3 replies to this topic

[Mooman333]

I know a guy that has massage chair at a large bowling alley about 40 minutes from me.  I have been nagging him to sell it to me for a year but he didn't know how much he made from it, they just mail him a check every few months.  I told him i would give him $1000 cash right now, he finally said ok.

 

He allows them to keep 50% of the revenue though!  The chair has grossed $4400 dollars in three years, he gets half, so $2200, or about $760 a year.  I think $1000 i have offered him is sufficient, maybe too much?  Maybe offer $850?

 

Also, should i try renegoating terms with the owner of the business?  I would rather handle the money myself and go in and collect and pay them each month.  I was thinking maybe i could convince them to lower the commision to 25% and let me put a second chiar in another location in the building?

let me know what you guys think.

 

The chair is from thebackrubber.com if you were wondering what model.

 

Thanks

[AZVendor]

Why would you want to invest $1000 in something that only has a return of $733 per year?  That will take you 15 months before you can make a profit.  And then you want to invest another chair in the location?  I doubt a second chair will generate any additional revenue.  I'm sure people aren't lined up to use the one that's there now.

[Mooman333]

What do you ususally look for on ROI?

If you were to put a price on the location itself, what do you think it would be?

I was just looking at it from the prospective that it would be nice to generate revenue with out loading inventory constantly... after 5 years it would have made me a little bit of change for no real work.

 

I am a soda/snack guy, so normally my ROI has been in the nieghborhood of 8-12 months.  I have pretty low volume locations and old DN 501T machines. 

[AZVendor]

I would always look for a return of my money in 12 months or less.  If you were using new machines anywhere, the return would, of course, be longer.