ohiovendor45365 Posted August 8, 2015 Share Posted August 8, 2015 Buying a route with 6 accounts. Showing consistent annual gross sales of 25k. G.P. % less than 20 due to no tracking system etc. Machines in use include. MANUFACTURER MAKE MODEL CRANE NATIONAL VENDORS GSC8 GLASCO 474W CRANE NATIONAL VENDORS SNACK CENTER 1 147D CRANE NATIONAL VENDORS GPL HOT DRINK 6700 CRANE NATIONAL VENDORS 248 FSI DESMOINES 3076 FSI DESMOINES 3040 AUTOMATIC PRODUCTS COMPANY SNACK SHOP 7600 0104 AUTOMATIC PRODUCTS COMPANY SNACK SHOP 2 430 Machines needing repaired, checked, junked etc include. LEKTRO VENDING CORPT 3321 ROWE 4900 ROWE 595/595 ROWE 595/596 TW ROWE ? AUTOMATED PRODUCTS 7600 FSI DES MOINES 3141 AUTOMATED PRODUCTS SNACK SHOP 5000 AUTOMATED PRODUCTS SNACK SHOP 6600 Wanted to hear from some experienced people on this opportunity. How much would you offer for this route. email privately for more information pikester1967 at gmail dot com Link to comment Share on other sites More sharing options...
AZVendor Posted August 10, 2015 Share Posted August 10, 2015 6 accounts doing $25000 averages to $347 per account per month, which averages to $80 per account per week. This is a lousy average especially when you consider that most of them probably have two or more machines in use. However, since you don't list any soda machines they you might not have the most profitable part of the business in any of these locations which is another red flag. The largest red flag, though, is that there is an apparent gross profit (however they are defining that) of 20% which is absolutely horrible and a quick way to never making a true profit on this deal. This is an indication of very low prices and/or very high commissions to locations. Either that or there is no control of the money and someone is stealing it. You haven't said what the asking price is but I would give no more than what the value of the aged equipment is. I can give some guidance on the machine values which will be basically Craigslist values as we have no idea the condition of any of them. GPL GSC8 combo machine $800 National 147 snack $700 GPL 670 fresh brew coffee $500 National 248 I have no idea what this is. Perhaps a 148 snack (4 wide) $700 (When posting this much information you really should do it legibly from a computer, not from what appears to be a cell phone) USI 3076 snack $500 AP 7600 $900 if MEI VN2500 validator, $700 if not AP 430 snack $0 dollars, yes, $0 dollars as this is an early 80's machine Of the machines not on location, I have no idea what Lektrovend model that is, or what the TW Rowe is but the two? Rowe 5900's, the USI 3141 snack, the AP7600 and the AP 6600 snack are the best of them and should be kept to use in future accounts. One should replace the AP430 on location for sure. I would value the total of unused machines at $300 each as there's no way to know what work they need to become useful again. Adding up my valuation you get $3400 for the machines on location and $1500 for the extra machines. However, if you have no chance of doing the soda at any of the locations then don't waste your time and walk away. Link to comment Share on other sites More sharing options...
ohiovendor45365 Posted August 10, 2015 Author Share Posted August 10, 2015 Yes soda is included at all 6 locations and the machines are owned by the bottlers. Each soda machine is a Dixie Narco (various models) and seem to be working strong. Price increases are certainly in order on the soda as the prices are lower than the current market price per bottle in other machines locally. Thank You for the guidance on the snack machines. I totally agree with your concerns on the G.P. margin. Changes certainly have to be made in order to be successful. This information gives me a starting point on making an offer for the route. Certainly appears to be a lot of work involved to turn this around into profitability. My apologies if the first post was too long or lacked information. ohiovendor45365 Link to comment Share on other sites More sharing options...
RJT Posted August 10, 2015 Share Posted August 10, 2015 Rub Forrest run Link to comment Share on other sites More sharing options...
moondog Posted August 10, 2015 Share Posted August 10, 2015 6 accounts doing $25000 averages to $347 per account per month, which averages to $80 per account per week. This is a lousy average especially when you consider that most of them probably have two or more machines in use. However, since you don't list any soda machines they you might not have the most profitable part of the business in any of these locations which is another red flag. The largest red flag, though, is that there is an apparent gross profit (however they are defining that) of 20% which is absolutely horrible and a quick way to never making a true profit on this deal. This is an indication of very low prices and/or very high commissions to locations. Either that or there is no control of the money and someone is stealing it. You haven't said what the asking price is but I would give no more than what the value of the aged equipment is. I can give some guidance on the machine values which will be basically Craigslist values as we have no idea the condition of any of them. GPL GSC8 combo machine $800 National 147 snack $700 GPL 670 fresh brew coffee $500 National 248 I have no idea what this is. Perhaps a 148 snack (4 wide) $700 (When posting this much information you really should do it legibly from a computer, not from what appears to be a cell phone) USI 3076 snack $500 AP 7600 $900 if MEI VN2500 validator, $700 if not AP 430 snack $0 dollars, yes, $0 dollars as this is an early 80's machine Of the machines not on location, I have no idea what Lektrovend model that is, or what the TW Rowe is but the two? Rowe 5900's, the USI 3141 snack, the AP7600 and the AP 6600 snack are the best of them and should be kept to use in future accounts. One should replace the AP430 on location for sure. I would value the total of unused machines at $300 each as there's no way to know what work they need to become useful again. Adding up my valuation you get $3400 for the machines on location and $1500 for the extra machines. However, if you have no chance of doing the soda at any of the locations then don't waste your time and walk away. That's not a route - it's somebodies worst nightmare. No Soda machines and a pile of very old snack machines. 20% net profit? How the hell is that happening. Too many problems here. Link to comment Share on other sites More sharing options...
AngryChris Posted August 10, 2015 Share Posted August 10, 2015 20% net profit isn't bad if you are actively expanding and upgrading but this doesn't seem like that. Link to comment Share on other sites More sharing options...
lacanteen Posted August 12, 2015 Share Posted August 12, 2015 6 accounts doing $25000 averages to $347 per account per month, which averages to $80 per account per week. This is a lousy average especially when you consider that most of them probably have two or more machines in use. However, since you don't list any soda machines they you might not have the most profitable part of the business in any of these locations which is another red flag. The largest red flag, though, is that there is an apparent gross profit (however they are defining that) of 20% which is absolutely horrible and a quick way to never making a true profit on this deal. This is an indication of very low prices and/or very high commissions to locations. Either that or there is no control of the money and someone is stealing it. You haven't said what the asking price is but I would give no more than what the value of the aged equipment is. I can give some guidance on the machine values which will be basically Craigslist values as we have no idea the condition of any of them. GPL GSC8 combo machine $800 National 147 snack $700 GPL 670 fresh brew coffee $500 National 248 I have no idea what this is. Perhaps a 148 snack (4 wide) $700 (When posting this much information you really should do it legibly from a computer, not from what appears to be a cell phone) USI 3076 snack $500 AP 7600 $900 if MEI VN2500 validator, $700 if not AP 430 snack $0 dollars, yes, $0 dollars as this is an early 80's machine Of the machines not on location, I have no idea what Lektrovend model that is, or what the TW Rowe is but the two? Rowe 5900's, the USI 3141 snack, the AP7600 and the AP 6600 snack are the best of them and should be kept to use in future accounts. One should replace the AP430 on location for sure. I would value the total of unused machines at $300 each as there's no way to know what work they need to become useful again. Adding up my valuation you get $3400 for the machines on location and $1500 for the extra machines. However, if you have no chance of doing the soda at any of the locations then don't waste your time and walk away. You were generous with the equipment valuations but spot on to walk away if no drinks. Link to comment Share on other sites More sharing options...
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