sbishop Posted September 8, 2009 Share Posted September 8, 2009 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 Link to comment Share on other sites More sharing options...
joebob051977 Posted September 8, 2009 Share Posted September 8, 2009 If it was me, I would try about $6750. This figure is 12 months x $800 x 70% (COGs = apprx 30%). I don't know where everyone else will come in, but that is me. I like my ROI to be 1 year or less. Link to comment Share on other sites More sharing options...
cavity Posted September 8, 2009 Share Posted September 8, 2009 I would probably offer a little less depending on type of machine. That # above would come out to @ $112 per machine, maybe a bit high. Link to comment Share on other sites More sharing options...
Jax Snacks Posted September 8, 2009 Share Posted September 8, 2009 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. Jax Link to comment Share on other sites More sharing options...
sbishop Posted September 8, 2009 Author Share Posted September 8, 2009 Jax, 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. Link to comment Share on other sites More sharing options...
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