Help! Thinking about buying vending business!

[FrCorey]

I say don't do it.

for 50 grand, do you know what a vending distributor would do for you?

contact like betson pacific or another dealer. for a sale like that you will get some good deals and prolly end up with a credit line with them also.

the new or used equipment would be in top shape and warrenteed too.

[Growliebusters]

I quickly calculated my numbers today and I am at 42.64% gross profit (profit/sales).

This seems low to me.

 

I wonder if the wasted product is to high at 7.62% of my COG?

with that out of the equation, my gross would be 45.04%.

 

That still seems low to me.

Am I missing something here?

[moondog]

Ok, more details:

 

30 machines all owned and placed at about 12 accounts in a 30 minute radius.

 

Still working to get more details, but the machines are mostly AP and Mars.  A lot of older machines (owner has been in business 12 years).

 

Grossed $50K last year.  $22K profit.

 

Owner is asking $50K...I think this is steep (in addition to machines, parts, inventory, etc. owner factored about 50% of recent gross in the asking price).  Even without the complete details, the big picture seems a bit off.  Thoughts?

AP made the best snack machines in the old days and Mars made the best validators and coin mechs - it would be interesting to know what soda machines he's using (at least we know it's not all combo machines as previously suggested)  I like the fact that he's got 30 machines spread across 12 accounts, that means you're looking at some larger accounts in the mix.  The formula I use for evaluating an account's worth is market value of equipment plus three months gross income.  So if the snack machines are all AP113's and the soda machines are Royals then you might have 30k in the equipment there.  If the snack machines are older models and the sodas are older Vendos for example, that number may be closer to 15k in equipment.  Even in the best scenario, 50k is a little steep.