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Buying a Route-Value of Third Party Vendor Income


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#1 Three Kids

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Posted 20 August 2010 - 02:23 PM

When buying an existing route should give any value to the income generate by machines that are third-party (owned by Coke or Pepsi)? Does Coke or Pepsi frequently take these machines back or give them to another vendor? Do you have a contract with them? What are any other pitfalls to third-party vending being up to 50% of your route?

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#2 Haynorm

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Posted 22 August 2010 - 07:59 AM

When buying an existing route should give any value to the income generate by machines that are third-party (owned by Coke or Pepsi)? Does Coke or Pepsi frequently take these machines back or give them to another vendor? Do you have a contract with them? What are any other pitfalls to third-party vending being up to 50% of your route?

Thanks

You won't have any physical asset but you will have value. Just check with each bottler before buying the route to set up your own agreement with them. If they will not work with you then I guess you would need to replace the machines with your own equipment. If the route doesn't justify that cost, walk away.