Should I Even Bother?

[Doug D]

Hello group!

This is my first post although I've emailed a couple group members privately , and they were gracious enough to answer my questions.I'm looking to get into this business & have read just about every post on this website. It has been very informative.

Checking around my neighborhood ( Suffolk County NY) I saw an empty machine in a pizzeria (Vendstar of course).I called the number on the machine and the owner said that yes , he was interested in selling the route, 11 placed &  an additional 13 machines in his garage. He said that he was the second owner of the route & had been neglecting the route & was looking into selling. He asked for $2500 total or $1000 for the located machines only. I would never pay that price & I'm sure he is negotiable. I believe the route is a few years old.

The located accounts are commission accounts, in which he gives the store owners 20% of the gross. I intend to do the charity approach & can't see a store owner allowing a switchover from commission to now $0.

My question to the group is, I didn't intend to use Vendstar machines & didn't intend to do commissions, should I even bother? 20% of a $15 gross  is $3  , then minus the cost of candy, it doesn't seem like much would be left for profit.

I was thinking of offering $1000 or less for everything & see what he says. Either that or just buying machines & going locating on my own.

Whats do you guys think & what would you offer if you made an offer?

Thanks ahead of time.

[Lucero]

Hello group!

This is my first post although I've emailed a couple group members privately , and they were gracious enough to answer my questions.I'm looking to get into this business & have read just about every post on this website. It has been very informative.

Checking around my neighborhood ( Suffolk County NY) I saw an empty machine in a pizzeria (Vendstar of course).I called the number on the machine and the owner said that yes , he was interested in selling the route, 11 placed &  an additional 13 machines in his garage. He said that he was the second owner of the route & had been neglecting the route & was looking into selling. He asked for $2500 total or $1000 for the located machines only. I would never pay that price & I'm sure he is negotiable. I believe the route is a few years old.

The located accounts are commission accounts, in which he gives the store owners 20% of the gross. I intend to do the charity approach & can't see a store owner allowing a switchover from commission to now $0.

My question to the group is, I didn't intend to use Vendstar machines & didn't intend to do commissions, should I even bother? 20% of a $15 gross  is $3  , then minus the cost of candy, it doesn't seem like much would be left for profit.

I was thinking of offering $1000 or less for everything & see what he says. Either that or just buying machines & going locating on my own.

Whats do you guys think & what would you offer if you made an offer?

Thanks ahead of time.

Doug,

If I were analyzing the deal I would look at the net that he's getting, and offer based on that.  A charity location generating 12/mo sales is no better than a comm location making $15/mo in sales and a 20% cut.  I think you have the right attitude with wanting to offer less... I would just pretend the commission doesn't exist, look at the net, and base your offer off of that.

-Lucero

EDIT:  OK not entirely true, the charity does have an advantage because your cost to buy the $12 in income is higher with the commission.  However, the difference is somewhat slight :-D

[Doug D]

Thanks Lucero.