The argument made is without that inventory you can’t make the profit. Sometimes you can get extra from suckers, also sometimes you can get extra from excess inventory. Like my business, if I were to sell it, it would be smarter for me to reduce my forklift inventory to only a few for sale and for rent forklifts over what I already have out on rent. I’m talking to a guy now about buying his business that is doing around 1 million. He has a forklift and diesel repair business. He has a lot of tools for the diesel side. I saw some numbers about 9 months ago. His problem is he is one of the main mechanics. So when I read his P&L I have to deduct out what it will cost me to replace him. Plus every business I’ve bought never hits the numbers they say. Customers leave because they loved him, or your price increases tick them off, or just because of a change they look around, etc, etc. Anyway after our first meeting he said he was getting the business analyzed to determine value. He came back to me at 800k. I told him at that price I’m not interested. Just as I leave on vacation he reaches out to me twice. I called him when I returned and he is more interested to sell now. Supposedly a couple other guys are looking at it. I stopped by Monday morning and we spoke for a bit. No price yet, but I told him I’m not paying near what he asked. His son in law, other main mechanic, got a good city job and left. So he has had to replace him and he has a 6 month experience mechanic. So some red flags. Before he said he would continue to work if I wanted him too, now he wants out. Then I learned he works every weekend on Saturday too and they do PM’s on diesel fleets, with 3-4 mechanics. Even pays his grandkids 200 a day to help out on some of those days. So then I have to look for more replacements as the grand kids probably aren’t going to work for me. This is probably the nicest mechanic/business owner I’ve ever met. The other places I’ve bought the guys were a-holes and customer/vendors liked dealing with us better. The last place I bought the guy wasn’t paying his bills so they loved having us take over. This guy is a super hard working Hispanic guy that was given the business by the previous owners and he has been there since 1978. It will be challenging to meet his abilities and I don’t know the diesel repair truck industry, although @assjuice cyrus does and I know it’s still an engine, etc. At this point, to me, it’s probably worth 200k. I think someone else will probably pay more? If it were just forklifts I would be more interested because there are less unknowns. If his son-in-law were still there I would be more interested too. He is renting the building from the former owners wife who gave him the business. It’s a 10-12k sq ft nice building and he is only paying 7500 a month. That should rent for 13k, I think. I’m sure once he is out, the rent goes up because he is month to month for the last 20 years. He owns a bunch of apartments and houses so he is set, but he never tied this up and doesn’t want to approach her for a lease or purchase price…..more unknowns. If you deduct the $5k more in rent I will end up paying and the $5-6k a month a good mechanic will cost, that’s 120-130k a year, and there goes most the profit. Granted I will add to profit what he has been taking. You do need to keep that location because I don’t have room at mine for all those diesel trucks. Decisions, decisions.
I give you a lot of credit for still having the energy, drive & enthusiasm to be messing around with stuff like this. Your Pops was probably a hard worker as well. Me, I put all the hard stuff in my rear view mirror when I was 38. By hard stuff, I mean whoring out my animation and multimedia services. I'd rather try to scrape together a couple nickels and blow them having fun.
Hey Richard, It’s only because I have too. If I made enough when I was younger, to do what you do, I sure as heck would give it a try. I was telling Tyler I was impressed with you, because you made it already and retired. You travel 8-9 months a year and then have the ambition to start a rental business and develop websites about all different brands of bikes. That’s pretty freaking cool to me. Too bad you aren’t a hot chick!!!! Lololol
I’m actually eating breakfast at the bottom of Angeles Crest. About to drive the lotus up and down 30-60 miles of curves and then go to work. I’m excited.
Yes I’ve met his youngest son and he is a great young man. Works in finance at the studios I think. Rides sport bikes and even went kart racing with me, Tyler and some other friends over Christmas break last year.
I don't understand, before he was complaining about all the problems, like damaged rental units, and 6 page disclaimers not being filled out. Now it's being portrayed as some cushy no sweat operation, with the hardest part counting all the money rolling in.
LMAO! I know you live in SoCal and you're focused on making the big $$$. I was in the same boat in Laguna Niguel with my 5 bedroom house on the culdesac. Best thing I ever did was cut ties from California and focus on Montana, where life is more simple. I'm betting that you could easily cash some stuff out, bank a few million and you and momma could enjoy the world till you croak. No more commuting to Hell-A!
I think that's at least the 2nd time in a week up there? Nice that you can make the diversion and enjoy that gokart.
I have one from my first wife, and the step-son from TLOML. And yes, I am actively spending the inheritance money, but I will leave behind plenty, including some cool cars and motorbikes.
He is half the reason I am so adamant about staying with his mom. He's an awesome young man and more than I could have ever dreamed of in a step-child. We are tight.
