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Selling My Bulk Vending Route Part2

See Selling My Bulk Vending Route Part1

Deciding what I wanted and how much it was worth was a real balancing act.

In Part 1, I put together value estimates while I inventoried, prepped and cleaned my equipment, on hand, for the best possible presentation when a potential buyer wanted to see some samples. Using these value estimates I was able to total them and produce a total worth for equipment, locations, product, and misc. parts and supplies.

Next was figuring the actual income produced from the route value, I used a 4 month average to come up with that value. A lot of vendors say they are only willing to pay up to a 3 month average but as the seller, knowing they were getting equipment that was mostly purchased new and well taken care of, established locations, and some tools I developed to help them be successful, I felt 4 months was fair.

So adding the two totals above gave me what my route was worth comparable to industry standards and adjusted for my own calculations. Now came the tricky part, I wanted to be fair with what it was worth but I also know that most vendors will aggressively haggle when it comes to route and equipment buying. So I took my fair total and add around 25% to it, giving me room to drop if need be but not so high in price to be seen as way overpriced for what I was offering. It worked out well for me too because I sold my route for 50% of what I initially asked, but only %25 less than my actual fair price. I also ended up selling it to an old friend and a new friend partnership, with some opportunity to work together in future endeavors, so I was happy with the way it turned out and they got a good deal.

What I used to advertise and sell my bulk vending route

This was the hardest thing to figure out. Obviously I started with Craigslist, and continued using it solely for the first 3 weeks. I got a lot of lowball offers and several other “professional” vendors in the area contacting me all wanting to see where my locations were before they bought, I will talk about these guys in the last paragraph to give you guys a heads up for those that don’t know better.

I didn’t expect to sell it right away, and I was willing to wait for as long as needed to sell it for a deal I wanted, with it bringing money into my pocket every month, I had the time to wait. But I did decide to be more aggressive in advertising it. I took out ads in 2 local free papers for $10 per month. I got a few calls but nothing serious.

I finally sold it while running my route. I stopped in at a local lodge to show support for Joe, an old friend. They were having a Boston Butt Charity Sale and I went to pick one up. Joe has always been interested in my vending venture, he used to actually make some mechanical specialized full line machines at his business for a guy in Birmingham, and I gave him a Northwestern 80 for his living room for the grandbabies. Anyway while talking another friend of his was there and vending was something he had always wanted to try, so we discussed it and they decided to go in halves as partners on my route. We are now in the process, as I write this, to get everything turned over to them and I am going to show them the ropes, but I feel good with the deal even if I didn’t get what I wanted for it.

Now about all those established guys calling asking where my locations are. There is a bad practice out there wear these guys will find your locations and then go pitch them to get you thrown out and them in, making your route less and less valuable. The best way to tell these guys from serious inquiries is the questions they ask. If I am looking to buy a route my first questions are going to be; “how much does it make?”, “Can you show me the financial records?”, “What kind of equipment?”, “What is the price and is the price flexible?”. My first question would never be” where are the locations?’. Honestly if they are making the money I need them to make, I don’t care about where it is, or what type of location it is. So never give out your locations names or addresses to a potential buyer, show them the financial proof, but don’t get fooled into getting taken advantage of.

See Selling My Bulk Vending Route Part3 – Now What!

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