Got a location, Should I buy

[sterling]

I was getting my oil changed in a busy oil change place. I used to get my oil changed with them before they moved to a bigger town. In the smaller town I used to wait quite awhile. I think it could be an ok to better location. I only do bulk right now, but I want to move up to make money not just change.

Here is the deal. They want a combo machine because they used to have a soda machine outside but they had the guy take it because, "the cans were exploding" because it was too hot? It is a very hot town in the Summer they want a combo machine that isn't too big so they can put it in the waiting area.

In my area there is a combo machine for sale $600/obo. It is a GO (Genesis) 326. The guy says it is one year old and very cleaned paid $3000 for it. If it isn't too big for the oil change place should I check it out and offer the guy $400 or $500. I have liability insurance on my little Vendstars but I haven't talked to my agent about insuring the full size. I figure if the location isn't all that good say it does $100-$150 gross per month my first location would still make money.  Am I thinking about this correctly? Any advise on the equipment would be appreciated.

 

[Brassine Vending]

What I don't understand is why would the price drop $2400 in one year? Do these machines depreciate that quickly? I would make dang sure that he isn't trying to sell you a piece of junk.

[antoniocinisi]

where the cans  exploding in the summer?the cans usually explode because they freeze.

in the winter you shouldn`t fill the machine more then half way on outside machines.diet soda is more prone to freezing then other soda.

I have 2 dixie narco machines with mars dollar bill validators.they are pretty reliable machines.

I dont know much about this but 500 bucks is a deal for a good machine imo. 

don`t buy a machine that "just needs a shot of freon and will work",or "lost it`s freon because it`s been sittin a while".refrigeration units usually do not leak freon unless they need repairs.it could be something simple but I would steer clear.

[tedk]

Sterling:

Make sure the waiting area is air conditioned. If it is a very hot town your chocolate will not survive without it.

[sterling]

I went and talked to the owner today. He wanted 35%. I figured he would want 35% of what is in the machine (gross). Lets say I bought an item for $1.00 and sold it for $2.00. The guy would say give me .70 cents which means after the $1.00 cost I keep .30 cents profit. Now this is after my time of stocking the machine, collecting any service calls. Sales tax, gas not to mention the cost of the machine. This seemed unreasonable to me. What is an appropriate commission on full line?

[Summit Vending]

Sterling,

35% gross is way to much. The highest I will go is 30% net and that is it, but the location has to be able to warrant that percentage (volume) and for an oil shop I dont believe it will but I could be wrong that is something you have to answer.For an oil change shop it would be based on foot traffic alone as the employee count is low. I would let him know at the percentage he's requesting it wouldnt work out due to the fact it wouldnt do enough volume.

10% net 50-100 employees low volume

30% net high volume accounts

I'm also considering a progressive commission which I have posted in this section. Take a look at it and good luck.

Brian