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first and foremost- I didn't think this fit into the franchising section, if it does, please let me know.
I have an opportunity to purchase what is essentially a vending route for an item that is stocked in grocery stores. It is being sold as "a business" but has very minimal inventory. The asking price is what the owner/operator brought in on average per year a few years ago, but in the past 2 years, the business has made very little profit as they owner/operator is aging and does not have the time to put in to create profit. So essentially, I am being positioned to purchase a vending route, that has an option for me to sell other products to these stores, since I will have the infrastructure in place already.
I have always been of the understanding that when a business is "selling out" the standard selling price was cost of inventory+10%. In this situation, that would be less than $1000 dollars, which is a very far number from what the asking price is. Do any other posters have experience with this, or some advice? what is the standard purchase/sale price for a vending route? I understand this may not seem like a fastlane business plan, but after some work, this route can be fulfilled by an employee, while I do very little. It is very brainless and should not require much executive attention or focus once the infrastructure is set in place. thanks for your time.
I have an opportunity to purchase what is essentially a vending route for an item that is stocked in grocery stores. It is being sold as "a business" but has very minimal inventory. The asking price is what the owner/operator brought in on average per year a few years ago, but in the past 2 years, the business has made very little profit as they owner/operator is aging and does not have the time to put in to create profit. So essentially, I am being positioned to purchase a vending route, that has an option for me to sell other products to these stores, since I will have the infrastructure in place already.
I have always been of the understanding that when a business is "selling out" the standard selling price was cost of inventory+10%. In this situation, that would be less than $1000 dollars, which is a very far number from what the asking price is. Do any other posters have experience with this, or some advice? what is the standard purchase/sale price for a vending route? I understand this may not seem like a fastlane business plan, but after some work, this route can be fulfilled by an employee, while I do very little. It is very brainless and should not require much executive attention or focus once the infrastructure is set in place. thanks for your time.
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