jns2010 Posted July 30, 2014 Share Posted July 30, 2014 Hi Everyone, I am a newbie getting ready to dive into vending. I ran across a route for sale in my area and was wondering if I could get some thoughts? Here's the numbers for the route: Financials Net Sales YTD: $5,909.9Avg Net Monthly Sales by location: Location 1 (two machines): $405 Location 2 (two machines): $137 Location 3 (two machines): $106 Location 4 (one machine): $24 Location 5 (one machine): $102 Location 6 (one machine): $71 *Seller has verified the financials with accounting records. Machines (Nine machines are on locations and two (AP 6600 and FSI 3120) are unplaced) Vendo 721 Soda Vendo 720 FSI 3141 Snack FSI 3120 (2 machines) Snack FSI 3039 Soda USI 3179 RS 800/850 (2 machines) AP 6600 Soda Royal 376 Route Radius: 15 miles Farthest distance from my house: 11 miles Other Assets Cash In Machines: $315 Inventory: valued at $960 Dolly: valued at $805 Thoughts? Good investment or no? From the research I've done I gather that the machines are decent, but since I'm just starting out, would I be better off starting off slow--getting a couple machines and placing them myself? Thanks in advance! Link to comment Share on other sites More sharing options...
TKK Posted July 30, 2014 Share Posted July 30, 2014 Price? Link to comment Share on other sites More sharing options...
jns2010 Posted July 30, 2014 Author Share Posted July 30, 2014 Price? Seller is asking $20,500. Feel like that's way too high, am I right? Link to comment Share on other sites More sharing options...
AZVendor Posted July 30, 2014 Share Posted July 30, 2014 Welcome to the forums, jns2010! It's great that you aren't jumping in without doing some research on the industry. This route has several pieces that are small and/or old models, so the equipment overall is only okay. The best two machines are the Vendos. The "net sales" could be any number pulled out of the air, or it could be anything from a gross profit number to a net profit number. You need clarification on that as to whether this is gross sales minus only cost of product and commissions, or if it's a number after ALL expenses. Giving them the benefit of the doubt, if this is net profit then you could net $11K per year. Working the math backwards you might have gross sales of about $200 per month per machine. This is not too bad for an average, but the seller wants what might calculate out to two years of net profit, which is too high. The equipment value is approximately $3000 - 3500. Add to that the inventory and coin and you have about $4500 in value. He can keep his "$805 dolly." If these numbers and my guessing is anywhere close to the truth, then I would not offer over one year's gross, or about $12K. You need a better return on your investment than two years. Link to comment Share on other sites More sharing options...
rmorris1953 Posted July 30, 2014 Share Posted July 30, 2014 Hi Everyone, I am a newbie getting ready to dive into vending. I ran across a route for sale in my area and was wondering if I could get some thoughts? Here's the numbers for the route: Financials Net Sales YTD: $5,909.9Avg Net Monthly Sales by location: Location 1 (two machines): $405 Location 2 (two machines): $137 Location 3 (two machines): $106 Location 4 (one machine): $24 Location 5 (one machine): $102 Location 6 (one machine): $71 *Seller has verified the financials with accounting records. Machines (Nine machines are on locations and two (AP 6600 and FSI 3120) are unplaced) Vendo 721 Is this a bottlers vendor? If so I only allow $500 for loaner vendors. No air. If not then $1,500 Soda Vendo 720 Same thing here could be a loaner if not $1,100 FSI 3141 Snack FSI 3120 (2 machines) USI vendors don't have good resale value Maybe $500 apiece Snack FSI 3039 Soda USI 3179 RS 800/850 (2 machines) Don't know much about these combos but they usually have very little value depending on age $1,000 at best AP 6600 Depending on looks $750.00 Soda Royal 376 Very old. $750 on location if clean and has Mars 2500 validator Route Radius: 15 miles Farthest distance from my house: 11 miles Other Assets Cash In Machines: $315 Inventory: valued at $960 Dolly: valued at $805 Thoughts? Good investment or no? From the research I've done I gather that the machines are decent, but since I'm just starting out, would I be better off starting off slow--getting a couple machines and placing them myself? Thanks in advance! At best equipment value could be $7,600 if its clean and he owns the Vendos. AZ amy be a lot closer The combo's low volume most likely. The best account is $100 a week. $7,600 is all I would offer. And I wouldn't offer that until I saw the equipment. It is always better to find locations yourself. I recommend finding someone who has vendors for sale and at what price. Before buying equipment go out and find you a location and then buy the equipment you need for that stop. My customers check with me to see what I have available then make the call. By doing the knocking yourself you get to pick where you are going to vend. It cost money to run all over town. That can eat up profits. When accounts are close you can service them faster and be available when the vendors break down. Good customer service.... Referrals come from good customers. Link to comment Share on other sites More sharing options...
jns2010 Posted July 30, 2014 Author Share Posted July 30, 2014 Thanks guys! I'd thought the same things, he's asking way too much. There's one other route I've been considering, which I just put a post up on. It's a bulk candy route. Tell me if you think it's any better: http://vendiscuss.net/index.php?/topic/20732-candy-route-what-do-you-think/ I really appreciate the help and advice! So glad you're here! He can keep his "$805 dolly." Love this by the way. Agreed Link to comment Share on other sites More sharing options...
AZVendor Posted July 30, 2014 Share Posted July 30, 2014 You'll want to ask the bulk vending question over in the bulk forum. Not too many of us here dabble in bulk vending. Link to comment Share on other sites More sharing options...
jns2010 Posted July 30, 2014 Author Share Posted July 30, 2014 You'll want to ask the bulk vending question over in the bulk forum. Not too many of us here dabble in bulk vending. Yep, that's where I posted it. Thanks! Link to comment Share on other sites More sharing options...
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