sweetstop Posted September 13, 2011 Share Posted September 13, 2011 Someone in my area is selling 330 locations. Says they have been in service for almost 15 years, I am aware of some of them as I have had them in some of my locations over the years. It recently changed hands and the person selling has only had the route for a short time so there are not many records that I am aware of. They are all triples, I forget the brand, not vendstars but similar to an ultravend. I was thinking about a small down payment and maybe offering a repayment option from the net profits that he clams it brings in. 5k-6k per 6 week cycle He is asking 35K which is down from 55K he was asking about 3-6 months ago. I think the big plus for me is the fact they have been in place for so long. I remember contacting the original owner a few years back but she said was not interested in selling at that time. I have a feeling this guy bought it and thought he could work a couple days a month for 5k or 6k. I am well aware that is not the case. If I was to make a deal this and my label business would be a full time venture for me Any thoughts on how I might proceed? Has anyone bought a large route before? Thanks for any input. Frank Link to comment Share on other sites More sharing options...
sherlock Posted September 13, 2011 Share Posted September 13, 2011 First off, I have never bought a route this size. Biggest route I've ever bought was 10 locations. So I am in no way capable of giving you solid advice on this...but I do have some thoughts on how you should proceed. Take a close look at the questions below and look to your answers for guidance on this matter: 1. The income is almost always inflated when a route is for sale. Even at the claimed high end of $6k these locations are below $7 per head average (assuming they're all triples as you were lead to believe). Realize that some of the route will need to be pruned almost immediately in order to make the most of your vending hours/energy. Couldn't you build a route of equal earnings with equipment of your choice without the need to pay such a huge amount up front? Sure it would be slower, but if you have $30k+ at your disposal, the route build-up doesn't have to be as slow as one would think. And you could build the route using some of the time/energy it would take you to prune the dead locations off the 330-location route. 2. If your signature is correct, you would be jumping from 6 locations to over 300. Not saying it's a bad thing. Just reminding you that in business there is such a thing as growing too fast. I know you aren't knew to the biz, but that's a heck of a route size increase you are considering. How adequate is your transportation and is your storage room also up to the task? You will be servicing more locations and going through more product per day than you currently have to handle on your whole route now. 3. Also regarding your signature, seems you have been reconsidering candy. Limiting your locations to gumballs and toys is what you were re-thinking. I assume you have come to the conclusion that many of us eventually come to: Toys/GB are better than candy...most of the time. These triples are probably predominantly candy, no? If I'm correct, how does 330 candy locations fit in with your recent "re-thinking" of your game plan? If money-wise this is going to allow you to go full-time and if those issues above have been heavily considered and all still looks good, DO IT! I wish you all the best in this. I don't intend to weigh down your dreams of going full time with my questions above. Just would hate to see you make the leap before you really really look, you know? Best of luck. Link to comment Share on other sites More sharing options...
sweetstop Posted September 13, 2011 Author Share Posted September 13, 2011 Thanks sherlock Very strong points I will be considering Link to comment Share on other sites More sharing options...
timberframe50 Posted September 13, 2011 Share Posted September 13, 2011 Frank, first are you planning on staying in your current location? Hopefully some are upgradable. I bought a route of 489 heads and about 250 locations sight un seen. I won't go into the gory details other than it has taken me about 2 years to get it to my liking. I would do it again if the opportunity arises.I think a small down and pay over time is the best way, good luck if you deciede to pull the trigger. Link to comment Share on other sites More sharing options...
lurtsman Posted September 13, 2011 Share Posted September 13, 2011 Next summer or the one after I'll be moving to another state. At that point I'll be selling a route with around 100 locations. I will probably ask more, but instead of vendstars my route will include things like northwestern racks and high quality change machines. The value of the machines themselves w/o locations would cover much of my asking price. (Basing value on ebay resale averages) The important lesson here is that legit routes do go up for sale, and the machines matter. Ask anyone on the board if they would pay the same for a 1800 or a vendstar. 300 locations is huge--but the asking price is so low I would suspect it to be all or almost all junker machines. Link to comment Share on other sites More sharing options...
bacho Posted September 13, 2011 Share Posted September 13, 2011 All these are great things to keep your eye open for. There is one thing you may have overlooked also. Are you set up to store that much candy and gumballs? That's a lot of product to keep up with. Link to comment Share on other sites More sharing options...
lurtsman Posted September 13, 2011 Share Posted September 13, 2011 Kelly is right, having experience doing this before. I was planning to do it until I realized we might be out in 1-2 years instead of 5. Link to comment Share on other sites More sharing options...
sweetstop Posted September 13, 2011 Author Share Posted September 13, 2011 Here is a pic of the machines (evervend) I have seen several locs because I knew of them from before. I have not discussed anything with him seriously yet so I am not sure if he would even entertain the idea of payments. I do know he has been trying to sell this and keeps reducing the price. I did find out that he is a local business owner and bought this for his dad to run and now his dad can not keep up with servicing them, thats why he is selling it so quick after buying it from the previous owner. Its a lot to think about. I do have the space for storage. The other thing I am considering is to see if he wants to break it up and take the locations that are the closest to me, maybe like a 1/3 of the route, that might be more manageable for now Thanks for all the sound advise Link to comment Share on other sites More sharing options...
dapreachaman Posted November 20, 2011 Share Posted November 20, 2011 Here is a pic of the machines (evervend) I have seen several locs because I knew of them from before. I have not discussed anything with him seriously yet so I am not sure if he would even entertain the idea of payments. I do know he has been trying to sell this and keeps reducing the price. I did find out that he is a local business owner and bought this for his dad to run and now his dad can not keep up with servicing them, thats why he is selling it so quick after buying it from the previous owner. Its a lot to think about. I do have the space for storage. The other thing I am considering is to see if he wants to break it up and take the locations that are the closest to me, maybe like a 1/3 of the route, that might be more manageable for now Thanks for all the sound advise Did u pull the trigger on this? I am working with two friends in buying and parting out a 600 location route. I am looking to pick up 50 while my friends want the rest. Don't think it is going to workout. How did yours workout? Link to comment Share on other sites More sharing options...
havending Posted November 21, 2011 Share Posted November 21, 2011 I was wondering also. Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
sweetstop Posted November 23, 2011 Author Share Posted November 23, 2011 Sorry thought the deal was a no go because he would not finance it so I started a different thread. I added an update here: Link to comment Share on other sites More sharing options...
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