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The Deal to End All Deals


agrantha

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Read the following details and tell me if I should accept this deal. The equipment is in storage and I am going to look at it early this week. If I accept this deal it will be the end of my growth until I can do this full time. I tried to upload pictures, but the files are too big. One of the novelty machines is the Speed Racer. I think there are about 13 of those.

We want to sell everything as a group but we are considering an individual sale

of the 8 combo machines that we have as they are more suited to private use than

public.

Ideal for breakrooms and clubhouses as opposed to public stores and outside

locations.

Whoever buys the machines needs to put down $5000 cash and then the balance of

$10,000.00 can be owner financed (low interest or interest free-over 2-5 yrs) .

Monthly payments plus transfer of monthly storage fee of $130/month.

27 toy /novelty machines (below fair market value example price maybe $600 each

x 27= $16,200.00)

8 gumball pinball style machines (below fair market value example price maybe

$775 each x 8 = $6200.00)

8 snack/ drink combo machines (below fair market value example price maybe $875

each x 8 = 6800.00)

(below fair market value total for in storage plus $1000 refill inventory =

$30,200.00

Our bottom line is only $15,000.00 $5000.00 down 10,000 owner financed.

Monthly rental fee $130.00 responsibility of new owner upon down payment.

You seem like a really smart guy who understands the potential value of this

type of inventory.

Let me know if this sounds interesting enough to take a look.

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It really depends on the machines themselves. Toy/Novelty could mean just about anything. I think they are full of crap. If the actual market value was 30k, they would be able to get 30k easily. They would not ask for 15k. So clearly "fair market value" in their mind is what they feel would be fair, rather than what the market has established as their reasonable competition. My gut says this deal is going to be craptastic. Hope for you it isn't.

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If it were me doing this deal and it looked good, if at all possible I would just make a cash offer of $5000-$7000 for the total price. In my opinion they are thinking they could only cash out for 5K and will take payments because if they don't get them for very long, they are not out anything. If you could scrape together the cash, it would be a done deal for you also and you could immediately sell off what you do not need, get some placed, and try to get out of the storage facility asap and also save that cost.

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If it were me doing this deal and it looked good, if at all possible I would just make a cash offer of $5000-$7000 for the total price. In my opinion they are thinking they could only cash out for 5K and will take payments because if they don't get them for very long, they are not out anything. If you could scrape together the cash, it would be a done deal for you also and you could immediately sell off what you do not need, get some placed, and try to get out of the storage facility asap and also save that cost.

Their estimate on 600 bucks for those speed kings is out of this world. Quick glance at the site shows it's obvious biz op crap. They tell you that child search will get your machines in for free. No, a very good charity pitch will get you in for a dollar a month, but business owners are not lining up for the convenience of having over priced crap left in their business. Of course you know that, but knowing that the sellers likely did not you know their idea of "fair market value" and what others want to pay will not be the same. At 5k this might be a deal, but I'd expect them to be out raged. Poor health my foot, everyone uses that as an excuse to offload poor investments they realized will never repay them.

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Getting out of the business?

I think they are out.

All that equipment and no mention of locations.

These folks are just trying to get rid of a storage fee...they're already out of the business.

And their "fair market value" isn't very fair to buyers.

It's waaaay overpriced for the machines we can ID.

For those machines we still don't know about yet (snack/drink combos), I'm sure those values are inflated too.

That comment about those combos being "more suited to private use than public" tells me they're crap.

What good is a private combo machine to you?...you are in the business of vending to the public.

What gives with the $130 storage fee??

Make sure you aren't stuck with paying ANYTHING to the storage facility if you move the machines out immediately after purchase (you may have the storage room at home, find a storage facility more conveniently located, or find a cheaper storage place than they use).

Now, if you are truly interested, DO NOT even consider an amount to offer yet.

Get details on exact brands and condition of these machines.

Once you know, then you can put together an INFORMED offer...a fair price for each side.

They may balk at your offer because it will be far less than she's trying to poke someone for.

But, since it's a fair offer, they may come back to you to accept it if/when they don't find a sucker to pay what they're asking.

AND MOST IMPORTANT: Do not offer to buy something you don't want!!

If all you want are the novelty machines or the pinball machines...just offer on that.

She will consider selling in parts if no ones buys the lot.

I don't care what she says....they'll do it....Even if only to move to a smaller storage facility and lower that $130 they pay each month.

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Sherlock

You are the man! Thanks for the great advise. I did mention to her that I need one of her combo drink/snack machines. Another day care asked me for one. She wants $850 but I will offer $400 only because they have change machines connected to them.

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Agree about not buying things you don't want. I did that once and still have the POS in the garage. I will try to sell on craigslist. I've considered dumpstering it more than once. Dumpstering should be a word.

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