nchomestead Posted June 15, 2022 Share Posted June 15, 2022 Hello all. I am looking further in to potentially purchasing some existing locations with machines to dip my toes in the industry. Currently looking at an add with two spots each claiming $700-750 in sales. No commissions or fees required for the spots (An auto dealer / repair shop and an assisted living center) and seller is asking for 9000 per location (12 x monthly sales + machines + inventory). I am trying to get more details (spreadsheets or account statements proving the volume of sales, machine part #s / brand etc) but just curious if there are existing industry standards for pricing a vending business / red flags to look out for etc. If this is not the appropriate section for this question sorry about that! Link to comment Share on other sites More sharing options...
tblake05 Posted June 16, 2022 Share Posted June 16, 2022 Run! 1 Link to comment Share on other sites More sharing options...
AngryChris Posted June 16, 2022 Share Posted June 16, 2022 23 hours ago, nchomestead said: Hello all. I am looking further in to potentially purchasing some existing locations with machines to dip my toes in the industry. Currently looking at an add with two spots each claiming $700-750 in sales. No commissions or fees required for the spots (An auto dealer / repair shop and an assisted living center) and seller is asking for 9000 per location (12 x monthly sales + machines + inventory). I am trying to get more details (spreadsheets or account statements proving the volume of sales, machine part #s / brand etc) but just curious if there are existing industry standards for pricing a vending business / red flags to look out for etc. If this is not the appropriate section for this question sorry about that! Finding these "opportunities" in ads is a huge red flag. An automotive shop, to do 9k/year, would require a good 30-50+ full time mechanics in a prime location with no other refreshment options for miles. A nursing home can do 9k/year as long as it's a good sized nursing home. I don't know the numbers but maybe 100+ residents and 50+ staff? In other words, if you don't see anything close to these numbers at these locations, which you probably won't, it's because it's a ripoff. 1 Link to comment Share on other sites More sharing options...
tblake05 Posted June 16, 2022 Share Posted June 16, 2022 9k per location is HUGE money! Better have fairly new machines and some sales data to prove the ROI is there or I wouldn't even be interested. Link to comment Share on other sites More sharing options...
AZVendor Posted June 17, 2022 Share Posted June 17, 2022 Someone is selling off their crap or it's a scamming locator or scamming USI distributor finding locations, over-equipping them and selling them for twice what they might be worth. 1 Link to comment Share on other sites More sharing options...
tblake05 Posted June 17, 2022 Share Posted June 17, 2022 (edited) Even the equation.... 12x monthly sales + machines + inventory. I don’t like it. 12x monthly gross should be just about the value of the machines if you want to be paid back within a year or so. I’m curious to see what type of machines are on location. Prob crappy old single priced sodas and tired-dated usi snack. Edited June 17, 2022 by tblake05 Link to comment Share on other sites More sharing options...
NYCandyMaN Posted June 17, 2022 Share Posted June 17, 2022 just the numbers alone dont seem realistic, 750 per? week, month?? each machine, or both combined? for 9k, better have some really new machines in there or better be really producing that volume, or the owner just feels that the machine value has not gone down and keeping it that high to cover the cost of the machines bc the locations are not making anything... or the machines are crappy, but do a volume, and maybe too much volume for the owner to handle, if each machine took 375 products to sell per month, that about $100/week, i doubt that a car dealership and a assisted living place will do that much unless there is nothing around the area, lets say within a block or 2 within the location. many people are now getting delivery services for food and stuff, so these places better be really busy, prove to me that these machines do that much volume. go for a few fill ups with the owner, or go and sit at each machine for 2 or 3 hours randomly, youll know what they will produce. assisted living place is probably 24/7, but old folks hit the hay by 8 or 9, and are served breakfast lunch and dinner at these places. assume that 1 out of 10 people will buy a product at some point, find out how many residents are at the home, youll know right there if the numbers are real, same for the dealership, no one is buying cars! at least not like they used to, so sales will be down, someone tried to sell me locations with pre-covid numbers, i told them to go see a monkeys uncle, i want todays numbers, and ill allow 6 months back. Link to comment Share on other sites More sharing options...
putrevus Posted June 18, 2022 Share Posted June 18, 2022 (edited) What is fair value for a location. We have a location with 7 machines it does between $5.5K to 6k per month. Two BevMax 4s,, 3 167s, 2 Vendo 721s. All are with credit card readers.We had it for 4 years and it is under contract for another 3 years. Edited June 18, 2022 by putrevus Link to comment Share on other sites More sharing options...
AZVendor Posted June 19, 2022 Share Posted June 19, 2022 6 to 12 month's gross depending on quality of machines, prices and commissions. Why would you sell a location that good? Link to comment Share on other sites More sharing options...
putrevus Posted June 19, 2022 Share Posted June 19, 2022 5 hours ago, AZVendor said: 6 to 12 month's gross depending on quality of machines, prices and commissions. Why would you sell a location that good? We cannot keep up with the pace. It is taking too much of our time. Link to comment Share on other sites More sharing options...
AZVendor Posted June 19, 2022 Share Posted June 19, 2022 Isn't that why you got into the business? Most vendors would give a right arm for an account like that. Taking too much time from what? You're in vending, man, it all takes time. Good luck to you if you only want a part time, lazy days, take it easy, vending route. That gets you 2 cases per week accounts and stale snacks while you still have the same repairs and operating costs. Dump your other accounts and keep this one. Link to comment Share on other sites More sharing options...
tblake05 Posted June 19, 2022 Share Posted June 19, 2022 4 hours ago, putrevus said: We cannot keep up with the pace. It is taking too much of our time. Where are you located? Interested if it’s Central MN. Link to comment Share on other sites More sharing options...
putrevus Posted June 19, 2022 Share Posted June 19, 2022 2 hours ago, AZVendor said: Isn't that why you got into the business? Most vendors would give a right arm for an account like that. Taking too much time from what? You're in vending, man, it all takes time. Good luck to you if you only want a part time, lazy days, take it easy, vending route. That gets you 2 cases per week accounts and stale snacks while you still have the same repairs and operating costs. Dump your other accounts and keep this one. I am an software engineer by profession. I got into business due to healthy vending. Quickly realized that was a scam. Didn't want to leave business as a failure so put in lot time to make it a success , I did go to 75 plus machines. Then realized business is not scalable or resalable and is taking way too much of my time. My time was worth much more spending somewhere else. Then covid happened, have sold all but three locations. They all have 7 machines each. Link to comment Share on other sites More sharing options...
putrevus Posted June 19, 2022 Share Posted June 19, 2022 1 hour ago, tblake05 said: Where are you located? Interested if it’s Central MN. NY Link to comment Share on other sites More sharing options...
tblake05 Posted June 19, 2022 Share Posted June 19, 2022 Bummer can’t blame me for trying! Link to comment Share on other sites More sharing options...
AZVendor Posted June 19, 2022 Share Posted June 19, 2022 Silly to make the kind of money an engineer makes and then try a side hustle. What's the point of that? Well, I guess you found out. Link to comment Share on other sites More sharing options...
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