bostonvendor27 Posted April 22, 2010 Share Posted April 22, 2010 I have an a chance to buy an established route from another vendor in my area. I spoke with him on the phone and he seems like a reasonable guy with a lot of knowledge about the business. He wants 1.5 times the yearly income from the location. Example: if the locations makes 10 a month then he would want 150 for the location. This also includes the machine , product, and money that is in the machines. Any thoughts or suggestions ?? Link to comment Share on other sites More sharing options...
amc-vending Posted April 22, 2010 Share Posted April 22, 2010 what kind of machines are they ?? Sounds high to me and it will take you almost 3 years to get your return back. best rule of thumb I use what would the machine cost me (used ) and for lcoating it myself. If it was a really good location I would pay some more but not 1.5 years gross. A 10.00 a month location - you would want to relocate anyways to a better location. Link to comment Share on other sites More sharing options...
Hillbilly Posted April 22, 2010 Share Posted April 22, 2010 3 points to make here. 1 If the location does 10.00 per month that would be 120.00 per year and 180.00 for the location if he want 1.5 times annual sales. 2 If you buy your own machine and locate it yourself, how long would it take you to break even? It would take 18 month's if you buy his location that does 10.00 per month. 3 Can he back up the collections with documentation? Link to comment Share on other sites More sharing options...
JPVendCo. Posted April 22, 2010 Share Posted April 22, 2010 I think I would bail on this deal. or just tell him straight up he is out of line. I was talking to a guy about picking his route up, and he was way off. I told him so, and he immediately lowered his asking price. I still didnt buy it. Link to comment Share on other sites More sharing options...
BorderJerry Posted April 22, 2010 Share Posted April 22, 2010 Most routes out here in the West are priced at 10 months gross sales. These are routes that are spread out and require some overnight service trips. A route located within a 40 or 50 mile radius should be priced a bit higher, imo... This is for commercial bulk routes, and there were 3 or 4 listed in Playmeter (I think) want ads a few months ago. Jerry Link to comment Share on other sites More sharing options...
joebob051977 Posted April 22, 2010 Share Posted April 22, 2010 I about choked on a gumball when I saw that price.....Run! 10 months gross is a pretty decent number to go by. I'd insult him and offer $50 a location and my phone number. There aren't that many people out there looking for vending machine routes. Link to comment Share on other sites More sharing options...
bostonvendor27 Posted April 22, 2010 Author Share Posted April 22, 2010 I feel the same way! Thanks so much for the feedback guys!!!! I don't blame the guy for trying to cash in but it just sounds like too much$$$. I'll make him an offer and see what happens??? Link to comment Share on other sites More sharing options...
BorderJerry Posted April 23, 2010 Share Posted April 23, 2010 I should have added that the gross sales are verified by receipts and bank deposits...and that you can see the complete books, and get an idea of free cash flow... Jerry Link to comment Share on other sites More sharing options...
JEREMYTINA Posted April 24, 2010 Share Posted April 24, 2010 I about choked on a gumball when I saw that price.....Run! 10 months gross is a pretty decent number to go by. I'd insult him and offer $50 a location and my phone number. There aren't that many people out there looking for vending machine routes. A man after my own heart. Offer the $50 a location including machine. Try and get it for what a used machine would cost and maybe $25-$35 a location. That seems to be fair. You never know how the route has been run over the last few months as he has given up on keeping it going. Link to comment Share on other sites More sharing options...
bostonvendor27 Posted April 25, 2010 Author Share Posted April 25, 2010 I gave him an offer and he rejected it.. He posted his route on the boston craigslist. 50 locations earning 1,000 a month for $25,000!!!!! Link to comment Share on other sites More sharing options...
JEREMYTINA Posted April 25, 2010 Share Posted April 25, 2010 $2500 is more in the ball park....For 25K I'd be more than happy to sell 50 of my own machines. Link to comment Share on other sites More sharing options...
JPVendCo. Posted April 25, 2010 Share Posted April 25, 2010 I will give you ALL my locations for 25K......cash only. Link to comment Share on other sites More sharing options...
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