MylesQM Posted October 10, 2015 Share Posted October 10, 2015 Hey, Guys. The wife and I are looking at buying and/or selling locations to further expand our snack and soda business. How do you veterans calculate a fair price for a location that you're looking to buy? How about selling a location? Does the age/condition of the machine figure into your calculations? If yes, how do you account for that? How about existing inventory? Thanks in advance for your input! Link to comment Share on other sites More sharing options...
PHX1 Posted October 11, 2015 Share Posted October 11, 2015 depends on vend prices, equipment and whether or not they have contracts and or commissions. Link to comment Share on other sites More sharing options...
RJT Posted October 11, 2015 Share Posted October 11, 2015 depends on vend prices, equipment and whether or not they have contracts and or commissions. I agree all that will depend on price to pay along with revenue generated, length they have had the account. Keep in mind most "contracts" are not transferable from one operator to the next unless you are actually buying out the entire existing company (Think Verizon bought Altel) and that would come with some legal expense to make it legit. Seen many accounts lost after a buyout of both locations and individual accounts. I look at equipment based on a negative, neutral, or positive when looking to buy or sale. Have older out dated equipment it can be a negative. Have fairly newer style recent refurbished might be neutral, new or like new would be a positive. Each accounts assets would be looked at individually and figured accordingly. Link to comment Share on other sites More sharing options...
bcron Posted October 11, 2015 Share Posted October 11, 2015 I have recently put my route up for sale. I do it as a side business and I have had several co-workers inquire about the route. When they ask about how to value the business, I tell them what I honestly believe to be the truth: if you ask 10 different vendors how to value a route, you're going to get 9 different answers. I think you have to take into account all of the different responses and come to a conclusion based on what you feel is fair and equitable for you and the buyer. I've seen many different answers on here over the years and have disagreed with some and agreed with some. Good luck. BTW, my route hasn't sold yet... Link to comment Share on other sites More sharing options...
Sparta_Automation Posted October 11, 2015 Share Posted October 11, 2015 I have seen routes selling price evaluated as only the value of the machines on location....and maybe the inventory inside as that is the only thing that you are being guaranteed. Others have been 10 months of sales.....but at the end of the day, a site is only worth what someone is willing to pay for it. Travis Link to comment Share on other sites More sharing options...
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