rxmark Posted March 15, 2011 Share Posted March 15, 2011 Hello all, First post here as I stumble into full line vending. I have experience in bulk vending and moving into snack and beverage combo units. I have reviewed a route that has 9 locations that state income of 300-500 per week income. The locations mostly feature 8-10 year old selectivend combo units. Only one location has 10% commission the rest and established accounts with no contracts. The owner states they are just looking for income to expand their better performing locations and dont have the time to service these 9 locations. I have toured the location with one of the owners and the income came up on the low side. They were looking for 15,000 for all. What would you pay for this route? I value the route at 50% gross since the equipement is old and nothing special. Being my first potential purchase I want to be careful and do the right thing. Any advise would be very appreciated. Snickity Snack Vending upstate NY Link to comment Share on other sites More sharing options...
dloiselle Posted March 15, 2011 Share Posted March 15, 2011 Be extremely cautions here. I just did the same exact thing, for about the same money, and I got $crewed but good!! Honeslty, I would pm RJT and arrange for a consult prior to moving on this. Also if you are not under a time constraint, I just read his book this past week, and there is an abundance of info there. The guy I bought from , claimed he was getting out due to his full time job commitment, and the locations would average 2400 a month netting about 1200, well the 24 a month and 12 a month were pretty fair, minus the 00. I did my first pull this past week and picked up approximately 120.00. When I made the purchase, I dropped $500.00 alone on stock, and the purchase was supposed to include the first load, needless to say, my eyes are wide open now. I got an email from this guy about a week ago, offering 4 DN soda machines and 6 electronic combo/s. I believe he bought them up here (Upstate Albany area) from a guy who was on CL. Now here is also listing a bunch of Antares as well. If I had it to do again, I would insist on sales receipts or deposits, going with him twice on servicing the locations at minimal. Also speak with the locations and verify the use of the machines and their continued presence there. I haven;t been asked to leave anywhere, but I did get met with applause at one location when I stocked the machine. I was told by multiple locations that the machines were not serviced regularly, and that they don't even consider using them any more as a result. By no means do I mean to intend that the people you are dealing with are con men, just trying to share what I just went through. Also, especially with the machines being older combo, I believe Seaga uses the manual mechs as well, you will need to consider the ability for people to access change as well. Hope this helps, and doesn't discourage you. I will end up ok, but my passive income is going to take a long time to arrive due to the extremely large amount of relocating I am forced to do. Best of luck!! Link to comment Share on other sites More sharing options...
mission vending Posted March 15, 2011 Share Posted March 15, 2011 Hello all, First post here as I stumble into full line vending. I have experience in bulk vending and moving into snack and beverage combo units. I have reviewed a route that has 9 locations that state income of 300-500 per week income. The locations mostly feature 8-10 year old selectivend combo units. Only one location has 10% commission the rest and established accounts with no contracts. The owner states they are just looking for income to expand their better performing locations and dont have the time to service these 9 locations. I have toured the location with one of the owners and the income came up on the low side. They were looking for 15,000 for all. What would you pay for this route? I value the route at 50% gross since the equipement is old and nothing special. Being my first potential purchase I want to be careful and do the right thing. Any advise would be very appreciated. Snickity Snack Vending upstate NY Could you clarify a bit. Hello all, First post here as I stumble into full line vending. I have experience in bulk vending and moving into snack and beverage combo units. I have reviewed a route that has 9 locations that state income of 300-500 per week income. The locations mostly feature 8-10 year old selectivend combo units. Only one location has 10% commission the rest and established accounts with no contracts. The owner states they are just looking for income to expand their better performing locations and dont have the time to service these 9 locations. I have toured the location with one of the owners and the income came up on the low side. They were looking for 15,000 for all. What would you pay for this route? I value the route at 50% gross since the equipement is old and nothing special. Being my first potential purchase I want to be careful and do the right thing. Any advise would be very appreciated. Snickity Snack Vending upstate NY Could you clarify a bit. You said snack route but are talking about combo machines, so drinks and and snacks or just snacks? Are these the GF19 with CD6 satellite units or somethine else? Is the stated income for all 9 locations combined? Link to comment Share on other sites More sharing options...
rxmark Posted March 15, 2011 Author Share Posted March 15, 2011 Could you clarify a bit. Could you clarify a bit. You said snack route but are talking about combo machines, so drinks and and snacks or just snacks? Are these the GF19 with CD6 satellite units or somethine else? Is the stated income for all 9 locations combined? 9 locations with combo snack and drink units(gf-19) with cd6 10 slot candy bar coils 9 slot chip/pastry coils electrical units 6 slot can units. Soda priced at .75 chips at .50 candy bars at .75 thus all priced cheap. About 100 markup. Further emails revealed a bottom low price yearly gross income of 12,500 (total for all 9 locations)far from the 300-500 a week income that was stated. (Huge red flag) He is looking for 13,500 which appears to be 100% gross plus $1000 in inventory and change in mechs. Probably gonna pass on this one and wait for a better opportunity. Link to comment Share on other sites More sharing options...
mission vending Posted March 15, 2011 Share Posted March 15, 2011 9 locations with combo snack and drink units(gf-19) with cd6 10 slot candy bar coils 9 slot chip/pastry coils electrical units 6 slot can units. Soda priced at .75 chips at .50 candy bars at .75 thus all priced cheap. About 100 markup. Further emails revealed a bottom low price yearly gross income of 12,500 (total for all 9 locations)far from the 300-500 a week income that was stated. (Huge red flag) He is looking for 13,500 which appears to be 100% gross plus $1000 in inventory and change in mechs. Probably gonna pass on this one and wait for a better opportunity. The red flag thinking is appropriate. This is one of those situations where it looks like the equipment could be the best part of the deal. Around here those combo units sell for 800 -1000 a set. If they have been reasonable well maintained they still have years of life in them. I`d look at it as an equipment purchase with free storage that makes a few bucks until you get a new location for them. My best offer would be 8-9K depending on the condition. With new locations those machines can handle easily 3X their current volume. Link to comment Share on other sites More sharing options...
spdydre Posted March 15, 2011 Share Posted March 15, 2011 the best thing to do is be patient. I had a 2 different guys trying to sell me their routes for 10-15k. I sat on them for months and ended up buying both for around 3k. Alot of people seem to ask alot but then the route doesnt sell and they get alot of tire kickers. Eventually they will get fed up and just sell it for whatever they can get. Its great to build your business this way but on the other hand it makes me nervous if I ever decide to sell seeing what these guys deal with lol Link to comment Share on other sites More sharing options...
mission vending Posted March 15, 2011 Share Posted March 15, 2011 the best thing to do is be patient. I had a 2 different guys trying to sell me their routes for 10-15k. I sat on them for months and ended up buying both for around 3k. Alot of people seem to ask alot but then the route doesnt sell and they get alot of tire kickers. Eventually they will get fed up and just sell it for whatever they can get. Its great to build your business this way but on the other hand it makes me nervous if I ever decide to sell seeing what these guys deal with lol That is certainly the case when dealing with small routes that often have older outdated equipment. As your business grows and you get better accounts with newer state of the art equipment you will attract better buyers. The buyers will be more professional and have more money. The drawback is that the larger your business, the smaller the potential pool of buyers Link to comment Share on other sites More sharing options...
rxmark Posted March 17, 2011 Author Share Posted March 17, 2011 Thanks for all the help appreciate it. Link to comment Share on other sites More sharing options...
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