shanipaqman Posted February 4, 2014 Share Posted February 4, 2014 Ok, so I have a guy that wants to sell 400 gumball wizards, 5' tall models, with logo toppers, most with the light kit, 7 years old. He will not separate the located and unlocated machines, all a big happy package, wants out completely. All keyed alike. The deal is: 300 located for the last 5-7 years in my area, commission is 33%. 100 not located sitting in his garage. I am not interested in locating them, what would they be worth as a bargain if I were to sell them off? Cost is $300 per unit located and un-located, for a total asking price of $120k. He is saying that he is giving the locations free so he doesn't have to prove any income, but says that the net is around $5k monthly or about $15 net per machine monthly, which seems reasonable, if not low. My grand question, is this worth taking a $120k risk for a 2 year payback, in order to create that kind of monthly income stream? Pros and cons?? thanks Link to comment Share on other sites More sharing options...
Action Vending Posted February 4, 2014 Share Posted February 4, 2014 I think you could build a better route for a fraction of the cost. You could put out 400 single heads for 20k and probably have better locations than $15/ mo. That low of sales volume you are not even going through a case of 850 gum per machine per year. (spiral is overkill) Link to comment Share on other sites More sharing options...
FrCorey Posted February 4, 2014 Share Posted February 4, 2014 way too much. unless he has like 95 grand in fresh gumballs Link to comment Share on other sites More sharing options...
musser Posted February 4, 2014 Share Posted February 4, 2014 Its a rip off. I can put out a 1200 head route of brand new charity singles for the 120k and have someone else do all the work. Link to comment Share on other sites More sharing options...
Hillbilly Posted February 5, 2014 Share Posted February 5, 2014 I agree with Action and musser. I went through 36 cases of gumballs last year which is similar volume and with a 1/4th of the number of machines. Most of my gumball machines are no commission as well. You can stick a single head in a lot of places that won't take a spiral. Link to comment Share on other sites More sharing options...
Rick Falcon Posted February 6, 2014 Share Posted February 6, 2014 I wouldnt touch a spiral but if you insist on having one ebay has them for $50-$60 all day Link to comment Share on other sites More sharing options...
TexasFreemason Posted February 6, 2014 Share Posted February 6, 2014 That is way too much money. And 33 %commission is high. Link to comment Share on other sites More sharing options...
Rick Posted February 6, 2014 Share Posted February 6, 2014 While I agree the asking price is too high, we're missing the forest for the trees by focusing on the fact that they're spirals. Obviously, a route consisting of 100% spirals is by design. I'm thinking it would be very worth having a discussion with him about how many of these locations have approached him about doing other bulk (racks and amusement). Or how many have room for other bulk where he is the lone vendor. Sounds like a route that's ripe for equipment upgrades - could potentially push the ROI closer to 14-18 months. ETA: I read through the posts again, I forgot these are averaging $15/month. Not good candidates for racks. Link to comment Share on other sites More sharing options...
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