Jump to content

cost of route


PHX1

Recommended Posts

Quick question,

I have a friend that is trying to sell his last account. It consists of 1 royal merlin, 1 drop bevmax, and 2 ap 4000. All machines have card readers.  Monthly Revenue is about 1500. Which is provable by usa tech records, (I know the guy so I know he is being honest). Soda is 65 cents, all energy drinks are 2.00, and Gatorade is 1.50. No commision.

 

I have two options, I can either purchase it as a whole (no contracts) or he open to having me service the account and split a % of the revenue with him, he has so few machines he does not want to continue because it doesn't financially make sense for him.

 

If I were to buy it I figured I would offer him $6900.

 

However, I would rather just operate the account because it prevents me from having to use cash.

My question is What would be a reasonable commission for the owner? Everything would be lade out in a contract, I would be responsible for servicing the account once a week and fixing any problems, it basically would be like my own account.

 

Any tips would be great, I have never done such a thing so I have no idea what to offer the guy.

 

Thankyou in advance!

Link to comment
Share on other sites

I had very similar thoughts... I assume you are speaking of  10% of the revenue, not profit? would you even screw around with trying to purchase this?

Link to comment
Share on other sites

If you know and trust the seller why would you not buy it outright and keep all the revenue? $1500/mo is $18K per year. If the machines are worth $3500 and you offer $6900 then you'd be getting $18K of sales for $3400. What's the problem? You need to be in or out. Don't drag it out and end up working for the seller.

Link to comment
Share on other sites

Archived

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

×
×
  • Create New...