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View Full Version : What is the value of an established soda machine?



jbclem
09-23-2006, 07:49 PM
I'm looking at a soda machine for sale that is established in a complex with 3 companies(150 employees). The owner says he sells 700-850 cans a month, and makes $450-750 a month. He doesn't pay anything for the location, and the machine has never needed repair or been damaged.

I'm new to vending, especially soda vending, and would like to hear some opinions on valuing this machine. The asking price is $2500.

John

fusion
09-23-2006, 09:32 PM
How old is the machine?

the saint
09-23-2006, 10:06 PM
math doesn't add up. If he is selling between 700 and 850 cans a month there is no way he is making 750 bucks a month.

As far as the machine never needing repair, well he has been lucky, you on the other hand will kind of end up being that Murphy guy, if it can happen it will. LOL.

$2500 seems a bit steep for one machine, besides if he only has one machine, why sell it if it IS making 750 a month? I wouldn't sell it for what it makes in 3 months time, maybe a years time but not three months

IMHO, something stinks in Denmark, friend.

jbclem
09-23-2006, 10:39 PM
I haven't seen the machine yet, I only know it's a Pepsi machine. How much profit would you make per can? I also don't yet know why he's selling, but there are lots of legitimate reasons, such as moving away. I have seen that happen, and watched the machine price come down (by 50%) as the moving date approached. I can meet with him and see the machine, but I wanted to gather as much information as I could before I did that.

If someone can give me an idea of the markup on a can (of Pepsi?) it will help alot. Also, what is the value of a used soda machine without a location?

I don't know how old the machine is, but the owner has had it 4 years. What kind of repair problems are normal with soda machines? I'm an auto mechanic so I expect to do my own repairs...are there expensive parts in these machines?

I'll find out exactly how old the machine is...


John

the saint
09-24-2006, 08:43 AM
well if it is a can machine, you can usually count on paying $6 a case roughly. That is .25 a can. if you vend at .50 (ease of multiplication) you are going to make $6 per 24 can profit. The machine more than likly will have 4 double slots and 6 single slots, which IIRC the machine will hold approx 15 cases when empty. So with that being said and you completely fill it once every week, 15x6= $90 profit. $90x4weeks is $360, but 15x24 cans is 360 so 15x2x24cans=720 which he claims to be averaging a month SO at a 50 cent vend (honestly you aren't going to be able to get much more than that,maybe 75 cent)you are only going to make $180 a month and at .75 vend you would make $360. Still well below his figures on profit.


On value, if it is a 4 year old machine, I would say neighborhood of around $800-$1000 depending on model and condition. Older than that up to the $800.

At PBG I am able to buy machines at the end of warrenty for $25 bucks that work fine. I have owned one in my garage for about 10 years now and other than a switch in the vend button sticking, I have not had any problems with. It is about 20 years old now. It had a zero repair list within Pepsis logs. Hell when the store closed and I keyed it in for pickup it wasn't even showing up in the computers as an asset due to in trade date and no orders of repair.
Some machines never need repair others are broke all the time, just like cars. I know dixienarco has an online parts catalog you can browse for pricing. I would say vend motors or the compressor would be the most frequent major problems on a machine to break. Changers rarely malfunction, Vend motors are pretty rare also but more common than changer due to a can getting stuck and cams not triggering a kill power to the motor and it constantly trying to turn and burning up. If you keep everything clean it shouldn't be problematic, but as I said that thing about MUrphy, you never know it could blow up 10 minutes after you buy it.

I am not trying to scare you away, I just seen his numbers don't jive and if you look into other posts by myself and some others for the redbull people I am basically saying the same thing. look into it in depth before jumping in head first, which you seem to be doing on your own.
It is something to make a little extra beer money (or if you are married as myself and many others, a couple of $20s hidden in the wallet... :D )NOT something to quit your fulltime job over.

GRANT
09-29-2006, 05:04 PM
pibb rox