KandMVending Posted January 12, 2009 Share Posted January 12, 2009 Would like any feedback on the following bulk vending route opportunity: 500 new Vendstar triples including location placement . 20 year warranty on the machines with minimum revenue warranty for each location. Asking price is $129,900 with $80,000 down and $49,900 financed over 2 years. It seems most people on the site are not very high on Vendstar, but this sounded like an interesting opportunity. I hope to hear back any opinions on this. Thanks. Link to comment Share on other sites More sharing options...
G-man422 Posted January 12, 2009 Share Posted January 12, 2009 Not a good deal. It comes out to about $260 a machine. To locate that many they would have to be spread out or in a large city with no competition. You are getting this deal from vendstar directly, I can tell. There are better deals out there so don't wast you time or money on this one. Link to comment Share on other sites More sharing options...
nepavend Posted January 12, 2009 Share Posted January 12, 2009 Wow, that screams biz-op. For someone new to the business, it is not the way to enter our business. Start small, make sure you really want to do this, and then grow gradually for a while and then if you want to go full-time build up and make a large move like that, but only after you have a few years in the business and some cash/capital behind you. Link to comment Share on other sites More sharing options...
Quarter Master Posted January 12, 2009 Share Posted January 12, 2009 I agree-No,No and double No !If you have the down payment, there is a whole lot better ways to get started and get your money's worth. Run away from this "deal." Link to comment Share on other sites More sharing options...
Bravo Duck Posted January 12, 2009 Share Posted January 12, 2009 How do I say this without sounding harsh? Ken, you keep bringing obivious ripoffs up here for us to evaluate. Before you spend 100k on anything you need to be knowledgeable enough to be able to pick the winners from the losers. We can throw our .02c in but you're the one who has to evaluate the deal and make it work. If you spend 100 hours reading back posts here it will be time well spent. You've said that you want to replace your income immediately, that you don't have time to build a business from scratch. You definitely don't have time to make a 100k mistake. What if what you want to buy is not available in the marketplace ? ( although some ripoff companies will tell you what you want to hear to get your money ). There are not too many vending businesses in the size range that you are looking to purchase, most are either larger or smaller. Most of the ones selling out are the small ones who did not have a knowledge base sufficient to run a business profitably. And of the ones that do exist (in the size range that you are looking at) that are selling, the odds are they are not near you. If you have 100k available you should be able to spool up a business from scratch in about 12 months ( although locating is tough in N.J. ) with much less risk than buying someone elses mistakes. Link to comment Share on other sites More sharing options...
alyssamma Posted January 12, 2009 Share Posted January 12, 2009 Ken, Tom just gave you excellent advice. Please read and re-read his post carefully. It gets my vote for POTD. Kevin Link to comment Share on other sites More sharing options...
KandMVending Posted January 12, 2009 Author Share Posted January 12, 2009 What would be the optimal way to get started in this business to determine if it is for me or not? Specifically the amount of machines, machine manufacturer, legitimate locator to get started with. I was recently laid off and have been looking to purchase a business. The valuation process when researching different businesses is that the price is usually based on a multiple of the net. I know this does not apply here but when I look at the Vendstar deal it still looks appealing based on the average of $20 per per machine per month. Also, one of the business brokers I am dealing with put me in touch with someone who's vending company has over 2000 existing locations in my area. The vending company is R.E.G Vending / Richland Industries if anyone has ever heard of them. The seller is willing to put together a route for me with documented results for the amount of locations I want, but the price per location is too high. I have read a great deal of information on this site and it has been tremendously helpful, but I'm getting increasingly confused as to how to proceed with this based on my current situation. All replies are greatly appreciated. Thanks. Link to comment Share on other sites More sharing options...
dperry Posted January 12, 2009 Share Posted January 12, 2009 Generally, if anybody selling you a route or equipment guarantees any revenue, they are bogus. They cannot guarantee any that any one location will do a certain amount of income. If they offer a guarantee to replace any non-performing location, then they are lieing through their teeth. They can offer the guarantee, but will they really be there should you need to collect on that guarantee? Prolly not. Your best bet is to call up A&A or Oak and buy yourself about 5-10 machines and product. Then call a locator and have them placed, or place them yourself. Service those machines for about 4-6 months then evaluate on whether or not the business is right for you. Link to comment Share on other sites More sharing options...
Bravo Duck Posted January 12, 2009 Share Posted January 12, 2009 What would be the optimal way to get started in this business to determine if it is for me or not? Jax wrote a little step by step procedure for dipping your toe into bulk vending. I think its pretty good. http://vendiscuss.com/forums/view_topic.php?id=3042&forum_id=1&jump_to=28513#p28513 Link to comment Share on other sites More sharing options...
Beer980 Posted January 13, 2009 Share Posted January 13, 2009 Have you looked for a route on the Craigslist for ____________? I don't know where you are located so it is a little hard to suggest a more regional answer. Link to comment Share on other sites More sharing options...
KandMVending Posted January 13, 2009 Author Share Posted January 13, 2009 I have looked on Craigslist but have not found anything. I am located in New Jersey so if you know of any good regional companies for purchasing machines and locating that would great. Thanks. Link to comment Share on other sites More sharing options...
betty Posted January 15, 2009 Share Posted January 15, 2009 I have some of those Vendstars .One word .........JUNK!!!! Link to comment Share on other sites More sharing options...
nepavend Posted January 15, 2009 Share Posted January 15, 2009 Keep checking, I look in NJ craigslist once a month or so, I am in Scranton, so it is drivable. I have seen one or two deals on there a while back. Also check the Philly area as there is a large number of listings there too. I also check CT and MA lists occasionally, if i can drive it within 3 hours I take a look. Link to comment Share on other sites More sharing options...
KandMVending Posted January 15, 2009 Author Share Posted January 15, 2009 Thank you all for the replies. I was able to find a local opportunity for full line vending on Craigslist that I spoke to the owner about. Hopefully I will get to meet with him next week and I can run the deal by the group for feedback. Link to comment Share on other sites More sharing options...
BluePlate Posted January 15, 2009 Share Posted January 15, 2009 Keep checking, I look in NJ craigslist once a month or so, I am in Scranton, so it is drivable. I have seen one or two deals on there a while back. Also check the Philly area as there is a large number of listings there too. I also check CT and MA lists occasionally, if i can drive it within 3 hours I take a look.Hey, stay out of Mass & Northern CT !! :X - Just Kidding! Link to comment Share on other sites More sharing options...
nepavend Posted January 16, 2009 Share Posted January 16, 2009 Haha, oops i thought I heard a shriek when I drove to New Haven... Actually I was meeting a guy halfway coming from Cambridge Mass to unlead some NW 80s and A&A PO 89s. all new never on location. I'll try to save some you you BluePlate!! Link to comment Share on other sites More sharing options...
allgum4me Posted January 23, 2009 Share Posted January 23, 2009 avoid like the plague..........run from this quickly........ripoff alert on this one Link to comment Share on other sites More sharing options...
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