Yvette Posted November 3, 2011 Share Posted November 3, 2011 Fellow Vendors, I recently got a call from a broker of a guy who would like to sell his vending location (a major utility operation) He's grossing about $500 a week ($2000 a month) at the location so I assume he's pocketing about $300 a week ($1200 a month). If so, this will be good extra money for me. If the figures are right, this will be an extra $14,400 that I can pocket each year ($24,000 extra gross). However, he has eight ( machines at the location which is a pretty big account. I don't have eight ( machines in my entire vending route right now because I work full-time and do vending part-time for extra money. I had told everyone that I was not going to grow anymore unless the account was right in my back door and this location is very close to my house. The location is only about 10 minutes away from my home and I can refill the machines during my lunch hour or on my off days. I'm seriously considering purchasing the location from him. Since this is a major utility company that's been around for a while, they will not be going out of business anytime soon. I plan to pay off most of my other bills by next summer and this will definitely help me pay them off faster. It's going to be a lot of extra work but it will help me reach my retirement goal of just working for myself and provide us with additional business write-offs for our taxes. The only problem is that I have not met the owner. The broker stated that the owner travels a lot with his full-time job and his back-up actually showed me the location and all of the machines. The machines are very nice Dixie Narco and National snack machine and they're all located in a very secure area of the campus behind security gates (in breakrooms). The $12,000 fee includes the location, all of the machines and the inventory. The owner just wants to sell because of illness in his family. If I was just speaking to the owner and not the broker or the back-up, this would be a "no brainer" for me but the broker is coordinating the sell and I've never brought such a big and expensive location through a broker before. I really want to see records of his sells and I really want to speak to the owner instead of the Broker or back-up but they say he travels so much that it's hard to get in touch with him. In addition, they say they doubt he has any records to verify his sales of $500 a week. I really want to speak to the actual owner of the route before I secure financing. What do you experienced vendors think? I don't have money to waste these days. Link to comment Share on other sites More sharing options...
mission vending Posted November 3, 2011 Share Posted November 3, 2011 My spidey senses are tingling. Family illness is 99% of the time BS. If owner really wants to sell it should not require an act of congress to get the bozo on a phone for 5 minutes. No records usually means sales #'s are inflated. That's a lot of equipment for only 500/week. 62.50 per machime, means stales are an issue. Unless he has crazy high prices and the 500 is accurate your take home will be more like 200 not 300, and that number is before you cover the payments. Is there a contract? Is it transferrable? How much time is left on contract? If it was me I'd treat this transaction as an equipment purchase, if I did it at all. That means my best offer would be 5-7 K depending on model, age and condition, unless more info was forthcoming. My .02 Link to comment Share on other sites More sharing options...
Poplady1 Posted November 5, 2011 Share Posted November 5, 2011 Fellow Vendors, I recently got a call from a broker of a guy who would like to sell his vending location (a major utility operation) He's grossing about $500 a week ($2000 a month) at the location so I assume he's pocketing about $300 a week ($1200 a month). If so, this will be good extra money for me. If the figures are right, this will be an extra $14,400 that I can pocket each year ($24,000 extra gross). However, he has eight ( machines at the location which is a pretty big account. I don't have eight ( machines in my entire vending route right now because I work full-time and do vending part-time for extra money. I had told everyone that I was not going to grow anymore unless the account was right in my back door and this location is very close to my house. The location is only about 10 minutes away from my home and I can refill the machines during my lunch hour or on my off days. I'm seriously considering purchasing the location from him. Since this is a major utility company that's been around for a while, they will not be going out of business anytime soon. I plan to pay off most of my other bills by next summer and this will definitely help me pay them off faster. It's going to be a lot of extra work but it will help me reach my retirement goal of just working for myself and provide us with additional business write-offs for our taxes. The only problem is that I have not met the owner. The broker stated that the owner travels a lot with his full-time job and his back-up actually showed me the location and all of the machines. The machines are very nice Dixie Narco and National snack machine and they're all located in a very secure area of the campus behind security gates (in breakrooms). The $12,000 fee includes the location, all of the machines and the inventory. The owner just wants to sell because of illness in his family. If I was just speaking to the owner and not the broker or the back-up, this would be a "no brainer" for me but the broker is coordinating the sell and I've never brought such a big and expensive location through a broker before. I really want to see records of his sells and I really want to speak to the owner instead of the Broker or back-up but they say he travels so much that it's hard to get in touch with him. In addition, they say they doubt he has any records to verify his sales of $500 a week. I really want to speak to the actual owner of the route before I secure financing. What do you experienced vendors think? I don't have money to waste these days. I think you might want to "take a pass" on this one. I just spoke to a young man yesterday that bought an account like this for $25000. He was able to keep the account for just about 3 months before they gave him his walking papers. This is a very high risk gamble for someone trying to service this account on your lunch hour. Between out of product calls and machine repairs you will be running yourself ragged. But more importantly nothing in this sale stacks up. Vendors keep records, they are available for meeting new buyers and do you really trust that he is selling due to illness in the family. All big red flags. I agree with Mission.... Save your money. Wait for a good bet. Poplady Link to comment Share on other sites More sharing options...
Vending How Chris Posted November 5, 2011 Share Posted November 5, 2011 You have to be extra wary in this industry. I wouldn't move on the deal unless you had 100% written confirmation in the form of a contract that you have a deal with the owner for a set amount of time. Although, the price of the account might be enough just to get 8 machines. Just a thought. 1320511502[/url]' post='100865']I think you might want to "take a pass" on this one. I just spoke to a young man yesterday that bought an account like this for $25000. He was able to keep the account for just about 3 months before they gave him his walking papers. This is a very high risk gamble for someone trying to service this account on your lunch hour. Between out of product calls and machine repairs you will be running yourself ragged. But more importantly nothing in this sale stacks up. Vendors keep records, they are available for meeting new buyers and do you really trust that he is selling due to illness in the family. All big red flags. I agree with Mission.... Save your money. Wait for a good bet. Poplady Link to comment Share on other sites More sharing options...
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