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looking at new route


amc-vending

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I am looking at this route :

Professionally established vending route, operated since 2003. Fifteen (15) locations. Fifty-four (54) machines, all full size, brand name, very well maintained. Annual sales from last year $121,000, profits around 55%. Start earning money...Start your own business...Also good solid addition to existing route...Training will be provided, if needed. 16ft box vending truck with dual cooling system will be included in this sale.

What do you think the value should be for this route

thanks

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Well, just my 2 cents (everyone knows I'm cheap).  The 54 machines would run you at least 20K used in my area,  box truck is probably another 10-15K,  and a locator finding places to put machines of that size would run 7-10K and a long time.  Plus product to fill those from empty would run another 10k.  I would say it would run you 50K on the low side and the guys annual net before taxes is 66.5K.  A years net would seem fair, but he'll likely want more because of the truck and the fact that such a large volume route is established.  I personally would go in at $66K if I had the cah laying around, and quit my day job. lol

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I am looking at this route :

Professionally established vending route, operated since 2003. Fifteen (15) locations. Fifty-four (54) machines, all full size, brand name, very well maintained. Annual sales from last year $121,000, profits around 55%. Start earning money...Start your own business...Also good solid addition to existing route...Training will be provided, if needed. 16ft box vending truck with dual cooling system will be included in this sale.

What do you think the value should be for this route

thanks

Initial glance, I think the 55% profit is gross profit after COGS, what is the net profit? With very minimal info such as brands and age of equipment, condition of vehicle etc. I would probably start around 60-65K and adjust up or down based on receipt of more detailed info.

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What they ask for and they will actually take are two very different numbers. If you are halfway serious about it I'd at least dig into it a little deeper.

If they are asking for 20% more than what they are willing to settle for then the difference between historical valuations here on the board and their settle price is not that far apart.

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$121,000.00 divided by 54 machines is $2240 per machine per year. Divide that by 12 and you get $186.72 a month per or $46.68 a week per machine gross revenue.

Those numbers are not great. IMO way to many machines to service for that kind of return.

Misssion is in the price range of what it should be worth. I would not want to be into this for more than $60k unless they had some really nice new equipment and truck. Then I am not sure I would want that much equipment doing that small amount of money. 

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