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soda machine route - value


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Talked to a guy that is selling 5 locations with 3rd party machines in place, so no assets just basically the locations.


Gross sales for the last year for all 5 locations was 21,118 - he is asking 9500 for the locations.  Seems a tad high but wanted to ask what would be a fair price



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First I would want to know if there are commissions to be paid.... Second is a non compete contract....  Third records to prove if it is actually making what he says.... I would want at least 6 mo or more.  That comes out to $406 a week for all 5 locations. or $81 dollars a week per vendor. If they are bottles be sold at $1.25 that is 2.7 cases per week per machine. If there are more than 5 vendors that makes it even less.


If these locations are close and not scattered all over the place maybe........ If there are more vendors and scattered definitely not.


Just remember you are buying Air nothing more. What happens after you give him the money happens and then you have nothing. Maybe he would be willing to take payments. If they are bottlers vendors will they meet the bottlers per case per machine numbers.


You will also have to fill all five + vendors or buy his product unless that includes all inventory. Change in changers most likely will all be 5 tube at approx $74 per vendor.


To sum it up....... 5 locations of Air.... $2000 per Location= Air


You could set 5 Locations buying your own equipment at (501-E's) $1,300 per location. You get to choose where you want those vendors and you are not tied to a bottler.

Now you have value.  So I guess you could pay someone $700 to find you locations.


I am only on my first cup of coffee....... Any errors in this I am not responsible.   ;D

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amc,  I don't remember if you are a 3rd party vendor or not, but buying these 5 stops will make you one and you then will fall under the bottler guidelines.  If not one already, you may not be approved as a 3rd party vendor and lose the machines unless this bottler is taking on more 3 parties.  You will be required to purchase a minimum number of cases of product per machine per month in order to keep the machines and those purchase must be from an "approved supplier."  Depending on the bottler and where they are in their budget year, you may not get very quick service if you call them to fix something on the machine (remember you are required to fix coin and bill jams, product jams, changing product sizes, all the simple stuff). 


If you're willing to take this on, after verifying the sales as rmorris recommened, you should determine how long it will take in profit terms to earn enough to replace each machine with your own, just in case the bottler flakes out on you.  My suspicion is you won't make enough profit in a year to buy 5 machines.

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