03rd Jul 2010
Buying Used Vending Machines or an Established Vending Route
When I first started out in vending a couple years ago, I bought a small route with 18 triple head machines already on location. It’s easy for new people to go wrong by buying and existing vending route, most new people end up paying way too much, but I knew what I was doing, did my research and only overpaid a little bit. This is only a little bit of a joke with a lot of truth; thankfully I didn’t get ripped off too bad. Almost right at the start, I ended up having to close up about half the locations for underperforming, but I still have few of these initial locations and a couple are pretty good.
The main thing you should know about buying an existing route is that you don’t consider the value of the locations in you offer price. The purchase price should only be based on the market value of the machines and that’s where most new people go wrong. Unless the seller can provide detailed records about earnings including IRS filings then it’s best to discount the value of the locations. By the time people get to the point that they are selling their routes or machines, they usually want out fast. I say offer a ridiculously low price, the worse they can say is no. Leave your number and if they’re desperate enough and get no other offers, they’ll call.
Don’t just look for the good offers, wait for the ridiculously good offers, they’re out there if you bide you time. When you’re just starting out, it’s normal to be overexcited and want to get started as soon as possible, but shopping around will save you thousands of dollars. I just recently picked up some double head Oak used vending machines assembled and on stands for $50 apiece. They’re not located, but if you’re not familiar with Oak, they’re one of the best machines in the business, so this a great buy. The seller wanted double this, but I didn’t budge. I was a little embarrassed with my lowball offer, but the seller just wanted out, so she eventually accepted my offer. This is the type of deal you’re looking for – rock bottom prices; otherwise you might as well buy new.
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