7 replies to this topic

[Johnny Ringo]

Hello,

I'm new here. I've spent that last week or so researching and reading about the vending business. I'm looking into buying an existing route to get started. Could you please tell me your opinions on this one deal?

There are two machines in one location. I was told it was a busy factory with 100+ employees. The machines are a USI for snacks and a Vendo for the drinks. The machines are about one year old and are still under warranty. There is no commission paid to have the machines at the location. The seller is asking $9000. He is allowing $3500 down and financing the rest. He said that he still owes on the machines. The seller told me that he has been vending for 20 years and that he now spends some of his time creating new locations and then selling them. The seller also said that if the location failed to perform over the next year, as long as I serviced it well, that he would find me a new location. I was told that the yearly gross is $15,000 and that the net profits were about 60% of that.

How does all this sound? Is the game for the seller to overprice, the buyer to lowball offer and then to meet in the middle?

Thanks,

Johnny Ringo

[cwdist]

The number sound reasonable for that size and type location and the machines should handle that volume with one weekly run, maybe two.

Check the non resettable counter on the machines to verify. If the machines were new when put in they should match the sales numbers.

The only thing I see that I would question is the profit margin. It seems a little high. Probable 45% - 50%.

Good luck.

[Johnny Ringo]

The number sound reasonable for that size and type location and the machines should handle that volume with one weekly run, maybe two.

Check the non resettable counter on the machines to verify. If the machines were new when put in they should match the sales numbers.

The only thing I see that I would question is the profit margin. It seems a little high. Probable 45% - 50%.

Good luck.

Maybe I'll have him show me the location and I will check the counters. If I am still interested, should I low ball him?

[Agee Vending]

Hmm... this deal sounds very familar... are you from Southern California?

I know a guy who makes deals like that.

Hello,

I'm new here. I've spent that last week or so researching and reading about the vending business. I'm looking into buying an existing route to get started. Could you please tell me your opinions on this one deal?

There are two machines in one location. I was told it was a busy factory with 100+ employees. The machines are a USI for snacks and a Vendo for the drinks. The machines are about one year old and are still under warranty. There is no commission paid to have the machines at the location. The seller is asking $9000. He is allowing $3500 down and financing the rest. He said that he still owes on the machines. The seller told me that he has been vending for 20 years and that he now spends some of his time creating new locations and then selling them. The seller also said that if the location failed to perform over the next year, as long as I serviced it well, that he would find me a new location. I was told that the yearly gross is $15,000 and that the net profits were about 60% of that.

How does all this sound? Is the game for the seller to overprice, the buyer to lowball offer and then to meet in the middle?

Thanks,

Johnny Ringo

[Johnny Ringo]

Hmm... this deal sounds very familar... are you from Southern California?

I know a guy who makes deals like that.

Yes, I am from Southern California. Any input on the guy or the deal?

[Agee Vending]

send me a pm...

Yes, I am from Southern California. Any input on the guy or the deal?

[rmorris1953]

get it in writing and ask to see the records. 100 + employees don't always mean buying employees, could be low income and don't use machines much. I've found that 15,000 usually means 10,000 and then u only want to give 50 cents on the dollar. My rule of thumb is a years gross and then 50 cents on the dollar. If you loose the location the machines are only worth what you can get today. Price the usi new. Also is the pop his or pepsi's or coke's. Both bottlers loan machines and I've seen people buy these only to find out later their not theirs. Sorry for all the negative talk but I've seen people go bankrupt on a good deal. There are a lot of crooks out there that take advantage of people.

[VendingGURU]

60 % profit is not right, your down to 60 just after food cost. Then there is gas, waste, time, tax, and when the machines break and arent under warrenty any more? Still not bad though, I usually offer 30% of what a stop can gross in a year when purchasing. If the machines were placed new, than the meters started at zero. Ask to see them-they dont lie.