To start the day I had a meeting with the guy who has 30 machines in town. I'll shorten this story up real quick:
The guy paid $12,000 for 40 machines and had 30 of them located. He has 8 in his garage. I have a feeling he hasn't checked the machines for 6 months, maybe more. Want to hear the funny part. You know the guys machine that I took because it was empty and then ended up bringing back.. That was his, haha. So who knows how many machines are actually out on the town and operational still. He wanted $4,000 for all 38 machines, but I know this is going to go way down. There may be 20 salvageable locations from the 30 he has out there now.
He's going to email me a full list of his locations and I'm going to have to go out by myself and look at the machines. I know he doesn't even want to bother with them anymore, he's over it. I'm sure he looks at this as an all cash deal for him. After I get the list does anyone have an idea about how I approach the businesses that have the machines? I know he has some break room locations that I will have to ask to go into.
Besides that I went to some other places today and got 1 more location. It is a franchise and I have one in the location in my county and I got one in the county over. I also have 3 good leads I think. Hopefully those will pan out. I only have 2 more of my own machines and then the 1 that I found. After that I'm either going to have to buy this guys route or buy some more in Miami. But damn it would be nice not to have to locate anymore.
Rob
18/20 MACHINES LOCATED
OH, I found gumballs at Costco for 1.5 cents each. What a profit margin! My dad has a Costco card so I'm getting my M&M Peanuts there for now on. They don't have skittles or Reese's though. I went to the doctor today and tried to get a candy machine in there, he said it didn't really go with the lifestyle they were promoting. But, I'm going back in a week and I want to present him with a health conscious alternative. Any ideas besides sugar-free gum?
5 comments:
Hi Rob,
Sounds like when it is all said and done, you are going to get a great deal on that guy's machines/route. I think you are right though...his price can only go down. Sounds like he has zero interest in his route and just wants to get out as soon as he can. I would take some time exploring his route and find out how many of these locations are salvageable. I imagine that since he did such a crappy job with this route, a lot of these locations will want the machines out of there. It is definitely going to take some salesmanship to keep those locations. After you get a good read on the situation, go back to him and tell him all the negatives about the route (like "your machines aren't licensed with the city...that is going to cost me a lot of money just to get them licensed" and "half of the locations don't want to keep the machines"). That should help bring the price down. Sounds like his asking price is reasonable, but you definitely don't want to pay to much, because, essentially, you are buying this guy's problem, you know? (at least from his perspective)
Wow, I can't believe that I am leaving the first comment and beating Kyle to the punch! I realize that he is on vacation, but I still figured that he would be online all the time even if he is in Key West!
Take care,
Ryan
Pistachios, Bouncey Balls or another toy
Hey Ryan, Yeah I can't believe you beat Kyle to the punch either. The route is a mess, I know that. The question is do I really want to mess with it? Here is what is going through my mind when I think about buying his locations.
For less than $140 I can buy brand new machines and have them located. Contrast that with around the $100 he wants per machine and you can see where my thoughts are.
On the upside. I think I could probably get him to finance the entire route. Since he knows he is no longer going to service it, what does he have to lose? That would help me out a lot. I still havn't even checked one machine yet! Who knows if I'm even making any money. What have I go myself into, haha.
William,
Thanks for the advice. I think pistachios will work but the dr. doesn't really see any younger patients, only older. Maybe trail mix? I don't know. Just a thought. Has anyone put trail mix in a machine before? Does it stay good?
Rob
Rob,
I am on vaction, and I was on the beach all day yesterday. SORRY. I will get back to posting on my blog on MONDAY of next week. Offer the guy less than 12,000. If he realy wants to get rid of it, he will settle for like 9,000. I have no internet at my condo. I am like 1 mile down the beach posting this.
Talk tomarrow..now that I found this connection.
Kyle G.
Rob,
Trail Mix, and Nuts(cashews).
KYLE G.
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