9 replies to this topic

[Rocksolid]

I found a guy selling his small route. He has 5 bulk vendingstar machines located in places like a hair salon and car dealership. He said he services them once a month which takes an hr and he nets about 200.00 a month. He donates so the merchants don't take any money. His asking price is 1500.00. He does not have any books on this small route so I would need to take his word on all the numbers. What does everybody think? I was thinking maybe If I buy the route I may be able to get another machine into each location or a largewr vending machine for snacks

[tedk]

I found a guy selling his small route. He has 5 bulk vendingstar machines located in places like a hair salon and car dealership. He said he services them once a month which takes an hr and he nets about 200.00 a month. He donates so the merchants don't take any money. His asking price is 1500.00. He does not have any books on this small route so I would need to take his word on all the numbers. What does everybody think? I was thinking maybe If I buy the route I may be able to get another machine into each location or a largewr vending machine for snacks

He probably paid $300.00 a piece for his machines and is trying hard to get his money back. Anyone making $40.00 a machine per month net and working one hour isn't selling!
The national average is about $7.00 per head per month. A triple on average might do $15.00 per month Gross. With no numbers to verify his claims RUN for the nearest exit.

[Rocksolid]

Thanks for the info Ted. What is the route worth? He said he can bering it down to 1400 but that includes the machines, extra candy worth about 200 and the established stops. I certainly can't offer him 75.00 based on the 15.00 per month avg. I'm sure the machines and established stops is worth something.

[tedk]

Thanks for the info Ted. What is the route worth? He said he can bering it down to 1400 but that includes the machines, extra candy worth about 200 and the established stops. I certainly can't offer him 75.00 based on the 15.00 per month avg. I'm sure the machines and established stops is worth something.

Like I said before run for the nearest exit. He has no way of proving the value of the loccations. You could get thrown out the first time you go to service. You are buying machines only in my opinion. Used Vendstars are all over Craigslist for $20.00 to $ 100.00 each. There are thirty-five being offered in Miami right now at $ 75.00 each. I would low ball and be prepared to walk away if he doesn't accept your offer. A lot of people buying used Vendstars are paying under $50.00 each.

[Rocksolid]

I offered the guy 500.00 for the route. I figured 75.00 for the money it was grossing ( based on 15.00 per machine ) 300.00 for the machines based on 60.00 per machine used and 125.00 for the locations. He told me he had an offer for 1000 and I told him to keep me in mind of it fell through. Today he e-mailed me and told me I can have it for 1000 and I told him I need to stand firm on the 500.00. I am waiting for his reply. What do you think?

[Gabe .Z.]

Good decision to stay firm. It sounds like he wants out. Give him time and I'm sure he will let it go for close to $500.
Good luck!

[tedk]

Good decision to stay firm. It sounds like he wants out. Give him time and I'm sure he will let it go for close to $500.
Good luck!

I agree with Gabe. With nothing to back up his claims you are buying machines for $100.00 each. The machines may not really make anywhere near the national average or the owner may asked you to leave the first time you go in to service them. You were more than fair assuming the machines make $15.00 a month and the locations are worth $125.00.
I wouldn't go higher. He wants out and there is a reason. You don't want to pay an inflated price to find out what the reason is. If he deides not to sell to you that's ok. Keep watching craigslist and ebay. There will be another deal of a lifetime coming along in about a week.

[Rocksolid]

He got back to me and said he would not sell for 500.00 he would rather leave it to a friend instead. I asked for his rock bottom price and he said he would try to sell the route over the next 3 wks. If he has no bite he would be willing to take 850.00. I told him to contact me in 3 wks if he found no buyer and we would talk some more. I may consider going up a bit if he contacts me in 3 wks but I know at that point he will really need to get rid of the route. Thanks for the feedback guys.

[Rocksolid]

Well 3 weeks has past since my last post and the guy came back to me and is willing to sell the route to me for 850.00. I still have not even seen the route so I know I need to see the locations. I will not give him 850.00 but should I go up a little in price. My concern is that he might bad mouth me to the current customers, maybe he will tell them that I will raise the price of the candy in the machines and have them kick me out once the deal is made. I figure if everything looks good after seeing the route maybe I should offer like 650.00 to make him happy and stay on his good side. What is everybody's thoughts???

[earthandwind]

I found a guy selling his small route. He has 5 bulk vendingstar machines located in places like a hair salon and car dealership. He said he services them once a month which takes an hr and he nets about 200.00 a month. He donates so the merchants don't take any money. His asking price is 1500.00. He does not have any books on this small route so I would need to take his word on all the numbers. What does everybody think? I was thinking maybe If I buy the route I may be able to get another machine into each location or a largewr vending machine for snacks

I would ask them for the locations they are selling. I would go and watch the place a bit....at least a peace of mind to know if the shop is busy or not. $1,500 for 5 machines is a bit steep but I would do my homework first. Good luck