Fair Price for Account

[mojosop]

Could someone out there tell me if they think $3250 is a fair price for an account that Gross is $8100.00 and net is $4050.00. Close to home with a newer separate pop and snack machine with Bill Validater.  Seller offering 6 month free repair on machine if it breaks and some goodwill. Service's once a week. Had account approx 10 years and is consolidating closer to his home. Also $2500.00 for 5 combo machines on location netting $400 to $500.00 a month total. Busier in summer because 1 machine is at a Road Commisssion. Services every 2 weeks. 4 year old machines.

[tedk]

Are the combo's mechanical or electronic? Who is the maker? Do you know the make model and serial number of the pop and snack machines? Is the pop machine single price or multi-price?What are the price points? Do you pay commission? Can you, or have you, spoken to the locations to see if they are happy and want to continue with the service. Have the machines been reliable for them?

[philo]

Sounds like a lot for older machines. They most likely dont have i vend or other advantages of the newer models. Do you have a way to keep them running after the 6 month period if they break down. Why does some one give up a profitable route? Good luck.

 

Regards,

Philo

[Technivend]

Could someone out there tell me if they think $3250 is a fair price for an account that Gross is $8100.00 and net is $4050.00. Close to home with a newer separate pop and snack machine with Bill Validater.  Seller offering 6 month free repair on machine if it breaks and some goodwill. Service's once a week. Had account approx 10 years and is consolidating closer to his home.

I see averages of between 30 and 40 cents on the dollar (gross) up here in New England. $3250 does put it on the high end of the spectrum but the make and age of the equipment does make a difference.

[midtenn]

For what it's worth, it doesn't sound like too bad of an opportunity.Look at the age and condition of this equipment as well as well as the product price points. If the selling prices are satisfactory, which seem to be 50% if I understand your post correctly,there may also be some room for improvements on your cost of merchandise through remerchandising some different products. You may also be able to increase sales by introducing new products at a higher price point. Since I don't know what your experience level is at this point, you may want to tread lightly at first and be very cautious. Without seeing the account, equipment and all the details, it is honestly hard to say exactly what to tell you. A little more info would help a lot.

[alyssamma]

FWIW, I agree with midtenn. It sounds like an OK deal - not great, but not bad either. A good way to get started.

Kevin

[coinvestor]

Regarding the single location with the electronic machines:

I agree with midtenn, it sounds like a good deal, assuming that the numbers he stated are correct and his prices are set right.  If an account called you and said we put $160 into our vending machine a week, would you put in some refurbed machines? I know I would and I would probably spend about the $3250 to buy machines.

Just my thoughts.

 

JD