Great Opportunity Part 2

[Boazcat]

Hello everyone!  Thanks for all your great information and thanks to this forum for being a resource for new folks like me.

Let me bring you up to speed on what is going on in my life:

My wife and I bought 6 locations this past summer with mechanical combos.  The income isn't fantastic, but it was a great place to start.  As we expand, we will keep a few of those and sell the rest.  (We both have full-time jobs and will have a limit on the number of machines we can currently handle)

A 6-story office building with 400 employees called me about placing machines in their building.  They are frustrated with their last two vending companies.  One was small-time and abandoned with their machines out of the blue.  They tried to call owners many times but with no reply.  Machines are electronic combos and are still in the building in storage unable to be returned to owners -- these will sell at their surplus auction in March -- more about these later...

Current provider is one of the biggest in the state.  Biggest problem is that they will only give them one snack machine.  Employees complain about having to go down two floors to get their sugar fix. Each floor has a drink, but only one snack.

Facilities manager seems very nice and easy to work with.  She is trying to make her employees happy and is not concerned with going back to a part-time operation.  She said her ultimate goal would be to have a drink and snack on every floor but she realizes that may not be possible.  She would is fine with putting combos back in and understands that I would need to start slowly at first.  There is no commission and she isn't concerned price increases.

If things work out well at this location, it could springboard to even more as they have 2 other buildings within 2 miles.  She has already said if we do a good job she will recommend us to their facilities managers.... nice.   My wife would be happy to quit her job if necessary.

Now we have to decide what type of machines to put in.  I've got a guy in town with 6 of the smaller Genesis machines that is very eager to sell.  I found him on Craigslist and he doesn't appear to have any other buyers.  He is asking $1,500 each but has indicated he will make me a great deal.

Local machine supplier has some of the bigger Genesis combos and his prices start at $1500. 

---Back to the abandoned machines-- When these come up for auction, I would expect to get them for a pretty good price in a few months.

So--what would you all do?  Get smaller machines and save some money?  Get better machines and make a good first impression?  A little of both?  I've looked into getting Pop Machines from Coke, but they don't do that in my area.  They will put one in, but they want to stock and give me 10%.

Thoughts? 

Thanks everyone!

Michael

[lurtsman]

I'd try to cut a deal to get the machines that are currently there for less than I thought I'd have to bid at auction, and I'd get them onto a different location. IDK what to do with the current building.

[Boazcat]

Since the machines were abandoned, the only thing they can legally do is sell them at their surplus auction. Trust me... I checked into this.

Michael