KRyan3524 Posted September 5, 2015 Share Posted September 5, 2015 Hello, Just hoping to get thoughts on whether this is something I should consider for adding on to my recently started route. Still feel new to the business. Or maybe what this is worth paying for? Thanks in advance for any input. 4 accounts (7 full-size machines) - $6700 Location: $35 a week sales AP 6600 Snack Dixie Narco 276w Location: $80 Vendo Live display snack machine Location: $30 New national combo Location: $55 Vendo pop Snack machine Link to comment Share on other sites More sharing options...
AngryChris Posted September 5, 2015 Share Posted September 5, 2015 First of all, there's no way of knowing what the equipment is worth without the model numbers. You've only given 2 model numbers out of 7 machines. Secondly, if you want to start a route, that's not the way to do it. Assuming this cluster of accounts does gross $200/week, you'll have problems with stales with all of the machines except maybe the location doing $80/week. You might be lucky to see 25% operating profit depending on pricing. With those numbers, you'll be lucky to see $2,600/year profit. If someone approached me and wanted to sell, and the machines were good machines, I would figure out a decent price for the equipment (if I wanted them) or I would just say no. I wouldn't purchase these locations for any more than half of the gross sales, and that's if the sales were verified. I'm guessing that you're looking closer to $5,000 worth of equipment, but the only way you're going to make it worth your money is if you find better locations. Come back with the actual model numbers of the equipment and we can tell you if it's even worth buying the equipment. However, the realistic thing you should be doing is finding a decent location and putting your own equipment in. Link to comment Share on other sites More sharing options...
moondog Posted September 5, 2015 Share Posted September 5, 2015 Hello, Just hoping to get thoughts on whether this is something I should consider for adding on to my recently started route. Still feel new to the business. Or maybe what this is worth paying for? Thanks in advance for any input. 4 accounts (7 full-size machines) - $6700 Location: $35 a week sales AP 6600 Snack Dixie Narco 276w Location: $80 Vendo Live display snack machine Location: $30 New national combo Location: $55 Vendo pop Snack machine This appears to be a classic case of somebody trying to dump his dregs. I just can't see any decent sales numbers there to justify taking on the responsibility of keeping this equipment running. A few more profitable accounts are far better than a bunch of crappy ones like you're looking at here. You didn't mention the asking price but I'd pass almost at any number unless you just want the machines. Link to comment Share on other sites More sharing options...
RJT Posted September 5, 2015 Share Posted September 5, 2015 Unless you just want the equipment and the equipment value is higher than what he is asking plus your time to move and store them I would suggest you not buy these locations. Link to comment Share on other sites More sharing options...
KRyan3524 Posted September 5, 2015 Author Share Posted September 5, 2015 Thanks guys. I appreciate the input as always! Link to comment Share on other sites More sharing options...
vhrob31 Posted September 5, 2015 Share Posted September 5, 2015 Hello, Just wondering what a vending route would be worth, 1 account 4 sites next to each other(same company). 9 machines Brings $500 average? Thanks. Link to comment Share on other sites More sharing options...
RJT Posted September 5, 2015 Share Posted September 5, 2015 Hello, Just wondering what a vending route would be worth, 1 account 4 sites next to each other(same company). 9 machines Brings $500 average? Thanks. This is a location not a route. This is the same situation as the other locations the guy asked about to much equipment and not enough revenue. You might hear some on here disagree with that because it is one location so no drive time and each machine is doing an average of $55.00 each. I assume that is a $500 a week average between all machines? Not an account I would do with that volume to equipment ratio. Is this all drinks, drink/snack or combo machines? It would also depend on the equipment value and asking price. If I feel like the asking price is lower than equipment value that changes things also. Give us some more info and we can give you better thoughts on what works or not. Link to comment Share on other sites More sharing options...
vhrob31 Posted September 6, 2015 Share Posted September 6, 2015 Thanks for replying so quickly. I apologize for my ignorance. I am still learning about the vending business. Just to give a little background, the seller would like to retire in about 2 years, so he wants to sell his accounts in stages. Ironically, his other accounts keep opening other locations and so he cannot keep up. I know this because because I met the people in charge of those location and obviously he would like to keep that account until he retires. As for the machines, all 4 sites have drink/snack, there is combo machine and one coffee machine. On one of the soda machine, there is a bill validator. There are not new machines but are in good condition. He is using Royal Vendors, Dixie Narco, Crane. AP. I can say that one soda machine is high capacity about 500 cans. The Snack machine has 3 row (15 selections) of chips, 2 rows for the chocolate/candy . 1 row for cookies. I've seen what he collects because I was at his place and he has shown me his books and the number he had was an $500/week .He has had this location for 20 years. would this be a good investment or should I move on? Link to comment Share on other sites More sharing options...
RJT Posted September 6, 2015 Share Posted September 6, 2015 Thanks for replying so quickly. I apologize for my ignorance. I am still learning about the vending business. Just to give a little background, the seller would like to retire in about 2 years, so he wants to sell his accounts in stages. Ironically, his other accounts keep opening other locations and so he cannot keep up. I know this because because I met the people in charge of those location and obviously he would like to keep that account until he retires. As for the machines, all 4 sites have drink/snack, there is combo machine and one coffee machine. On one of the soda machine, there is a bill validator. There are not new machines but are in good condition. He is using Royal Vendors, Dixie Narco, Crane. AP. I can say that one soda machine is high capacity about 500 cans. The Snack machine has 3 row (15 selections) of chips, 2 rows for the chocolate/candy . 1 row for cookies. I've seen what he collects because I was at his place and he has shown me his books and the number he had was an $500/week .He has had this location for 20 years. would this be a good investment or should I move on? What is the asking price for the account? Link to comment Share on other sites More sharing options...
vhrob31 Posted September 6, 2015 Share Posted September 6, 2015 He wants $20000. Link to comment Share on other sites More sharing options...
RJT Posted September 6, 2015 Share Posted September 6, 2015 He wants $20000. I would not want to invest that much into an account like that. Link to comment Share on other sites More sharing options...
AZVendor Posted September 6, 2015 Share Posted September 6, 2015 He's dreaming. The biggest problem you'll have here is that in 20 years he probably hasn't upgraded anything and if you only saw one bill validator on all the machines then he's behind the times, his prices will be ridiculously low and he's never been willing to update or upgrade his machines to industry standards. It amazes me how often this is the case. This would not be the first old time vendor who never upgraded anything and is still expecting top dollar for what they have. 20 years ago was not that far back in vending technology and bill validators should have been on everything he bought. Basically his asking price puts the machine value at $2200 each, if you were to value it that way. If I'm right and his prices are super low then the equipment value is all he's got in assets as the accounts are worthless at low prices. If I'm close in my predictions then even at $10000 he's too high. Link to comment Share on other sites More sharing options...
vhrob31 Posted September 6, 2015 Share Posted September 6, 2015 Thanks for your input gentlemen. I guess I will have to look for new sites and start from scratch. Out of curiosity, what is the rule of thumb when valuing a vending route. I am looking to make extra income. I have a full time job. But you don't get ahead working for someone else. I think the vending business is ideal for me because I work nights, and I can take care of my machines during the day. The reason I was looking into those sites is because the current owner, goes once a week. I can live with that and it would be a hobby/business . But ROI would probably take 2-5 years. Keep in mind I don't have the experience that some of you have so that why I reach out to you to see what direction I should take. Link to comment Share on other sites More sharing options...
moondog Posted September 6, 2015 Share Posted September 6, 2015 Thanks for your input gentlemen. I guess I will have to look for new sites and start from scratch. Out of curiosity, what is the rule of thumb when valuing a vending route. I am looking to make extra income. I have a full time job. But you don't get ahead working for someone else. I think the vending business is ideal for me because I work nights, and I can take care of my machines during the day. The reason I was looking into those sites is because the current owner, goes once a week. I can live with that and it would be a hobby/business . But ROI would probably take 2-5 years. Keep in mind I don't have the experience that some of you have so that why I reach out to you to see what direction I should take. There's no way that those accounts warrant once a week service. To use Walta's theory, if you can't pull at least a hundred bucks then you shouldn't be stopping there. The new combo that only does thirty a week was a bad investment on the part of the current owner. Combos are expensive despite their uselessness - you can't stock enough product in a combo to make it profitable without requiring a lot of extra service. I know your anxious to get the ball rolling but don't load yourself up with a lot of under performing accounts. For $6,700 you should be able to find a couple good ones if you're patient. Link to comment Share on other sites More sharing options...
moondog Posted September 6, 2015 Share Posted September 6, 2015 Thanks for replying so quickly. I apologize for my ignorance. I am still learning about the vending business. Just to give a little background, the seller would like to retire in about 2 years, so he wants to sell his accounts in stages. Ironically, his other accounts keep opening other locations and so he cannot keep up. I know this because because I met the people in charge of those location and obviously he would like to keep that account until he retires. As for the machines, all 4 sites have drink/snack, there is combo machine and one coffee machine. On one of the soda machine, there is a bill validator. There are not new machines but are in good condition. He is using Royal Vendors, Dixie Narco, Crane. AP. I can say that one soda machine is high capacity about 500 cans. The Snack machine has 3 row (15 selections) of chips, 2 rows for the chocolate/candy . 1 row for cookies. I've seen what he collects because I was at his place and he has shown me his books and the number he had was an $500/week .He has had this location for 20 years. would this be a good investment or should I move on? A 2 grand a month account is nothing to sneeze at even if it does involve 9 machines, one of which is a coffee machine (high maintenance). I find it hard to believe that he only has one bill validator on the drink machines. Unless the drink machines are ancient (and can't accept a validator) this would be a no brainer to add the validators. The brands you mentioned are all solid but I'd need to know the exact model numbers and the seller's asking price to give you a better answer. Link to comment Share on other sites More sharing options...
vhrob31 Posted September 8, 2015 Share Posted September 8, 2015 Thanks again. Link to comment Share on other sites More sharing options...
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