3 replies to this topic

[emery92ax]

Hello everyone. I am about to get myself into the vending business. I am weighing out my options of locations. Since I have never made a purchase of this type before, I am unsure about the asking prices of the different locations I am looking at. So my question when you consider a new location, how do consider what the value is? For instance, if you are looking at one that claims to do about $200 in sales a week, and is asking $2500 for the machines and location, would you consider this a good deal? Another one is asking $300 for a location that is only pulling in about $400 profit per year.

Is there any mathematical equations you all use?

Thanks

[angus_young]

price 50-60% of gross sales yearly

[TN Vend]

Value of the machines plus 25% of yearly Gross Profit has worked well for me.

[Steve Fischer]

$400 profit per year would be a waste of your time even if they gave it to you. If it is good equipment, it may be worth picking up for the price if you think you can find a better location for it before too long. On the other hand, good equipment is hell to move.

I would consider 2500 for a 200/week location a decent deal but you still have some considerations. To wit:
Does it really make 200 per week? Are there any guarantees? That's a good location. Why would someone be selling it?

Next thing to consider is that 200 per week is a very busy location. If you are inexperienced, you may not be prepared for that. It's easy to lose a good location if you don't offer the service they need.