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route valuation


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There is a guy selling his route locally. Before I tell you his asking price, I wanted to get you thoughts on the value of the route.

60 double machines. I am not sure what type the are. I think the have the plastic bases. They guy bought them for $17k over 4yrs ago(yes he paid too much and is asking alot less)

50 machines are on location they are serviced every 5-6 weeks and gross between $800-$1000

they all vend pm&ms and skittles(had runts untill Sam's stopped carring them)

So how much would you pay for this route? It would be in areas that you already have locations and easily you can add it to your route

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I would NEVER base a route's value on the stated monthly gross for one simple reason - you can NOT trust the seller or verify his numbers!  Always base your offer on the asset value of the equipment (fair market value) plus a reasonable location fee for 70% of the locations.  If you pay more, you are taking a bigger risk.  Is the risk worth it?  Depends on other factors such as type and quality of equipment, type of locations, geographic area of locations, commission, charity, etc.

This topic has been hashed out pretty good and I would encourage you to review the back postings as well.


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I agree on your basis of vaulation. I would use the 50 locations and figure it like this:

60 doubles x $50 = $3000

35 locations x $50 = $1750

That comes to $4750.

This is where i might differ from others. If the owner is willing to finance the sale, then I would be willing to pay more if the cashflow is there. In this case I would need to figure if the route would generate enough revenues to justify a monthly payment.

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