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Truth or Bull?


NinnJinn
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My guess is that he is blowing smoke.  or he is about to lose a lot of accounts!  Anyways, it just doesn't add up.

Craigs List:

This is a well established vending business consisting of about 50 accounts and 90 machines total. It's gross sales bring in about 140,000 to 150,000 dollars annually. Included with the business is a 1995 Chevy box truck, a 1987 Chevy pickup with a lift gate for hauling machines, all inventory presently owned, as well as numerous repair and replacement parts for the machines. You spend about 20 to 25 hours a week running the route and clear about 600 to 800 dollars a week. The reason I have decided to sell this business is to go back to school to pursue a degree in business. This would be a great business for a family that would like to get their kids involved in helping out for some extra money.  ( He also listed a phone number but I left it out.)

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Actually the numbers are plausible. A good route should be able to run 250K a year fulltime. So 140-150 on 25 is realistic. However he fails to mention that as owner operator there is also time for paperwork, loading and cleaning truck and other things a one man shoe has to do.

600-800 week also works if prices and COGS is in proper ratio. My guess closer to the 600 number. Thats less than 50K a year, before personal income taxes.

Also fails to mention that unless this is a cash purchase the debt payment will eat into the weekly pay significantly. So depending on price and terms a buyer could wind up working for free until the debt is retired.

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He says what it grosses yearly, and what you'd take home weekly, but he neglects to mention the sale price... or terms of the sale.

Seems like a pretty critical piece of information to conveniently leave out.

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this is funny  this guy is in my area  he bought  his route from a guy that retired  as a matter afact i got one of his locations because he couldnt keep  it  serviced  as far as sales i dont know  but i do know the guy that sold it to him wanted $185,,000.00  for it  it had 190 machines out    so there is some truth but im not sure how much

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My guess is that he is blowing smoke.  or he is about to lose a lot of accounts!  Anyways, it just doesn't add up.

Craigs List:

This is a well established vending business consisting of about 50 accounts and 90 machines total. It's gross sales bring in about 140,000 to 150,000 dollars annually. Included with the business is a 1995 Chevy box truck, a 1987 Chevy pickup with a lift gate for hauling machines, all inventory presently owned, as well as numerous repair and replacement parts for the machines. You spend about 20 to 25 hours a week running the route and clear about 600 to 800 dollars a week. The reason I have decided to sell this business is to go back to school to pursue a degree in business. This would be a great business for a family that would like to get their kids involved in helping out for some extra money.  ( He also listed a phone number but I left it out.)

splitting the difference 145,000 / 90  machines / 52 = 30 per week per machine

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