What are the current average sales and gross income for this route?
Currently this route grosses $156,000 in yearly sales, and nets $75,800 per year. Income documentation will be provided and is documented by logs as this is an all cash business.
How do I get paid?
As an independent operator you are paid by purchasing product at wholesale cost and selling it to your customer base via the vending machines. This route currently receives an average profit margin of 50% after expenses. This route currently receives an average profit margin of 45% after expenses.
How much can I make?
Vending businesses have unlimited growth potential and can be operated anywhere. The yearly sales can be increased by new accounts being established. New accounts can be established in person or by hiring a vending locating company.
Can I finance the route?
There is no seller financing for this route, and unfortunately banks will NOT write business loans against route based businesses for several reasons. You can review additional Financing Options Here.
What are my expenses and overhead?
Expenses include, but are not limited to: product cost, machine repairs, gas, vehicle expenses, warehouse storage, and insurance. The above cash flow represents the profit after an estimated $85,800 in operating cost and expenses are subtracted.
What type of insurance do I need?
Typically a single owner operator of a route distributorship will need commercial insurance for their delivery vehicle and business liability insurance. Owners with multiple employees will need a multiple vehicle policy and workers’ compensation. Routes For Sale now offers discounts on insurance! Through our size and volume, we have partnered with some of the largest insurance brokers in the nation to offer the best rates. Request Your Free Insurance Quote Here.
What type of vehicle do I need?
There is no vehicle included in the purchase. The current owner runs this route with an E150 Ford Van. When considering purchasing a truck, Routes For Sale recommends MAG Trucks.
What is the Gross vs the Net income?
The gross income for the route is $156,000 per year, minus your above mentioned operating expenses of $85,800, gives you $70,200 in net income or cash flow.
How does the selling price of the route get determined?
To determine a business’s price, a standard formula is to multiply 2 years of the net plus consideration of business assets.
Do I have to pay for additional machines?
Additional snack machines must be purchased, and can be obtained through a wholesaler the current owner purchases from.
Do I have to pay for inventory or purchase product up front?
Yes, the business requires you to purchase product at wholesale through vending companies such as Vistar or Sam’s Club and Snyders/Lance.
Who is responsible for damaged or out of date product?
You are responsible for the product you purchase.
What type of machines does the business operate?
The snack machines are 4 and 5 wide made by AP and USI. USI/FFI, Crane National, Polyvend & Automatic Products, mostly 4-5 wide full size, 12 select to 40 select. The Drink machines are mostly Dixie Narco 501, 501e
Why is the owner selling?
Owner has other business interests.
Where is the warehouse located?
Charlottesville, VA. The warehouse can be relocated to fit the new owner’s needs if necessary.
How many accounts does the route have?
There are roughly 120 accounts, which consist of an estimated 135 snack and soda machines. Note: some accounts have multiple machines.
Does the owner have contracts in place with customers?
A few contracts are in place, but the majority of the business is operated without customer contracts. From experience the owner has found that developing positive customer relationships is better than contracts.
How long has the seller owned the business?
The current owner has owned this business for 5 years. Business has been established for over 20 years.
How many days a week, and what hours does the owner work?
Currently the owner works 2 days a week and an employee works 3 days per week at an additional weekly pay rate not included in the expenses. The route could be run this way or as owner/operator with no employees. The hours are flexible.
What about vacation time or personal days?
As a business owner you are responsible for servicing the route. It is our recommendation that you hire or train someone for additional time needed off. Additionally, you can network and hire relief drivers with previous route experience at RouteReliefDrivers.com. Route Relief Drivers is a nationwide network that allows independent route distributors and vacation relief drivers to connect with each other. Each party negotiates its own terms and compensation.
What do you recommend when purchasing a business?
When purchasing this type of business we recommend forming some type of entity such as an LLC or Corporation to do business under. This not only offers protection for your personal assets, but also ensures protection of your business. If you need help forming this, we recommend that you Form A Corporation Here.
What else should I know?
Be Your Own Boss with flexible hours! Unlimited growth opportunity! The vending machine business is a 100% cash-only business that offers a residual income! The long cherished notion of getting a job that would provide both long term security and benefits is close to disappearing in the American workplace. It is no surprise that more people today want to do “their own thing”. Vending is one of the final frontiers. Hurry this won’t last long! Priced to sell at $164,900! Contact Us About This Route Here!
How can I learn more about these type of routes?
For additional Consulting Services with one of our route specialists Request A Consultation Here.