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Help on buying Vending Route


jkhogan21

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Hey guys new to vending just found another route for sale went to go look at it today. 5 locations, 13 machines. 2 machines brand new sitting in storage. All USI machines. machines are newer and in great shape.5 snack 5 drink. 3 combos. the two in storage are 1 drink 1 snack. 1 location is not god at all. the other ones are okay. he has one big account  with 6 machines. he does between $135-170 a day on all machines monday-friday. saturday and sunday between 20-30 dollars. this is verified through the emails he gets everyday on the tracking on the machines. I think the machines can do better because he doesn't service the machine like they are supposed to be serviced. the one big one he has you have to go there atleast  3x a week, he only goes 2 if that. the big one has 3 year contract left. the other 4 locations have no contracts. none of the locations pay commission. he is asking 40k i think that is a little high i was thinking like 30k. let me no what you guys think. Also i almost forgot all machines are in a 10 minute radius. thanks guys

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By the numbers, he is making about 42K per year, so 21,000 would be a great price, if you allow a little for the newer machines, extra machines, credit card readers, and the closeness to you, you might get to 30.  He has 6 machines on one location and services twice a week, and doesn't make more than that?  That would be something I would look at closer.  His weekly machine average is only about $60 overall, so either that big account isn't so big or he has a lot more than one junk account.  If you were servicing 6 machines 2 times a week that one location should be doing at LEAST $600 a week by itself, and probably closer to $900.  Too much labor going on, 6 machines should hold a LOT of product (unless it's 6 combos - and that would be a bad setup).

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so you think 30k is a reasonable price. i think i mt even offer him 28k. at the biggest account he has coffee machine. cold food, frozen food,snack, and drink. sorry i said 6 machines its actually 5.. the other machines are doing about 70-85 dollars a week. the one junk one is doing 25-30, which i think i will move that if i buy it. i think they can do a little bit more he doesn't really service them like they are supposed to be. He also has a new account they want 3 machines. 250 employees. Let me no if you guys think i should pul the trigger and offer him 28k or 30k. thanks a lot for all of your help

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If you are not doing food vending already, be aware that this is a tough item to make money on, especially cold food, as there can be lots of stale loss.  You sound like you know what you are getting into, I would probably offer 28 and see if he counters.  He may hesitate for a while but will likely drop his price if he can.  I am still not sure about his big account, a coffee machine needs to be cleaned once a week and the cold food likewise needs weekly service at a minimum but is it really worth 3 services a week?  That's a lot of labor cost, even if it's you doing it yourself.  Your time is a valuable asset too....

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