Advice on Route / Machines purchase

[allstarsmediainc]

i would love your advice on this one guys. i just came across an ad for a sale of  TWO VENDING MACHINES (1 snack / 1 soda) (see pictures)

Awesome location near International Airport, with access to service 24/7.Both Vending Machines are indoors, with security on-site during non-business hours.

Average sales $350 - $550 per month combined, with $0 commission paid on sales.Well established account for many years he says.sale includes all inventory in machines, and change in coin mechanism's (Est. $200)

Total Sale Price $2200 for both machines on location. Is this a good price for this route/machines ? what are your thoughts and what would your counter offer be ?

[vendcobros]

Looks like the pricing on the soda machine is pretty low. Your profit margins won't be great. The soda is older but dependable. You'll be able to vend energy drinks but probably not 20 oz bottles from that machine. Arrowhead water bottles will likely jam up frequently.

The snack machine is older but you'd be able to upgrade it if you wanted to spend the extra cash.

$350 to $550 is a big range. Any tax data to back up the numbers? To me those machines are worth around $300 each so $2200 is pretty expensive and will take a long time to recover the initial investment assuming no repairs or breakdowns.

Do you know what kind of coin mech and validator they each have? Anything with a big metal box for the cash collection is out of date and will need to be replaced at some point. Is the compressor well cleaned or dirty and clogged? A clogged venting system stresses the machine and significantly shortens the compressor life span. How do the product dates look? If there's a bunch of expired snack and soda you can assume sales are slow.

All in all, around $1200 would be fair in my opinion. It's always a risk without good data. People will do shady things to sell so don't get tricked by stuffed bill and coin boxes or unrealistic sales numbers!

[allstarsmediainc]

10 minutes ago, vendcobros said:

Looks like the pricing on the soda machine is pretty low. Your profit margins won't be great. The soda is older but dependable. You'll be able to vend energy drinks but probably not 20 oz bottles from that machine. Arrowhead water bottles will likely jam up frequently.

The snack machine is older but you'd be able to upgrade it if you wanted to spend the extra cash.

$350 to $550 is a big range. Any tax data to back up the numbers? To me those machines are worth around $300 each so $2200 is pretty expensive and will take a long time to recover the initial investment assuming no repairs or breakdowns.

Do you know what kind of coin mech and validator they each have? Anything with a big metal box for the cash collection is out of date and will need to be replaced at some point. Is the compressor well cleaned or dirty and clogged? A clogged venting system stresses the machine and significantly shortens the compressor life span. How do the product dates look? If there's a bunch of expired snack and soda you can assume sales are slow.

All in all, around $1200 would be fair in my opinion. It's always a risk without good data. People will do shady things to sell so don't get tricked by stuffed bill and coin boxes or unrealistic sales numbers!

Thank you for your input. i haven't seen the machines in person , i just saw the ad online and decided to ask here first before insulting the guy with a low offer with no insight of why i was making that offer. At Least now i can say hey from people that have been doing this for years this is how much is considered a fair price for what you are offering.

[vendcobros]

13 minutes ago, allstarsmediainc said:

Thank you for your input. i haven't seen the machines in person , i just saw the ad online and decided to ask here first before insulting the guy with a low offer with no insight of why i was making that offer. At Least now i can say hey from people that have been doing this for years this is how much is considered a fair price for what you are offering.

I'd let a few others on the board reply. We have quite a few stops so maybe get some input from smaller vendors before making your decision. I haven't purchased a location for several years. In my opinion buying machines and locating them yourself is going to be less risk overall.

[Southeast Treats]

You want to know why he is selling.... is he staying in vending and just clearing out his dog accounts?  And will this be a good fit for you in terms of being close to home and in an area where you want to expand?  How do you know the location is secure from changing and tossing you out after you buy - contract in place or good feedback from decision makers on site?  The price is a bit high, you usually want to be at about 50% or less of annual sales when buying accounts, and presuming the low numbers are more accurate... you should ask for some verification of his numbers, but don't be too surprised if he can't or won't provide it, many small vendors keep minimal records.  If this is his only location, then sales tax reports should be available.  Most people don't highball the tax man!  Inventory has little value, as you don't know the shelf life remaining and should presume it's short (or already expired) and low on stock.   Estimate the change bank amount when you take possession and pay for only what you get.  Don't be afraid to make a lower offer (you may be surprised how low he will go), and don't be afraid to walk away from a poor deal.  Like was already said, the machines themselves are not worth much, so I would get as much info as possible and work up from there in making an offer. 

[NYCandyMaN]

prices seem a bit low on the soda, with zero commission, its the same as if its at a $1, with that said, if the machines are currently full, which they seem to be, assume half is old and half is new, rotate the old to the front, and sell it, lower tha price if needed just to get rid of it and not take a loss of too much. each machine probably has at least $20 to $40 in the mech. the machines are old, but probably run better than any new ones, the new ones are just too much headaches. check the compressor, make sure its cooling. $2200 is a bit much, id probably do $1000 to $1500 tops, considering they are already on location, fill and cash out simple.

problem. you need to know how busy the location is, make sure you ask when was the last time he was there, have him introduce you to people in charge as partner or new owner, and ask them how often the machines were serviced.