Jump to content

The Art of Negotiation


Rick

Recommended Posts

I noticed the blog section is gone? Was going to start a blog, but I suppose a thread will work just as well. I'm not the most qualified guy to be writing this - several of you have negotiated deals for a ton of routes and equipment large and small more than I have. That being said, I've noticed in the 14 months since I started vending bulk, I seem to have a knack for valuing and negotiating route purchases.

So that's what this thread is gonna be about. I'll try to post consistently here over the next several months with tips and tricks in a sort of "mini-article" format. Maybe share some real-life CL ads, copies of my communication with sellers, etc. to help newer guys with the "Art of Negotiation" so to speak.

This isn't MY thread - your ideas and feedback are welcome here. This is a topic I don't think we talk about near enough...

Link to comment
Share on other sites

Location Lead Idea

Here's the copy of a real ad on CL I saw while doing a search of "candy machines".

Turn key restaurant. It has EVERYTHING including two big patios, private room, employees lounge, liquor room, (2)walk-in coolers, reach-in freezer, brand new water heater, all sinks required by health department, beer cooler, booths, tables, chairs, dishes, baby change station in both restrooms, dishwasher, (2)stoves, (2)fryers, chip warmer, condiment cooler, (3)steam tables, reach-in cooler, ice machine, POS system, water fountains, catering van, TV's, karaoke system, plates, pots and pans, silverware, utensils, margarita machine, (2) new candy machines and EVERYTHING else you need to run a mexican restaurant including all my recipes. I also have received EXCELLENT health reports from the health department the last 2 years. I've had the restaurant for 16 years and worked at same one for 15 years for a total of 31 years and my body is saying "no mas". Business is really good and getting better but I'm really tired and looking for someone to come in here and take over. I have 2 years left on my lease with a 5 year option. Great location right on South College Avenue! Prime, Prime, Prime location."

-----

So I replied with the following:

"I own a bulk vending business with a route stretching as far north as ___ to as far south as ___. Saw your ad on CL tonight and thought I'd offer to add a small revenue stream to either you or the next prospective owner. I noticed two candy machines come with the business, but Mexican restaurants and Chinese buffets are notoriously GREAT bulk vending locations as well - especially for gumballs and 1"-2" toys and stickers. We pay a commission on our machines and routinely gross $100-$200/month at a place like this. So if you'd like us to install a rack now and advertise that as an additional money stream to a prospective buyer - or if you'd rather leave that as an option for an incoming owner, feel free to reply and we'll set something up.

Thanks for taking the time,"

-----

Is it a long shot? Yes. But this cost me 5 minutes of my time. There are some distinct advantages to this soft-sell over a cold call. First, I pitched him before he knew he was being pitched. Since he's selling a business, I'm virtually guaranteed the seller read my reply with a keen interest in what I had to say.

Second, since he's in the process of selling, he's less likely to feel an emotional connection to the presence of a vendor. He may be amenable because if my service is crappy it won't be his problem. Want some new leads? Search businesses for sale in your area both on the street and online. During transition of ownership is a GREAT time to either move in or get another vendor booted.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...