10 replies to this topic

[newguy]

Just found this add.... Sounds interesting. Your thoughts?

"I'm selling 3 locations. All have pop and snack machines. Fill once a week. 2 located close together near ?????? and other off ??????. One location has can pop and chilled ams snack. 2nd location has royal 650 and new ams snack. 3rd location has combo unit: snack with pop slave (cans). Sorry, no pic of combo unit at this time. Usually purchaser pays cost for inventory and pays for coins in coin mech."


I emailed him a few questions and this is what was said....


me - "Why are you selling the route? What is the income on the machines (gross and net) and can you back up the numbers? Are you paying a comission? Is there a contract with the locations?"


Reply - "I've been doing vending on the side for about 7 years. I have bought another business and think its time to get completely out of vending. I've had many other locations but sold off as necessary. I kept track all year monies collected. Jan- 1300, Feb- 1300, Mar- 1200, April-1150, May-1370, June-1209, July-756, Aug-1200, Sept-1337. I dont have anything to back up but have 1 person I have sold many machines pulled off locations to and 1 person who has bought locations from me. I think you will find that everything is on the level and they knew what they were buying and are happy with the deal. I dont pay a commission. I have been lazy keeping record of cost of goods and usually go to Sams. There are no contracts but because I visit each location once a week I know they are happy. I have good communication with people at each location and know they are satisfied with service. Ask any questions or call. Never any problems with machines, just visit and fill machines once a week."


This sounds pretty good to me. It seems the cost of the machines alone would be close to the $5500 he is asking.

Am I missing something?

Thanks for the input!

Newguy

[bcron]

Just found this add.... Sounds interesting. Your thoughts?

"I'm selling 3 locations. All have pop and snack machines. Fill once a week. 2 located close together near ?????? and other off ??????. One location has can pop and chilled ams snack. 2nd location has royal 650 and new ams snack. 3rd location has combo unit: snack with pop slave (cans). Sorry, no pic of combo unit at this time. Usually purchaser pays cost for inventory and pays for coins in coin mech."


I emailed him a few questions and this is what was said....


me - "Why are you selling the route? What is the income on the machines (gross and net) and can you back up the numbers? Are you paying a comission? Is there a contract with the locations?"


Reply - "I've been doing vending on the side for about 7 years. I have bought another business and think its time to get completely out of vending. I've had many other locations but sold off as necessary. I kept track all year monies collected. Jan- 1300, Feb- 1300, Mar- 1200, April-1150, May-1370, June-1209, July-756, Aug-1200, Sept-1337. I dont have anything to back up but have 1 person I have sold many machines pulled off locations to and 1 person who has bought locations from me. I think you will find that everything is on the level and they knew what they were buying and are happy with the deal. I dont pay a commission. I have been lazy keeping record of cost of goods and usually go to Sams. There are no contracts but because I visit each location once a week I know they are happy. I have good communication with people at each location and know they are satisfied with service. Ask any questions or call. Never any problems with machines, just visit and fill machines once a week."


This sounds pretty good to me. It seems the cost of the machines alone would be close to the $5500 he is asking.

Am I missing something?

Thanks for the input!

Newguy

I've only been in it a year, so take it for what it's worth. From what I've gathered, you want your investment to pay for itself in two years max. If you take your numbers above, and assume that's gross sales, average them out monthly and then multiply by 12, you get about $14,000+ gross per year. If you figure roughly half of that being net, it apears it should pay for itself in less than a year.

Does anybody have anything to add to that? Of course I'm leaving out any additional costs that are involved, gas, insurance, etc...

[coinvestor]

Find out what his prices are set at. The numbers look good, but you need to make sure that his prices are set right.

JD

[newguy]

Find out what his prices are set at. The numbers look good, but you need to make sure that his prices are set right.

JD

I am meeting with the individual in the next two days to see the machines and locations. What do you mean by the prices set right? What is a standard profit margin? I will be buying my snacks and drinks at Sams.

NG

[Agee Vending]

I am meeting with the individual in the next two days to see the machines and locations. What do you mean by the prices set right? What is a standard profit margin? I will be buying my snacks and drinks at Sams.

NG

I think he means... is he charging .40 for a soda or .60? Is there room in there for raising the price? Is there a contract or worse an understanding with the client not to raise prices? Make sure you get a sale contract that included a non-contact clause. Its the new scam now. Sell a route, let it run for 90 days and the client kicks out the new guy, calls the old guy and he gets his route back, and you're out of $$$.

[coinvestor]

I think he means... is he charging .40 for a soda or .60? Is there room in there for raising the price? Is there a contract or worse an understanding with the client not to raise prices? Make sure you get a sale contract that included a non-contact clause. Its the new scam now. Sell a route, let it run for 90 days and the client kicks out the new guy, calls the old guy and he gets his route back, and you're out of $$$.

Like Agee said, you need to look at his prices in the machines and compair them to your cost. Is he selling stuff at twice the cost?

Good luck,

JD

[For The Kids Vending]

You may also see if he's willing to accept a down payment and pay the rest off in a month (or more). This will at least keep him honest and you won't be as far into it if he is not being totally honest. However on the surface it does sound like a good deal.

[coinvestor]

You may also see if he's willing to accept a down payment and pay the rest off in a month (or more). This will at least keep him honest and you won't be as far into it if he is not being totally honest. However on the surface it does sound like a good deal.

Keep in mind that you can check the non resettable cash counters on the new machines to check his income numbers.

JD

[Jusred]

Are there certain years of machines manufactured to watch out for? Cost of maintenance wise that is.

[newguy]

You may also see if he's willing to accept a down payment and pay the rest off in a month (or more). This will at least keep him honest and you won't be as far into it if he is not being totally honest. However on the surface it does sound like a good deal.

Thanks for the input. I can't even get the guy to call me back on our appointment time. maybe he sold it to someone else, who really knows.

But thanks again for the input. I do want to get started but being new I am hesitant to make the investment without a location. How did you guys get started? Locations first or machines first?

[coinvestor]

Thanks for the input. I can't even get the guy to call me back on our appointment time. maybe he sold it to someone else, who really knows.

But thanks again for the input. I do want to get started but being new I am hesitant to make the investment without a location. How did you guys get started? Locations first or machines first?

Always location first............................