kdub3821 Posted September 7, 2014 Share Posted September 7, 2014 Looking to buy a route and wanted opinions from you guys. The listing is 3 snack machines made by Rowe with locations 2 toy soldier 1 on location 1 in sellers shop 2 soda Dixie narco with location 19 pepsi owned machines all on location 1 soda machine seller is giving a 10% to the store owner. No contracts with any machine. Seller stocks machines every two weeks. Gross sales 1800 to 2000 monthly. Seller is willing to let me go on a run with him. Price 18000 but is willing to deal. Seller is selling due to new job. Any input would be greatly appreciated thank you. Link to comment Share on other sites More sharing options...
AZVendor Posted September 7, 2014 Share Posted September 7, 2014 This is a prime example of how using bottler assets can hurt a vendor. He's now trying to sell this as if there's value to those 19 Pepsi machines but there is zero value as he doesn't own them. He's really selling 7 machines on a route that does about $20K per year. He's asking one years gross for hard assets of 7 old machines. He's unrealistic and you probably don't have any chance of getting this for it's actual value of maybe $4000 plus something like 3 month's PROFIT. If you do the math on this you'll find that one year's gross divided by 26 machines is much less than $100 per machine per month which is horrible sales. Link to comment Share on other sites More sharing options...
allen watson Posted September 7, 2014 Share Posted September 7, 2014 I look at how much equipment I am actually purchasing. In this case it looks like a soda route which is good but bottler owned machines which to me is bad. So you are mostly buying the locations with no guarantee of you keeping those when you take over. If you lose all those accounts and the bottler comes and gets their property you are left with a few low producing machines and a huge debt for basically "blue sky". If you are going to spend that much money on a business, at least buy something tangible. Those bottler machines were FREE to that person with a sucky deal of having to purchase product from the bottler at a jacked up price. In my opinion this route is a huge risk and I would only buy it with money I won from the lottery. Link to comment Share on other sites More sharing options...
AZVendor Posted September 7, 2014 Share Posted September 7, 2014 Not to mention that the purchasing minimums required by Pepsi are not attainable by all those machines producing less than $100 per month. Link to comment Share on other sites More sharing options...
kdub3821 Posted September 7, 2014 Author Share Posted September 7, 2014 So what would be a price to offer? Link to comment Share on other sites More sharing options...
AZVendor Posted September 7, 2014 Share Posted September 7, 2014 With all the non-performing Pepsi assets I don't think this is a sustainable route. Unless he can show records to the contrary I would skip this one. Link to comment Share on other sites More sharing options...
SchligVend Posted September 7, 2014 Share Posted September 7, 2014 You may not be able to transfer those bottler machines into your name so be ready to buy another 19 machines to put in the Pepsi assets place possible right away Link to comment Share on other sites More sharing options...
kdub3821 Posted September 7, 2014 Author Share Posted September 7, 2014 Ya I have changed my mind real quick. I don't know why I didn't look at how many machines I was getting into for only 2k a month. It breaks down to 85 something gross per machine for a lot of running around. Link to comment Share on other sites More sharing options...
moondog Posted September 7, 2014 Share Posted September 7, 2014 So what would be a price to offer? You don't want this mess at any price - run Forrest run!!! Link to comment Share on other sites More sharing options...
allen watson Posted September 8, 2014 Share Posted September 8, 2014 Sometimes you just have to forget about it and walk away. If the person can't find a buyer then they will have to call the bottler and have all the equipment picked up and then the accounts will be open. Some of the accounts may never get a machine back due to the size and/or location of the business. The snack machines will then end up on Craig's list being offered individually. Just because someone has a route with machines on it at locations and they call it a business doesn't mean that it has any real value. I suspect that there may even be people that put together crap routes with bottler machines at crap locations just to sell to the unsuspecting. But that is just my own suspicion and may not really happen in real life. Sorry about the downer post, but sometimes things are not all roses and blue sky. Link to comment Share on other sites More sharing options...
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