How to value soda/snack vending route?

[DNA]

Hi everyone, I'm new to vending and have been looking at different routes that are up for sale in my area, I looking at a particular route which has about 130 soda/snack machines already in locations also the routes weekly gross is about $8500. What would be a far price for this route? I'm not sure how to determine the value of a vending route and I don't want to be take advantage of for my inexperience.

Any help would be appreciated.

Thank u DNA

[Grazing Hippo Vending]

Hi DNA welcome aboard. That sounds like a pretty low gross for so many machines. If you have any more details about this route you should post them in the Beverage and Food Vending topic section. You will find many very experienced and helpful full line vendors there. 

[metrovending]

If you are just getting started an 8,500.00 a week route is way more than you want to take on. You could have 5,6 or even 7 service calls in one day, this alone is too much if you don't have a decent knowledge of vending repairs.

 

The basic questions are:

1. How many machines are bottler owned?(owned by pepsi or coke)

2. What is the cogs(cost of goods sold) what is the inventory cost on the 8,500.00 probably running between 4,200.00 & 4,500.00 per week.

3. Are there any locations that are more than 10 percent of sales, if so how many? (3 accounts that equal 30 percent or more of sales would be high risk even with contracts, most contracts have a 30 day clause.)

4. What are the Vend prices? ( what the candy bars, chips, pop & honey buns are selling for in the machines)

5. Geographical areas that machines are located in?, I try to stay 45 minutes or less from my warehouse.

6. Is there any owner financing?

7. Are there delivery vehicles included?, parts for machines?, inventory in machines?, change in the coin mechs?

8. How many accounts are paid commissions & what percentage rates? are they paid on gross sales or gross profit?

9. How old is the equipment?, if most of it cannot accept credit card readers plan on upgrading a lot of equipment in the next 5 years.

10. are there any employees?, if so are you going to retain them?

 

This will get you started but is not even close to enough information to spend the kind of cash it's going to take to buy this route, if everything is average this route in Oklahoma would have a fair market value of  between  $200,000.00 on the low side to $225,000.00 on the high side.