SeaGypsy Posted January 22, 2014 Share Posted January 22, 2014 I'm just getting started and have a line on a bulk route near my home. Included are 34 located 1800 triple machines. The asking prices is $5500 and the seller isn't real motivated from what I can tell. The price seems high compared to what I've read int he posts here. They are also ready to be serviced. I'm calculating that a fair price would be closer to $3500. Any comments or experience? Stephanie Link to comment Share on other sites More sharing options...
Rick Posted January 22, 2014 Share Posted January 22, 2014 Welcome Stephanie. Any comments I would have for you would be based on the monthly gross of the route, whether it's 100% candy or if he's doing GB/toys and if it's commission or charity based. Without that, there's really nothing to compare your $5500 and $3500 figures. Best of luck with it! Link to comment Share on other sites More sharing options...
SeaGypsy Posted January 22, 2014 Author Share Posted January 22, 2014 Thanks for the assist. The route is charity based, equipment is about 2 years old and includes a large rack. The product is all candy. Monthly gross is $900 Link to comment Share on other sites More sharing options...
sweetstop Posted January 22, 2014 Share Posted January 22, 2014 FWIW I would question that gross amount. thats over $26 month per stop, not likely, unless he has good documentation I would not believe it. As for your offer of $3500 thats too high. I would start at $2000 and go up from there. at $2500 top end thats $73 per stop, worst case you can get most of your money back in equipment if the locations bomb. Thats been my rule of thumb so far and its worked out pretty good. I just bought a small route and paid $60 per location and thats was high for me, I have paid as little as 40-50 per stop Link to comment Share on other sites More sharing options...
Rick Posted January 22, 2014 Share Posted January 22, 2014 Sweetstop and I are usually on the same page so take this with a grain of salt - I may be having an off day. I have paid as little as 1.5 months gross for a stop, but generally they are worth far more than that. I also disagree that $26/month is unlikely. If a candy vendor has properly culled his/her route as they've grown $26 is easily attainable. I average over $42/loc with my candy stops, but I also know that's not the norm. You would definitely want to run the route with the existing vendor to verify numbers. I'd value this route at $3,600 or approximately 8 months net. I'm generally looking for 4-5 months return on investment for candy locs, but this route has a few factors tilting in it's favor. $26/month is a high average for a candy stop and I'm always willing to pay a premium for places that up my hourly take. Being only 2 year old 1800's, there's some nice resale value baked in here. If I was him I wouldn't be terribly motivated either. He knows what he has, this isn't a route of neglected vendesigns. Ask yourself this - what would you pay for a newer/used 1-800 (in my neighborhood they go for $70/$90 routinely). Now put it on a 3.5/4-star candy location (which these are if they truly gross as advertised). It starts looking a little different. Link to comment Share on other sites More sharing options...
sweetstop Posted January 23, 2014 Share Posted January 23, 2014 Rick I do agree with you to some extent. beauty is in the eyes of the beholder. In my experience most people are not selling "successful" routes. thats why I doubt the higher averages. if he can back up his numbers $3600 is a decent number, 1800's are a decent machine. Also what one would pay depends on the individual. Ive got some of my best deals because i am willing to walk away. If someone really wants it and there isn't much else out there It could also command a higher price. good luck Stephanie, let us know how it goes! Link to comment Share on other sites More sharing options...
SeaGypsy Posted January 29, 2014 Author Share Posted January 29, 2014 Update: We are in the bulk candy business!! I bought the route this week along with 14 additional like new 1800's I found on Craig's list for $35 each including 5 more without the canisters. Thank you so much for all the guidance and the wealth of information sharing on this forum. It has cut the learning curve way down. I'm ready to start working with a locator in my area to get these machines placed asap. Link to comment Share on other sites More sharing options...
dkochan Posted January 29, 2014 Share Posted January 29, 2014 I'm ready to start working with a locator in my area to get these machines placed asap.Welcome to the world of bulk vending. Don't hire a locator. Do your own locating to save money and learn the business. Link to comment Share on other sites More sharing options...
Rick Posted January 29, 2014 Share Posted January 29, 2014 Update: We are in the bulk candy business!! I bought the route this week along with 14 additional like new 1800's I found on Craig's list for $35 each including 5 more without the canisters. Thank you so much for all the guidance and the wealth of information sharing on this forum. It has cut the learning curve way down. I'm ready to start working with a locator in my area to get these machines placed asap. Nice work - very happy for you! $35 apiece like-new 1-800's is borderline theft so that's a great purchase! For the most part, I agree with dkochan. If you rely 100% on locating services for growth, chances are good you'll end up very disappointed. I'd humbly suggest you split the difference and start by ordering 3 locs with a service as well as try locating yourself and gaining experience with that. Opinions vary on locators from complete waste of money to best way to grow quickly and everything in between. An argument could also be made to taking a breath: run the route, get your service cycle dialed in, get comfortable with the nuances of your machines, proper cleaning and maintenance, comfort with your tracking methodology and vend amounts, etc. Five minutes after I bought my first route I was ready to expand...and five minutes later I realized there was a helluva lot more that went into it than filling machines and collecting quarters. Link to comment Share on other sites More sharing options...
TexasFreemason Posted January 30, 2014 Share Posted January 30, 2014 I recommend finding your own locations. It is not that hard, and you will usually find better locations. Just get out there and pound the pavement. Like I always say... "the worst thing that can happen is they say no". Link to comment Share on other sites More sharing options...
mainor5251 Posted January 30, 2014 Share Posted January 30, 2014 I say do both, hire locator and self locate. Personally I love chasing that high of getting that next yes. Link to comment Share on other sites More sharing options...
Hillbilly Posted January 30, 2014 Share Posted January 30, 2014 I say do both, hire locator and self locate. Personally I love chasing that high of getting that next yes. Spot on there. I love that feeling!! Link to comment Share on other sites More sharing options...
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