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What is this route worth?


lionvending

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I have been presented with an opportunity to buy a route that is close to me.  Here are the specifics:

 

36 machines currently on location.  Most are Seaga triple heads.  A couple of them are Vendstars.  2 of them are set for 2" bouncy balls.  All have 25 cent mechs, except for the 2" bouncy balls.  Those have 50 cent mechs.  There are an additional 8-10 machines in storage that needs cleaned and located.  There is also a small product inventory.  

The gross monthly sales average between $350 and $500 for the entire route. 

The locations are spread among 8 towns, but all are within 30 miles of each other.

 

I am not a huge fan of Seaga or Vendstars, but if these locations are producing sales, I can't argue with that.  

 

What would be a good offering price to purchase this route?

 

 

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Are you able to upgrade some of these locations to rack locations? Are you the only vendor in each location? I'd offer $2500 and settle for $3000 if these locations are upgradable to rack locations.

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How much are they asking?  Can they verify those numbers?  The figure I believe I've heard thrown around here to figure route value is 12 months x monthly gross. So maybe  $5,000. But for that many locations it's definitely under performing which is the reason there selling. 

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I dont think its worth it. The most you're expecting per month from machine is $13, so unless you're willing to upgrade those locations to racks or bust your butt for $13 a location, its not worth it. 

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He is claiming that his business brought in $4000 last year.  And so far this year, he is claiming that the route brings in $550+ per month.  I offered him $1000 without verifying income.  He countered by asking for $5000.  Thoughts?

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Verify income. If he can verify income, and expenses, ballpark value is one year gross. But you should have 40-50% or less expenses. I bought a route that does $300-400 a month gross with 18 machines. And he said the vends were set good. But at some of the highest volume locations he was vending 10 pmms, 24 mms and reeses. Im setting them down slowly to keep the locations from getting mad but im starting yo think all the value in this route is relocating what are decent looking machines.

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Could the machines be fixed up a little bit and could you raise some of the prices of the items to 75 cents or 50 cents.  The negative about this deal is each machine isn't taking in a huge amount of money. The upside is that  the places still have the machines in the locations and I would guess that a huge part of the reason they are doing low in sales is the owner is ignoring them which means there is room for improvement.    If he says his machines aee taking in 550 a month I would assume he is taking in 350 a month.  If you offered him 2 grand you would be playing about 60 bucks a machine. if he counters with 3500 maybe go up to 2500.

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With machines like that I wouldn't  pay much more than what you'd pay a locator to do for you, machines like that are usually available for 20-40 bucks 

in my experience if someone says it makes $350 to $500 it probably does $250, I've seen it Over and over 

offer $1500 and if your comfortable go up to 2K

otherwise pass 

my opinion FWIW

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If he can't verify figures, you are stuck taking his word. I've purchased 3 existing bulk routes and about 10 full-line locations. I've come across people who had proof of sales and those who didn't. 

If he has verifiable numbers, then I'd pay based off that. I would, however, reduce the value due to the equipment. You're plan doesn't sound too bad

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