exhilti Posted January 26, 2017 Share Posted January 26, 2017 Wanted to get everyone's thought on a route for sale. Gross is $180K (profit is around 75K) with 22 machines at 8 locations. (All USI/Wittern and Dixie Narco Bevmax) Half are 6 months old and the other half 1yr old. All have credit card reader. Price is firm at $110K. Owner lost his partner and works full time, so doesn't have time to service. 25hrs week. What are your thoughts? Link to comment Share on other sites More sharing options...
Chard Posted January 26, 2017 Share Posted January 26, 2017 Revenues per machine are great. Do the stops have contacts? Sent from my SGH-M919 using Tapatalk Link to comment Share on other sites More sharing options...
Chard Posted January 26, 2017 Share Posted January 26, 2017 Are the machines owned outright or pepsi/coke assets? Sent from my SGH-M919 using Tapatalk Link to comment Share on other sites More sharing options...
exhilti Posted January 26, 2017 Author Share Posted January 26, 2017 Machines are owned outright. Yes, the owner is even willing to have sit down's with all. He is also going to provide all deposit and credit cards transactions to prove worth. Link to comment Share on other sites More sharing options...
AZVendor Posted January 26, 2017 Share Posted January 26, 2017 This could be a keeper. It's the first route asked about here that someone has claimed a realistic profit from. I would be cautious only in that with that small a number of machines if one locations is lost you could take a significant hit to the bottom line. The positive is if they have long term contracts the age of the machines means these locations may all be new in the past year. Link to comment Share on other sites More sharing options...
Chard Posted January 26, 2017 Share Posted January 26, 2017 I agree. This seems very compelling.Sent from my SM-T350 using Tapatalk Link to comment Share on other sites More sharing options...
Southeast Treats Posted January 26, 2017 Share Posted January 26, 2017 Sounds like a rare good deal, but I am thinking that the business will be closer to 40 hours all together. With that much in sales are they still home based or do they have a warehouse or storage unit? Vehicle included or no? Good luck, wish I could find one like that! Link to comment Share on other sites More sharing options...
AngryChris Posted January 27, 2017 Share Posted January 27, 2017 10 hours ago, Southeast Treats said: Sounds like a rare good deal, but I am thinking that the business will be closer to 40 hours all together. With that much in sales are they still home based or do they have a warehouse or storage unit? Vehicle included or no? Good luck, wish I could find one like that! If all of the numbers are true, 25 hours per week sounds very reasonable. Back when I was just a driver, I could easily do 300k-400k in 50 hours while loading my truck and that was with a LOT of driving every day and more snack machines than soda machines. Link to comment Share on other sites More sharing options...
Southeast Treats Posted January 27, 2017 Share Posted January 27, 2017 True Chris, but there is more than working the route, and at that size there will be a lot of back end time involved, as well as repairs, etc. Just wanting to be sure he knows he is buying a real business to run.... Link to comment Share on other sites More sharing options...
AngryChris Posted January 27, 2017 Share Posted January 27, 2017 28 minutes ago, Southeast Treats said: True Chris, but there is more than working the route, and at that size there will be a lot of back end time involved, as well as repairs, etc. Just wanting to be sure he knows he is buying a real business to run.... I don't think so. I'm not saying you're wrong but having 22 machines at 8 locations doing 180k will be cakewalk for anyone who knows what they are doing. Assuming we are talking about an average of 3 machines per location, and the average location is doing $430/week in revenue, then the average location should probably be done 2x each week and take no more than 1 hour to restock $215 worth of product. Hypothetically, doing 4 accounts on Monday and Thursday and 4 accounts on Tuesday and Friday would take no more than 6 hours including stocking the truck, driving, and restocking machines. That's 24 hours right there. Add about 4 hours to count and sort money and do some bookkeeping and you are up to 28 hours. Obviously, repairs will take up some time too but 22 newer model machines shouldn't need too much in the way of repairs. Typically speaking, most of us would probably need 40 hours to do 180k in revenue from a typical route with a lot more than 22 machines, but this is a special circumstance. I just serviced one of my better accounts today. It took me one hour (including my typical 5 minute chat with a random customer) and I restocked a snack and soda with $320 inside (combined). I used to service an account in the past where I collected an average of $600/day from 3 sodas and 1 snack. It took me 1.5 hours to restock it all but I was working pretty quick. I guess the point I am making is that virtually anyone can collect $200/hour from good accounts, and this route is doing $3400/week which is 17 hours worth of actual restocking. Again, not saying you're wrong. Link to comment Share on other sites More sharing options...
Southeast Treats Posted January 27, 2017 Share Posted January 27, 2017 Good points, of course better locations make for more efficient routes, that's what we all want. But remember too that product has be ordered and received, bills paid, and other business conducted; as well as getting out and finding new accounts... maybe I'm just old and slow!!! Link to comment Share on other sites More sharing options...
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