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  • #966583
    newby1
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    Hi Guys

    Hopefully someone can help. We have purchased a small local cafe, which I might add is very run down, expected stock at changeover will be around the $1500 mark.
    We were advised by the business broker not to do WIWO and to do the stock take ourselves with the current owner at changeover due to the fact that to get a professional in would cost nearly as much as what the stock is. (in hindsight I do realise we should have checked the cost ourselves not just taken his word for it)

    Query 1. What charge for individual goods would be made, is it what she paid for it or a percentage of that cost?

    Query 2. If she does not have the invoice of the purchased goods, what would be the percentage of the retail price that we pay?

    Query 3. Products that are out of code, do we have to take them and if so what would be have to pay for them?

    Query 4. If there are products that we do not want, do we have to take them?

    Hopefully someone can help

    #1019555
    linkman
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    Hi Newby1.

    The broker is probably right – if you could get a stocktaker on for that small amount. They usually work on a percentage of the stock value depending on the work that you want completed.

    IMO
    At $1500 the stock will probably not be worth that much. My experience is that Cafes usually have a fairly rundown or obsolete level of product at sale time.

    Yes the price paid would be what she paid for the goods except if this is excessively over what you could get it for. An example – she buys a pallet of Coke for 20,000 and you can get it for 2,000 then pay the 2,000.

    Markups are different across the product ranges. She should have accounting software that shows the item cost. No real basis but I would take 50% as a very borderline starting point.

    I would not take the obsolete stock. It should be valued at zero and disposed of.

    This last point will depend on your contract of sale. Usually if you agree to stock and val then you take all good stock.

    Hope that helps.

    Colin Linke

    http://www.bentleypartners.com.au

    #1019556
    newby1
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    Thanks heaps Colin, that has helped a lot.

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