jb5580 Posted October 6, 2009 Share Posted October 6, 2009 I have a vending route I'm looking at and wanted some expert advice so here it is: 8 machines in 7 locations(3 antares combo mechanical machines, 2 Sega Victory Combo Series machines, 2 Genesis Combo machines, and 1 frozen machine). All machines are less than 3 years old and working fine. All locations are secure. This can be verified and good money makers. The inventory in the machines is around $1100.00 and change in machines is $400.00 all which would come with purchase. The money he says is verifiable through his tax returns over the last 2 years as $20,000 gross = or -and around $10,000 net + or - per year. $16,750.00 is his asking price. I'm trying to get him to owner finance for like two years. The only reason he's getting out is because he reinlisted in the navy and is getting transferred, otherwise he would keep it. Is this an okay deal? Is this equipment decent? Any input would be greatly appreciated. Thanks! Link to comment Share on other sites More sharing options...
Poplady1 Posted October 6, 2009 Share Posted October 6, 2009 The machines are not good quality machines. They may be earning that much but they won't hold up. Between break downs and equipment problems in the next couple of years you will regret spending that much money. The life expectancy on this type of equipment is average 5 years compared to 40 years for Dixie Narco machines. Each machine is worth about $500 used. Not sure about that food machine. That unit doesn't seem to fit the mix of equipment. When you say all locations are secure, do you mean they have contracts? Don't think a contract makes a location secure. Several things can happen, businesses close (a lot these days) and no contract stands up against poor service or faulty equipment. Over the years I have learned that a small to med size business is more likely to break a written agreement than a large company. Try to spend your money on good equipment. This is my two cents... Blue Moose Link to comment Share on other sites More sharing options...
mxer518 Posted October 6, 2009 Share Posted October 6, 2009 I agree 100% with poplady on this one, I have been down that road and have made a mistake like the one you are describing. The machines may be working the day you buy them but will be breaking down a lot faster than you may think, the parts are hard to get and are way to expensive for that they are. I would also stick to the workhorse proven reliable pieces of equipment, I bought a route like this one a few years back and regret buying it every day I have to service it. Link to comment Share on other sites More sharing options...
jb5580 Posted October 6, 2009 Author Share Posted October 6, 2009 Thanks alot, thats the kind of info. I needed as I'm not familiar with vending equipment yet. He says he spent 40,000 on this equipment new, does that sound right? You don't think it will hold up huh? Should I talk him down and if so to what price, or not buy it at any price? Link to comment Share on other sites More sharing options...
mxer518 Posted October 6, 2009 Share Posted October 6, 2009 He is a real sucker if he paid 40k for that stuff because he could have bought the top of the line stuff and saved about 20K. It sounds like he was a victim of the Biz op schemes out there where they get people to spend 8k on an Antares that should be valued new at no more than 500$. If he can move on the price I would go from there but if he is not willing to then just let it go because it will not be worth the time and frustration when the machines have break downs. He will eventually realize that he is not going to get the money he wants for it, leaver him your number and have him give you a call when he is ready to come down on the price. Link to comment Share on other sites More sharing options...
mission vending Posted October 8, 2009 Share Posted October 8, 2009 I'd call him up and ask him how much is he going to pay you to take this headache off his hands. Seriously, that is way to high for that equipment. As poplady said contracts don't secure the location. Vending like many businesses is a SERVICE business. As such, you've got to recognize that sooner or later, no matter what you will eventually lose every account you have. It might be your fault, it might not be your fault. I've still got one of the first locations I ever got in this business and I've had others that didn't last 30 days. Locations close, move away, new management, new ownership and the list goes on. So don't get too caught up in the value of the location, they come and go, look at the value of the equipment on e-bay to get an idea of what you should pay if you decide to go through with this. Link to comment Share on other sites More sharing options...
jb5580 Posted October 8, 2009 Author Share Posted October 8, 2009 Thanks for the advice! The guy said he didn't want to owner finance anyway which in the end was good for me. He probably knows if he owner finances he'll have to deal with a unhappy camper down the road. By the way, I've seen other offers on my local craigslist offering a Sams club combo machine on location for $2500.00, making $70.00 a week. Are all of these Sams club machines junk? Link to comment Share on other sites More sharing options...
mxer518 Posted October 8, 2009 Share Posted October 8, 2009 in my opinion all combo machines are junk, I won wayyyyy to many of them and wish I had never got myself involved in them because all they junk and give me sleepless nights and headaches. You need to call that guy back and let him know he will NEVER sell his route if he is not willing to owner finance with that type of junk machines, for the most part the only other way to get the financing would be through a leasing company and I know personally non of they would waste their time or float the risk on machines of this nature. you should feel good about walking away from this deal, you are the true winner here. Make sure he has your number when he is willing to sell them for 250$ each just got pass the headache alone, at that point take them and sell them on eBay and replace they with good full size machines and reap the rewards of doing so. Link to comment Share on other sites More sharing options...
coinvestor Posted October 9, 2009 Share Posted October 9, 2009 I agree with mixer. Nicely explain to him why the equipment is not worth what he is asking, and leave him your number. Mixer, your running 140 + full line machines by yourself? JD Link to comment Share on other sites More sharing options...
mxer518 Posted October 9, 2009 Share Posted October 9, 2009 I agree with mixer. Nicely explain to him why the equipment is not worth what he is asking, and leave him your number. Mixer, your running 140 + full line machines by yourself? JD When you threw that number out there it made me realize I need to update that some more, with picking up more soda locations last week. For the most part to answer your question I run the Full Line stuff on my own about 4 days per week. But I do have hired help for some of the other vending that I am involved in. I am currently looking to hire another full time person so that I can spend less time vending and more time taking care of more important stuff with the business. Finding good help especially in this industry is pretty few and far between. Link to comment Share on other sites More sharing options...
jb5580 Posted October 14, 2009 Author Share Posted October 14, 2009 Okay, Ive got another in my area I wanted to run by you experts, Thanks in advance: One Dixie Narco 8 selection drink machine. One 34 selection snack machine- Savamco model #7200/39 Both on location making $75.00 per week. Asking price: $4000.00 What do you all think? Link to comment Share on other sites More sharing options...
mxer518 Posted October 14, 2009 Share Posted October 14, 2009 Way to much money, if they say 75$ per week I would guess the number is a lot more close to 50$ and at that rate it would be a 20 month amortization. And if you are operating at about 50% net it would be nearly 40 months to break even on this deal, and that's saying nothing ever breaks or if the account is still around in 40 months. Link to comment Share on other sites More sharing options...
jb5580 Posted October 14, 2009 Author Share Posted October 14, 2009 Thanks mxer, what do you think would be a reasonable offer to this guy? Link to comment Share on other sites More sharing options...
jb5580 Posted October 16, 2009 Author Share Posted October 16, 2009 How about this one guys. I'm just trying to see if all of these are wastes of time: a mechanical combo machine 2 years old 9 snack on top 6 drinks below on location making $25 net 0n a slow week and $60.00 to $100.00 net on a good week. So probably like $175.00 to $200.00 a month net on this if the numbers are correct, right? He's asking $1400.00 Obo. Could I work with this without to much pain or do you think just don't go their with a mechanical combo? What If I offer him $1000.00? Is it worth that with location? Make my money back in six months? the link is : http://norfolk.craigslist.org/bfs/1417276550.html Link to comment Share on other sites More sharing options...
mxer518 Posted October 16, 2009 Share Posted October 16, 2009 Don't waste your time on a mechanical machine, as for the other deal offer half of what he wants as best a max. Link to comment Share on other sites More sharing options...
jb5580 Posted October 16, 2009 Author Share Posted October 16, 2009 Thanks mxer for the info., JIM Link to comment Share on other sites More sharing options...
jb5580 Posted October 28, 2009 Author Share Posted October 28, 2009 I'm still looking for a small route, How does this one sound: 2 snackmarts, and 2 drink machines(look to be dixie narco's). 2 locations, gross $525.00 to $600.00 a month, locations supposedly happy and secure. commission on 3 of the machines $40.00 a month. 2 drinks and 1 snack are on the resort oceanfront here in Va. Bch. which I know is very busy with tourists. Asking $4000.00 cash. Link to comment Share on other sites More sharing options...
jb5580 Posted October 28, 2009 Author Share Posted October 28, 2009 any opinions out their on the above route I'm thinking about? Link to comment Share on other sites More sharing options...
Poplady1 Posted October 28, 2009 Share Posted October 28, 2009 Offer him $3500 and go with it. If that is a Snack Mart USI machine, its a good deal with two drink machines (hopefully with dollar bill validators and if possible multiprice machines) on site. Just be sure everything is working. Test vend each selection, check the compressors. Actually open the door and look at them. Are they really dirty, is the compressor fan working, do the drinks feel cold? Run dollar bills thru the validators, check each snack column based on the pricing listed and what it vends for and ask him for manuals for each machine. He might have some spare coin mech or validators too. Blue Moose Link to comment Share on other sites More sharing options...
jb5580 Posted October 28, 2009 Author Share Posted October 28, 2009 Thanks Poplady, I'm going to get together with him in the next couple of days and visit the location. I will take your advice and text vend the machines and look them over(don't really know what looks good or bad as I'm a band new vendor) for dirtiness, etc. As for the price, He has dropped it $250.00 from his asking price already when I told him wanted both locations so I think $4000.00 is firm now, is it still pretty good? Link to comment Share on other sites More sharing options...
mxer518 Posted October 28, 2009 Share Posted October 28, 2009 There is no such thing as firm, it all depends on how you can leverage the sale. For example if you have the cash in hand you should have no problem getting him to move 500 more on the price, but also see if he has any extra coin mechs and validators like Poplady was saying, these are a must, especially once you get larger, you will not be able to afford to have a machine break down. Link to comment Share on other sites More sharing options...
coinvestor Posted October 28, 2009 Share Posted October 28, 2009 Don't forget to discuss money and product in the machines when you are negotiating price. He may say $3500 for the whole thing is fine, then remind you of the $700 in change and product when its time to close the deal. I like to include product in the offer price then estimate the change balance in the changer when I'm changing out the locks and write a check. However you decide to do it is fine, just make sure that both of you agree on it. JD Link to comment Share on other sites More sharing options...
jb5580 Posted October 31, 2009 Author Share Posted October 31, 2009 Still working on trying to get that route of 4 machines. I've found some others on Cl as well that I'm thinking about. I know most of you said to stay away form Mechanical combo machines but I was thinking of getting this one on location. http://norfolk.craigslist.org/bfs/1441705563.html If I could talk the guy down to $1000.00 it would only take 5 or 6 months to pay off and then maybe I could put different equipment on the location and sell this machine. What do you all think? It's a small enough investment to be somewhat safe don't you think? Link to comment Share on other sites More sharing options...
coinvestor Posted October 31, 2009 Share Posted October 31, 2009 What type of location is it? Do the employees work on site? If it really has 40 employees onsite and all checked out, I would buy it for $1000. Sales would increase with full size machines, but I would wait until you picked up another location or two before adding selections or you would just increase your stale. JD Link to comment Share on other sites More sharing options...
spdydre Posted October 31, 2009 Share Posted October 31, 2009 I am also looking for a small route in houston but I am fairly new at this. Would this be a good price? http://houston.craigslist.org/for/1414469006.html Location 1-drink and snack. Location 2-2 drinks and snack. Location 3-1 drink and needs snack He is asking $5500 for all 3 locations combined and said sales vary from location from $200-$800 a month Link to comment Share on other sites More sharing options...
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