jb5580 Posted November 11, 2011 Share Posted November 11, 2011 Do you full line guys think this is an okay opportunity or to high. I know the owner personally and believe his figures to be accurate. What would it take to pay this off do you think, 20 months? I'm sure they are all Dixie Narco machines in excellent condition. Thanks, Jim http://norfolk.craigslist.org/bfs/2696705796.html Link to comment Share on other sites More sharing options...
dogcow Posted November 11, 2011 Share Posted November 11, 2011 $20 per week average gross? Link to comment Share on other sites More sharing options...
mission vending Posted November 11, 2011 Share Posted November 11, 2011 Old equipment if they all look like that. Low sales figures to go with it. My best offer would be in the 10-12K range. The 12 would be if the machines were at least 3/4 full. Link to comment Share on other sites More sharing options...
jb5580 Posted November 11, 2011 Author Share Posted November 11, 2011 Old equipment if they all look like that. Low sales figures to go with it. My best offer would be in the 10-12K range. The 12 would be if the machines were at least 3/4 full. Thanks for the advice, If these are old machines are they at least reliable long term or do they have problems? He is a pretty large vendor in my area and a friend of mine(a fellow Firefighter in my Dept.) He sells these Cold Drink front machines all the time for $750.00 delivered to your location and a 30 warranty with them. So I was think 15 of them on locations at the price he wants=$1066. a machine with location. Thats around $300 for the location. Im just wondering what is the COG's on can drinks, 30%, 40%, of gross? If I can come out bringing home $700.00 to $800.00 net on 12 locations a month that would be acceptable profit for me. Link to comment Share on other sites More sharing options...
mission vending Posted November 11, 2011 Share Posted November 11, 2011 If they are all DN machines they should have some good years left. Might be hard to place if you lost a location along the way due to the dated look. IMO only suitable for the type of low volume locations they are already in. Main worry would be compressors. Factor in repairing/replacing one a year. At .75 vend price COGS should be in low 40's percentage wise which is good. Link to comment Share on other sites More sharing options...
dogcow Posted November 11, 2011 Share Posted November 11, 2011 the one pictured looks like an MPC machine, the boards are kinda hard to come by. I wouldnt buy another one. Thanks for the advice, If these are old machines are they at least reliable long term or do they have problems? He is a pretty large vendor in my area and a friend of mine(a fellow Firefighter in my Dept.) He sells these Cold Drink front machines all the time for $750.00 delivered to your location and a 30 warranty with them. So I was think 15 of them on locations at the price he wants=$1066. a machine with location. Thats around $300 for the location. Im just wondering what is the COG's on can drinks, 30%, 40%, of gross? If I can come out bringing home $700.00 to $800.00 net on 12 locations a month that would be acceptable profit for me. 750 is a decent price for that machine..but honestly those multiprice MPC machines are not terribly reliable from what i hear, i have one the board was bad and it took some time to find a working one. they are also enormous machines for something grossing $20 a week either its too big or u would rarely have to service it. Link to comment Share on other sites More sharing options...
jb5580 Posted November 11, 2011 Author Share Posted November 11, 2011 the one pictured looks like an MPC machine, the boards are kinda hard to come by. I wouldnt buy another one. 750 is a decent price for that machine..but honestly those multiprice MPC machines are not terribly reliable from what i hear, i have one the board was bad and it took some time to find a working one. they are also enormous machines for something grossing $20 a week either its too big or u would rarely have to service it. Thanks Mission and dogcow. I might pull the trigger on this, I'll try to get him to come down or to throw in another machine on location he has on CL to sweeten the deal. I'll keep you guys posted. Also, he will be a very good mentor for me and able to help as far as repairs and he also does machine moving for 50.00 an hour if I ever have to move one, I hope not though. Link to comment Share on other sites More sharing options...
dogcow Posted November 11, 2011 Share Posted November 11, 2011 Thanks Mission and dogcow. I might pull the trigger on this, I'll try to get him to come down or to throw in another machine on location he has on CL to sweeten the deal. I'll keep you guys posted. Also, he will be a very good mentor for me and able to help as far as repairs and he also does machine moving for 50.00 an hour if I ever have to move one, I hope not though. 50 is good for moving machines is he insured? Link to comment Share on other sites More sharing options...
jb5580 Posted November 11, 2011 Author Share Posted November 11, 2011 50 is good for moving machines is he insured? Yeah, he's insured. He's been in the vending business, drinks, snacks, and coffee for about 25 years I think, they have a warehouse, trucks, etc. I could really learn alot from him. Like I said, at one time they had rows and rows of those Cold Drink front machines in their warehouse for sale,with delivery. Not sure where they get them from. I also don't think he would sell this route to me if its not going to be profitable, I trust he would just tell me this one isn't right for me. Link to comment Share on other sites More sharing options...
dogcow Posted November 12, 2011 Share Posted November 12, 2011 Yeah, he's insured. He's been in the vending business, drinks, snacks, and coffee for about 25 years I think, they have a warehouse, trucks, etc. I could really learn alot from him. Like I said, at one time they had rows and rows of those Cold Drink front machines in their warehouse for sale,with delivery. Not sure where they get them from. I also don't think he would sell this route to me if its not going to be profitable, I trust he would just tell me this one isn't right for me. if he sells them for 750 a machine thats what i would try to pay..a $20/wk location sucks you can probably dial through the phone book and get better locations and honestly if you buy it you should. Link to comment Share on other sites More sharing options...
mission vending Posted November 12, 2011 Share Posted November 12, 2011 By the numbers........ $1275/month is $15300 a year. .75 vend price, assuming .30 cost on soda is 40% cogs. Which is $6120 and leaves $9180. Figure 30 hours a month for your time to service, buy product, paperwork etc. is $3600 a year. From $9180 that leaves you $5580. Your time is worth something, right? From that wear and tear on the car, insurance, a few minor equipment repairs, at least $1000. So now you are down to less than $5k. Still have not figured sales taxes either. So on a 10K purchase price you are looking at a 2 1/2 year ROI. Ideally with usdd equipment Fuel, wear amd teaf Ideally with used equipment your ROI ought to be around a year. There are other reasons you might want to consider this purchase but based purely on the info avail and looking ONLY at the numbers this is probably not a best buy. Link to comment Share on other sites More sharing options...
jb5580 Posted November 12, 2011 Author Share Posted November 12, 2011 By the numbers........ $1275/month is $15300 a year. .75 vend price, assuming .30 cost on soda is 40% cogs. Which is $6120 and leaves $9180. Figure 30 hours a month for your time to service, buy product, paperwork etc. is $3600 a year. From $9180 that leaves you $5580. Your time is worth something, right? From that wear and tear on the car, insurance, a few minor equipment repairs, at least $1000. So now you are down to less than $5k. Still have not figured sales taxes either. So on a 10K purchase price you are looking at a 2 1/2 year ROI. Ideally with usdd equipment Fuel, wear amd teaf Ideally with used equipment your ROI ought to be around a year. There are other reasons you might want to consider this purchase but based purely on the info avail and looking ONLY at the numbers this is probably not a best buy. Thanks Mission- I'm sure what is going on is he has selected these 12 stops as his non-money makers and is unloading them out of his over all huge route. I'll pass since he seems firm on his price. This is why I love Vendiscuss! Thanks for your help Link to comment Share on other sites More sharing options...
jpbutler Posted November 14, 2011 Share Posted November 14, 2011 This is a great thread. I have only been in this business for a little over 3 years. So, it's nice to see how other people try to figure out ROI and how to price a route or location. Here are the factors that I would use to price this or any route based on my personal experience and networking with other vendors: I use 50% of gross annual sales as a starting point for pricing an existing route/location that I want to buy and then work down from there. If the location has soda machines that are owned by pepsi or coke, older snack machines that need refurbed, or poor pricing then I lower the offer. I would also not be willing to pay 50% of gross on any site with soda only. I try to ensure that I can break even after 1 to 1.5 years on any purchase assuming a net of 25-30% after all expenses. Seeing as this is soda only, I would go around to all the accts. before buying it and try to get a feel if any of them are good candidates for a snack machine. Then I would also factor that into my offer price and decision to purchase or not. JPB Link to comment Share on other sites More sharing options...
AngryChris Posted November 14, 2011 Share Posted November 14, 2011 I wouldn't buy it. Firstly, paying anywhere between $750-$1000 for each machine is not something I would be very fond of. The price isn't bad, but if the locations kick you out right after, what do you do with machines that vend cans only? You have to find more can-only locations. Secondly, at $20/week, you are going through about 1 case of "whatever" every week. With no less than 8 selections, you may need to throw out a lot of soda! Unless you keep everything just above the sold-out switch on every slow moving selection, and constantly make sure that it's just at par (par being the point to where you won't be sold out and you won't have too much in there either), the time factor will be huge. You almost certainly could arrive once a month and fill most of them up, but then you have to decide which items may need to be taken out to be moved to other locations or which items should be removed entirely and replaced with different flavors, etc... By the way, the absolutely WORST thing to deal with with that many selection is when that "one guy" calls you up complaining that you either don't have some flavor or never had some flavor that he wanted. You know, the same guy that wouldn't ever buy anything anyway. He's the same guy ( or girl for that matter, to be politically correct ) that complains to store managers that they are sold out of something that was listed in a sales ad. He wasn't going to buy it anyway, he just has nothing better to do than to complain. HUGE PITA. *HOWEVER* It's not a bad deal. I just wouldn't buy it. Link to comment Share on other sites More sharing options...
dogcow Posted November 14, 2011 Share Posted November 14, 2011 I wouldn't buy it. Firstly, paying anywhere between $750-$1000 for each machine is not something I would be very fond of. The price isn't bad, but if the locations kick you out right after, what do you do with machines that vend cans only? You have to find more can-only locations. if they are the machines pictured they should vend 20oz bottles with the right shims. By the way, the absolutely WORST thing to deal with with that many selection is when that "one guy" calls you up complaining that you either don't have some flavor or never had some flavor that he wanted. You know, the same guy that wouldn't ever buy anything anyway. He's the same guy ( or girl for that matter, to be politically correct ) that complains to store managers that they are sold out of something that was listed in a sales ad. He wasn't going to buy it anyway, he just has nothing better to do than to complain. HUGE PITA. haha amen to that, always seems the slowest accounts give the most complaints Link to comment Share on other sites More sharing options...
Vending How Chris Posted November 15, 2011 Share Posted November 15, 2011 1321054338[/url]' post='101225']Yeah, he's insured. He's been in the vending business, drinks, snacks, and coffee for about 25 years I think, they have a warehouse, trucks, etc. I could really learn alot from him. Like I said, at one time they had rows and rows of those Cold Drink front machines in their warehouse for sale,with delivery. Not sure where they get them from. I also don't think he would sell this route to me if its not going to be profitable, I trust he would just tell me this one isn't right for me. Why not offer to work for him to decreae the buying price? Not necessarily on this particular route, because as you said it seems like he's trying to unload his non moneymakers. But if you can reduce the cost of buying a route and get valuable advice from this guy at the same time, that would most certainly be worth your time. When I got in the vending business I shadowed a very successful business owner for 3 months before he let me work his route on my own. The working knowledge of a successful vendor vs. and unsuccessful vendor (or my own default habits) was priceless. During which, you might ask him "what would you do to increase the value of these accounts?" But like mission said, your time is valuable so you just have to decide if the time to learn is worth it for you. Link to comment Share on other sites More sharing options...
Poplady1 Posted November 15, 2011 Share Posted November 15, 2011 Why not offer to work for him to decreae the buying price? Not necessarily on this particular route, because as you said it seems like he's trying to unload his non moneymakers. But if you can reduce the cost of buying a route and get valuable advice from this guy at the same time, that would most certainly be worth your time. When I got in the vending business I shadowed a very successful business owner for 3 months before he let me work his route on my own. The working knowledge of a successful vendor vs. and unsuccessful vendor (or my own default habits) was priceless. During which, you might ask him "what would you do to increase the value of these accounts?" But like mission said, your time is valuable so you just have to decide if the time to learn is worth it for you. Great read from all of you. Poplady1 Link to comment Share on other sites More sharing options...
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