AMD Snacks Posted August 10, 2017 Share Posted August 10, 2017 Hello all, I'm a bulk guy slowly researching the soda side of things. I just happened upon a guy selling a route with three locations (4) machines and product for about 5k. I normally wouldn't even consider it, but it's pretty close to my house. I just was wondering for some feedback on these machines: rowe 5900, d/n 5591, vendo 721. So far i've read the rowe is old and might need to be upgraded, and that the vendo 721 is old but some people on here love it. On a side note, it sounds like 5k is his annual gross all together too. Thanks for any feedback. Link to comment Share on other sites More sharing options...
AngryChris Posted August 10, 2017 Share Posted August 10, 2017 The 721 is not old. Unless things have changed, it's vendo's current production model. The 5591 is an older model though and the Rowe 5900 is, although a nice machine, completely obsolete. They are all good machines but the 721 is a current model, 5591 hasn't been produced in maybe 8+ years or so, and Rowe was out of business something like 1998, with the 5900 being maybe 1990? I wouldn't pay for a Rowe itself, and I personally wouldn't buy a 5591 but it holds some value. The 721 is a very good machine and worth more than the others combined. Just make sure none are leases...those 3 machines are worth about $2500 if you ask me... more if the locations are good. Link to comment Share on other sites More sharing options...
lacanteen Posted August 11, 2017 Share Posted August 11, 2017 Target sales per machine is 5K per year. If these 3 machines are doing a total of 5K then you would be starting out in a hole. The cash flow is worth $1500-$2500 which is the value of the 721. Link to comment Share on other sites More sharing options...
AMD Snacks Posted August 11, 2017 Author Share Posted August 11, 2017 Ok thanks. To be clear, lacanteen, you're saying the whole route, machines and product is only worth $1,500 -$2,500? I'ts actually two of the rowe 5900. this is what he sent me when I asked for figures: site snack s0da jan feb march april may june inn rowe 5900 $ 70 70 68 93 97 101 auto rowe 5900 d/n 5591 333 241 161 291 281 301 dnr vendo 721 12 21 11 17 24 32 Link to comment Share on other sites More sharing options...
lacanteen Posted August 11, 2017 Share Posted August 11, 2017 Those numbers project out to $4254 annually. The best piece of equipment, the 721 is way underperforming and isn't worth the gas to drive to it. The figures for the 721 should be daily sales not monthly. 60% of $4254 is $2552. used 721s sell for $1800 refurbished. 5591s, though worthless to me, can sell for $1000. 5900s, are only worth what someone else will pay for them. In my opinion, $2500 is top dollar. Edited to add: The product & change in changers is added to the purchase price at the time the locks are changed. If you do this, check expiration dates. Do not buy any product that is 7 days or less from expiring. I recently participated in a 200 machine acquisition and 35% of the products were expired or about to expire. Link to comment Share on other sites More sharing options...
AMD Snacks Posted August 11, 2017 Author Share Posted August 11, 2017 Again, thanks for all the help, I'd much rather do a bunch of reading, but time was a factor. I'll talk to him, and if he's firm on the $5k I'll just pass. Did you factor 60% to account for 40% COG? I know very little about full line vending, and though I don't plan on growing big in that area, I wouldn't mind 5 or so machines. Are the 5900 not reliable? or just old and don't offer much for growth? I know I read that upgrading them to MDB would cost $600 or more, but i'm wondering if I can just keep them downgraded to get my feet wet. The city this guy's in is a slow farm town. Bigger than my city which doesn't even have a fast food joint, but it's still slow. My bulk machines in that city are my slowest of all, so I figured his figures just reflected the foot traffic of that town. I was hoping I could perhaps move them later to a better city, better location and improve things a bit. Link to comment Share on other sites More sharing options...
AngryChris Posted August 11, 2017 Share Posted August 11, 2017 Consider that the vendo 721 could be a leased machine. If so, it's not his to sell. Link to comment Share on other sites More sharing options...
AMD Snacks Posted August 11, 2017 Author Share Posted August 11, 2017 4 minutes ago, AngryChris said: Consider that the vendo 721 could be a leased machine. If so, it's not his to sell. How can I go about verifying that? Link to comment Share on other sites More sharing options...
AngryChris Posted August 11, 2017 Share Posted August 11, 2017 If it has a coke, pepsi, dew, 7up, Dr pepper front, etc... then it's likely, but an asset tag on the top or side would pretty much settle it. Link to comment Share on other sites More sharing options...
AMD Snacks Posted August 11, 2017 Author Share Posted August 11, 2017 Ok thanks, I emailed him an offer of $2k. If he doesn't accept then at least i'll have more time to do research and actually start the business off right. I really only wanted to do can sodas, keep things simple and not have to learn a bunch of new machines. Link to comment Share on other sites More sharing options...
vendcobros Posted August 12, 2017 Share Posted August 12, 2017 22 hours ago, AMD Snacks said: Ok thanks, I emailed him an offer of $2k. If he doesn't accept then at least i'll have more time to do research and actually start the business off right. I really only wanted to do can sodas, keep things simple and not have to learn a bunch of new machines. Every new vendor wants to do soda only. Just because snack isn't easy doesn't mean it's not worth doing. Think of solutions to the snack problem instead of shutting it down because it's difficult. (Most) Good locations don't want soda only. Link to comment Share on other sites More sharing options...
Southeast Treats Posted August 12, 2017 Share Posted August 12, 2017 Wondering why he doesn't have a drink machine at the first location. I would move the 721 there if possible... but the numbers are still pretty low. Link to comment Share on other sites More sharing options...
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