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Which option seems better


s.weir

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Hello,

So I am looking for advice from you more experienced full line operators who have been at it for a while.  I am getting back into full line vending in my new city and I was wondering which of the following options seems better:

3 Antares Combo Machines with coin changer on the side for $6000.  They are placed in 2 different industrial plants and combined make an average of $800 per month.

or

using the $6000 to buy 3 or 4 electric machines and just have a locator find the locations for me.

On one side I have locations and machines and they make a steady profit that is predictable (first option).  On the other hand if the locations work out from a locator I have a way better deal and nicer machines (option 2).  However with option 1 there is alot less risk involved and a fair bit less hassle, but option two has higher potential pay off (and much higher potential loss).

Your opinions would be greatly appreciated.  :)

Thanks,

Scott

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Tell him if he wants money the machines will make next year to keep them. Other wise he can sell them to you now. :)  -- Tell him you buy equipment. Not locations. Just my opinion.

Mike

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I would take the 6k and buy 6 soda machines and locations.

Depending on where you buy the machines, you might be able to get 8 soda machines on location.

I would also buy honor boxes(cost less than $10 ea) and put them with the locations(not ones with public access). Then buy snack machines for the locations that are producing.

I bought a route with 3 locations 2yrs ago, I still have 1 of them. I paid for the machines, not the locations. for $7k i got 3 soda machines, 2 satilite soda machines, 5 snack machines, 4 cold food satlite machines and a 97 van.

I would rather put that money into 6-8 machines and locations than 2 locations and crappy machines. With eddies prices for soda machine locations, you can always move them is they are not producing.

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Yeah those are strong points.  And it's true I could even buy 3 machines, pay a locator and if it doesn't perform I have money to replace the locations.  Would you suggest putting pop machines in then snack machines if they produce like you said or dealing with purely combo machines?

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I agree 6K is too high for the location with the Antares machines.

I also don't know a vendor who would be willing to let a 10K a year account go for under $4K.  Yes you have to figure the value of the machines but the revenue stream is of value as well.  If the revenue isn't important than someone needs to school me because I read on here all the time about buying for 60% of gross sales, etc.

Seems like both buyers and sellers want to play whatever side fits the situation- when the revenue side fits the bill they want to go by gross sales.  When that isn't working in their favor they go the equipment value route.  So which is it?

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  • 2 weeks later...

Well after much deliberation I have almost made my decision.  I will be viewing the machines and more importantly the locations tommorow  (the antares) and will be making my decision then.  I think I will probably get them because while they are very over priced, I know their stats and they seem like a good base to start off of.  From there I will be following this forums generally kept standard and be using locators and locating myself better machines I bought at good prices.

Thanks,

Scott

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It is expesive for that equipment, but it sounds like a good start. I have found that anytime an Antares machine is replaced with normal full size equipment your sales will jump up. I would shoot for a <5k offer. As soon as the equipment pays for itself I would upgrade the best account to full size equipment. Then look at the increase you see in sales to see if it justifies upgrading the rest.

JD

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So I did buy them and I was happy to see they were very clean and well maintained as well as in secure, clean busy locations in close proximity to one another.  It sounds like the one in the plant portion of the building is almost empty or close to it every time it is serviced (every two weeks) which proves the sales for that location the selller was quoting.  I also talked to some of the workers and it sounds like they liked the machines and they worked well which is good.  If i replace one of the three locations in the future it will be that one since I think that could be a really good money maker.

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