mt79vt Posted October 28, 2010 Share Posted October 28, 2010 I've been offered a location in an apartment building with 550 units ranging from studios to 3 bedrooms. None of the units have laundry machines in them. 1 drink and 1 snack machine will be placed in the laundry room. The laundry room has a few flatscreen TVs and a couple tables with arm chairs. Sort of like a lounge. There is no other food/drink option in the building or even in the adjacent buildings. The closest option is a shopping center a few blocks away with a grocery store and restaurants. How do you value something like this? How do I estimate how much I can expect in sales? Also this is an expensive area to live with very high salaries. I think the studios start renting around $1000/month. Thanks in advance! Link to comment Share on other sites More sharing options...
mission vending Posted October 28, 2010 Share Posted October 28, 2010 Could you clarify? Are you buying the location? With or without equipment? or did you secure the location on your own and are trying to make decisions about how much to budget for equipment and sales projections? A laundry room with flat screens definitely is high end. I don't think you will have to worry much about vandalism, they will steal the TV's before they mess with the equipment. The more toward the blue collar side you get the better the sales. In this type of environment you might get better results with a glassfront drink vendor selling bottles, juice, vitamin water, sports drinks, water and even a premium water like Fiji. If they are paying that kind of money in rent then those people will be better educated, more interested and able to spend more on "healthier" drinks, or at least drinks perceived as healthier. Link to comment Share on other sites More sharing options...
mt79vt Posted October 28, 2010 Author Share Posted October 28, 2010 Mission - A third party company is selling the location, which they just contracted. I would pay them for the location, and then supply the drink/snack machine and service them. The property management company has a lot of large buildings in this area, and they contract them out to 1 vendor per building. I've met with the building management and the contract is legitimate. I'm trying to decide if the amount the third party is asking for the contract is reasonable. As you said, I need a rough sales projection or the amount that other people would pay for a similar location. Link to comment Share on other sites More sharing options...
mission vending Posted October 28, 2010 Share Posted October 28, 2010 How long is the contract for? Is it transferrable to you or will they subcontract the location to you? Who will you pay commissions to, the third party or directly to property mgmt? Link to comment Share on other sites More sharing options...
mt79vt Posted October 29, 2010 Author Share Posted October 29, 2010 The contract is transferable and for 2 years. The 3rd party gets an upfront fee and the location gets a commission directly from the vendor. Link to comment Share on other sites More sharing options...
mission vending Posted October 29, 2010 Share Posted October 29, 2010 In my past experiences, this type of situation would sell for somewhere between 400-700 per machine here in my market. What are they asking for it if you don't mind? Link to comment Share on other sites More sharing options...
NinnJinn Posted November 19, 2010 Share Posted November 19, 2010 Hello? Earth calling mt79vt..... Are you out there anywhere? Link to comment Share on other sites More sharing options...
mt79vt Posted November 19, 2010 Author Share Posted November 19, 2010 I took the conversation to PMs with Mission, since it was basically becoming a 2 party conversation anyway... Link to comment Share on other sites More sharing options...
mission vending Posted November 19, 2010 Share Posted November 19, 2010 I took the conversation to PMs with Mission, since it was basically becoming a 2 party conversation anyway... Just curious, never heard back about your final decision, did you get it? Link to comment Share on other sites More sharing options...
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