines? Are all machines owned by you? Would you take 40k? Link to comment Share on other sites More sharing options...
moondog Posted September 3, 2013 Share Posted September 3, 2013 The revenue seems too low for soda accounts. It was my first thought, I hope he gets more info to share! Good point but Minnesota isn't usually that hot so who knows I do like the fact that the current owner is retiring and not dumping his dregs, could be a few "cream puff" accounts there Link to comment Share on other sites More sharing options...
moondog Posted September 3, 2013 Share Posted September 3, 2013 Left a message to have them call me back. I'm nervous... Do you guys have specific questions I should ask? I see already that I should ask: What kind of machines are they, brand wise and are they combo machines? <--- Don't want combo if possible How many are pop machines, how many are snack machines? Are these can or bottle machines? Are all machines owned by you? Would you take 40k? Don't get nervous - find out what type of machines he's got and make arrangements to ride the route with him. Hold off on the negotiations until you learn more about the set up. What you'll probably find, is that there are some accounts that could be expanded and others that should be dumped. Maintain a low profile until you see it and have had time to digest all the info. At 50k, I doubt he'll sell it overnight but it could be worth every penny of what he's asking so you don't want to go in lowballing the guy until doing your due diligence. Link to comment Share on other sites More sharing options...
jerry1973 Posted September 3, 2013 Share Posted September 3, 2013 I would ask 1. what are the brands and models and conditions of machines? and yes you don't want combos 2. Do you own the soda machines, or are they bottler owned? 3. Are the soda machines Bottle machines, or can machines, and are they multi price (able to set different prices per selection) 4. He mentioned candy as being vended. I would ask if any of those machines are bulk. (if they are that drives down the value, because bulk machines are typically worth less than full line machines, but might mean that the full line accounts are better accounts) 5. can you verify your claims on the income/sales? If it was me and I knew I was really interested, I wouldnt say a thing about the asking price and have him verify all the numbers and possibly do a ride along to verify what he's saying, then I would offer him the lowest price you think he would accept and then let him negotiate the price back up to where you can both agree and sleep at night. Chances are, he's not going to find anyone with 50 grand sitting around who is willing to buy this. Therefore if you are really interested then you have the advantage if you have the cash. If he don't agree to what you are willing to give, be prepared to say no and walk away. There is a great chance that he will come to your terms after he takes a couple days to sweat it!! Good luck Link to comment Share on other sites More sharing options...
MistaFrz Posted September 3, 2013 Author Share Posted September 3, 2013 Just got off the phone! Older guy seemed very nice and was open to all my questions. Only one machine is Pepsi owned and is a bottle machine, the rest are cans. There is one combo machine location as well as "a couple twister counter top machines" The rest are all owned and the machine brands he listed are: Dixie Narco, Vendo, AP, National, Federal and something else, Polyvend? No bulk candy machines Didn't have a specific number of snack/pop machines but from what I gathered, a vast majority are high capacity machines. He also has extra bill validators and parts as well as connections for fixing and moving machines. The locations are about a 30 mile radius, probably in line with my current 7 stops as well. He has all the book work for each account for the past few years. Since I'm currently grossing a little over 2k a month, this would put me at grossing close to 100k a year. Any input after these facts? Link to comment Share on other sites More sharing options...
Golfdogs Posted September 4, 2013 Share Posted September 4, 2013 Just got off the phone! Older guy seemed very nice and was open to all my questions. Only one machine is Pepsi owned and is a bottle machine, the rest are cans. There is one combo machine location as well as "a couple twister counter top machines" The rest are all owned and the machine brands he listed are: Dixie Narco, Vendo, AP, National, Federal and something else, Polyvend? No bulk candy machines Didn't have a specific number of snack/pop machines but from what I gathered, a vast majority are high capacity machines. He also has extra bill validators and parts as well as connections for fixing and moving machines. The locations are about a 30 mile radius, probably in line with my current 7 stops as well. He has all the book work for each account for the past few years. Since I'm currently grossing a little over 2k a month, this would put me at grossing close to 100k a year. Any input after these facts? Set up a ride along and get a good feel for his operation. Offer to sign a non compete agreement and ask as many questions as possible. Ask him permission to talk to people at the accounts and you will soon see if he is doing a good job and if they are happy with him.If prices need to be raised, have him do it before the sale is complete. It is difficult to be introduced as the new vendor and come in and raise prices. Did he disclose what types of locations they are? Link to comment Share on other sites More sharing options...
moondog Posted September 4, 2013 Share Posted September 4, 2013 Just got off the phone! Older guy seemed very nice and was open to all my questions. Only one machine is Pepsi owned and is a bottle machine, the rest are cans. There is one combo machine location as well as "a couple twister counter top machines" The rest are all owned and the machine brands he listed are: Dixie Narco, Vendo, AP, National, Federal and something else, Polyvend? No bulk candy machines Didn't have a specific number of snack/pop machines but from what I gathered, a vast majority are high capacity machines. He also has extra bill validators and parts as well as connections for fixing and moving machines. The locations are about a 30 mile radius, probably in line with my current 7 stops as well. He has all the book work for each account for the past few years. Since I'm currently grossing a little over 2k a month, this would put me at grossing close to 100k a year. Any input after these facts? I don't like the fact that all of his soda machines are cans only. They're probably all single priced machines which may mean his other machines are that old as well. It could be that he's only got about 20K in equipment (44 machines x $500). I wouldn't add anything for the combo unless it's a good one and the counter top twisters are probably more work than they're worth. Smells like a lot of old equipment and some marginal accounts. If you ride this route, be on the lookout for the profitable locations - it could be that if you upgraded the good ones, you might do well on this deal. Link to comment Share on other sites More sharing options...
MistaFrz Posted September 4, 2013 Author Share Posted September 4, 2013 Thanks Moon. If I decide to ride along, I'll look for the better accounts and see if they would be worth the investment. I wish he'd sell some accounts individually but he won't Link to comment Share on other sites More sharing options...
jerry1973 Posted September 4, 2013 Share Posted September 4, 2013 I agree 100% with golfdogs and moondog. Just make sure and take your time and check everything and get details on the equipment. Link to comment Share on other sites More sharing options...
MistaFrz Posted April 18, 2014 Author Share Posted April 18, 2014 Guys, The price was lowered to 47,000 on this route. Don't know why it's been around for a while but I'm scheduling a meeting with the two owners for this coming Tuesday. We'll see what everything looks like! Link to comment Share on other sites More sharing options...
MistaFrz Posted April 18, 2014 Author Share Posted April 18, 2014 Here's the updated price with link http://minneapolis.craigslist.org/ank/bfs/4345650865.html Link to comment Share on other sites More sharing options...
hawksfan9325 Posted April 19, 2014 Share Posted April 19, 2014 "I have 43 machines along with 30 accounts". So it looks like he has basically 1 machine per account? He must be spending hours every week at this route. Find out on average how many hours he works when the route is heavy volume, and when the route is low volume. If he is putting in over 50 hours a week, I'd pass, as what a pain in the arse this would! You'd be wasting so much gas and time just to get around to this route. Link to comment Share on other sites More sharing options...
AngryChris Posted April 19, 2014 Share Posted April 19, 2014 A route with those specs could be done in three days each week if you work a ateady pace. It's not a bad deal if it's for real. I think 40k is a good point. I would only want to sell my business if I were completely debt free. However, if I were debt free, running the business is fun. Sometimes I miss consistent paychecks. Link to comment Share on other sites More sharing options...
hawksfan9325 Posted April 19, 2014 Share Posted April 19, 2014 A route with those specs could be done in three days each week if you work a ateady pace. It's not a bad deal if it's for real. I think 40k is a good point. I would only want to sell my business if I were completely debt free. However, if I were debt free, running the business is fun. Sometimes I miss consistent paychecks. Yeah. I suppose. Just seems like 43 machines, in 30 accounts is spread out. I would rather see 43 machines in like 15 accounts. Going with the seller will be good, to find out more about the route. Link to comment Share on other sites More sharing options...
AngryChris Posted April 19, 2014 Share Posted April 19, 2014 Yeah. I suppose. Just seems like 43 machines, in 30 accounts is spread out. I would rather see 43 machines in like 15 accounts. Going with the seller will be good, to find out more about the route. It's actually very similar to my business but I have more like 50 machines in 30 accounts. Most of th could be done biweekly. Link to comment Share on other sites More sharing options...
MistaFrz Posted April 23, 2014 Author Share Posted April 23, 2014 Well I checked out the accounts and met up with the people the other day. Lots of poor performing accounts with some Antares machines. Out of the 30 accounts, 10 were these two apartment complexes that grossed close to 20k a year each. But the rest just added up being about 30k on their own. Darn Link to comment Share on other sites More sharing options...
AngryChris Posted April 23, 2014 Share Posted April 23, 2014 Out of 30 accounts, 10 were two apartment complexes? I'm confused Link to comment Share on other sites More sharing options...
moondog Posted April 23, 2014 Share Posted April 23, 2014 Out of 30 accounts, 10 were two apartment complexes? I'm confused Duplexes? Not the best location for vending Link to comment Share on other sites More sharing options...
AngryChris Posted April 23, 2014 Share Posted April 23, 2014 Well I checked out the accounts and met up with the people the other day. Lots of poor performing accounts with some Antares machines. Out of the 30 accounts, 10 were these two apartment complexes that grossed close to 20k a year each. But the rest just added up being about 30k on their own. Darn Hmmm... Could you provide more detail on the apartment complexes? What I don't understand is that you said that TEN of your 30 accounts are comprised of TWO apartment complexes. Do you mean 10 machines or are these "two apartment complexes" actually housing "ten accounts"? The reason why I ask is because those accounts might be garbage too if you have 10+ machines generating 40,000 between them, depending on the conditions of the apartments (vandalism, etc..) and the equipment. Link to comment Share on other sites More sharing options...
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