Purchasing a route

[WillisNYC]

Anyone else ever start out in vending by purchasing a route?  Where is the best place to find them and how did you evaluate the route the first time you bought one?

[nam]

Willis,

Vending will make you sick. Just read the ads for people wanting to sell their routes. They'll almost all either selling for health reasons or maybe their moving. Right! They start out lying in their ads. All these people aren't sick. They're trying to sell a dead horse. If it were a winner they wouldn't be trying to sell it.

Oh, and then we have the people that say they can service the route in only a few hours a month and it's making two grand. Right, who's so busy they can't find time to work a few hours to pick up a couple grand? Almost all the ads are lies from the start.

They will of course lie about what it's making. Then they'll lie about how often they serviced it. Get ready for alot of stale product that has to be pitched. Then try to get those customers to start buying again from a machine they already know has stale candy in it. Get ready for owners telling you to get that machine out of their business - the guy hasn't been here in months and it's in the back room.

I'd rather start fresh and give good service from the start than try to win customers back after buying bad nuts and candy from a machine. It can be a disadvantage sometimes buying an existing route. Really!

The only safe thing to do is know what the machines would be worth if someone had them in their garage or storage area. What could you buy them for stacked up in someones basement? Don't pay anymore and you might not get hurt.

nam

[WillisNYC]

Nam,

Good advice and after my introduction to this business from the high end with pie in the sky dreams,(Vendstar) my expectations are back here on earth. (No I didn't get taken by Vendstar, but I did get a good education so to speak.)

[leo7068]

Or you can buy my route, because I don't have any bloating or lies in it.

It is really unfortunate that the majority of the industry does though, because when I show the actual records and ask for 2 years net (50% return for buyer) they always hesitate and think I am padding the sell from every direction.

This is in all business though, since even commercial real estate has similar problems. This is why the buying and selling process can take so long, since both sides need to build rapport and perform due diligence.

[alyssamma]

Willis, I'm confused...you posted here and in the full line section. Are you looking to do bulk or full line? There is a large difference between the two, and several good comparision threads in the full line forum. I suggest you read those thoroughly before deciding which to do.

As for purchasing a route, you can purchase a full line fairly easily and verify the numbers are correct.

If you are trying to do bulk, what Nam said above is basically true. Most people will lie to you about the numbers and it is difficult to verify.

Luckily, starting in bulk vending is very easy. Buy some used machines and self-locate or hire a locator. Very inexpensive to get started.

Kevin

[jtomlin1973]

I also got sold the Vendstar fantasy land.  I walked away from them today and the guy fought tooth and nail to keep me on the hook.  I've just started to research this business and and advice from experience people out there would be greatly appreciated!  I'd like to make a small investment (10-12) machines to feel things out and see how I do.  My plan is to try and pick up some used machines - possibly the Vendstars because I've seen them around and they're affordable - but I'm torn on the placement.  Being new to this, I like the ideas of using a locator so I don't have to worry about finding a home for the machines.  However, I've heard some pretty miserable stories about locator tactics, locations not sticking for more than a month and so on.   Are there any reputable locators out there? Are they work the $?  Thanks for the feedback - JT

[jtomlin1973]

thanks for the reply. anybody have any books on the business they'd reccomend?

[alyssamma]

JT, there are many good locators - check the locator discussion forums.

Some will advise you to self-locate. I would say it is up to you. If you have the time it is a valuable skill. If you don't have the time then paying someone to do it would be great.

Fill out your profile more - esp. where you live - so you can get more specific advice.

Kevin

[midman128]

JT,  Don't buy anyones over priced machines.  Don't hire a locator unless you try to locate yourself and just can't do it.  I have talked to hundreds of vendors over the last year.  Like NAM says most people selling their machines are liars.  If you read the ads, every single one is a sob story about how they or a family member got sick and they have to sell.  It is a shame that people have to lie.  I have 20 energy machines and am purchasing 20 more used ones to expand.  I will spend less than $50/ea and locate myself.  What I have found is the mis-information out there by the real biz-op sellers selling a get rich quick scheme and over priced locators making all the real money.  There are some great locations for bulk machines, and working a charity is the easiest method I have found.  I also sell retail rack displays in my market so the consumer sees that the product is available and they have some trust.  Most bulk items you can buy at every store in a box or bag.  I have a friend that bought 8 peppermint pattie machines and he is getting between $40 and $50 a month at a .25 vend.  Now I know that the margin isn't super great at a quarter, but he placed them in locations with other machines that weren't doing so well to make it worth going and checking the tough location.  I actually talked to the manufacturer and he is testing a .50 mech in the machine in his routes to see if it still sells out so fast.  If not he is going to make a bigger chamber to hold more candy.  Average cost I have found on mints is about .10 each.  I hope to have a couple hundred machines in the next year so my kids can run the route while in college.