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How to Price a location for Sale?


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#1 Rebekah

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Posted 27 January 2011 - 02:39 PM

What is the best way to price a location for sale? Are you supposed to just value the machine on the site or is there a method/calculation that you are supposed to add like a year's worth of expected sales to the price of the machine?

#2 cbolley

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Posted 29 January 2011 - 03:40 PM

What we do is take the amount that is taken in a week X's 50
Plus.. if the machine/machines are in good shape we give
an additional 25%
If the machines are not to good shape or are old we only
offer an additional 20%.

So for example the stop takes in $100 a week that would be
$5,000 + if they were good machines we would pay another
$1,250 (25%)
So for that one stop we would offer $6,250.


Cindy

#3 Marcusbell

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Posted 02 February 2011 - 09:57 PM

I am agree with cbolley's comment. You have to calculate before decide the actual amount.

#4 dperry324

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Posted 04 February 2011 - 02:10 AM

Um, I have a much different perspective.

A location is only as good as what it would cost a locator to get for you. Locations can be had for $50 on average.
The machines are only as good as 1/2 the price of new. If it is a NW Super60, then 1/2 of the price of one from Sams is $35. Honestly, would you pay retail prices for used equipment?
A Vendstar is only worth about $35 also.
A pipe stand is about $25.

So a single charity location using a NWs60 on a pipe stand would be worth no more than $110.

That is just an example.

#5 dperry324

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Posted 04 February 2011 - 02:12 AM

What we do is take the amount that is taken in a week X's 50
Plus.. if the machine/machines are in good shape we give
an additional 25%
If the machines are not to good shape or are old we only
offer an additional 20%.

So for example the stop takes in $100 a week that would be
$5,000 + if they were good machines we would pay another
$1,250 (25%)
So for that one stop we would offer $6,250.


Cindy

You aren't talking about bulk machines, are you?
My best commission rack locations do not do $100 a week.

#6 caserri

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Posted 06 February 2011 - 09:56 AM

Um, I have a much different perspective.

A location is only as good as what it would cost a locator to get for you. Locations can be had for $50 on average.
The machines are only as good as 1/2 the price of new. If it is a NW Super60, then 1/2 of the price of one from Sams is $35. Honestly, would you pay retail prices for used equipment?
A Vendstar is only worth about $35 also.
A pipe stand is about $25.

So a single charity location using a NWs60 on a pipe stand would be worth no more than $110.

That is just an example.


This is the only way to price a route in my opinion. Why would/should you pay more for a route than what you can replicate it for yourself?