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What do you think about this route?


HandfulOHappiness

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So this route came on the market in my city, it covers the 100 mile radius around me. If you all could tell me what you think about it, I'd love the input:

 

Questions for candy machine route:   (~850 machines and “about half” in storage asking $22,500)

-How long have you been managing this route? 9 years                  

-Are all the machines bulk candy machines?  yes

-How much do your machines make month on average?  $1250

-In total, how much of your profit do you put back into the business each month?   $500

-How long do you spend a week managing your route?-  afternoon/all day -4-6hrs when ironed out

-How many machines do you service each week (what is the longest you could go between stocking your route)? – 40-60ish

-Which towns are your machines in? Sioux Falls, Mitchell, Worthington, Watertown, Sioux City and most places in between

-How many in towns other than? a bunch (12 different routes)

-How many machines do you have in storage?  about half

-How much do you pay for storage each month?  60/month

-What brands do you use? Oak? (couldn't find any labeling on it--see photo)

post-7520-0-19647200-1380595837_thumb.jpgpost-7520-0-79294200-1380595859_thumb.jpg

-Why are you selling? No time to place anymore

-Do you have any employees?  no

-What candies are you using?  peanut, mms, hot tomaslies, reeces, skittles, gum

-Are all your money making machines in working condition?  yes

-What percentage do you pay in commission/charity each month?  all charity--varies depending on how much he has in his checking acct each month

 

Personal notes:

uses recipe cards for tracking

 

  This route obviously isn’t managed well: the only info kept is profit/month/town—not even individual machines. Of the two machines we tested, one was giving out far too much candy (skittles). There is a lot of room for improvement and the unused heads can be sold for around $40 plus any unused stands can be sold for another $30 or so. We may be able to pay for the route just by selling off the excess  alsmachines.

 

It's a lot of money to invest and I'd have to have my buddy partner with me to pay for it initally.

 

What thoughts do you have on this route?

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Those machines pictured are not Oaks; they are A&A PO89 with 300 globes.  They are great machines, but not expensive.  New they are about $50/head, so $40/head resale is not realistic.  They run more around $25/head used.

 

If there is really about 400 heads on location, there has got to be at least some of the locations that could be upgraded or converted to toys.  Also, you have to consider that some of the machines will likely be kicked out soon and some locations will not be great moneymakers.  I think it has good potential at the right price; but no where near the asking price.  $1250 a month is not much considering how many stops there are and being so spread apart.

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Thanks for the heads up on the machnes, that really helps.

 

I find the amount he's making a month quite low for how many machines he says he has placed. And I believe that's his gross income.

 

Right now I'm thinking it's an awful big commitment considering my complete lack of experience. I just figured if it sounded like a great deal I might look  into it.

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If 850 machines total and half being placed, that'd be 425 head placed.  At $1250 a month gross on 425 machines, that's $2.95 per head a month in sales average.  That's terrible!  The typical average is $7 per head per month gross.  It's well under what it should be making, so I'd only go for it if you got it really cheap because it's going to take lots of money and lots of time to get it profitable.  The equipment is great and you could do very well with it, but it has to be run properly.

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If 850 machines total and half being placed, that'd be 425 head placed.  At $1250 a month gross on 425 machines, that's $2.95 per head a month in sales average.  That's terrible!  The typical average is $7 per head per month gross.  It's well under what it should be making, so I'd only go for it if you got it really cheap because it's going to take lots of money and lots of time to get it profitable.  The equipment is great and you could do very well with it, but it has to be run properly.

 

Like Gages said, those are terrible numbers.  There are several threads about "how much is this route worth".  Read them.  Your payback with his stated monthly income is way too long for what he is asking.  I'd probably offer around $12 grand, tops. 

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If I was close I would be all over this "route" yes the Income is bad but the price is $26 a machine and that includes stands and at least some good locations. Truthfully you would need at least $20k In addition to whatever you buy the biz for to fix it but you would end up with a pretty good deal. The downside is if you have no experience and buy something like this you might find you don't like being on the road and working every weekend, holiday, day off from your regular job until you could go on your own. I would buy but a newbie maybe not unless you are as crazy as I am.

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It is my opinion that the machines are not serviced every month.  Probably every 2 or 3 month's is more like it.  No need to check a candy location that often unless it is a superb location, and in that case, because of the route size,  a larger head could be used.  I would really be interested if this route were available in my area. Not at that price maybe, but I would throw an offer out that is decent.  Just my .02.

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