loach33 Posted October 25, 2011 Share Posted October 25, 2011 I did a search first, so I have a couple of ideas here but I'm looking to throw out my specific questions here for you on selling a location that I have. I'm looking to put it on Craigslist for starters and see what happens. #1 question would be - I do need to have whoever is interested sign some kind of non-compete waiver right? Otherwise, some competitor just shows up and checks things out and then tries to weasel in on the location. I do not have a contract for this place. # 2 question - Price. Based on the following I'd like to get $7500 out of it all. They can stay or move the machines. Is this realistic based on the following info? I have a new Geneva coffee machine, a Rowe 548 about 15 years old, a 10 selection can/bottle CB500, and a 32 selection snack machine. All USI machines. The pop and snack are about 8 years old. Pop and snack are clean, everything works. Rowe works just fine. I've been in there about 2 months. It's not doing as well as I had hoped and really, it's more than I want to have anyway. It's the only location I have with a coffee machine and the only Rowe machine I have and I just think I'd like to move it to someone else. It has done $750 a month for these two months....so profit is about $300 a month. If I put this up for sale, is this price reasonable and also how can I avoid someone just coming in and undercutting me from the location. Thanks Link to comment Share on other sites More sharing options...
RJT Posted October 25, 2011 Share Posted October 25, 2011 I have to say no that is not a resonable price to purchse this account. The machines are older machines and getting close to "end of life" use. You have had the accounts a short time and not enough time to establish a solid relationship that you could transfer to a buyer. You dont have a contract based on what I read so that is another negative. The volume is low also which hurts the value of the account. If a client of mine asked about this account I would tell them not to pay over equipment cost plus a small premium for taking in consideration of already installed equipment. Under good condition (ie, good equipment, long relationship or contract in place) most people sell and buy at one time net. While this is not etched in stone it is a starting point to most locations and vending companies sold. A few factors can change this but it is a starting point that is generaly resonable to both buyer and seller. So based on this the max the account would be worth looks to be around $3600 but because of the other negative factors that brings it back to equipment cost and small premium.... Link to comment Share on other sites More sharing options...
loach33 Posted October 26, 2011 Author Share Posted October 26, 2011 I have to say no that is not a resonable price to purchse this account. The machines are older machines and getting close to "end of life" use. You have had the accounts a short time and not enough time to establish a solid relationship that you could transfer to a buyer. You dont have a contract based on what I read so that is another negative. The volume is low also which hurts the value of the account. If a client of mine asked about this account I would tell them not to pay over equipment cost plus a small premium for taking in consideration of already installed equipment. Under good condition (ie, good equipment, long relationship or contract in place) most people sell and buy at one time net. While this is not etched in stone it is a starting point to most locations and vending companies sold. A few factors can change this but it is a starting point that is generaly resonable to both buyer and seller. So based on this the max the account would be worth looks to be around $3600 but because of the other negative factors that brings it back to equipment cost and small premium.... Hmm, that's surprising. Here's how I came to that figure...and I do realize that I can't really get anything out of the location - I'm just trying to cover the cost/value of the machines. The coffee machine is new. Looking around, it goes for $5500 used - Geneva Fresh Brew. So, I'm using $5500 as a value (includes all the coffee, cups, etc)... Then the Rowe...$500. The pop and snack are 8 years old. They are in great shape and I've had these same types of machines go for 15+ years. So, I put $1500 on them as a pair. There's the $7500. Now, I guess the real question is would anyone besides me pay $5500 for a coffee machine. That may be where I screwed myself. But, at just $3600 we're talking $2000 for a new coffee machine?? Going back to the non-compete...is there a sample contract somewhere on this site? I didn't see one that is strictly about showing someone an account before they buy. Link to comment Share on other sites More sharing options...
dogcow Posted October 26, 2011 Share Posted October 26, 2011 Hmm, that's surprising. Here's how I came to that figure...and I do realize that I can't really get anything out of the location - I'm just trying to cover the cost/value of the machines. The coffee machine is new. Looking around, it goes for $5500 used - Geneva Fresh Brew. So, I'm using $5500 as a value (includes all the coffee, cups, etc)... Then the Rowe...$500. The pop and snack are 8 years old. They are in great shape and I've had these same types of machines go for 15+ years. So, I put $1500 on them as a pair. There's the $7500. Now, I guess the real question is would anyone besides me pay $5500 for a coffee machine. That may be where I screwed myself. But, at just $3600 we're talking $2000 for a new coffee machine?? Going back to the non-compete...is there a sample contract somewhere on this site? I didn't see one that is strictly about showing someone an account before they buy. i am considering posting some locations for sale, and requiring a deposit ...not that i care if they steal the locations i just want to weed out the tire kickers and cheapos. no offense but any non compete isnt gonna be worth the paper its written on...lets be honest what are u gonna do sue them? do you really have that kind of money/time Link to comment Share on other sites More sharing options...
loach33 Posted October 26, 2011 Author Share Posted October 26, 2011 i am considering posting some locations for sale, and requiring a deposit ...not that i care if they steal the locations i just want to weed out the tire kickers and cheapos. no offense but any non compete isnt gonna be worth the paper its written on...lets be honest what are u gonna do sue them? do you really have that kind of money/time Yeah, I started thinking about that. What to do if they still go ahead and try to take it. I guess you just have to vett them out when talking to them and take your chances. Link to comment Share on other sites More sharing options...
dogcow Posted October 26, 2011 Share Posted October 26, 2011 Yeah, I started thinking about that. What to do if they still go ahead and try to take it. I guess you just have to vett them out when talking to them and take your chances. if u are going to try the craigs list route of selling the location i suggest putting ALL the info in the listing except the actual location. including equipment make/model revenue type of location photos of equipment inside/out and listing it for whatever you would take for just the equipment ive talked to enough ppl selling on craigs list 99% of people are tire kickers who dont have any money. i would try to negotiate the full deal over the phone and only agree to meet with someone who is willing to show up with a 10% deposit check ...so you know you are not wasting your time. basically the only way they visit the location is to just confirm everything is like you said and close the deal also put the price at a realistic price, i talked to one guy who was trying to sell a snack only location for 6 mo because he wanted way too much. in the end he ended up selling it close to what i told him he could get for it the first time he posted it. Link to comment Share on other sites More sharing options...
loach33 Posted October 26, 2011 Author Share Posted October 26, 2011 also put the price at a realistic price, i talked to one guy who was trying to sell a snack only location for 6 mo because he wanted way too much. in the end he ended up selling it close to what i told him he could get for it the first time he posted it. Based on the info I've given are you in agreement with the price RJT suggested? Link to comment Share on other sites More sharing options...
dogcow Posted October 26, 2011 Share Posted October 26, 2011 its gonna depend on your area, i agree with your prices on the rowe, drink and snack machine thats what that goes for here...i dont know about 5 grand for the coffee machine i dont know what those are worth to be honest. 3 grand for the food machine , drink and snack is completely reasonable if they are in good shape. i dont know you may have to sell the coffee machine seperately or take a loss Link to comment Share on other sites More sharing options...
Technivend Posted October 26, 2011 Share Posted October 26, 2011 Hmm, that's surprising. Here's how I came to that figure...and I do realize that I can't really get anything out of the location - I'm just trying to cover the cost/value of the machines. The coffee machine is new. Looking around, it goes for $5500 used - Geneva Fresh Brew. $5500.00 for a used Geneva is too high. New they list around $5700-$5800 Link to comment Share on other sites More sharing options...
loach33 Posted October 26, 2011 Author Share Posted October 26, 2011 $5500.00 for a used Geneva is too high. New they list around $5700-$5800 Mine is new....well 2 months old now. Link to comment Share on other sites More sharing options...
RJT Posted October 26, 2011 Share Posted October 26, 2011 I was thinking of a different coffee machine than what you have when I read it the first time. I had in my mind a table top office coffee setup. If that is what you have in equipment then it may be close to what you are asking. I think the biggest problem is going to get some one to pay "new" prices for a coffee machine. Good luck and let us know how it turns out.... Link to comment Share on other sites More sharing options...
mission vending Posted October 26, 2011 Share Posted October 26, 2011 As a used machine its probably worth around 2K. If it was me I'd start asking price at 5K and settle on first offer between that and RJT's number Link to comment Share on other sites More sharing options...
loach33 Posted October 27, 2011 Author Share Posted October 27, 2011 Thanks for the input. We'll see what happens. The good thing is that it's making money....even if it's a year down the road when I sell it I can count the profits made up to then. My selling price can keep dropping if need be if my goal is to break even. Usually not the case but I would be happy in this instance Link to comment Share on other sites More sharing options...
Poplady1 Posted October 27, 2011 Share Posted October 27, 2011 Thanks for the input. We'll see what happens. The good thing is that it's making money....even if it's a year down the road when I sell it I can count the profits made up to then. My selling price can keep dropping if need be if my goal is to break even. Usually not the case but I would be happy in this instance I think holding on to the account, running it for as long as you can and get the income to run down your investment. Then sell it once you have collected enough to get a fair sale price. Poplady Link to comment Share on other sites More sharing options...
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