dannie Posted March 18, 2011 Share Posted March 18, 2011 I have a chance to buy two bulk candy routes? The first route has a total of 70 machines with 59 on location. He has paperwork for the last two years of service. It averages around 1200 every 6 weeks. All triple head machines keyed alike. The other pulls about the same but has 61 on location. He started at 15000 as the asking price but is down to 9500. It seems like a fairly good price, just wanted the pros thoughts. Thanks. Link to comment Share on other sites More sharing options...
amc-vending Posted March 18, 2011 Share Posted March 18, 2011 I have a chance to buy two bulk candy routes? The first route has a total of 70 machines with 59 on location. He has paperwork for the last two years of service. It averages around 1200 every 6 weeks. All triple head machines keyed alike. The other pulls about the same but has 61 on location. He started at 15000 as the asking price but is down to 9500. It seems like a fairly good price, just wanted the pros thoughts. Thanks. I have a spread sheet that I created about a year ago from a formula someone had posted on here. THe value for the 70 with 59 on location averaging around 867.00 per month would be valued at 13,439.00 so 9500 would be a good price to pay for the route. didnt quite understand what you meant about the other pulls with 61 on location Link to comment Share on other sites More sharing options...
quotealex Posted March 18, 2011 Share Posted March 18, 2011 THe value for the 70 with 59 on location averaging around 867.00 per month would be valued at 13,439.00 so 9500 would be a good price to pay for the route. A good price would be if the price was under $7,800. Anything between $7,800 to $10,400 is a fair price. Over $10,400 is considered expensive in my book, that if he has proof of the income the route generate.... if not, I wouldn't pay more than $5,000 for it:) Link to comment Share on other sites More sharing options...
Jax Snacks Posted March 19, 2011 Share Posted March 19, 2011 I would never ever base a bulk route's price on income claimed by the owner. You can never really verify those numbers. And most vendors simply can not be trusted. Numbers can be fudged and income can be hidden from government documents. Even the last service cycle date can be a lie. I had one guy tell me he serviced every month but it turned out that he never serviced any spots for the last 3 months to inflate the perceived "monthly" collection. The formula is simple. Asset value plus location fees. Only pay a location fee for 70% of the spots since he most likely has some duds and you may also get kicked out of a few places when you walk in and they see a new face. So for 70 machines (assume vendstar worth $60) with 59 locations (at $30 per spot), it would be (70 * $60) + (.70 * 59 * 30) = $4200 + $1239 = $5439. Pay any more than that and you are taking a risk to be exploited or ripped off. By sticking to that formula you can sell off all the equipment and get most of your money back in the worst case scenario. Now even that number seems a bit high to me, especially for an all-candy route. But that is a starting point. I personally have no interest in biz-op machines since I would have to eventually sell of those 70 machines and replace it with my own stuff - a real big pain and a lot of work. A route with non-biz-op non-candy machines would be worth more to me personally. Of course there will always be unique factors with any deal that can effect the price. Like commuting distance and the types of accounts just to name a few. Like I said, that number is just a starting point. Be careful and good luck. And like the late great Ronald Reagan used to say about the Soviets, "Trust but verify". Just had to get that one in! Link to comment Share on other sites More sharing options...
V4C Posted March 19, 2011 Share Posted March 19, 2011 Dannie, if you buy that route at the price that Jax suggested -and nothing changes- you will get $ 10400 within the next 12 month from the busy machines. If you calculate 25% COG and another 25% to operate the route, you will bring home one half from that amount = $ 5200. Round about one year to get your investment back and earn your first buck. Every 400 $ you pay more than $ 5439 prolongs this time by one month. Once again...IF NOTHING CHANGES! Can you do without that money so long? Your opportunity to shorten this time a little, is to locate the waiting 11 machines yourself as fast as possible. Hope you will make the best possible decision. Good luck! V4C Link to comment Share on other sites More sharing options...
JEREMYTINA Posted March 19, 2011 Share Posted March 19, 2011 Are you saying you would get both routes for the $9500? Link to comment Share on other sites More sharing options...
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