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Considering Buying an Abandoned Computer Store – Seeking Advice

N. Brown said:
I wish you had more active data of this store inventory, since another forum already replied about rodents and the resulting damage. The cost of cleanup may exceed any possible return. I will leave out how to recover equipment from animal and/or flood damaged.
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As far as the inventory, is there any diagnostic equipment included with it. Solder rework station
Eprom programmer, PLa Programmed, Disk Duplicator, Tape duplicator, Test equipment (scopes, multimeters, frequence counters and generators), Shelving. With the age of this equipment there will likely be firmware patches that will have to be done to them as well.
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Do you get the old supplier account information with the equipment sale, and possibly the old business title as well.
If the business had a account with a state run eco station to get surplus/scrap electronic on pallets that would be worth a closes look at. There could also be back taxes own to deal with as well depending how this sale is contracted out to you.
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Pictures of the existing invertor even if it is just stacks of stuff would be of help deterring their true value.
The big issue is with any computer product that's over 10 years old to get the best return on it, you must be able to do a complete
system updated including the operating system and software rebuild with it. Do you have access to programmers that can updates
the older software and operating systems as well. Do you know how to stress test system and their components so they will last twice your warranty period, or you can sell them ASIS, HOWIS at a reduced price.
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Market Potential: Yes there is still one for this equipment but the Resorces to it correctly on a budget will be an issue.
As far as a Purchasing Offer, do you have other income to support this ?, Do you have other income (work and/or Etc.,) to
help provide a stable foundation to regain the business lost before the shutdown.
Do you have access to 3rd party resellers who will resell the lower value equipment for you on a commission basis, that really not worth shipping overseas or out of state.
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Market Assessment: If you have access to 3rd world contracted programmers, foreign buyers of this equipment, Somebody
who can do local commission sales. Have access to somebody that can set up and matain vintage point of sale systems
(made with this existing hardware). Access to wholesalers and hard disk refurbishes. Then you have a good shot at a pretty good return on this hardware. A couple of others are list below - Under a short rule of thumb)
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Valuation: How can I estimate the worth of this store's inventory? Are there any benchmarks or resources I should consult?
Local Ads like Kaji, and the Bargin Finder (if one still exists in your area). Check the local competitors pricing, including
any auction sales. This will give you a real time price structure.
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A short general rule of thumb is : (Try to get each system as a ASIS bundle with a printer and other parts thrown in).
Each systems keyboard and mouse with two power cables is $5.00 Cdn.
Each system with HD still installed is from 25,00 to 35.00 each.
Each Monitor from 7.99 (sometimes found at some Value Village stores).
As far as old scanners and printers are concerned $1.00 to 7.00 each. (This is what price I acquire them at local auction sales).
For all equipment not worth fixing/reselling to you have or have access to somebody that can do complete recertify component recovery for resale. Do you have access to somebody that can fix broken plastic parts/Pices as well.
Do you have access to an alternative space for the equipment in case you have to downsize or get evicted.
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Most of the none IBM or Mac compatible equipment receive that is still working we usually end up using it ourselves in house at various locations instead of scrapping it. There could also be an Income tax advantage to the purpose of this outfit stuff, that's if
it will apply to your federal income tax return status.
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Well I hope this reply helps answer some more of you inquires that other have not fully responded to.
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Part 2 of this message is not related to Video Monitors or flat panel display refresh rates as the original inquire inverted into.
Do to my limited time available restrictions I was hoping other knowledgeable form users would of expanded on your original inquire.
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Sorry I did not do any notation entry about possible legal issues with this equipment and the resale of it, but with my busy work load I was hoping another form user would add a small entry about it.
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Yes there could be some issues brought up by the legal competitors too you weather your are doing this under a (licensed) business or through personal sales.
1) Any new unopened products A proof of purchase receipt (even a photo copy) can be a help.
2) Any of the other stuff you might have to prove that it is not stolen goods and or fakes.
Under the bill of sale for the bulk lot there should be a line from the seller that states some thing like
“ As far as they are aware this inventory contain no stolen or fake goods as it was purchased through legitimated/legal means.
There is also no out stand debts on any of this equipment.”
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This will help you with any police complaints about stolen goods and or fakes, to have documented by the seller to you.
(Of course you should also have a complete updated inventory available to them as well). I will now omitted some additional details on this for now.
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Your competitors could also do some trickery to give you some possible legal issues to deal with as well. So called Product dumping complaints, Unfair
marketing complaints. In legal business practices. Prof of none legal inventory practices. Fake Health Board Complaints to deal with as well.
Software Licensing/privacy issues. I will also om mite some detail fixes for this one for now.
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There is a lot more I could Note here about, but hopefully another knowable form user will fill in these gaps as my free time is very limited.
Hopefully the other forum user going out of subject on display refresh rates is discoursing your final discussion. As in this case I would limited it with the
hardware in hand to be liquated by the owner who wants to sell the equipment. (Instead of a online discussion of really subject unrelated display refresh rates)
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Just so you know I omitted Ebay.com and Craig list as a possible price guide as they are not based on actual reality pricing.
If you actually attend a Government Surplus Auction sale and some local Actions sales as a viewer only noting the hardware configurations and what the where sold for.
This will give you a local real world pricing and not the scalping that going on online.
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Their are a lot of so called equipment refurbishes and/or recycled goods resellers that even with our constant need for parts we will not deal with for several reasons.
Lack of proper sales documentation on there invoices, over price goods for what is there, Import and export problems with using them. Original orientation of the
equipment is questionable.
 
VERAULT said:
Sure ebay can be used as a price guide. Check the sold listings like the rest of us do.
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Yes ebay can be used as a maximum price guide, but really other then that there is a lot of price gouging on line with them (over priced items), if your are reselling the systems with warranties (6 months and longer).
Locally we cannot get eBay like pricing on used equipment even with warranties. Pricing on Caig list can be either way some times so it also got omitted from my original entry. (Depending wither the seller is a
authorized refurbisher or a private lister seamed to determined the price).
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Yes I do constantly check Ebay for stuff.
 
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So you are saying all the sold listings are maximum and represent price gouging? I disagree.

Most sold items show from cheap sales which are dirty/damaged to pristine models usually bundled with lots of things. There are usually examples in between. Its a pretty good litmus test except for the really rare stuff which has few to no listings show up.

Craigslist is just people wanting to sell locally and people who sell vintage gear on craigslist are most of the time clueless about what it is or what its worth.

Facebook is the absolute worst people who are incapable of even making a sale so thank you for not mentioning them and I apologize for sullying the thread my mentioning them myself.
 
I suggested Ebay divided by 10 to account for items that were overpriced or items that only will sell once a decade and the Ebay listing is that singular event. One could pay more if one really wants the product but not if buying in bulk for resale. Fortunately, the "official" price guidance hasn't taken off in the computer world in the way that infests the collectible markets or all prices will increase tenfold.
 
krebizfan said:
Fortunately, the "official" price guidance hasn't taken off in the computer world in the way that infests the collectible markets or all prices will increase tenfold.
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With all the drama and corruption behind the grading system of comics, cards, and video games.... Would we really want some institution to have final say?
 
No that is technically not what I am quite saying.
Yes there is some reasonable priced items on Ebay. But some of Ebays sellers pricing is far to high for some items than you can get in lot of local areas to buy directly at a cheaper cost.
We work internationally their for we use a international based price system. With IBM systems we use the standard IBM refurbish equipment rate. Not what some scalper wants to get.
 
krebizfan said:
I suggested Ebay divided by 10 to account for items that were overpriced or items that only will sell once a decade and the Ebay listing is that singular event. One could pay more if one really wants the product but not if buying in bulk for resale. Fortunately, the "official" price guidance hasn't taken off in the computer world in the way that infests the collectible markets or all prices will increase tenfold.
Click to expand...
Right On - thank you for trying to help clarify the difference between Ebay and local area real time price differences.
 
Thanks again for all the responses this has been an awesome turnout. I'll probably be lurking for a while now.

So probably the final update for a little while. I discussed the price with the guy who owns the building they were expecting around $10k as an offer. I discussed with them how a lot of it is going to have to be taken to an e-waste facility and I would take the responsibility of cleaning the place out with my payment being the few salvageable items or purchasing a select few items. He laughed and said he was going to hire an appraiser, and said thanks.

Well, this saddens me but maybe he'll come around when the appraiser comes by. I'll try to check in with him in a few weeks and send another update to you guys.
 
Cool a update.
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But in your case it reads like the landlord in this case has a big enough company to have a Auction firms (and of a disposal company under contract) and staff on hand the clean up there self.
Sorry about the "He laughed and said he was going to hire an appraiser, and said thanks." reply. This look like they will be doing a multiyear write off of there on the property taxes and business expensive.
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As far as a offer as at least 10K or better with no inventory list is really a questionable purchase. (With out any test equipment included in that purchase and etc.,
Nobody on this forum will likely advise a purchase of any of it them). You could increase your offer, but without any kind of inventory list I would not really recommend it.
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For a lot of other people with a 12K per year base sally 10k is quite a bit. We don't even know if there is over 10K worth of scrap metal there for recovery alone.
Of course if you are looking for a tax right off or work for a business that is looking for one then 10K to 12K isn't that bad.
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There still could be some other alternatives available in your area if your are serious about saving older equipment from becoming scrap metal. If this doesn't work out for you.
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Until your next update - I wish you well with your endeavor.
 
I expect that the guy will get the inventory appraised and then take the write-off and have the stuff hauled to a scrap dealer. The guy is just trying to milk more money out of it. Compared to the value of the building, this is peanuts.
 
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