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Value of a small route


NWV

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I 'm looking at small route and would be interested in how you value it. It has 7 machines which are bottler owned and maintained. Only 4 of the machines have been around for more than 6 months, and these are the most profitable, grossing an average of $210/month each, and makeing up about about 80% of sales.

Thanks

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Based on your figures: 7 machines;  4 of them average $210/month each;  they make up 80% of the total sales, which means the other 3 machines average $210/month COMBINED.  That equals $1050/month TOTAL or $12,600 annually.  Eeeesh.  That's not much.  There are NO assets gained because they are bottler machines.  This also means that you will have to purchase the product from them as well.  Based on these numbers, you're certainly NOT going to get any kind of price breaks.  Maybe $1000 for the route.  But me personally, I'd pass.  

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That's not very attractive.  IF they are stocked with cans and only need to be stocked every 3 or 4 weeks and IF there is enough margin in the pricing to allow some profit for your time (at least 50% margin), and IF there were no commissions going to locations; then maybe I would offer the value of the current inventory/change banks in the machines.  Bottles expire too quickly; and based on collections the machines might be close to quota for cans, but nowhere near for bottles.  The drink companies want certain minimum purchases (quota) for each loaned machine.  If the current operator is tired of wasting his time he would jump at that offer more than likely.  You would not be getting a jewel, but it could be a start for learning and growing.  Don't expect to make very much on sales of 1,000 a month after you buy product, pay sales taxes and other expenses like gas and insurance, and you may need a storage unit as well to receive/store your drink deliveries as they may not deliver to your home.... and of course your time to run all of this....

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I would like to thank everyone for their comments. I think I'll pass on the full route, although I am considering an offer on the two best locations as they are convieniently located to another location we already have, and might have potential for adding snack machines. 

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