kdub3821 Posted April 25, 2014 Share Posted April 25, 2014 Looking at buying a route and would like some advice. I have searched the forum and get varied answers.the route consists of six vendstar 3000 all in close range to a route I have. The seller has no proof of sales because he does not do taxes. This is the sellers breakdown of gross sales that he takes in every 6 to 8 weeks 1) 100-175 2) 20-30 3) 40-50 4) 15-25 5) 30-50 6) 30-40. Thanks Link to comment Share on other sites More sharing options...
TWvend Posted April 25, 2014 Share Posted April 25, 2014 I'd offer 300.00 - $600.00 tops if you really want it. Link to comment Share on other sites More sharing options...
bhfisher Posted April 25, 2014 Share Posted April 25, 2014 What does he want for the route? Bart Link to comment Share on other sites More sharing options...
Rick Posted April 25, 2014 Share Posted April 25, 2014 I'd offer 300.00 - $600.00 tops if you really want it. I'd pay $600 for location #1 by itself. Link to comment Share on other sites More sharing options...
jimbo7256 Posted April 25, 2014 Share Posted April 25, 2014 300 to 600 would be fair. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Rick Posted April 25, 2014 Share Posted April 25, 2014 For starters, that's a pretty wide range being offered up by the seller. $100-$175 every 6-8 weeks? So at worst $50 and at best $116.66 a month!?! On any account I have that's over $40/month, I can tell you within +/- 10% how much money is in the machine before I even unlock it. So something is fishy there. If I'm buying this route I'm insisting we run the route together and I'm picking his brain about how often he run this, what his lowest pull EVER was, seasonal effects, how long and how did he acquire the loc, etc. etc. That being said, if these averages are true and we have six locations each averaging just over $29/month, I'd start with $600 and go as high as $1,500-$1,800. On paper, $1400 puts my ROI at 16 months, but where this route gets interesting is when we start looking at implied value. We have 3 locations here where a singe VS is pulling $40+/month. Those are places that are just BEGGING for an equipment upgrade. If that first location is a public "foot traffic" area, a 7-way rack with toys and tats would do $300/month. And if it's an employee breakroom, do they have full-line vending? A vendstar doing $150/month in a breakroom is begging for full-line pop and snack. And a break room with full line pop/snack should NOT have a crappy VS doing $150/month. So the full line account has prices out of whack or routinely runs empty due to poor service, etc. and if that's the case it's easy pickings for me to take it over. What a goldmine. When you stop and think about it LOGICALLY, there's no good reason for a vendstar to do $100+ a month. If so then, by definition, somebody is horribly misreading the vending opportunity. Link to comment Share on other sites More sharing options...
kdub3821 Posted April 26, 2014 Author Share Posted April 26, 2014 Thanks for the great reply rick. You brought up some points I did not think of. Link to comment Share on other sites More sharing options...
kdub3821 Posted April 30, 2014 Author Share Posted April 30, 2014 I offered 600 and he took it. I'm going on a the run with him to try and verify the amount being made since the current owner does not do taxes. I also get to keep the product and money in the machines. Link to comment Share on other sites More sharing options...
Rick Posted April 30, 2014 Share Posted April 30, 2014 If the numbers are right you hit a home run. I hope you check back in and let us know what the locations are. I'd move #1 to a rack and commission immediately if possible. Link to comment Share on other sites More sharing options...
kdub3821 Posted April 30, 2014 Author Share Posted April 30, 2014 Rick if you have a moment will you give me a rundown on racks? I only have u turns and now vendstars. What heads work with what stands? Do you need brackets? Link to comment Share on other sites More sharing options...
Rick Posted May 1, 2014 Share Posted May 1, 2014 Kdub, racks are a whole other realm in itself. For me, the best way to start with racks was through craigslist. You can find quality used Northwesterns racked up on CL for $300-$400 for a 5-way (3 NW60s, 2 80s and a 2 or 3 column flat machine) is a standard setup, sometimes even including product. Then you can begin getting some experience with how they're mounted, etc. Link to comment Share on other sites More sharing options...
orsd Posted May 1, 2014 Share Posted May 1, 2014 in my neck of the woods i can sometimes get 6ways for under 200 Link to comment Share on other sites More sharing options...
Action Vending Posted May 1, 2014 Share Posted May 1, 2014 If i wanted this route as bad as some of you do. I would walk into each location with a $50 bill, use my own equipment and be money ahead. Link to comment Share on other sites More sharing options...
kdub3821 Posted May 4, 2014 Author Share Posted May 4, 2014 I bought the route. I brought a u turn terminator up to the 150 dollar location today. I put the three candys the old vendstar had in the big canisters plus a gum. Then filled the bottom with toys. I asked about putting a snack machine in but the owner declined because the have a food bar that is ran on Sundays and he did not want to take any money away from it. He did want to discuss putting a soda machine in. So I might get that also. The machines the guy I bought from sold me are in working order but were nasty.it took me a long time to clean them and I threw out a ton of old candy. The seller filled everything to the tip top causing spoilage. So i took a guess at what would sell and replaced with fresh product. Three out of the six locations could sell toys and gum so i will be replacing with the u turns i have. The seller also gave me a free machine and location in the area he forgot he had. So I got a total of seven locations and was able to keep what money was in the machines. I think with just replacing old product/cleaning/and upgrading to a bigger machine in some locations I think I can really up the profits. Link to comment Share on other sites More sharing options...
orsd Posted May 4, 2014 Share Posted May 4, 2014 Good job Oh, and don't feel bad about the snacks He can work hard managing stock and dates on snacks while you collect the easier soda money Link to comment Share on other sites More sharing options...
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