Help with equipment value

[BRUSHMARKS]

We are looking into purchasing equipment from a local business that had their own graphic dept to cover all their products they make. They are looking for a discount on their future purchases, also as part of the deal.

So lets say they do $20,000 a year in sales now.
they want a 10% discount
and we want a 3 year contract
Ballpark would should value of that be if we figure that 33% of the 20,000 is just material and labor cost?

Here is their equipment, What is rough value? roughly 5 years old.

Graphtec Cutting pro FC7000-100 (runs great)
PrismJet Extra 46" (runs)
PrismJet Extra 42" (missing a few minor Parts)
Endura lam 53" (works good)
Flexi Pro 7 for windows

they have some supplies and materials also but can figure price my self on that.

 

[StarSign]

What they "do" in sales probably isn't what they will bring to you, contract or not. If you feel that you can get a good deal on the equipment give them 15%. Either you pay their price for the equipment and no discount or your price and a discount. Also do you need to make this purchase?

 

[BRUSHMARKS]

What they "do" in sales probably isn't what they will bring to you, contract or not. If you feel that you can get a good deal on the equipment give them 15%. Either you pay their price for the equipment and no discount or your price and a discount. Also do you need to make this purchase?

Well the 20,000 a year is what we feel it will be. they had a machine down for about 9 months and we did right around 15,000 in those 9 months. so we have prices set with them now on all their decal kits and we suggested a 10% because they obvisously know material cost them self. So they can see the mark up.
The benefit of purchasing to get their business it is a steady company their orders in feb are same as in july. nice filler jobs to get through the winters.

 

[RobbyMac]

Whether they know the markup or not doesnt really matter. You have a business to run. They obviously can't afford to pay an employee to run the equipment for less than 20k a year (what theyre purchasing from you each year) if I read this correctly.

 

[HulkSmash]

20,00 in sales a year?? only thing in that list i see useful is the graphtech

 

[BRUSHMARKS]

20,00 in sales a year?? only thing in that list i see useful is the graphtech

Ya that was my thoughts i just figured if i resell all equipment am i looking at $500 or $5,000 just trying to figure resale of equipment. and what is the value of a 20,000 a year customer.

 

[BRUSHMARKS]

Whether they know the markup or not doesnt really matter. You have a business to run. They obviously can't afford to pay an employee to run the equipment for less than 20k a year (what theyre purchasing from you each year) if I read this correctly.

Ya i hear ya on that.