There are a lot of reasons why there are vendors that are trying to sell established vending machine business route.
When i was new in the Vending Machine Business i was constantly looking for a good deal at craigslist. Craigslist is the only resource here in Vancouver, BC that you can find business opportunities.? I was constantly looking for Vending Machine Business Route for sale.
Craigslist is a resource center that you can find all kinds of business ideas.
There will be a lot of results that will come up when searching : Vending Machine Business Route or Vending Machine Business Location.
There are always vendors that are getting out of the business.
There are basically these types of vendors classification.
- The business has 5 to 10 locations and getting more busy with full time job and decided to sell
- Vendor has been around for decades and is almost going for retirement
- Operator has around? 20 locations with newer machines and decided to get out of business
- The route has 10 locations and got a very good opportunity for work and will be moving to another province
- Wanted to get rid of locations that is far away from most of his present locations
- Selling due to under performing location
- Basically a buy and sell locations operator
I stumbled several vending business machine route for sale at craigslist and i was very eager to buy them.
Normally a vendor here in Vancouver just discloses a selling price of lets say $20,000 for 10 locations on older vending machines. There is no way to audit the real sales since the some older vending machines doesn’t have any cash counter on the machines.
I just used my gut feel and just have to start from somewhere. The sales expected was accurate from the average sales for the year when i got the route.
The only setback from buying an established vending machine business route is that the machines are super old.
Operating them for a year and slowly about more than half of them had problems and all my profits was just to cover the expensive replacement parts. The pop machines are very old and most of them have to replace the compressor which is around $800 including labor.
If the machines are very old some of them will eventually malfunction and needed to generate revenue so on some occasions i had to have it replaced with another used machine.
The computation of a location with machine is normally :
- Approximate Sales per month x 12 months = selling price ( for older machines )
- Gross Sales per month x 18 months = selling price ( for machines less than 5 years old )
A small discount can be taken into account if the vendor urgently wanted to sell the business.
For example : asking price of $20,000 can be turned into $18,500 to $19,000
Conclusion :
Make a research and don’t jump into buying an established route if the machines are way too old.? Vending machines that constantly are updated and almost new the established route vending machine business price will just a little tad higher.
