Mike C Posted July 8, 2022 Share Posted July 8, 2022 Need some help here. I am interested in buying an existing vending route (I am new to the business). 1 snack and 1 soda machine (Crane 159, Vendo 720, don't know the age). Both are bringing in $300 per month and the owner wants $5,000 for the route. I think this might be too high. How can I value the route to offer a fair price? Link to comment Share on other sites More sharing options...
AZVendor Posted July 8, 2022 Share Posted July 8, 2022 6 to 12 months gross if prices, machines and commissions are good for you. This does $3600 so there's your value. Some locations are only worth the value of the machines which is about $2-3K. PS: This is just a location, not a route. A route is all the machines you run, total. Link to comment Share on other sites More sharing options...
Mike C Posted July 8, 2022 Author Share Posted July 8, 2022 Wow, thank you sooo much for the information! So I would be running 1 location if I bought this one with 2 machines. Good to know. I will be signing a non-disclosure agreement to view the total financials. These machines are located in a manufacturing warehouse, so I don't know if any, if there is an agreement to give up a commission of the sales. What else should I consider before I buy? If I am just buying the machines, am I liable for any taxes from the business? Link to comment Share on other sites More sharing options...
AZVendor Posted July 8, 2022 Share Posted July 8, 2022 This smells like someone is selling off their worst location or maybe their only location. The sales are bad and there isn't much profit to be made from it. The machines are good and worthwhile but I wouldn't give more than the $2500 they are worth, even if they can substantiate the sales figures. The machines definitely need to be relocated to a better account. This account should probably only have a single soda machine and be cans only. There are probably stale products in the snack machine or they keep the inventory low to try avoiding stales. There is no way to avoid them in a slow account. You won't be liable for anything except paying for the machines. If they do pay a commission, which they shouldn't, then you just need them to prove that the commission is current. I would bet they won't take $2500 for it since they are asking $5000. Link to comment Share on other sites More sharing options...
Mike C Posted July 8, 2022 Author Share Posted July 8, 2022 Wow, thanks again. I am going to take your advise. I believe exactly what you are saying here. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now