kdub3821 Posted October 29, 2013 Share Posted October 29, 2013 I have 15 candy/toy/gum u turns 8 soda and one snack machine. I have paid out of pocket and from profits for a year and a half. My question is how did so many of you guys get 100+ machines/ locations? All on your own or locators? Loans or using profits? Thanks guys Link to comment Share on other sites More sharing options...
orsd Posted October 29, 2013 Share Posted October 29, 2013 Did you buy it from a bizop Link to comment Share on other sites More sharing options...
kdub3821 Posted October 29, 2013 Author Share Posted October 29, 2013 I don't know what bizop is. I buy manly from eBay and Craig's list. Link to comment Share on other sites More sharing options...
sweetstop Posted October 29, 2013 Share Posted October 29, 2013 A loan and bought existing routes Link to comment Share on other sites More sharing options...
kdub3821 Posted October 29, 2013 Author Share Posted October 29, 2013 How big were the routes? Did you wait around for a great deal? Link to comment Share on other sites More sharing options...
F J Vending Posted October 29, 2013 Share Posted October 29, 2013 I used savings to start in March, 1. purchased a 10 location route - 57 heads (mostly A&A and Oak's - 24 not located). 2. purchased 85 (15 new / 70 used - Routemasters) triples 3. purchased 30 more triples (1800, Seaga - some still in box) 3 different purchases 4. purchased a 7 location route - 23 heads, a couple triples and the rest NW super 60's as singles/doubles/4 way rack 5. purchased a 27 location route all 1800 triples, another 12 not located So after sacrificing several triples for parts, I have 140 usable triples and 75 individual heads setup as singles, doubles or 5-6 head racks and tons of parts/wheels/locks etc. 44 locations were included in these purchases although I will need to eventually replace about 1/2-1/3 of them. You definitely save a lot buying used but I have spent (and will spend)many hours, cleaning and refurbishing. I have kept my average cost per usable triple to under $30 and average cost per single head to under $20 (A&A, Oak and NW - including 20 stands/racks) In retrospect 2 of the purchases (item#3) I probably should have passed on and focused on refurbishing and locating ones already purchased but now that I have spent the money specifically budgeted for purchases I don't have a choice, unless another good deal presents itself, LOL!! Actually I have standing offers for 2 existing routes, just waiting for the current owners to accept. Link to comment Share on other sites More sharing options...
VenDana Posted October 29, 2013 Share Posted October 29, 2013 Kdub3821, This is a long post for those who like details but the answers to your question are in bold for ease and timliness. I purchased a very large abandoned route for my very first introduction into vending. I had been researching for 4 months and knew which machines I wanted. Two months after I had been researching, a small route of about 45 locations came up and I researched it, called and spoke with the seller and just went with my gut that I should educate myself more so I passed. Then, when I was ready, I put the word out that I was looking to purchase a route. Because of the situation, I would have been a fool to NOT purchase it. It has been very difficult because of the sheer size (273 locations) but because it had been abandoned for a couple of years, there were only actually about 150 after I chased after the businesses and hunted down all the machines I could. (Some the owners took home, some the owners of the businesses sold them, some they flat out refused to give them to me, some were broken, some were empty of candy AND money, some were completely MIA or the businesses had been sold and nothing in the building, etc, etc). My situation, I'm sure, is EXTEMELY unique, however, the gentleman was extremely motivated to sell and so I wrote up a contract, gave him a down payment and pay him monthly until it will be paid off in 4.5 years. I pay him off my profits. The down payment was from my retirement account. I am building up my route in my area with a very simple facebook page, business cards and I walk in holding a machine filled with gumballs. I give them a sample before I leave, whether they say yes or no. If they say no, it might mean "not right now". So I would say I waited around for a great deal. I know what I will and will not pay for a machine and I check craigslist twice a day for the Phoenix market. I've bought a 5 foot spiral machine (decent condition) without key and lock for $45 and sold to a business owner for $140. and a double Northwestern 60 on a stand for $50 which profits me $50 at a local consignment boutique in my area (excellent condition). Can't put a price on educating yourself. 95% of my machines are one type and that is what I like. Makes it VERY easy to maintain them and/or fix/replace parts. Good luck to you kdub3821! Sounds like you are planning a large route for yourself! Link to comment Share on other sites More sharing options...
davco1 Posted October 29, 2013 Share Posted October 29, 2013 THERE'S NO MAGIC BULLET! The best way to answer this is, we figure out a way to grow our business no matter what. We've bought existing routes, we've added our own locations, we've bought locations from locating companies (telephone and in person). I've used cash, credit cards, personal loans, profits from the business. We've bought new machines, used machines, junk machines that had to be refurbished. In my experience you have to bob and weave, because as you become more and more active in this, the opportunities will start coming from all different directions and they will all look different. Link to comment Share on other sites More sharing options...
shepherdsflock Posted October 29, 2013 Share Posted October 29, 2013 The majority of my route was purchased from an operator who was relocating to another state. The seller agreed to let me finance the route for 24 months, with the monthly payments coming from the earnings. By the time I pay for gas, new product, monthly route finance payment, put some money aside for sales and income tax, and any repairs, I usually have about $200-$300 per month left. I save that money to re-invest in the business for new equipment and I also use a small portion of it as "fun money" to take my kids out for dinner or whatever. Oh, and I haven't updated my signature in a long time. I have lot more machines now than what is listed in my signature. Link to comment Share on other sites More sharing options...
VFVending Posted October 29, 2013 Share Posted October 29, 2013 I used savings to start in March, Actually I have standing offers for 2 existing routes, just waiting for the current owners to accept. Where is a good place to look for other vendors whom are selling their routes other than CL? Thank Sent from my SPH-L710 using Tapatalk Link to comment Share on other sites More sharing options...
havending Posted October 29, 2013 Share Posted October 29, 2013 I worked my golpher off Link to comment Share on other sites More sharing options...
kdub3821 Posted October 30, 2013 Author Share Posted October 30, 2013 How long did it take you guys to get that many locations? This march will mark 2 years for me. Link to comment Share on other sites More sharing options...
havending Posted October 30, 2013 Share Posted October 30, 2013 We grew and reinvested every cent for 6 years or so. Then started to take profits Link to comment Share on other sites More sharing options...
kdub3821 Posted October 30, 2013 Author Share Posted October 30, 2013 Havending how many locations and what types of machines do you use if you don't mind me asking? Link to comment Share on other sites More sharing options...
F J Vending Posted October 30, 2013 Share Posted October 30, 2013 Where is a good place to look for other vendors whom are selling their routes other than CL? Thank Sent from my SPH-L710 using Tapatalk I have found machines on location that looked like they have not been serviced and called the number on them. Just asked if they have thought about selling. Those are the 2 outstanding offers I have, the rest were found on Craigslist. Link to comment Share on other sites More sharing options...
dkochan Posted October 30, 2013 Share Posted October 30, 2013 Where is a good place to look for other vendors whom are selling their routes other than CL? Check the classifieds in Vending Times magazine. I have seen ads for routes to purchase. Sent from my SPH-L710 using Tapatalk Link to comment Share on other sites More sharing options...
dkochan Posted October 30, 2013 Share Posted October 30, 2013 It has taken six years to grow my route to 400 locations that range from single-head to rack accounts. I built my route by doing my own locating with equipment that I mostly bought used on Craig's List. Sent from my SPH-L710 using Tapatalk Link to comment Share on other sites More sharing options...
sherlock Posted October 30, 2013 Share Posted October 30, 2013 Where is a good place to look for other vendors whom are selling their routes other than CL? Best way to go about this is to network. Approach other vendors if/when you see them at locations. You need not have machines in the place. Whenever you notice someone servicing their equipment, walk up to them and introduce yourself. If you do have machines in the same spot, you may encounter some reluctance to talk from the other vendor. But, I have NEVER experienced any push-back from a competitor. Every competing vendor I have ever met has been friendly and I have been rewarded by those relationships many times over. Another option: Take the phone number off of machines and give those vendors in your area a call. See if any of them are willing to sell some or all of their route. Sitting around waiting for Craigslist ads is not the best option. I'd go with either of my 2 suggestions before waiting around on Craigslist. How long did it take you guys to get that many locations? This march will mark 2 years for me. I realize you may be asking out of simple curiosity, but make sure you don't compare yourself to others. So many factors play a role in determining the rate at which a vendor's route grows. It is impossible AND impractical to try to match one vending company's growth to another. Link to comment Share on other sites More sharing options...
LandJGroup Posted October 30, 2013 Share Posted October 30, 2013 The biggest threat for any start up is capital. We invested a lot of saved money from the get go. I do not suggest going into a lot of debt to grow your business rapidly. A little is not bad and actually makes you hungrier. I know of quite a few guys near and around my area that have become bankrupt from the go all in approach when it comes to debt in this biz. To sum it up bring a lot of capital to the table and work your arse off, and you will get a lot of locations. Link to comment Share on other sites More sharing options...
havending Posted October 30, 2013 Share Posted October 30, 2013 The biggest threat for any start up is capital. We invested a lot of saved money from the get go. I do not suggest going into a lot of debt to grow your business rapidly. A little is not bad and actually makes you hungrier. I know of quite a few guys near and around my area that have become bankrupt from the go all in approach when it comes to debt in this biz. To sum it up bring a lot of capital to the table and work your arse off, and you will get a lot of locations. I agree regular bulk racks do not have the cash flow to service debt Link to comment Share on other sites More sharing options...
kdub3821 Posted October 31, 2013 Author Share Posted October 31, 2013 Thanks everyone. This site is very helpful. Link to comment Share on other sites More sharing options...
bulkjake Posted November 5, 2013 Share Posted November 5, 2013 I agree regular bulk racks do not have the cash flow to service debt I disagree with that statement. I borrowed over 65k to buy 2 routes. The first one was a route with all triples (116 machines). The second was a route with all racks (84 locations). I haven't looked back. Both of these routes pay me more than I was making at my JOB after paying the debt service, taxes, and for COG while working 2-3 days per week instead of 40-50 hours per week ... Just my opinion. There are always places to find money. Offer a smart investor a decent return if and only if you find a really sweet deal. Which isn't hard to do. These routes are everywhere right now. Link to comment Share on other sites More sharing options...
havending Posted November 5, 2013 Share Posted November 5, 2013 I disagree with that statement. I borrowed over 65k to buy 2 routes. The first one was a route with all triples (116 machines). The second was a route with all racks (84 locations). I haven't looked back. Both of these routes pay me more than I was making at my JOB after paying the debt service, taxes, and for COG while working 2-3 days per week instead of 40-50 hours per week ... Just my opinion. There are always places to find money. Offer a smart investor a decent return if and only if you find a really sweet deal. Which isn't hard to do. These routes are everywhere right now. There are exceptions sure. But over all it's not a good idea. Link to comment Share on other sites More sharing options...
Rick Posted November 5, 2013 Share Posted November 5, 2013 I disagree with that statement. I borrowed over 65k to buy 2 routes. The first one was a route with all triples (116 machines). The second was a route with all racks (84 locations). I haven't looked back. Both of these routes pay me more than I was making at my JOB after paying the debt service, taxes, and for COG while working 2-3 days per week instead of 40-50 hours per week ... Just my opinion. There are always places to find money. Offer a smart investor a decent return if and only if you find a really sweet deal. Which isn't hard to do. These routes are everywhere right now. Trying to do the same as you, but no success now for over a year. I have the 65K, but no routes available that will generate the necessary income ($70k+) after costs and debt repayment. Link to comment Share on other sites More sharing options...
Action Vending Posted November 7, 2013 Share Posted November 7, 2013 Trying to do the same as you, but no success now for over a year. I have the 65K, but no routes available that will generate the necessary income ($70k+) after costs and debt repayment. Make sure you have your 65k making you money doing something not just sitting under your mattress or in a savings account. Link to comment Share on other sites More sharing options...
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