the swede Posted August 30, 2014 Share Posted August 30, 2014 Hi everyone, I'm just looking to get into vending. Trying to decide between bulk and full line. Also, I will have some capital to use on this, so buying into an existing route it an option. Here's one sample route - let me know your thoughts on it. Asking price - $10K (comes with machines, placement, inventory) comes with: 8 full vending machines (4 soda, 4 snack) in 3 locations - says it takes 4 hours every 2 weeks to service 2 more full size locations that need to be placed 40 bulk machines that need to be placed. Route currently grosses $1,000/month and he says he nets $600/month. selling because he moved across town. Sound like a good buy? I figure the machines are worth $500+/-, and locations are worth $250 a piece. Bulk machines are probably worth 50 on average, plus the business is up and running with potential to grow with the placement of the bulk machines and the two extra machines. 10 machines at $500 each = $5,000 Locations = $750 +/- Inventory = 1,500?? bulk machines = 40 x $50 = $2,000 Total is $9,250 (or so) plus the fact that he could train me in. Seems to me that the route is a pretty fair price - not a steal, but not bad either. Your thoughts?? Link to comment Share on other sites More sharing options...
AZVendor Posted August 30, 2014 Share Posted August 30, 2014 That gross of $1000 divided by 8 soda or snack machines equals $29 per week per machine, which is a very low average. Either the accounts aren't very good or the product prices are way too low. Considering that you don't mention what models of vending machine this includes you are right to figure a value of $500 per machine. The inventory cost should not be any higher than $500 and the maximum coin changer inventory would be $250. This puts the equipment value with inventory at $4750 and I would start my negotiation there. The bulk machines, which you would be starting from scratch with, are a different negotiation as none of them are placed and you don't even know what they have or if it's any good. I would only work on the soda/snack part for now. Link to comment Share on other sites More sharing options...
moondog Posted August 31, 2014 Share Posted August 31, 2014 Hi everyone, I'm just looking to get into vending. Trying to decide between bulk and full line. Also, I will have some capital to use on this, so buying into an existing route it an option. Here's one sample route - let me know your thoughts on it. Asking price - $10K (comes with machines, placement, inventory) comes with: 8 full vending machines (4 soda, 4 snack) in 3 locations - says it takes 4 hours every 2 weeks to service 2 more full size locations that need to be placed 40 bulk machines that need to be placed. Route currently grosses $1,000/month and he says he nets $600/month. selling because he moved across town. Sound like a good buy? I figure the machines are worth $500+/-, and locations are worth $250 a piece. Bulk machines are probably worth 50 on average, plus the business is up and running with potential to grow with the placement of the bulk machines and the two extra machines. 10 machines at $500 each = $5,000 Locations = $750 +/- Inventory = 1,500?? bulk machines = 40 x $50 = $2,000 Total is $9,250 (or so) plus the fact that he could train me in. Seems to me that the route is a pretty fair price - not a steal, but not bad either. Your thoughts?? It's nearly impossible to net $600 a month on $1,000 gross. Get the model numbers on the machines as this will make a big difference whether this is worth looking at or not. Link to comment Share on other sites More sharing options...
the swede Posted August 31, 2014 Author Share Posted August 31, 2014 Thanks for the replies guys. I felt like this deal was OK, but not great. What you are saying confirms that. There are a couple of other routes for sale near me - I have to check those out and get some more info. They're more money, but also bigger and gross higher. One route said he grosses $30K/year but only nets $10K. (But that one had a lot of room for improvement I thought.) That seemed low to me, but I don't know because I've never done this. Is there a ratio you use (for full line vending) to approximate what your net will be? Thank you. I can already tell this forum will be invaluable. MUCH appreciated. Link to comment Share on other sites More sharing options...
moondog Posted August 31, 2014 Share Posted August 31, 2014 Thanks for the replies guys. I felt like this deal was OK, but not great. What you are saying confirms that. There are a couple of other routes for sale near me - I have to check those out and get some more info. They're more money, but also bigger and gross higher. One route said he grosses $30K/year but only nets $10K. (But that one had a lot of room for improvement I thought.) That seemed low to me, but I don't know because I've never done this. Is there a ratio you use (for full line vending) to approximate what your net will be? Thank you. I can already tell this forum will be invaluable. MUCH appreciated. You'd be doing well to net 40% of gross - your cost of goods is typically 50% of gross and deduct auto expenses and other misc expenses and you'll find that it's no glory hole. Link to comment Share on other sites More sharing options...
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