lukey Posted October 18, 2016 Share Posted October 18, 2016 After a lot of planning and consideration, I've decided to jump into the bulk vending game. I'm a newcomer to this and I know that my biggest struggle will be working up the courage to make a sales pitch to new locations. That said, I do have a fair chunk of cash to invest, so I was thinking of starting off by simply buying an established route. The fact that I already operate a number of machines seems like it might make the sales pitch a bit easier. I have found one in particular that seems like it might be a good fit. The ad is as follows: Quote i have around 20 vending machines all in locations that makes about 400 a month . plus i have about 7 extra machines . They are all restocked with candy and the locations are in ***** and ****** . Asking 5000 The first concern I have is whether an ad like this presents any red flags. Are there any common scams involving the sale of routes? What information should I be asking for to make sure everything checks out? Finally, does buying a route include a transfer of ownership of the machines themselves, or am i simply paying for the rights to service them? Any answers, advice or resources you might have would be greatly appreciated! Link to comment Share on other sites More sharing options...
bhfisher Posted October 18, 2016 Share Posted October 18, 2016 There is two ways to look at this: I'm assuming $400 a month GROSS - not NET - $400 Gross - (30%) Product Cost = $280 Net 1) Return on investment (ROI): Payback should be 12 - 18 months - this route comes in at 18 months - 12 months = $3360 2) Cost to duplicate: Assume you hire a locator: $65 each and purchase a machine $120+ each = $3700 I'd offer $3700 if he has 100% proof of income and the machines are named brands Link to comment Share on other sites More sharing options...
lukey Posted October 18, 2016 Author Share Posted October 18, 2016 4 minutes ago, bhfisher said: There is two ways to look at this: I'm assuming $400 a month GROSS - not NET - $400 Gross - (30%) Product Cost = $280 Net 1) Return on investment (ROI): Payback should be 12 - 18 months - this route comes in at 18 months - 12 months = $3360 2) Cost to duplicate: Assume you hire a locator: $65 each and purchase a machine $120+ each = $3700 I'd offer $3700 if he has 100% proof of income and the machines are named brands Hey thanks a bunch! This is tremendously helpful. What should I be looking for when it comes to proof of income? Link to comment Share on other sites More sharing options...
bhfisher Posted October 18, 2016 Share Posted October 18, 2016 Collection records - not excel sheet but hand written records Bank Deposits Income Tax Schedule C Charity Sticker payments Candy Purchase Receipts Maybe City License Fees If he tell you there is no records and it's under the counter income, pays no income taxes, I would highly discount route. Hint: Your route is a business, run it like a business from first day. Run it like you plan to sell tomorrow. If they cheat the government, they will cheat you Link to comment Share on other sites More sharing options...
lukey Posted October 18, 2016 Author Share Posted October 18, 2016 Thankyou kindly, this has been extremely helpful! Link to comment Share on other sites More sharing options...
bhfisher Posted October 18, 2016 Share Posted October 18, 2016 Good Luck! What city are you in? Link to comment Share on other sites More sharing options...
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