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What should I say next


agrantha

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Ok guys

I am looking to expand by buying routes or purchasing machines and paying a locator.

I am currently negotiating a route purchase as we speak. The route consist of 8 Vendstar locations. I do not want any more Vendstars, but for the right price I will purchase this route and maybe replace the machines later. The price started out at $2200. I have him down to $800. He did say, since he has one dud location he will sell 7 locations for $700. What do you think I should do?

Below are the descriptions of the businesses he has the machines

located

at.

Propane refilling store/company

A new car dealership service center

Hardware/farm supply store

A household items rental store

Pizzeria

Nursing home / home care center

Plumbing company

Oil change service center

Around 3 of the located machines do bring in around $30 a month (if

candy is kept full). Others bring in $15 to $20, and most of the rest

bring in $10. One location (the plumbing company) only does a few

dollars.

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Great Advice Kelly!

Should I pay $300 for the top 3?

Sounds fair. The best locations are likely the nursing home, pizza place, and the hardware store....maybe the oil change place. The rental place around here give away free soda, and food like every day, so I can't imagine that doing well. Really any location is worth a shot. If you'd be willing to place it if a locator gave it to you, you'd have the machine and the locator fee into it without knowing how it'd do. I would try and pick the route up for around $550 if you could, and if you already have equipment to go in there, I'd pull the Vendstars and sell em on EBay for $75 a pice including shipping and dump any spot doing less than $14. You should make out well and net a few good locs in the process.

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Make sure if you are going to pay money for the locations you have them sign a non compete. I bought some locations and machines a few months later at one of the locations. Machines showed up with the same tags as machines I purchased and my keys even fit the machines. Lessons can be expensive

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I would push for $550.00(68.75 per loc)to start and pay as high as $640.00($80.00 per loc)for all 8. If his numbers are even close to accurate you will gross at least $1680.00 in one year which is a very good gross return. You may find out that you can improve sales across the board with better service than the last guy. I have bought several used routes over the years and have had the seller tell me "that location is a dog". I have had many of those dogs turn into solid locations ($30 to $50 per month) by just providing regular friendly service.

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