What should I offer for 80 new Pro Line doubles?

[Iolaus]

While playing poker last evening, the subject of vending came up.  One of the guys at the table has 160 Pro Line heads and 80 stands, new and still in the box, that he wants to get rid of.  He bought them for his kid who then decided he no longer wanted to do vending.  We exchanged information and I'm going to call him so I can go see them and make an offer.

He mentioned he was asking $100/double. I'm said I'm cash strapped, so he said he'd consider taking payments or a percentage of sales until they were paid off.  Basically he has 80 new Pro Line doubles in his warehouse, and if I can come up with the right offer I can pay for them from the revenue they bring in as I locate them.  I'm considering approaching a school organization or the Boy Scouts to get them located quickly, using the method outlined in the Member Plus section.

My initial thought is to offer 25-50% of net, calculating net as gross-COGS-commission/charity=net, until an agreed upon total is met.  Not sure what total number I should offer, though.

I'm sure there are other ways to structure this deal that could work.  Anyone have any suggestions on an offer to make this guy?  I'd love to have access to 80 doubles without having to come up with any money out-of-pocket.

[Hillbilly]

Nick, If you have sales tax, be sure you back it out as well before you pay off the net.  Or else the tax will come 100% from your part.  Be sure you get the deal in writing. I would use an attorney for something that size.

[JEREMYTINA]

Offer to pay for each machine over six month time frame as you place them.  Get one machine from him,  place it and give him $20 at the 60,90,120, 150, and 180 mark.  Do that with each machine.  This allows you money from the first collection to pick up candy for the next couple of months.  Also, neither of you are commited for longer than 6 months on any machine.  If he wants to sell his remaining inventory he will have that option. If you decide that say 50 machines is as far as you want to go, then you aren't beholden to him any further than that.  Just my opinion.  Also,  he isn't really doing anything with them, and you could get a great deal on used equipment online. Offer $80 a machine.  This way you are paid off at the 150 day mark.  You would need to carefully keep track of the money paid, but if you aren't trying to earn a living  off of these initially, it would finance and pay for itself quickly, and you'd be in business.

[Hillbilly]

I got 4 Oak doubles with stand off Ebay for 29.25 each  The next 2 were 22.00 each.  The next 2 were 22.25 each without stands. Picked up 10 stands for 100.00.  6 were route ready, just needed cleaned. I would negotiate at 40.00 per double w/ stand.

I got a deal today for 3 Ultravend triples for 50.00.  Deals are out there, just have to look.

Hillbilly

[Iolaus]

Well, I rented a van and picked up about half of these today...enough equipment for 34 doubles plus some parts.  The heads and 2" pipe stands were still sealed in the boxes they were shipped in.

He wouldn't budge off the $100/ea figure if he was going to carry a note, but I was able to negotiate a cash buyout clause at sixty cents on the dollar.  I know it's not the best deal out there, but I'm satisfied with it.

[Hillbilly]

Good Luck. Now go locate some.