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What Should I Be Looking For When Buying A Vending Route?

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Comments & Replies: 2     Views: 2324     Posted By: Peter Siegel MBA  Peter Siegel MBA: BizBen Founder, ProBuy/ProSell Program Director

Topics: Business Brokerage, Business Opportunities     Tags: buying a business

When buying a vending route, there are several things you need to look for.


The location of the business’s vending machines is the first thing you should review when you are doing your due diligence on prospective routes for sale. He best routes have machines placed in places that get regular foot traffic. Businesses and office complexes make perfect locations.


The next thing you will want to look at is the quality and age of the equipment. A new vending machine can cost thousands so be sure that the route’s machine’s are in good shape and are in working condition.


Lastly, you will want consider the type of products they are carrying. Vending machines that carry perishables like sandwiches will have to be maintained on a daily basis. Machines that carry snacks and soft drinks require less maintenance. Knowing how much time you want to put into the business will help you make this decision.

A vending route can be a great opportunity if you know what you are looking for and many can be acquired for a relatively small investment.

We are in due diligence right now for the sale of a vending business in the Bay Area. These businesses can generate comfortable, steady, sustainable profits.

A few additional considerations:

1. Be sure to determine which machines are owned, which are leased, and which are on loan from the particular vendor (often the case for soft drink vending machines).
2. Determine how secure the locations are and how long they have been in place. Contracts for locations are no longer the trend--locations can be canceled with little or no notice.
3. Obtain maintenance and service records for the machines.
4. Determine how much of the business is traditional vending (cash sales by the consumer) and how much is "free vend" or "pantry" service (where the owner of the location pays for the food and drinks).
5. Examine the logistics of the route. Is it designed for the maximum efficiency with locations clustered together rather than being strung out over distances. The more compact the route, the more efficient and economical the business is.
6. Check on having redundant and alternative suppliers so that you aren't at the mercy of any one vendor.

  Helpful Resources To Assist In Selling And Buying California Businesses
Rick Carlson, Business Broker - Southern California

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Michael Floorman, Business Broker, BTI, San Francisco Bay Area

Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.

Michael Davidson, Business Broker - Southern California

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Chris Seaman, Business Broker - San Diego County Area

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Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.

Bob Hughes: Business Broker, Palm Springs Area

Bob Hughes is a business broker & is President of Hughes Properties. Hughes has a wide variety of entrepreneurial experience with the personal ownership & sale of numerous businesses, and has sold over 200 small & mid-sized businesses in the Riverside County marketplace. Call Bob at 760-323-8311.

Helen Yoo: Escrow & Bulk Sale Services - Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.

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