Newbie - to buy or not to buy???

[ABCVending]

Hola,

Have read pages & pages of info here (great site) - maybe too much info, was looking into bulk vending as maybe a way to supplement my income (and maybe build up a decent Summer/After school job for my kids that doesn't involve flipping burgers)

Like the business model of single machine type (NW or Oak) and single product (gumballs)  - although think that oversaturation in my area (Seattle Metro) is a big problem, probably would entail buying a sh@tload of existing routes, dumping the crappy Vendstars (no offense - just mean that I would swap my equip and sell off the triples on EB/CL) and dropping the slow locations.

I have spoken with a few current route owners, (got names & numbers off of existing machines in location I have come across) - quite a few are intersted in selling all/part of their routes - testing the waters, did quite a bit of low-balling using calculations off this site (great site) basically offered them CL value for their machines + $25 - $35 for location.  Some of them told me to take a flying leap, others were interested, have one old guy that wants to retire, has 70+ single/doubles in various locations (don't think he even knows exactly) most of them are Beavers, I offered him $50 per head for 70 in location - first he ran me off swearing up a blue streak, but has now re-contacted me trying to get $75 per - told him I'd get back to him.

Anyway, that is a cash outlay of $5,250 ish (call it $5,500) - for all I know I could get kicked out of the locs the day I buy.

Now I have another guy with 2 AP 7600's & 2 sodas (DN & USI I think) in two locs that he wants $4800 for....(+ I have another guy also with AP's & Sodas that I am REALLY intersted in) but for comparison sake, the gross from these two routes is really close.

So, could go the bulk route & make maybe $490 gross per month (70 heads x $7 month average) or start fulline & get close to the same (guy claims $6000 - $7000 gross annual on the 4 full size)

Thoughts?

[davidsurvz]

Sounds like you are taking the right approach to  this. I would think 70 bulk machines would do alright. Even if 40% of the machines produce below $10 / mo. you should be in good shape. 70 machines in a large metro area should easily produce $490 / mo. ++ It obviously depends on the locations but I would think your average would be at least a little better than that for 70 machines. (Especially since some of the machines are doubles.)

I could be completely wrong but I really think 70 machines would produce more than $490 / mo. Did you ask the guy what his average gross revenue is per month?

[joebob051977]

This is a question that can only be answered by you and your ability to make a time and space commitment. Are you willing to fill up the full size machines weekly? Do you have the space to store all the pop and snacks? Would you prefer to store a box or 2 of gumballs and several bags of candy instead. Would I rather go to lots of locations or just a few?

For me this was a no brainer. I do not have the time to invest in full-line vending, nor the space. I can grow without renting a truck to drop off machines. Legally, and logistically bulk seemed a better fit for me. I'm not trying to sway in you either direction. Bulk vs. full-line is almost like comparing apples to oranges. Oranges may be sweeter than an apple, but you have to peel an orange to get to the sweetness and with apples...just take a bite. Both bulk and full-line have their ups and downs. To me, it's not about the better deal, it's about what interests you and makes the most sense for your situation?