Need some help with pricing a new route

[vendtan]

I am a newbie trying to start my first route

 

Want to start small, learn the kinks and then expand

 

I have 2 different machines with locations being offered

 

1. Full Size AP/Vendo Select

$200 gross/mo - needs service every 2 weeks

Asking price - $2000

 

2. Full size snack machine 

$100 gross/mo - needs service every month

Asking price - $1000

 

Pros: 

1. Slow moving, need only couple of days/month

2. The machines have been there for over 2 years

3. Very close locations

 

Cons:

1. Slow moving, so might not get the hang of it when the locations are fast moving

 

 

Thoughts?

 

[AZVendor]

Slow locations, although not profitable to service or get a good ROI on, are good to learn the business with.  The biggest drawback to your scenario is that it appears you will have two snack machines and only one soda machine.  It's very difficult to make a profit with less than 5 snack machines due to the problem of products expiring before you can sell them.  The more snack machines you have the easier it is to spread your products out and sell them before expiration.

 

Soda machines, especially single price can soda machines, are the best and easiest way to get started.  The machines are pretty simple as sodas will usually outsell snacks two to one, cans are easy to find, fill and get a fair price for, and cans have a good shelf life.

 

The prices on these accounts are almost too high, but might be reasonable if the machines are in really good shape and the sales are what is stated or even better.  The gross profit margin (before expenses) will depend entirely on what you pay for your products but will hopefully be lower than 50%.  Even at 50% though, it will take you two years to pay for the machines.  If a one year return is what you want then you can see how the prices of these locations could be too high. 

 

It sounds like someone is selling their dog locations, especially the one where they don't even have a soda machine.  Since it doesn't make sense to share an account with another vendor or a bottler with them having the most profitable machine, then these accounts don't look so good.

[vendoc]

Thanks for the insights

[mission vending]

I'll second az's comment and add this.

I'd offer a total of 2K and even if the worst happens and you lose the accounts or decide that you don't want to stay in vending you should beable to get back most of your money unless the equipment is ancient. If you can, get make and model and someone can tell how old the equipment is.

[moondog]

I am a newbie trying to start my first route

 

Want to start small, learn the kinks and then expand

 

I have 2 different machines with locations being offered

 

1. Full Size AP/Vendo Select

$200 gross/mo - needs service every 2 weeks

Asking price - $2000

 

2. Full size snack machine 

$100 gross/mo - needs service every month

Asking price - $1000

 

Pros: 

1. Slow moving, need only couple of days/month

2. The machines have been there for over 2 years

3. Very close locations

 

Cons:

1. Slow moving, so might not get the hang of it when the locations are fast moving

 

 

Thoughts?

Pass on this one - this guy's trying get top dollar for his dud accounts.  I might say make him a low ball offer but these accounts don't generate enough income to even consider (at any price)