Rule 6: Middlemen Play A Role |
A Stocking Dealer has to pay for a warehouse, a delivery van, spare parts, employees, product liability insurance, training and on and on. They try to sell for 40 cents on a dollar, so they offer 10 cents on a dollar when they buy.
Sometimes, Sellers believe that if the machine has a retail value on DOTmed of $10,000, they can push a Buyer to pay them $5,000, $6,000, or even $7,000.
However, a Dealer who has a lot of costs will not be able to afford this. The Dealer would end up losing money if they pay 50%, 60%, or 70% of what the unit sells for.These numbers vary slightly on more expensive machines such as a $500,000 MRI.