rxmark Posted September 9, 2011 Share Posted September 9, 2011 What is this worth? Distribution Center that has hundreds of employees. 18 Oak Bulk Machines on 3 racks located throughout the warehouse. Been there since 1996 with records going back that far Gross sales per year $6200. Commission 30%. All Candy in Machines. How much is this one location worth. Asking price is $9000. In my opinion that is way too much considering will take 3 years to get that back and lose the location and goodbye to $9000. Please help me determine its true worth. Link to comment Share on other sites More sharing options...
rxmark Posted September 10, 2011 Author Share Posted September 10, 2011 They are all adults no kids, not sure of the product mix yet I will be sure to ask. Thanks for the input. Hi, I also think $9000.00 is too much and 30% comm is high for a candy only location. Do you have any idea of what moves the most? If they are gumball crazy could be a good location, but on the other hand if gumballs dont move fast and they like Peanut M&M's, then not so good. What kind of shape are the racks in? If they are really bad then they will have to be replaced or refurbished soon. I have bought 2 routes in the past, but for the most part they were kid friendly locations were I could sell toys and gumballs. The first one I bought I over paid probably 10-20% but I was new and I wanted more locations badly, and it has worked out for me. Another I paid about half of what I thought it was worth, but thats what he was asking. The way I figured the worth of my route was 12 months gross income = value. Others will have different opinions about route worth and I am sure they will chime in. So if these were kid friendly rack locations I wouldn't pay much more than $6200.00, but since they are adult candy locations I wouldn't pay no more than $4000.00 and that is if machines are nice and newer and they liked gumballs. Link to comment Share on other sites More sharing options...
timberframe50 Posted September 10, 2011 Share Posted September 10, 2011 I would also find out if they currently have full line if not what is stopping a full line guy securing this location? Your 6200 was just cut by 50%. Link to comment Share on other sites More sharing options...
Smiley Posted September 10, 2011 Share Posted September 10, 2011 $4000-$4500 depending on some of the variables already mentioned if the machines are in half way decent conditions. Don't know if its worth visiting, haggling etc.... if he's asking 9k. doubt you will get him to cut that in half. Link to comment Share on other sites More sharing options...
Rick Falcon Posted September 10, 2011 Share Posted September 10, 2011 In my opinion I would walk away from this deal sounds like alot of money to invest on candy machines.You have to factor in stale product and also when it comes to bulk candy the profit margin is not very atractive. Link to comment Share on other sites More sharing options...
havending Posted September 10, 2011 Share Posted September 10, 2011 You would do a lot better by taking that 9000 and buying some 5 way racks. Less product you could purchase 18 racks and not be tied to one location. Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
caserri Posted September 10, 2011 Share Posted September 10, 2011 Am I the only one here who thinks it odd to have 3 racks of candy in a warehouse? I've been to literally hundreds of warehouses/ distribution centers in my life, in every state of the country and have never, ever seen a bulk vending rack in one. A vendstar, yes, but not a rack. I'm not doubting you but Im just saying, "who puts 3 racks in a warehouse?" Very odd. Sent using Tapatalk for Android. Link to comment Share on other sites More sharing options...
Smiley Posted September 10, 2011 Share Posted September 10, 2011 Am I the only one here who thinks it odd to have 3 racks of candy in a warehouse? I've been to literally hundreds of warehouses/ distribution centers in my life, in every state of the country and have never, ever seen a bulk vending rack in one. A vendstar, yes, but not a rack. I'm not doubting you but Im just saying, "who puts 3 racks in a warehouse?" Very odd. Sent using Tapatalk for Android. I'm guessing the place is huge. When I read Distribution Center with 100's of employees, I'm think 100's of thousands of square feet. Link to comment Share on other sites More sharing options...
caserri Posted September 10, 2011 Share Posted September 10, 2011 I'm guessing the place is huge. When I read Distribution Center with 100's of employees, I'm think 100's of thousands of square feet. I do as well and have never seen racks in that environment before. Sent using Tapatalk for Android. Link to comment Share on other sites More sharing options...
caserri Posted September 10, 2011 Share Posted September 10, 2011 Me neither, but if it makes money why not? Agreed. I'm not saying it's a bad location. Just one that I'd never seen. Just struck me as odd. I would expect to see a rack in a church before I'd see one in a warehouse environment. Sent using Tapatalk for Android. Link to comment Share on other sites More sharing options...
Thrifty Posted September 10, 2011 Share Posted September 10, 2011 Hey, I have 3 racks in a large industial place to sell to you! Hmm, let me see, 1.just gotta pull out 3 old racks I don't use anymore. 2.Fill will candy, or stale works too. 3.Put them in a large industrial warehouse. 4.Say it does 600 per month 5.Sell for 9,000 and profit. Link to comment Share on other sites More sharing options...
rxmark Posted September 11, 2011 Author Share Posted September 11, 2011 To say it's huge is an understatement. It is a walmart distribution center. Commission is paid to the distribution center. With records of checks and collections for 15 years it is legit. The offer went from $9000 to $10000 now. I don't see how anyone could pay this much for around $3000 clear per year . Those of you near a walmart distribution center might be worth your time to try and get your own racks in there. Sounds like they are attached to the location with the price going up. I will be passing on this unless they go down to around $4000. Full line machines have been in there right along so that is not going to affect sales. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.