7 replies to this topic

[boazcat]

What do you think of this offer for sale?


Email from seller:

At present we have 24 locations with 26 machines on location (plus I have 3 in my garage). Most of our machines are located in *****. Our business grossed $35,000.00 last year. All machines were NOT on location all year. We have recently acquired two Midas shops and it is looking good at both places. I have a couple of places that are not the best location – they could be moved to a better spot, but health has not allowed us to do such.


If buy any chance you are interested in the entire business, we are letting everything go with it – inventory, all extra parts, our vehicle, etc.

Thanks,

Michael

[scottgtt]

check the books and the locations, also, you don't mention sales price, just their gross.

[danl]

I'd agree with Scott. Check the books carefully and look over the locations. If they don't keep good records, stay clear. Besides not mentioning a price, I also wonder why "health" has kept them from re-locating machines but apparently didn't get in the way of buying and possibly running Midas shops. I see "health" as a reason for selling vending routes creep up in a lot of advertisements. Guess it's my suspicious mind but it does send up a red flag for me. Just my 2-cents.

[boazcat]

I'd agree with Scott. Check the books carefully and look over the locations. If they don't keep good records, stay clear. Besides not mentioning a price, I also wonder why "health" has kept them from re-locating machines but apparently didn't get in the way of buying and possibly running Midas shops. I see "health" as a reason for selling vending routes creep up in a lot of advertisements. Guess it's my suspicious mind but it does send up a red flag for me. Just my 2-cents.

In other emails they have mentioned that two sisters run the business and they are retiring and moving...

They are gathering their information for me right now. I hadn't planned on buying that big of a business to start out with, so I'm taking it slowly. I don't think they have received any offers so far. They seem very eager to work with me.

Michael

[danl]

Michael,
Keep us posted. I think you have the right idea about taking it slowly.

[jblvending]

In other emails they have mentioned that two sisters run the business and they are retiring and moving...

They are gathering their information for me right now. I hadn't planned on buying that big of a business to start out with, so I'm taking it slowly. I don't think they have received any offers so far. They seem very eager to work with me.

Michael

I recommend not to buy it.The route has 24 location, and 26 machines in place, that means they have only one location with 2 machines, it gross only $26.00 per machine in a week, so that tells me after all expenses are paid(mostly gas, cause your traveling to 24 different places), so lets say your gross profit is $13.00 per machine, per week, well after you take out for Gas, insurance, car maint, and other busniess related expenses, you may make a net profit between $3.00 to $5.00 per machine, was that kind of money you where looking to make? If so, buy it, if not, look for averages of $75.00 to $100.00(gross) per machine, per week, then you have found a good business to buy, right now there eager to sell it to you, cause it's losing money.

[BVI]

I recommend not to buy it.The route has 24 location, and 26 machines in place, that means they have only one location with 2 machines, it gross only $26.00 per machine in a week, so that tells me after all expenses are paid(mostly gas, cause your traveling to 24 different places), so lets say your gross profit is $13.00 per machine, per week, well after you take out for Gas, insurance, car maint, and other busniess related expenses, you may make a net profit between $3.00 to $5.00 per machine, was that kind of money you where looking to make? If so, buy it, if not, look for averages of $75.00 to $100.00(gross) per machine, per week, then you have found a good business to buy, right now there eager to sell it to you, cause it's losing money.

I agree. Something else to consider is why it's only grossing $26 per machine per week... are they in bad locations, or are the machines just not getting stocked on a regular basis (you can't sell what isn't in the machine, and that translates into low sales)? In other words, if the accounts are getting bad or irregular service, you could theoretically end up buying this route and have 24 accounts ready to kick you out before you even get started.

Don't mean to sound sexist here, but vending is a hard business. There's a LOT of grunt work, and if two older sisters are running it, then I have a hunch their accounts are being neglected.

Something to think about.

[bcron]

I agree. Something else to consider is why it's only grossing $26 per machine per week... are they in bad locations, or are the machines just not getting stocked on a regular basis (you can't sell what isn't in the machine, and that translates into low sales)? In other words, if the accounts are getting bad or irregular service, you could theoretically end up buying this route and have 24 accounts ready to kick you out before you even get started.

Don't mean to sound sexist here, but vending is a hard business. There's a LOT of grunt work, and if two older sisters are running it, then I have a hunch their accounts are being neglected.

Something to think about.

I would have to agree with the assessments above but may carry a different viewpoint. When I bought my route, I was taken around to each location and introduced to the key people at each place, even before I agreed on the purchase. Of course I was buying from a friend, which may or may not be a difference here. Anyway, if you feel that poor service may be an issue with low numbers as shown above, I would consider going to many of the decision makers at the locations and ask them about their satisfaction with the current owner/operator. If you are getting a lot of negatives, then also ask them whether they had had thoughts of replacing them. If the answers are yes, continue by trying to see if you decided to purchase the business, if they would be willing to give you a fair amount of time to improve on the last operator before deciding to pull the plug on you. I know that a person's word is only as good as the paper it's written on, but if you don't want to work by contracts, maybe a handshake will suffice if you think that the locations are in jeopardy when you make the purchase. Also consider whether the locations themselves are ones that should be good producers given all other circumstances or are they just poor locations to start with.