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What to offer?


F J Vending

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2 locations - 20 total machines Eagle, Northwestern and Oak's.

$400 monthly gross sales total for both locations

Current owner pays 40% commission

asking $3250, I would get current product and money that is in the machines

I am thinking no more than $1500, would anyone go higher

I suppose I could up the price on some to .50 to increase profit margin

I really dont like the 40% commission, too high in my opinion

I would only need to service locations every 60 days and would take an hour.

Machines are good quality, about 5 years old

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They must be some great locations, if there are 20 heads between only 2 locations! 40% is a lot, I wouldn't agree to it because the margins are so small that it'd take a long time just to break even. $3250 is an outrageous amount!

At $400 gross/month:

-40% commission, you're left with $240, plus you have to pay for product with would cost you at least $100. There's just not enough meat left on the bone. Way too much money though, period. I personally wouldn't consider anything over about $600.

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I think I would pass on this one. Too much commission. If you do buy it I would strongly urge you to renegoiate the commission down to 30-35%. When negoiating I would offer the guy a one time couple hundred bucks to get the commission down. If it doesn't work I would plan on moving machines out and start relocating.

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At the price he is asking for you could buy the same machines new, stock and locate yourself and for less comm. He might have old product that does not sell well and if you buy it than you will have to buy new product anyways. Best to pass up or offer really low like 1000.00 cash right now take the machines and relocate them with smaller comm.

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