Charity Vending Charitable

You also need to be certain the machines are close enough to you that your fuel and vehicle costs are low enough to maintain an acceptable profit margin. In my opinion, you should at least aim for 50% after servicing costs, charity or commissions, and product. You'll probably be fine at this level.

Other things to considering when buying an existing route are the age and condition of machines, the type of machines (metal or plastic), verifying the location of machines at the businesses, method of payment, the bill of sale or contract, etc. Take time and write down everything you'll need to know about how to run the route, history of the route, number of times per year to service, and charity information if applicable. You will also want to verify somehow there is no lien against the machines (check with your attorney for proper guidance in this aspect).

You may consider having the operator go around to the businesses with you and open the machines to judge the value of the accounts. If you cannot examine the entire route, consider making a down payment on the route and paying the remainder in thirty days. Understandably, many owners will not want to reveal their locations for competitive reasons in case you do not follow through with the purchase.  Above all, think through the deal. Don't be afraid to ask pointed questions. If you don't get truthful answers, walk away from the deal. You can always check back later and see if the operator is more desperate. If you are successful in acquiring the route, your ROI (return on investment) will likely be much higher than if you bought the equal number of machines and placed them yourselves.

Mark Evants manages a profitable vending company of over 1500 machines in the mid west. For more extremely practical vending tips and articles on increasing cash flow and structuring your vending business visit:

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