6 replies to this topic

[Johnny Ringo]

I've been calling some ads and inquiring about purchasing some existing vending routes (snack/soda). Does anyone have some advice for me? I would eventually like to vend full-time. It is my ultimate goal to have my own profitable business for my family. BTW, I am brand new to this. I just started looking at vending a week ago.

Here are the questions I have been asking the sellers:
Why are you selling?
Where are your locations?
What are the gross and net profits?
What brand and models are the machines?
How long have you had the business?
Are the commissions or charity fees?
How is your relationship with the site owners?
How often do you have to service/stock the machines?
Are there any liens against your machines or business?
Could I examine your route?
Do you have financials to back up the income claims?
What types of payments do you take for the route purchase (all cash, finance)?
What types of money do the machines accept? Coins and bills? New $5 bills?
How many employees are at the locations?
Did you create this route or purchase it from someone?
How many of your locations are good and bad?
Will you introduce me to the location owners and train me?
Did you make a profit since you owned the route?

What else should I be finding out or doing?
Also, I've found that when I ask for financials to back up income claims that they all seem to tell me, "It's a cash business..."
Is that pretty normal? One guy did tell me that I could check the computers in the machine one day and come back a week later to see the sales. Aside from that, is it normal for the sellers to have no records to prove the sales?

Thank for all the help!

Johnny Ringo

[cwdist]

You seem to be on the right track.

All the questions are great questions. You attention to detail will help you to not get ripped off.

As for "proving" income. It will be hard because it is a cash business.

A few ways to check are:

If the machines were new when put on the location you can check the non resettable counter on the machine. There should be on most, if not all machines, one counter that shows total vends since the machine was new.

If the seller is selling the entire route you can look at his invoices from his suppliers to see if his purchases match up with sales.

If he bought used machines or is just selling some locations then checking the counter one week then again the next will give you some idea. Unless the seller just vends the machine himself to run up the numbers for that week.


Your best bet is to run the numbers by the group here to see if they sound reasonable for that type and size location.

[Johnny Ringo]

You seem to be on the right track.

All the questions are great questions. You attention to detail will help you to not get ripped off.

As for "proving" income. It will be hard because it is a cash business.

A few ways to check are:

If the machines were new when put on the location you can check the non resettable counter on the machine. There should be on most, if not all machines, one counter that shows total vends since the machine was new.

If the seller is selling the entire route you can look at his invoices from his suppliers to see if his purchases match up with sales.

If he bought used machines or is just selling some locations then checking the counter one week then again the next will give you some idea. Unless the seller just vends the machine himself to run up the numbers for that week.


Your best bet is to run the numbers by the group here to see if they sound reasonable for that type and size location.

Thanks for the input.

BTW, is buying an existing route the best way to get started? Or should I try to start finding locations and then buying used machines?

Also, someone told me that if I am doing snacks that I would really like to have a few machines. The reason being that if I am going to buy in bulk to save on cost per item, I would need enough machines to put the product into or else the left overs will just go bad.

[Agee Vending]

All of those questions are good. This industry isn't really good on record keeping unless its a bigger operation. So there may or may not be good "Proof". Looking at the counters doesn't really help since the machine maybe use and they can be manipulated. Go with the guy to collect the cash... see what is grosses each week. Most experienced guys can tell as soon as they see the machine and location if they can make money. So you may lose some "good buys" by waiting on proof... you snooze you lose. If a guy is paranoid about showing you the route... forget it... they are most likely full of it. If he does... respect his time and his client...

Buying machines is a good way to get started... it gets your foot in the door. Then you can learn the rest later...

Thanks for the input.

BTW, is buying an existing route the best way to get started? Or should I try to start finding locations and then buying used machines?

Also, someone told me that if I am doing snacks that I would really like to have a few machines. The reason being that if I am going to buy in bulk to save on cost per item, I would need enough machines to put the product into or else the left overs will just go bad.

[Ronald]

I am looking at a route to buy now..Owner wanted me to sign an agreement that if i did not buy route that i would not good after locations.
Had to sign it before he would show me the locations.

All of those questions are good. This industry isn't really good on record keeping unless its a bigger operation. So there may or may not be good "Proof". Looking at the counters doesn't really help since the machine maybe use and they can be manipulated. Go with the guy to collect the cash... see what is grosses each week. Most experienced guys can tell as soon as they see the machine and location if they can make money. So you may lose some "good buys" by waiting on proof... you snooze you lose. If a guy is paranoid about showing you the route... forget it... they are most likely full of it. If he does... respect his time and his client...

Buying machines is a good way to get started... it gets your foot in the door. Then you can learn the rest later...

[Agee Vending]

I wouldn't mind that... as long as it wasn't forever... I'd say I'll not approach them for 6 months or so...

I don't understand all the paranoia... been in and around the business 10+ years, bought and sold plenty of routes... never had a location stolen and never worried about it... more worried about the 500 locators calling my location and offering commissions... your vending locations are never secret, anyone can walk in off the street and out sell you...

I am looking at a route to buy now..Owner wanted me to sign an agreement that if i did not buy route that i would not good after locations.
Had to sign it before he would show me the locations.

[VendingGURU]

you cant believe the meters, he can show up in the middle of the week and buy 84 sods just to make the meter look good. There really is no proof, unless you can sit and watch people use it all day.[



quote name='Johnny Ringo' date='Apr 24 2009, 04:41 PM' post='5528']
I've been calling some ads and inquiring about purchasing some existing vending routes (snack/soda). Does anyone have some advice for me? I would eventually like to vend full-time. It is my ultimate goal to have my own profitable business for my family. BTW, I am brand new to this. I just started looking at vending a week ago.

Here are the questions I have been asking the sellers:
Why are you selling?
Where are your locations?
What are the gross and net profits?
What brand and models are the machines?
How long have you had the business?
Are the commissions or charity fees?
How is your relationship with the site owners?
How often do you have to service/stock the machines?
Are there any liens against your machines or business?
Could I examine your route?
Do you have financials to back up the income claims?
What types of payments do you take for the route purchase (all cash, finance)?
What types of money do the machines accept? Coins and bills? New $5 bills?
How many employees are at the locations?
Did you create this route or purchase it from someone?
How many of your locations are good and bad?
Will you introduce me to the location owners and train me?
Did you make a profit since you owned the route?

What else should I be finding out or doing?
Also, I've found that when I ask for financials to back up income claims that they all seem to tell me, "It's a cash business..."
Is that pretty normal? One guy did tell me that I could check the computers in the machine one day and come back a week later to see the sales. Aside from that, is it normal for the sellers to have no records to prove the sales?

Thank for all the help!

Johnny Ringo
[/quote]