In the first part of our guide on selling vending machines, we discussed how to sell a single machine. Now, let’s take it a step further and explore how to sell your vending machine along with its current location or an entire vending route. This can be even more lucrative, as you’re not only selling the physical machines but also the established income from the locations. If you haven’t read Part One yet, make sure to check it out here.
1. Selling a Vending Machine with an Active Location
If you have a vending machine already placed in a business location, this can be a major selling point. Many buyers prefer machines that are already generating income. Here’s how to approach the sale:
Evaluate the Current Profits
Start by evaluating how much money the vending machine is generating at the location. The more data you have, the better. Buyers will be interested in the profitability of the machine at that specific location. To do this, calculate the 10-month net profit rule:
- 10-Month Net Profit Rule: This means that the net profit of the machine (after deducting expenses like inventory restocking, machine maintenance, and other overheads) for the last 10 months is a good indicator of the value of the location.
- Example: If your vending machine made $300 a month for the last 10 months, the total net profit would be $3,000. This, added to the value of the machine and any products in it, will form a basis for pricing.
If you’d like to learn more about how to price your vending machine, check out Part One of this guide.
Set a Price Based on Multiple Factors
When pricing, follow the 10-month net profit rule, but also take into account the value of the machine and the inventory on hand.
- Example: Let’s say your vending machine costs $2,000, has earned $3,000 in net profits over the past 10 months, and you have $500 worth of inventory left in the machine. You could price the entire package (machine + location rights + inventory) at $5,500.
Highlight the Location’s Value
Make sure to clearly state the advantages of the location:
- Is it a high-traffic area?
- Are there any upcoming events or expansion in the area that could boost revenue?
- Does the location already have an established customer base, or is it a location with little competition?
Buyers will be willing to pay more for a machine that has a prime spot.
- Example: “This vending machine is located in a gym that sees over 500 visitors a week, making it an ideal spot for passive income generation.”
If you’re still unsure about the pricing and value of your machine, refer back to Part One of this guide for more detailed tips.
Selling the Location Rights
You can sell the machine along with the location rights (i.e., the right to place a vending machine at that location). In this case, you’re selling not just the machine but the ongoing revenue stream. Some buyers might even be interested in leasing the location instead of purchasing it outright, giving them the flexibility to exit or change machines later.
- Example: “Price includes 6 months of guaranteed location rights at XYZ Gym, which consistently generates over $400/month.”
2. Selling a Vending Route (Multiple Locations)
If you’re selling an entire vending route, there’s a bit more complexity involved. Here, you’ll be selling multiple machines spread across various locations. Here’s how to do it:
Calculate the Overall Value of the Route
When selling an entire route, the process is similar to selling a machine with a location, but you’ll need to evaluate the total net profit of all the machines combined. Add up the net profits from each location over the past 10 months, then factor in the value of each machine, inventory, and any other assets included.
- Example: If you have 5 machines, each generating $200 per month in net profit, that’s $1,000 per month in profit for the route. The total 10-month profit would be $10,000. Adding in the value of the machines ($10,000) and inventory ($2,000), you could price the route at $22,000.
Highlight the Route’s Potential
Just like with individual locations, the value of the route can be increased by highlighting the potential for expansion, the locations’ stability, and how well the route is managed.
- Example: “This route includes 5 high-traffic locations in downtown office buildings with a combined monthly profit of $1,000. Each location has been with us for over a year and is contractually guaranteed for the next 6 months. Additional machines can easily be added to increase profits.”
List All Assets Included
When selling a vending route, be clear about what is included in the sale. This can include:
- Vending machines and their condition
- Existing inventory and spare parts
- Service contracts or agreements with the locations
- Delivery or restocking equipment
- Any active maintenance contracts
- Example: “The sale includes 5 machines, approximately $500 in inventory, 3 years remaining on the service contract for maintenance, and a dedicated delivery vehicle.”
For more details on pricing and evaluating your route, make sure to refer to Part One of this blog post.
Prepare for the Transition
Selling a route involves more than just a financial transaction. It’s important to plan for the transition:
- Introduce the new owner to the locations: Introduce the buyer to the business owners or managers at each location.
- Offer training: Show the buyer how to maintain the machines and restock them. Explain the processes you follow for maintaining inventory and monitoring profits.
- Offer continued support: You can offer continued support after the sale, either for a fee or as a gesture of goodwill.
- Example: “Buyer will receive full training on route management and machine maintenance, and I’ll personally introduce them to each location manager.”
Price the Route Properly
Pricing a vending route involves considering the machines, the profitability, and the locations’ value. Similar to selling individual machines, you’ll want to price higher than your target amount to allow for negotiations, but also make sure the price is attractive enough for potential buyers to act quickly.
- Example: “The route is priced at $22,000, including all machines, inventory, and location contracts. I’m open to offers.”
3. Final Thoughts on Selling Your Vending Machine or Route
Selling a vending machine with an active location or an entire vending route can be highly profitable, but it requires careful planning and strategy. By evaluating the profits, properly pricing your assets, and highlighting the advantages of your location or route, you can maximize your return and make the selling process smooth for both you and the buyer.
Whether you’re selling a single machine or an entire vending route, remember to approach the sale with transparency and professionalism to build trust and secure the best possible deal.
For more details on how to sell a vending machine on its own, check out Part One of this blog series.
