dkochan Posted October 28, 2013 Share Posted October 28, 2013 I noticed that guy has machines in two of my locations. His route is in my area. He basically wants $181 per machine or, $250 per machine on location with 15 machines in storage and all of his supplies. What do you think I should offer for this route? http://atlanta.craigslist.org/nat/bfs/4135546846.html 3 year old profitable vending route for sale. There are currently 40 spiral machines, placed at locations, profiting between $10-$100 every two months. There are also 15 machines in storage, around 20 cases (850 count) of gum, and 7 bags of bouncy balls (7 bags). It's a very easy business, checking machines every 2 months, taking 2 full days to check the machines. You can run it any way, but found this was the easiest with my current full time job. It's a great and fun business that does not require a lot of time. All items have been kept in a smoke-free environment. Machine colors are red or yellow (see pictures).Each machine costs $250 brand new, each box of gum is $33, and 2,000 bouncy balls cost $120 if purchased at retail. This is a great deal for a business that's already established!Please email me for inquiries or questions. I live in Gwinnett County and can meet you at a public location. Thanks! Link to comment Share on other sites More sharing options...
havending Posted October 28, 2013 Share Posted October 28, 2013 Reading his ad he over paid for everything. Not sure to offer Link to comment Share on other sites More sharing options...
Rick Posted October 28, 2013 Share Posted October 28, 2013 Too little information to value. $10-$100 every 2 months per machine tells us nothing. Need monthly gross. Link to comment Share on other sites More sharing options...
dkochan Posted October 28, 2013 Author Share Posted October 28, 2013 I e-mailed the guy and waiting for a response about the types of locations he has. When he responds to my e-mail I will ask him what's his monthly gross. Sent from my SPH-L710 using Tapatalk Link to comment Share on other sites More sharing options...
davco1 Posted October 28, 2013 Share Posted October 28, 2013 The revenue or gross profit would be required to put a number on this for sure Link to comment Share on other sites More sharing options...
twopawsup Posted October 28, 2013 Share Posted October 28, 2013 make sure he is giving you verifiable information......even tax returns I have had people tell me "well theres more I make but I pocket that"...well thats great but only buy what you can verify! Right price for this could be an easy start into the business of vending Link to comment Share on other sites More sharing options...
dkochan Posted October 28, 2013 Author Share Posted October 28, 2013 The lady responded: I have them mainly in restaurants and stores (hair salon, Spanish grocery stores, trucking business, metro pcs). I can call you this afternoon to discuss them more if you would like. I plan on speaking with her this afternoon. Link to comment Share on other sites More sharing options...
mjacks Posted October 28, 2013 Share Posted October 28, 2013 make sure he is giving you verifiable information......even tax returns I have had people tell me "well theres more I make but I pocket that"...well thats great but only buy what you can verify! Right price for this could be an easy start into the business of vending This is what makes it tough to buy and sell a cash business. If you are selling it is almost best to take on an apprentice to teach the business and eventually sell it to that person. That way every thing is above board. Anyways, that doesn't help the OP. Hard to tell with out going out with him on collection days and witnessing how much is collected and the quality of the locations. Link to comment Share on other sites More sharing options...
dkochan Posted October 28, 2013 Author Share Posted October 28, 2013 I just spoke to the route owner. Her route grossed $7000 last year. She pays 20 - 25% commission at 80% of her locations. She is asking $10,000 and, she wants to sell her entire route at once. I think her route is worth $5,000 - $6,000. What do you think her route is worth? Link to comment Share on other sites More sharing options...
newheart53 Posted October 29, 2013 Share Posted October 29, 2013 Tour right on at that 5 to 6000 mark I wouldn't give any over that. The gumballs have good profit on a percentage basis but the bouncey ball don't have a lot left after you pay a commish. Link to comment Share on other sites More sharing options...
SeaTurtle Vending Posted October 29, 2013 Share Posted October 29, 2013 Bouncey balls are within one cent of a gum ball in cost. Keeping them at the same percentage as the gum is well worth it. With that commission amount and the quantity that are commission, I would go closer to $3500 for the route. Half the gross sales. Even then the commission lowers your take, but the $3500 is a fair deal for all involved. Link to comment Share on other sites More sharing options...
F J Vending Posted October 29, 2013 Share Posted October 29, 2013 I was thinking to start about $4500, and maybe go as high as 6k. Maybe just me but seems strange to have 20 cases of gumballs sitting around, with 7K sales. I guess maybe she had plans to place the 15 unplaced machines Link to comment Share on other sites More sharing options...
twopawsup Posted October 29, 2013 Share Posted October 29, 2013 how is she verifying her income from the business? if it is a well run, and professional operator...you may have offer more to get a good business. I would never sell my business for half the sales...just saying Link to comment Share on other sites More sharing options...
Rick Posted October 29, 2013 Share Posted October 29, 2013 how is she verifying her income from the business? if it is a well run, and professional operator...you may have offer more to get a good business. I would never sell my business for half the sales...just saying Then you may be holding onto your business for quite some time. Because the average bulk route generally sells for 6-9 months gross. Assuming roughly 50% of gross equals net (and that's pushing it - for most routes it's closer to 40-45% once you factor in equipment depreciation, travel expenses, taxes) if you pay 6 months gross that's a one year return on investment. Most experienced bulk vendors won't pony up more than that unless the locations are well above average, the COG are low and the route is condensed geographically. That's just my experience - you might have a different experience in your area of the country. Link to comment Share on other sites More sharing options...
PowerVendor Posted October 31, 2013 Share Posted October 31, 2013 how about offering about 1/4 of yearly gross ($2,333); 25% for equipment on location (.25 x $250 x 40 = $2,500); and $100 per 15 machines in storage ($1,500). That puts the value at $6,333 tops. Offer $5,000 is see if she takes. If she doesn't, count out 60 one-hundred dollar bills in front of her. If that doesn't work, go home. Link to comment Share on other sites More sharing options...
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