TheLion Posted November 15, 2013 Share Posted November 15, 2013 There is a 200 candy machine route in my area, the route is averaging $20 per location what would be a good purchase price for this route, if numbers are true, thanks for the help. Link to comment Share on other sites More sharing options...
Rick Posted November 16, 2013 Share Posted November 16, 2013 A good price would be 12 grand, putting your ROI at 6 months. A fair price would be 20-22 grand. Link to comment Share on other sites More sharing options...
TheLion Posted November 16, 2013 Author Share Posted November 16, 2013 The route is currently averaging $48,000 a year, what maces you think someone will sell it at 20,000? Link to comment Share on other sites More sharing options...
havending Posted November 16, 2013 Share Posted November 16, 2013 The route is currently averaging $48,000 a year, what maces you think someone will sell it at 20,000? If he says it grossed 48 it really doing 30 and netting 15. That's why he will take 20. Link to comment Share on other sites More sharing options...
Rick Posted November 16, 2013 Share Posted November 16, 2013 The route is currently averaging $48,000 a year, what maces you think someone will sell it at 20,000? Because a 10-15 month return on investment is fair market value for a bulk route. This is obviously dependent on type/condition of equipment and average drive time between stops. But that's generally what the market will bear. Link to comment Share on other sites More sharing options...
PowerVendor Posted November 20, 2013 Share Posted November 20, 2013 Lion, what is the asking price for this route? ask to see the collections sheets/records for this route. $20/location/month isn't a bad route. Link to comment Share on other sites More sharing options...
TheLion Posted November 20, 2013 Author Share Posted November 20, 2013 PowerVendor, the asking price for this route is 60,000 Link to comment Share on other sites More sharing options...
cashman Posted November 20, 2013 Share Posted November 20, 2013 60 is way to high, I agree I'd offer 15-18 tops Link to comment Share on other sites More sharing options...
musser Posted November 20, 2013 Share Posted November 20, 2013 If the owner can verify the income with tax forms and bank statements it's worth 24k if the owner cannot its worth nothing because he's hiding things. Link to comment Share on other sites More sharing options...
Rick Posted November 22, 2013 Share Posted November 22, 2013 PowerVendor, the asking price for this route is 60,000 Good Lord...that's not even reasonable. They are simply hoping a sucker comes along. Link to comment Share on other sites More sharing options...
TheLion Posted November 22, 2013 Author Share Posted November 22, 2013 ok, can u help me brake it down there is 200 machines, 65 are u-turn 8 selection how much is a fair price for them? the rest are 1800, vlines, vendesign, and u turn 4 ways, how much are the machines worth, then each machine has candy about $50.00 in each id say on average, then there is 200 locations whats a good price for them, this is all assets, now is the business worth anything? since i have seen people buy vending machines brand new for like 200 to 700 and thats just a empty machine w no location. Link to comment Share on other sites More sharing options...
musser Posted November 22, 2013 Share Posted November 22, 2013 This route is a bunch of junk machines . As far as people paying $700 for a used machine it better be a crane not a bulk vendor. The high number of uturns means there will be a very high cost of goods due to spoilage unless this is a very unusual route. I think the guy is looking for a sucker. Ask for tax returns and p&l backed up by receipts if he doesn't have it walk away. If he does have it offer $16k because a lot of these machines will need replaced. Link to comment Share on other sites More sharing options...
Rick Posted November 22, 2013 Share Posted November 22, 2013 ...this is all assets, now is the business worth anything? since i have seen people buy vending machines brand new for like 200 to 700 and thats just a empty machine w no location. Lion, forgive me but you sound like you WANT the business to be worth the 60k asking price. I just want to say don't let me or anybody talk you out of buying a route if that's what you want to do. We're all just giving you our opinions of what it's worth, but you also need to make that decision for yourself. Since you asked for help breaking it down, here's where I'm coming from. When I buy a route, I'm buying $/hr INCOME and an established relationship between the location owner and bulk vending. Specifically regarding candy routes - the type of equipment and product currently on location are almost irrelevant. I have a garage full of machines and can hit craigslist any time I want if necessary. And candy in the machines is a zero sum game. It's an "asset" sellers use to inflate the value of a route. I view both the machine and the candy in it as a single mechanism my business uses to generate sales. As a seller, you're not going to take the product with you so that "asset" is assumed as a buyer. Just like every single route I've ever bought comes with "parts machines", extra spilltrays, coin mechs, etc. Assets? Yes. But virtually worthless assets to the existing owner after selling the route - so I'm not factoring that into the purchase price. For this route specifically, I'd lower the value of the route EVEN FURTHER after learning that 1/3 of it is 8-head Terminators. More than just the gross income of a location, I pay very close attention to how that money is generated. Take the following for example: Location 1 is for sale for 5 month's gross ($100) with an 8-way Terminator. Location 2 is for sale for 5 month's gross ($100) with a single NW60 gumball. Do you see why #1 is dead money and #2 is a flat out steal? Think cost of goods, sweat equity, product spoilage and potential for revenue growth at each location. Link to comment Share on other sites More sharing options...
davco1 Posted November 23, 2013 Share Posted November 23, 2013 Lion, forgive me but you sound like you WANT the business to be worth the 60k asking price. I just want to say don't let me or anybody talk you out of buying a route if that's what you want to do. We're all just giving you our opinions of what it's worth, but you also need to make that decision for yourself. Since you asked for help breaking it down, here's where I'm coming from. When I buy a route, I'm buying $/hr INCOME and an established relationship between the location owner and bulk vending. Specifically regarding candy routes - the type of equipment and product currently on location are almost irrelevant. I have a garage full of machines and can hit craigslist any time I want if necessary. And candy in the machines is a zero sum game. It's an "asset" sellers use to inflate the value of a route. I view both the machine and the candy in it as a single mechanism my business uses to generate sales. As a seller, you're not going to take the product with you so that "asset" is assumed as a buyer. Just like every single route I've ever bought comes with "parts machines", extra spilltrays, coin mechs, etc. Assets? Yes. But virtually worthless assets to the existing owner after selling the route - so I'm not factoring that into the purchase price. For this route specifically, I'd lower the value of the route EVEN FURTHER after learning that 1/3 of it is 8-head Terminators. More than just the gross income of a location, I pay very close attention to how that money is generated. Take the following for example: Location 1 is for sale for 5 month's gross ($100) with an 8-way Terminator. Location 2 is for sale for 5 month's gross ($100) with a single NW60 gumball. Do you see why #1 is dead money and #2 is a flat out steal? Think cost of goods, sweat equity, product spoilage and potential for revenue growth at each location. Nice breakdown Rick! There is a 200 candy machine route in my area, the route is averaging $20 per location what would be a good purchase price for this route, if numbers are true, thanks for the help. Lion, you should pay very close attention to Rick's post #13! Link to comment Share on other sites More sharing options...
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