HopeVendor Posted March 5 Share Posted March 5 I decided to sell one of my locations. I have a Vendo 721, Royal G3 550 and Royal G3 804. I have Nayax Credit Card Readers on every machine. They are in a State Department of transportation facility, there are a cluster of three buildings, and there’s a drink machine in each building. I’m trying to figure out how much to sell this location for. Right now this location does $3700 in net profit per year. One online source said to sell it for 4X that amount. Others say 2X or 3X. I’m guessing I would also add in the price of the machines. I think each machine is worth about $1500 so that’s $4500 right there. Obviously, I want to get as much as I can, but I also want to be realistic about what someone would buy it for. Thx! Link to comment Share on other sites More sharing options...
HopeVendor Posted March 5 Author Share Posted March 5 3 minutes ago, HopeVendor said: I 3 minutes ago, HopeVendor said: Link to comment Share on other sites More sharing options...
HopeVendor Posted March 5 Author Share Posted March 5 (edited) 4 minutes ago, HopeVendor said: Edited March 5 by HopeVendor Link to comment Share on other sites More sharing options...
AngryChris Posted March 5 Share Posted March 5 3x 3700 = $11,100. 4500 + 11,100 is 15,600. Imagine paying the price of a very nice used car to have locations that only do $3700/year. Or if you did that 10 times, you could pay $156k for a job that pays 37k/year. Now ask yourself how fair that sounds. The standard go-to for evaluating location values is by using gross sales, not net profit, because your "net profit" may not be the same as someone else's. It's subject to all costs. You might work out of your car and not count the costs or they may be far cheaper than for someone of a larger scale that has overhead. If you are taking 50% of sales as "net profit" for example and your location is doing $7400 collectively or about $150/week combined, you have to understand that that averages to $50/week per machine which isn't good. So it's not a high volume location. It's a rather low-volume location that you are considering asking upwards of $15k for. 50%-100% of gross sales is the fair assessment. If you are doing $7400/year in gross sales for example, then $7400 is about the max it's worth. I'd say $6k is about the fairest price because someone else might get their money back in less than 2 years. Link to comment Share on other sites More sharing options...
AngryChris Posted March 5 Share Posted March 5 Actually, now that I see your pictures, they all look like leased machines and might be owned by the bottler. If so, they aren't yours to sell unless they are off the books. Link to comment Share on other sites More sharing options...
HopeVendor Posted March 5 Author Share Posted March 5 2 minutes ago, AngryChris said: 3x 3700 = $11,100. 4500 + 11,100 is 15,600. Imagine paying the price of a very nice used car to have locations that only do $3700/year. Or if you did that 10 times, you could pay $156k for a job that pays 37k/year. Now ask yourself how fair that sounds. The standard go-to for evaluating location values is by using gross sales, not net profit, because your "net profit" may not be the same as someone else's. It's subject to all costs. You might work out of your car and not count the costs or they may be far cheaper than for someone of a larger scale that has overhead. If you are taking 50% of sales as "net profit" for example and your location is doing $7400 collectively or about $150/week combined, you have to understand that that averages to $50/week per machine which isn't good. So it's not a high volume location. It's a rather low-volume location that you are considering asking upwards of $15k for. 50%-100% of gross sales is the fair assessment. If you are doing $7400/year in gross sales for example, then $7400 is about the max it's worth. I'd say $6k is about the fairest price because someone else might get their money back in less than 2 years. Thanks a lot for your very quick and very informative response Angry Chris! By no means was I thinking 15k. I was starting to think around 9k, but it sounds like even that is probably too high for what you are saying. i’ve only had the location five months, and so I just extrapolated the annual net profit from what I’ve made so far. As I talk to potential buyers, I’ll just simply let them know the Gross that I’ve done so far. The location is getting better with each passing month thankfully as more and more people get used to the machines being there. Link to comment Share on other sites More sharing options...
HopeVendor Posted March 5 Author Share Posted March 5 11 minutes ago, AngryChris said: Actually, now that I see your pictures, they all look like leased machines and might be owned by the bottler. If so, they aren't yours to sell unless they are off the books. I paid cash for all three of these through Facebook marketplace. I assumed they were out of circulation via Coke and 7-Up for many years Link to comment Share on other sites More sharing options...
AngryChris Posted March 5 Share Posted March 5 24 minutes ago, HopeVendor said: Thanks a lot for your very quick and very informative response Angry Chris! By no means was I thinking 15k. I was starting to think around 9k, but it sounds like even that is probably too high for what you are saying. i’ve only had the location five months, and so I just extrapolated the annual net profit from what I’ve made so far. As I talk to potential buyers, I’ll just simply let them know the Gross that I’ve done so far. The location is getting better with each passing month thankfully as more and more people get used to the machines being there. This isn't directed at you personally but the world is flooded by entities that get subpar locations and try to sell them for top dollar as though they are worth it. Unless you have a contract, a new buyer could lose that location instantly and now all they have left are 3 used soda machines which might be owned by coke and 7up. Link to comment Share on other sites More sharing options...
HopeVendor Posted March 5 Author Share Posted March 5 7 hours ago, AngryChris said: This isn't directed at you personally but the world is flooded by entities that get subpar locations and try to sell them for top dollar as though they are worth it. Unless you have a contract, a new buyer could lose that location instantly and now all they have left are 3 used soda machines which might be owned by coke and 7up. So the 6 vending machines that I purchased over the past 10 months have all been used through Facebook marketplace, basically finding really good deals, fixing them up a little bit and putting them on location. Can you please explain to me how to make sure a machine is not owned anymore by Coke or Pepsi, and is free and clear so to speak? Link to comment Share on other sites More sharing options...
cvending Posted March 5 Share Posted March 5 There may be asset tags on the machine by which the bottlers track their equipment. There shoiuld also be mfg. data plates on the hinge side of the door. Serial number will be on them. Call your local bottler and ask them if they have them on their books. Link to comment Share on other sites More sharing options...
AZVendor Posted March 5 Share Posted March 5 One year's gross is a good price for it - period. If that doesn't cover the value of the machines then the price would be the value of the machines. Flipping locations and not screwing the buyer is key here. Why would you be selling them anyway? Are you just going to be a flipper? Link to comment Share on other sites More sharing options...
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