Route valuation question

[RikaKazak]

I'm looking at buying an existing route.  Machines are included in sale (oaks for toys, and triple plays for candy).  There's 42 locations.  16 of them are Pelican accounts (candy with 35% commission, YUCK!)  2 are 30% commission rack locations.  And the rest are charity candy accounts (24 of those).

The route grossed $15,553.75 last year.  Machines are in reasonable condition.  I've never ran oaks or triple plays before though so input there too is appreciated.

How much do you guys think the route is worth?

[gumball guy]

    

2 hours ago, RikaKazak said:

I'm looking at buying an existing route.  Machines are included in sale (oaks for toys, and triple plays for candy).  There's 42 locations.  16 of them are Pelican accounts (candy with 35% commission, YUCK!)  2 are 30% commission rack locations.  And the rest are charity candy accounts (24 of those).

The route grossed $15,553.75 last year.  Machines are in reasonable condition.  I've never ran oaks or triple plays before though so input there too is appreciated.

How much do you guys think the route is worth?

     These days I only buy routes based on asset value. Bulk locations are just too transient anymore to take a chance on a sales based purchase. An example.....I buy a strong location that does $100 per month for $1200.00. Six months after I buy it a new owner acquires the location and they want all vending out. Good luck trying to get my investment back in a reasonable amount of time now. Conversely when I buy routes based on asset value and I lose a location 5 minutes after I buy the route I won't get hurt. If a seller doesn't understand that concept then I respectfully move on down the road but 9 times out of 10 they call me back eventually.

     Not sure specifically how much equipment you are dealing with here. I am assuming the Oaks are smaller 25 cent machines (300s or Vistas with 1"in capsules). I would pay $25 to $50 per head based on condition. Oak is an excellent machine but alot of the equipment that is on the street today is 20-30 years old. That is a real testament to the quality of the machine but eventually they need parts replaced. You can factor a little more into the price for the stand/rack it is sitting on as well ($10-$15). I am also going to assume the Triple Play machines are from Northwestern. Great machine that is built like a tank. My biggest gripe is since it is not a pod system like a 1-800 machine or like the Oak singular heads so changing candy varieties is a hassle.  $75 to $90 each for these.

     If you do decide to buy based on sales make sure you see the sellers tax returns to verify the amount he is claiming. If he doesn't want to share that with you then that is a red flag.