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There is a guy advertising a location with a Rowe 5900 and a Pepsi leased machine for $2900. Gross is $130 every 2 weeks. They asked for machines at a second location, but he isn't able to commit because of distance from home now, hence the reason he's trying to sell the current one. What is a reasonable price for this location?

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There is a guy advertising a location with a Rowe 5900 and a Pepsi leased machine for $2900. Gross is $130 every 2 weeks. They asked for machines at a second location, but he isn't able to commit because of distance from home now, hence the reason he's trying to sell the current one. What is a reasonable price for this location?

It just depends on how bad you want an old Rowe 5900 (which is the only asset here).  The gross sucks and most of us wouldn't fool with this if it were free.  $500 tops if you really want to take on this loser.  Impossible to say what the second location might be worth, but not much if it's similar to the existing location.  And don't forget, you'll be locked into a Pepsi deal unless you invest in another soda machine.  At the current gross I highly doubt that this machine is making the Pepsi quota, so that's yet another problem.  His asking price is absurd and you should not even consider this mess unless he's willing to pay you to take it off his hands.

 

As a side note, you could improve the sales here with your own machine, as then you could offer Coke, 7-Up, Dr. Pepper and a few others that currently can't be stocked in a Pepsi owned machine

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Ok. I do currently have 3 locations with 3 snack, 3 pepsi, 2 come and a coffee machine. The deal with pepsi wouldn't be much of an issue. I am just getting started though, what kind of sales would you deem worry while?

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Ok. I do currently have 3 locations with 3 snack, 3 pepsi, 2 come and a coffee machine. The deal with pepsi wouldn't be much of an issue. I am just getting started though, what kind of sales would you deem worry while?

To me it's a regional issue.  If you're in a rural area or one with low cost of living , then I'd base line at $400 a month.  If you live in a higher cost area like I do, then $500 a month is your base line.  Around here Coke out sells Pepsi three to one so your deal with Pepsi is one you should maybe look at a little harder.

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Yikes, no. Rowe 5900 are finicky machines in my opinion... and older. I want to pay off a location within 10 months. I use this formula:

 

Monthly gross, divided by 2, times 10 months.

 

This is a haphazard way of determining net, and paying off my location in 10 months.

 

Rule #2. I never pay for a location base on what the machines are worth... unless I need the machines badly for another location that is going to do better. I have always been burned that way one way or another.

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