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Need some quick help.

A blue collar steel factory with 50 employees grossing 6-800 a month (saw proof of returns for 3 years) with a royal soda machine and an ap snack machine (don't know model numbers yet) is for sale by the plant manager. Machines have been on location serviced by his wife and him for 6 years. He wants $2500. Cans and water priced at $1 currently and chips and bars at 1.25. He just wants a vendor to deal with it as they don't have time.

Yay or nay?

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The only questions are what are the models of machines and what shape are they in? For good machines in good condition this sounds like a good price. Look for any defects and make the according deductions, have them include the inventory and change in coin mech and do the deal. It's nice to come across a place that's tired of doing their vending when they want to turn it over.

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Check for good coin and bill operation, that the lights work, no handwritten or missing labels, the soda is cold and no ice on the evaporator under the delivery chute. Any evidence of abuse of the machines, do they need paint or new fronts, those kind of things.

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Need some quick help.

A blue collar steel factory with 50 employees grossing 6-800 a month (saw proof of returns for 3 years) with a royal soda machine and an ap snack machine (don't know model numbers yet) is for sale by the plant manager. Machines have been on location serviced by his wife and him for 6 years. He wants $2500. Cans and water priced at $1 currently and chips and bars at 1.25. He just wants a vendor to deal with it as they don't have time.

Yay or nay?

This is what we all look for - the machines are top of the line brands and as long as they're not dinosaurs I say jump on it.

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I know from experience that good HOT blue-collar factory locations can gross as high as $20/person each month for pop+snack so this location can do as MUCH as $1,000/month... With that said, the numbers don't seem out of this world.

 

If I were to guess, I would say there's an AP-7600 with a Royal 552 or something like that.  I typically pay about $500-$600 for one of those royals in good shape, whereas the AP-7600's go for $1,000 +/1 $300.  That doesn't matter to me if the location can do $7,000/year because the margins on those prices would easily justify upgrading machines.

 

The best scenario is when a location has two old pieces of junk machines (and by pieces of junk, I mean an old AP 400 with a defective coin mech and an old rockola with broken ejectors) that "used" to gross a lot of money until either of the coin mechs/validator stopped working.  Those are awesome scenarios because the prices is usually cheap and the sales will skyrocket when you get better equipment in there.

 

I just wanted to throw this out there to you guys but I am not going to buy any more machines with displays that only light-up after credit is inserted, such as AP 4000,5000,6000, and 7000 machines.  I am starting to get calls saying that the machines aren't working because new, young employees have never seen equipment like those.

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I know from experience that good HOT blue-collar factory locations can gross as high as $20/person each month for pop+snack so this location can do as MUCH as $1,000/month... With that said, the numbers don't seem out of this world.

 

If I were to guess, I would say there's an AP-7600 with a Royal 552 or something like that.  I typically pay about $500-$600 for one of those royals in good shape, whereas the AP-7600's go for $1,000 +/1 $300.  That doesn't matter to me if the location can do $7,000/year because the margins on those prices would easily justify upgrading machines.

 

The best scenario is when a location has two old pieces of junk machines (and by pieces of junk, I mean an old AP 400 with a defective coin mech and an old rockola with broken ejectors) that "used" to gross a lot of money until either of the coin mechs/validator stopped working.  Those are awesome scenarios because the prices is usually cheap and the sales will skyrocket when you get better equipment in there.

 

I just wanted to throw this out there to you guys but I am not going to buy any more machines with displays that only light-up after credit is inserted, such as AP 4000,5000,6000, and 7000 machines.  I am starting to get calls saying that the machines aren't working because new, young employees have never seen equipment like those.

That's okay Chris - as long as you stick with your Polyvends and Lectrovends that'll leave all the AP7600/s for us  ;D  ;D  ;D

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I just wanted to throw this out there to you guys but I am not going to buy any more machines with displays that only light-up after credit is inserted, such as AP 4000,5000,6000, and 7000 machines.  I am starting to get calls saying that the machines aren't working because new, young employees have never seen equipment like those.

That is a reason to use LED lighting and keep it lit up...... 

 

If it were me I would let them know if the account holds up to what they have shown I would upgrade the equipment if it is in bad shape after a few months. $600 a month is $7200 a year. $2000 to $3000 in upgrades and you have a good stop.

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What is also really nice is that the prices are already at a nice margin. I would love to get $1 cans and $1.25 bars. I can't make that move in any of my loc's yet.

Sounds like the account alone might be worth the $2,500 regardless of the equipment, but it would be nice to find an old AP7600 with a Royal 660 in there - great setup for a blue collar account.

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