JEREMYTINA Posted April 8, 2011 Share Posted April 8, 2011 This guy has come back to me with a counter offer that I still think is too high. i know I can sell off the Vendstars and net a $20 profit for each of them on Ebay after fees, keys, shipping and paypal. So that's $260. My math shows his current route grossing lees than 10 per machine, at $260 which leaves $190 roughly after COGS. Read what hes says below from the bottom up, and give me your opinion please. The new info he just gave me is where we are now. In my opinion, this reopened the door for negotiation, and the guy is motivated to sell. I am thinking of going back with $34 per machine From: Richard Gates [mailto:rgates1940@hotmail.com] Sent: Friday, April 08, 2011 9:10 AM To: HOBBS, JEREMY Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) Jeremy: The machines have not been collected since February but I can’t assume there would be $1,000.00 in the first round. I usually collected $500.00 - $650.00 in five or six weeks. I can show DR-15’s but never was there $1,000.00. Also, that was when I had 52 machines out. Now there are only 35 machines according to the man who did the route for me twice. Richard ________________________________________ From: HOBBS, JEREMY [mailto:JEREMY.HOBBS@POOLCORP.COM] Sent: Friday, April 08, 2011 08:53 To: Richard Gates Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) If you still have not serviced the machines, then yes. I know you said before they had not been collected since February. If you haven’t collected, this sweetens the deal for me, and I would be willing to move forward. I would prefer to spend a day hitting all of the stops with you, and getting a current pull, that would verify your tax info, that all the stops are where they are supposed to be, and I will provide the vehicle, fuel, and replenishment product. At the end of the day, if everything’s square, you keep the pull as your down payment, which should be over a $1000, and in 60 days I pay you the balance. Let me know how this sits with you, and we can arrange a day in the next week or two to put this deal to bed. Thanks, Jeremy Hobbs President Hobblestone Vending Services Your quality provider of all your vending needs Soda, Snack, Coffee, Candy, Amusements, and Game Rooms “Proudly serving Hernando, Pasco, Pinellas, Hillsborough, and Polk County” Cell: 727-247-9560 PROV 3:5-6 PSALM 37:4-5 From: Richard Gates [mailto:rgates1940@hotmail.com] Sent: Friday, April 08, 2011 8:35 AM To: HOBBS, JEREMY Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) Hi Jeremy: Can you live with this counter offer? $1,000.00 up front $1,000.00 balance in two months. $2,000.00 GRAND TOTAL That equates to $41.67 per machine (based on 48 machines). There are 35 machines on location, but you will undoubtedly change some of those over time. There are 13 machines in storage along with some candy and spare parts/accessories. I could come to Tampa and go through the route showing you where they are located. I have the DR-15’s available for you and a spread sheet with all pertinent information. Regards, Richard Gates ________________________________________ From: HOBBS, JEREMY [mailto:JEREMY.HOBBS@POOLCORP.COM] Sent: Monday, March 28, 2011 16:22 To: Richard Gates Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) That he did. Thanks, Jeremy Hobbs From: Richard Gates [mailto:rgates1940@hotmail.com] Sent: Monday, March 28, 2011 2:48 PM To: HOBBS, JEREMY Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) JOHN 11:35 Jesus Wept. ________________________________________ From: HOBBS, JEREMY [mailto:JEREMY.HOBBS@POOLCORP.COM] Sent: Monday, March 28, 2011 10:41 To: Richard Gates Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) Do you typically service the machines quarterly? Your average works out to about $3 per head or $9.52 per month per machine. The national average is $7 per head or $21 per triple. It seems that this route is underperforming. Are you paying commission or going through a charity currently? These numbers would lead me to pay 8 months net income on your route which should be 50% of gross after product and fuel. Here is my offer: $1333. $333 down, and 4 monthly payments of $250. Or $1100 cash. I know that my offer is lower than what you are asking, but we have to be able to turn a profit as well. I am betting that you have a few locations that pull less than $5 per month and some that do better than your average. I don’t keep machines that do less than $12 per month, mainly due to waste product. So, I know that some of your machines will just be pulled, changed out to our new machines for a month, and then the location will be removed from the route if it underperforms. I also don’t have any guarantee that your locations will keep my company after we begin servicing. If you are interested, I would be more than happy to make a deal this week with you, pending viewing the location receipts, and taxes. Thanks, Jeremy Hobbs President Hobblestone Vending Services Your quality provider of all your vending needs Soda, Snack, Coffee, Candy, Amusements, and Game Rooms “Proudly serving Hernando, Pasco, Pinellas, Hillsborough, and Polk County” Cell: 727-247-9560 PROV 3:5-6 PSALM 37:4-5 From: Richard Gates [mailto:rgates1940@hotmail.com] Sent: Monday, March 28, 2011 9:51 AM To: HOBBS, JEREMY Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) Hi Jeremy: I can furnish the State Sales & Use tax copies that I filed since the inception of the route. To this date the average is about $1,000.00 – $1,100.00 per quarter ($2,500.00 for year 4/29/2010 – 12/31/2010). There have been no collections so far this year. I am an LLC therefore having limited liability. I have records of receipts by location of the vendors now being serviced. The records of the original vendors of the vacant machines are not available, only the Sales & Use tax form. The route has not been serviced for about two months. Richard ________________________________________ From: HOBBS, JEREMY [mailto:JEREMY.HOBBS@POOLCORP.COM] Sent: Monday, March 28, 2011 09:11 To: Richard Gates Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) A couple of questions for you. Do you have audited tax information on this route showing annual income and COGS by location? If you do, then we can discuss price based off of that. Typically, when buying a route with undocumented income, I pay around $50 per location. Particularly with Vendstar equipment, as I don’t use it in my operation, and will just have to resell after I place my fleet machines into the locations. That puts me at around $2100 with your 35 locations and 13-15 spare machines. Let me know if you have documented accounting info for the route that you filed taxes on, as that certainly will affect my price. I will be glad to sign a non disclosure form for you if you wish, to see your location list and revenues. Thanks, Jeremy Hobbs President Hobblestone Vending Services Your quality provider of all your vending needs Soda, Snack, Coffee, Candy, Amusments, and Game Rooms “Proudly serving Hernando, Pasco, Pinellas, Hillsborough, and Polk County” Cell: 727-247-9560 PROV 3:5-6 PSALM 37:4-5 From: Richard Gates [mailto:rgates1940@hotmail.com] Sent: Saturday, March 26, 2011 12:44 PM To: HOBBS, JEREMY Subject: RE: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) ** CRAIGSLIST ADVISORY --- AVOID SCAMS BY DEALING LOCALLY ** Avoid: wiring money, cross-border deals, work-at-home ** Beware: cashier checks, money orders, escrow, shipping ** More Info: http://www.craigslist.org/about/scams.html Hi Jeremy: Yes I am. Richard ________________________________________ From: HOBBS, JEREMY [mailto:JEREMY.HOBBS@POOLCORP.COM] Sent: Friday, March 25, 2011 11:39 To: sale-qysk5-2253798853@craigslist.org Subject: Bulk Vending Candy Machine Route - $5000 (Tampa, FL) Are you still looking to sell your route? http://tampa.craigslist.org/hil/bfs/2253798853.html Link to comment Share on other sites More sharing options...
sherlock Posted April 8, 2011 Share Posted April 8, 2011 If you pay $34 per machine and get the 35 locations...do it. You're turning a $20 profit off each Vendstar after you sell them! This is a sweet deal. You can put your machines into the good locations to keep...there's bound to be some decent spots on the route that are carrying the dogs. Plus, if you don't pull the Vendstars from the bad locations until they're sold on Ebay, you won't have to store too many at once. There are probably even some bad locations on the route that are only bad because of the product/service. The seller said someone else ran his route twice. Chances are some locations weren't getting the attention they should have been. Maybe you can turn some of these spots into keepers with better service/products and sweeten this deal even more. You'll turn a profit off the machines alone. This means you get the decent locations for free. GO FOR IT! Good luck -- keep us informed. Link to comment Share on other sites More sharing options...
btuck32 Posted April 8, 2011 Share Posted April 8, 2011 I'm new at this, but his last offer looks more than fair to me. I would bet at least 12 locations are worth keeping and alone are worth paying $100/each for and would pay for themselves in a few months. You are right that he probably has quite a few that do substantially less than desired.. If that's the case, and you simply sold the rest of the machines you break even. Thanks for posting your entire negotiations. I made a lot of mistakes when I bought my last route which you seem to avoid quite well. I learned a lot from it, as well. There are probably even some bad locations on the route that are only bad because of the product/service. The seller said someone else ran his route twice. Chances are some locations weren't getting the attention they should have been. Maybe you can turn some of these spots into keepers with better service/products and sweeten this deal even more. Very true! This is one of the things that surprised me when I purchased a route. I had one location that had peanuts (peanuts!) and it was making $1 a month. Literally losing money. It was a building supply company, and I asked the employees what they wanted and they said Skittles. I put half a bag in there. 2 weeks later I get a call and they were out of Skittles. I went over there and there was not a single Skittle in that entire canister. They asked if I could fill it to the top. I went from $1 on that canister to averaging $40. It might not keep that pace, but I've had similar results at other locations. Link to comment Share on other sites More sharing options...
gumball guy Posted April 9, 2011 Share Posted April 9, 2011 Don't over think this situation.... you are getting a good deal. You can come at him with the $34 per machine, tell him not to worry about the tax documents, pay him cash and you keep all the money that is in the machines. This guy just wants to unload fast and easy so I don't think he will complain about the existing money in the machines. You can't get hurt at $34 per machine and you will undoubtedly pick up some good locations out of the 35 that still exist. Good luck closing this deal and make sure to let us know what happened! Link to comment Share on other sites More sharing options...
lak20019 Posted April 9, 2011 Share Posted April 9, 2011 Don't screw the pooch on this Jeremy Link to comment Share on other sites More sharing options...
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