Process of Selling a Vending Route
Selling a vending route business can be confusing, overwhelming and extremely time consuming if the process is not handled properly. This article will help outline the best process for selling a vending business. Take these factors into consideration and you should have a much easier and more successful sales process.
- Keep up to date financial records
- One of the biggest issues when selling a vending route is that there is no verifiable income history. Newer machines can show gross sales reports but most of the equipment out there does not. Due to the large percentage of cash purchases, some routes really have no proof of sales. Try to keep a detailed list of your sales information for a minimum of six (6) months. Break this information down by location, cash vs credit, date of collection, etc.
- Create a list of accounts and the contact information for each
- This makes the transition process much easier. Buyers will appreciate that all account contact information is in one place and readily available
- Hire a third party sales company to find qualified buyers
- Involving a third party has a great deal of benefits. Primarily they will generate more interest in your vending route and then provide you with qualified buyers. Because they are a third party they are able to request financial verification from any potential buyers. A service like ours, The Route Exchange. will list and advertise your route for no upfront cost. We work similar to real estate agents and are only compensated if we find you a buyer.
- Take photos of machines and other equipment
- Most potential buyers will want to confirm that the machines are operational and in good condition. Photos of the machines at their locations will help ease their mind regarding the equipment
- Keep realistic expectations
- Most vending routes are selling at a ratio of 1-2x annual gross sales. This means if your route is doing $10,000 in sales that it will likely sell somewhere between $5,000 and $10,000. There are a lot of variables to take into consideration but this ratio should set your expectations. It is important to keep in mind that equipment value is rarely considered. Most experienced vending operators would rather buy a $1,000 used machine then pay for a route which is overpriced due to the equipment.
There are more items to consider but this is a good start. If you have any questions please feel free to contact us any time. We want to save you the wasted time and frustration that goes along with selling a vending route.