4 replies to this topic

[elvis1074]

If you would be so kind as to offer advice --------I have the opportunity to buy a 38 machine (Vendstar 3000 triple heads) route for $4000. He said his net is $400 - $600 per month and he has owned the route for one year and that is the age of the machines. He said the net has never been below $400 during that year. He services once per month and he said he does not believe there will be any location turnover as long as the machines are serviced at least once per month. he doesn't pay a fee for the sites. He lives 1 hour away from the locations which is his stated reason for selling. He admits 29 sites are good 9 are not so good. He said it costs between $60 - $80 to fill them monthly. He is servicing them next week and has offered to take me along to check it out. I am new to all of this. Other than not paying any fee at the locations, none of this sounds fishy to me. Can you wise-men please check me on my info and let me know if I should ask anything else? Sounds like a good way to make some cash on the side. He said it takes between 3 and 4 hours to service them. PLEASE HELP.

[Gabe .Z.]

Go Along just to see how things are done. Vendstars are all plastic and very cheaply made. The chute doors always break off (look for this when he takes you). You will be paying about $105 per machine with location. I believe that is a little high. I would offer no more than $2,500 for everything if the machines are in good locations and good shape. Keep us informed.

[elvis1074]

Go Along just to see how things are done. Vendstars are all plastic and very cheaply made. The chute doors always break off (look for this when he takes you). You will be paying about $105 per machine with location. I believe that is a little high. I would offer no more than $2,500 for everything if the machines are in good locations and good shape. Keep us informed.

He initially wanted about $6000 for the route. I offered $3000 and he said it was too low. He then said $4000 and he keeps the money from the run we do together. How does the monthly net factor into the valuation?

[Gabe .Z.]

That depends. I pay for the machines only, no matter if they are on location or not. Who is to say you won't lose the location next week? Like I said, Venstars are cheaply made machines. Beware.

[markvend]

He initially wanted about $6000 for the route. I offered $3000 and he said it was too low. He then said $4000 and he keeps the money from the run we do together. How does the monthly net factor into the valuation?

I think you made a good original offer. I have several of these in my routes (I think now about 40 or 50) and they really do not hold up well. I paid only around 30 for mine on location and they have paid for themselves many times over, but they are prone to lots of maintanence. I would not pay 4000 for them. Let him sit for a month and approach him again. If you buy them, figure on replacing 3-5 a year on average use. Order many extra doors as they break often.

Hope this helps.

Mark