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Should I Buy these Machines with a Couple Locations?


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It's hard to tell from the pictures but it appears to only be three machines.  One antarese machine which is worthless if you ask me.  Another machine appears to be a Vendo 720 which may be worth $700'ish in good condition, more if it's on a GOOD location.  The third machine looks like either a DN 368 or a 501T.  It's hard to tell which one it is, but let's say no more than $500 in good shape and obviously worth more if it's on a good location. 

 

You need to find out how much these accounts make.... but I would say there is positively NO way that they are worth $5,000, let alone $3,000.  The antarese machine shouldn't even count as part of the deal.  It is junk.

 

The seller is probably selling these because they are slow, so I really don't see how this is worth buying at all.  I would offer him $1,000 and not be offended at all if the seller claimed I lowballed an offer, because $5,000 is like paying $25,000 for a 10-year-old used Honda Civic with 100,000 miles on it.

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That looks like three machines total.  The Pepsi machine is a single price DN368 or 501T with an Ardac bill validator that you'll need to upgrade when it quits working.  This doesn't matter, but the sign in it is from a taller DN 440 machine.  The mechanical machine is not worth anything.  The second machine is the best as it's a Vendo V720 and can handle cans and bottles.  Unless these three machines gross $5000 in 6 months they aren't worth more than their value of $1500 to $3000 depending on condition.

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Awesome great advise!  I was thinking a few were pretty much junk.  The only one I like is the Vendo one, but not for that price!! He says one is making $200 a month and the other is making $250 a month.

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Why does the Vendo machine have a canned drink sitting on top of each bottled drink stack? Some sort of black art vending trick I should know?

Edit : Only the bottled water stacks.

-jim lee

He's using the cheap crap Eco bottles which like to crush and jam in a vending machine

Maybe that's the secret?

That's a big bottle of water

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Awesome great advise!  I was thinking a few were pretty much junk.  The only one I like is the Vendo one, but not for that price!! He says one is making $200 a month and the other is making $250 a month.

 

Let's assume they both do $225/month.. that's about $50/week.  That isn't unrealistic but that doesn't make it true either.  If the can machine is a 501T, and it was selling cans for lets say... 75 cents, you would have to sell about 70 cans/week or roughly 3 cases (24 packs).  Again, this is totally possible but I just don't trust someone who sells their stuff for that price.

 

Can you ask for tax returns which can "prove" that he even made anything?  He might not report it and he might give you made-up numbers.  It's difficult to say.

 

Try to find out what his selling prices are... those are important to find out too.

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Let's assume they both do $225/month.. that's about $50/week. That isn't unrealistic but that doesn't make it true either. If the can machine is a 501T, and it was selling cans for lets say... 75 cents, you would have to sell about 70 cans/week or roughly 3 cases (24 packs). Again, this is totally possible but I just don't trust someone who sells their stuff for that price.

Can you ask for tax returns which can "prove" that he even made anything? He might not report it and he might give you made-up numbers. It's difficult to say.

Try to find out what his selling prices are... those are important to find out too.

Great advice here. You should be skeptical if he claims one amount of income to you and a totally different number to the IRS.

He should also have no problem showing you bank statements with cash deposits on some kind of regularity.

$5,000 is nothing to sneeze at -- especially if the income he's claiming is inflated and it takes you several years to break even.

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The Dixie is a DNCB 368 shimless stack. Ardac bill validator. Valued at $300. Very dirty and the delivery door looks to be missing

 

The Vendo is a 720 V-Max that looks to be in good condition. Value is $1100 on location

 

The rest is junk. $1000 for the lot and thats only because the soda machines can be relocated. 

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It's hard to tell from the pictures but it appears to only be three machines.  One antarese machine which is worthless if you ask me.  Another machine appears to be a Vendo 720 which may be worth $700'ish in good condition, more if it's on a GOOD location.  The third machine looks like either a DN 368 or a 501T.  It's hard to tell which one it is, but let's say no more than $500 in good shape and obviously worth more if it's on a good location. 

 

You need to find out how much these accounts make.... but I would say there is positively NO way that they are worth $5,000, let alone $3,000.  The antarese machine shouldn't even count as part of the deal.  It is junk.

 

The seller is probably selling these because they are slow, so I really don't see how this is worth buying at all.  I would offer him $1,000 and not be offended at all if the seller claimed I lowballed an offer, because $5,000 is like paying $25,000 for a 10-year-old used Honda Civic with 100,000 miles on it.

 

Should I purchases these machines?  Two of them come with locations included.  The locations are a community center and a police station.  He is asking for $5,000 for everything.

I have a police station and a community center with machines in them. They are slow accounts. Just sayin'.

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Good to know that thanks! I don't think I will try to buy any of them he won't go down in price

 

He has probably looked up some existing routes for sale that are listed at roughly 100% of the gross annual revenue (ie. A business collecting gross revenue of $100,000/year has an asking price of $100,000).  He probably overpaid for some of those machines and he figures he'll find someone else to rip off so he doesn't feel so bad.  I just don't see how someone could try to sell those machines for that much money.  I don't think there is a single person on this forum that would blame you for walking away from this deal.  If he isn't willing to negotiate a price that is already unfair to begin with, then it's fair to say he's just trying to rip someone off.

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  • 3 weeks later...

Should I purchases these machines? Two of them come with locations included. The locations are a community center and a police station. He is asking for $5,000 for everything.

If one of the locations is a police station you can probably triple your profits by adding a snack machine and filling all with donuts. :)

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