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ambitionoverkill

Member Since 26 Dec 2008
Offline Last Active Dec 15 2010 06:58 PM
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Topics I've Started

Attempting to get into the business

13 December 2010 - 08:05 PM

I've been speaking with someone about purchasing a route. I'll copy and paste the email below and hopefully someone can give me some advice on it. He's asking $125,000 for everything including the locations and truck. I haven't gotten the types of machines from him yet (I just responded to this email). Any input would be appreciated.

Hi Justin,Thanks for your interest in our business. I'll list some numbers below for consideration:

Estimated revenue per week: $2,500.00 per week
Minus: 750.00-1,000.00 week product cost (drinks/snacks)
Minus: 75.00 week (gas)
Minus: 500.00 week (business payment, owner financed at 5% interest) for 4 years

Estimated profit each week ($750.00 to 1,000 per week)

Included: 20-25 accounts, each with drink/snack machines, some with coffee machines (need to be visited roughly once per week). During that visit would replenish drinks/snacks and collect $$. You own your drink/snack machines, and can move them at strategic times if want a different location, find a more lucrative location, etc. Customized truck with state of art vending shelving system, nice hand truck, truck opens on three sides for easy stocking and unloading of truck. Training included. Can purchase products at Sam's or Costco (also have ability to purchase products at larger local vending services company at attractive pricing). Have support of larger vending company if need assistance with repairs or moving of equipment.

Positives: Would gross around $2,000 month during first 4 years of business (while paying for business). After 4 years, and you own business free and clear, it would double and would be clearing around $4,000 per month.

Recommended Terms: $20,000 down, Balance financed at 5% interest for 4 years (would pay $500.00 per week towards balance)

(Only other cost, would be purchasing of existing product in machines at time of purchase of business (inventory).