What am I missing here?

[Bocephus]

Why are these Dixie Narco machines so inexpensive?

http://www.chicompany.net/index.php?main_page=product_info&cPath=2_12&products_id=613

Is it b/c they are an older style machine and you can only do cans? I thought most soft drink machines ran $2000 and up.

[mission vending]

A couple of things.....

1. It's a single price machine which while still usable does not have flexibility to add bottle and/or non carbonated drinks

2. It's a "tallboy" 79' tall, also not very desirable, can be very difficult to move through doorways.

[Bocephus]

What is an average size machine?

[s.weir]

Isn't average like 6'?

[Bocephus]

btw, Mission Vending, I have a question for you. I saw an ad on craigslist for a guy who is selling his dixie narco soda machine on location at a section 8 apartment complex for $1900. Says that he grosses between $520-650 per month. Does that sound like a decent deal to you? I have some reservations b/c section 8 is so bad and I do not know yet if he has a cage around the machine. He said it has been at the location for 9 years and has never been damaged and never had any problems.

[Beergut]

Isn't average like 6'?

 

[s.weir]

Ha ha Beergut, I know what your thinking lol  Not what I meant.

[mission vending]

Typical vending machine is 72" tall. Another point is that many location don't like the taller machines, especially in the smaller breakroom the machine dominates the room.

[mission vending]

Section 8 complexes are not necessarily all bad. I would wonder about the statement about never being vandalized or broken into over 9 years though. If it's caged, next to the office or they have 24 hour security then maybe. Take a good look at the machine if someone has tried to get in it you should find pry marks inside the door frame where the door gasket forms a seal against the machine.

If he has good records to document the cash flow, meter readings, commission statements etc. then maybe. It's still a nine + year old machine so even if it's been maintained you could still have some mechanical issues. My first concern is the compressor, yes they can easily last 20+ years but that is under the right conditions, if this machine is in an unaircondtioned space or is exposed to the elements then it likely is nearing the end of it's useful lifespan.

If you feel good about it, then it's about 50% of 12 months profit at 50% COGS at the high end of the price range quoted. Not an unreasonable number. Again that's assuming you can verify sales. If it was me I'd be willing to go to 1000, 1200 tops mainly due to the age of the machine.

[Beergut]

Ha ha Beergut, I know what your thinking lol  Not what I meant.

I know. I was laughing at the possible double-entendre.