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Considering First Route Purchase


Fred

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Here are the details:

  1. 15 locations, all bulk
  2. 61 heads total, 2 of which are .50, the rest .25
  3. Been in place for longer periods of time, most in breakroom type locations
  4. Machines, 2 - Northwestern 3 way, 2 - Acorn/Vista 4 way, 1 - Acorn/Vista 2 way, 3 - Ultravend 6 way, 1 - Vendstar 6 way, 7 - Ultravend 3 way
  5. Asking $6500, which I wouldn't pay

Based on cost to replace the machines I calculated:

  1. 2 - Northwestern 3 way - $275 new, couldn't find them used, so say $800
  2. 2 - Acorn/Vista 4 way - $60/head = $480
  3. 1 - Acorn/Vista 2 way - $60/head = $120
  4. 3 - Ultravend 6 way - $60 each = $180
  5. 1 - Vendstar 6 way - $60
  6. 7 - Ultravend 3 way - $30 each = $210

Total = ~$1850 for equipment only

Says his average monthly is between $5.50-$7/head, which would be between $335-$427/month * 6 = $2000-$2500, *7.5 = $2500-$3200, *9 = $3000-$3800.

I haven't met with the guy yet, but he's an older guy selling off his route because he can no longer handle it. Seems like a nice enough guy and he's been in vending since the 60s. I know the UV and VS aren't generally thought of highly. Wondering what everyone would offer for this route.

I'm thinking of something between $2500-$3000 on terms, $1000 down, $500/month. Welcome all thoughts.

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That post made me dizzy. I have been involved in many business over the years and when I see a route purchase laid out I have to scratch my head. If you were to take a years sales and the 1850.00 machine value your right around his asking price. I am all about getting a good buy but these locations have a value to them. I have heard some guys say only offer the lowest used value of the machines and offer nothing for the locations. I have seen some wacky ways of offering half values for locations. Give me a break. If you want the machines and locations offer him a fair price. If your not crazy about the machines included then don't buy them. I wont tell you what to offer just be fair. Look at the total value.

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The $2500-3000 number is about 7 months' gross, which is where I got the number. I want to make him a fair offer, but I also don't want to have a 15 month recoup period.

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That post made me dizzy. I have been involved in many business over the years and when I see a route purchase laid out I have to scratch my head. If you were to take a years sales and the 1850.00 machine value your right around his asking price. I am all about getting a good buy but these locations have a value to them. I have heard some guys say only offer the lowest used value of the machines and offer nothing for the locations. I have seen some wacky ways of offering half values for locations. Give me a break. If you want the machines and locations offer him a fair price. If your not crazy about the machines included then don't buy them. I wont tell you what to offer just be fair. Look at the total value.

$5-$7 a month per head does not exactly make me sit up and take notice. I can find locations like that all day long. Maybe I can make some money just by selling my abandoned locations.

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