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Help me make an offer


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Have a chance to buy a route. They didn't ask a price and told me to make an offer. Below is the email with the route info. Thoughts?

Ok.  Without going into too much specifics this is what we have:

1.  Buffet- We pull $200 - $250 month.  There is a 5 rack with a separate 3 column sticker machine.

2.  Pizza Shop-.  We pull $50 - $60 month.  There is a 5 rack and 2 video games.

3.  Grocery Store #1-  We pull $60 - $70 month.  There is a 5 rack (1 - 2" machine, 1 - 2 column sticker machine & 3 - 1" machines).

4.  Grocery Store #2 We pull $150 - $200 month.  There is a 9 rack (5 - 2" machine & 4 1" machines and a freestanding 3 column sticker)

5.  Pizza Shop # 2 .  We pull $50 quarter.  There is a 2 column sticker machine with 2 - 1" machines.

6.  Hotel - During summer we pull $50 - $70 month.  During winter we barely do anything, except around Christmas.  There is a 4 rack. (1 - 2" machine and 3 - 1" machines)

7.  Diner -We pull $40 - $60 month.  There is a 2 head there.  Both 1" machines.

8.  Bar/Restaurant -.  We pull $70 - $90 quarter.  There is a 5 rack there.

9.  Bowling Alley -  We pull $80 - $100 quarter.  There is a 5 rack there.

All these locations are paid 30% monthly.  You do not have to count at the locations.  We usually collect the money, fill and clean the machines and then pay them the next time we go back.  The pizza shop with the video games is paid 30% on bulk and 50% on the video games.  There are 2 games in that location.  Both work very well.

We also have a movie theatre that we are possibly looking to include.  The movie theatre is a package deal though.  It is a full game room that we have stocked with 6 video games, a claw machine, a change machine and a bulk vending rack that contains 5 - 2" machines, 2 - 1" machines and 6 columns of stickers.  We pay 50% on the video games and 25% on the claw machine and bulk vending.  This location is serviced 2x month during the summer and 1x month during the winter.  Except during Christmas break, then it needs a 2nd servicing due to school being out.  This location makes us $400 - $600 / month gross.  We usually net around $400/month.

We also have a lot of extra machines and parts that we are willing to include in the deal.

Our partner has decided to leave us high and dry, and since we ran the vending along with 2 full time stores, we are afraid that we will not have the time to devote to the vending.  I do not want to see our years of hard work and dedication to our stores go down the drain due to a lack of time, not want, to get to these locations on a regular basis.  As it is, we know that they all can use a change up of toys to re-energize their potential and we are trying to just find the time to do that.  We are hoping to find someone who is able to take all the locations and service them honestly and regularly.

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You don't say what the equipment is or what the condition it is in. if its first rate equipment in excellent shape, I would start at 12 months net (gross minus commission minus 25% product costs) and maybe work up some from there.On the bulk portion (1-9) I figure those numbers to be:

$7464 gross per year

-$2239 30% commission

-$1866 product costs

$3359 (12 months net) to maybe $5038 (18 months net).

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A very important piece of information to know is what denomination coin mechs are in the machines.  If they are all .50 and .25 paying 30% commish is gonna be tough. You would need to upgrade the mechs then, which will cost some dough, also resulting in a longer return.

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Some of the numbers are monthly and some are quarterly

I'm a full line vendor but found this thread kind of interesting.  Not including the possible theatre, this route is grossing a little shy of $700 a month (taking into account the quarterly services), less 30% commission of $230 and leaving $470 before your cost of goods.  Assuming 20% cost of goods, that leaves a little more than $350 to service about 50 machines a month.  From reading the forum, I know you guys can hit at least twenty heads a day (especially with all the racks and multiple machines per location) so you'd be making $175 a day less gas.


As a full line vendor, I don't know if you guys consider this good or not but you might consider cherry picking this route and dumping anything you consider to be "low hanging fruit".

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