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Value of a route with Coke owned machines


chad

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Someone in my area is selling a route with 6 machines, all Coke owned, for $6000.

All 6 machines are at the same location but he wouldnt tell me where just yet. He said the set up is a Vitamin water machine with a Coke machine beside it. 3 setups like that. He also said they are outside. So Im thinking its a park or something.

 

Anyway, he is asking $6000 basically for the location. No assets would be sold. He claims the 6 machines grossed between $8800-$10000 per year for 6 years.

 

Is it crazy to make a purchase like this since there are no assets being sold?

 

 

Obviously all the products need to be purchased from Coke.

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Id straight up pass. Unless he drops the price as hes just selling a location. Then id start moving in my own machines there. However that place kinda sucks. Makes 650-750 a month gross with Cokes high costs ud net maybe 400-500 a month. Itd take you about 14 months to pay for equipment that will never be.yours.

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300-500 per machine as a location fee plus inventory would a fair offer imo. Provided you can verify sales and there is something in writing with the owner of the location(s).

Personally I have no interest in outdoor locations, or apartments, due to high vandalism rates

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Someone in my area is selling a route with 6 machines, all Coke owned, for $6000.

All 6 machines are at the same location but he wouldnt tell me where just yet. He said the set up is a Vitamin water machine with a Coke machine beside it. 3 setups like that. He also said they are outside. So Im thinking its a park or something.

 

Anyway, he is asking $6000 basically for the location. No assets would be sold. He claims the 6 machines grossed between $8800-$10000 per year for 6 years.

 

Is it crazy to make a purchase like this since there are no assets being sold?

 

 

Obviously all the products need to be purchased from Coke.

The dude's dreaming - basically all he's got are 6 machines (which aren't his) that are grossing $150 a month each and he's got to buy all his product from the bottler.  These machines wouldn't even make the monthly quota with most bottlers.  It's no mystery why he'd want to sell this mess.  Tell him if he pays you $1,000 you'll end his misery - that should cover your time to shut this down.  :blink:

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Do bottlers sell you their product at a higher cost than you could otherwise get?

Yes. You get to use their equipment for free. In exchange, you by the product from them directly at a higher case price.
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For comparison I took over a small coke owned route 7 machines doing $2000 a month.  I paid $2000.

Now that makes sense - dealing with the bottlers is not always a bad deal - just usually

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selling a beverage route at the end of summer? Peak sales could not happen again until NEXT summer. I would ask the guy if you could count the coin at every "re stock" he/she performs! You might be able to increase sales ( my fav phrase) by selling bottles and Pepsi products and even a snack/coffee machine!

I would also buy product from each machine to make sure the machines function as they should!

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You are buying air! If you don't know this guy after he gets the check the customer can get someone else to service it. I have seen this happened. If the customer and the vendor are friends (not saying they are) they could split the 6000 and then kick you out. And all you have then is air and no recourse.

 

Try to find someone who has done business with this guy before giving him money. 

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