BUYING USED RESTAURANT EQUIPMENT ON E-BAY #2
I noticed someones posting about used equipment listings / warranties.
Here is actual cited text (this is posted not to mock another reviewer but to make a better point - I hope that original poster will not mind): "You've seen them. I've seen them. We've all clicked on them... links promising restaurant equipment for mere hundreds of dollars. You're in the market for new equipment at a wholesale price, but you often find a wholesale price on a "like new" or "barely used" unit. Well, that just won't cut it when a manufacturer's warranty is on the line! How can you be sure you're actually finding a new piece of equipment?"
While this reviewer is making a nice point there, I can not say that I completely agree to it. Seller is obviously "pushing" for sale of new products. Warranty is nice way to make extra bucks on top of sale (my personal experience: in my past, I worked in sales and you would be amazed how many times I witnessed buyers being scarred in order to purchase additional warranty). Warranties are nice idea (and great money maker for the one who sell them), but let's be honest: how many times did you actually use one in your life? I did it 2 times in my life: first time my $200 TV started loosing colors and I called technicians to fix it. Worked like charm! I paid $80 for that TV's 3 years extended warranty. $120 more and I could get new TV. Second time, I had trouble with my home CD player, I called manufacturer, brought CD player to one of stores and they just gave me another-one. Entire unit price was worth less than cost of repairing it.
Now, how is all of my warranty story from above applicable to used/new restaurant equipment purchasing decision? Here is how: there is insane (and I mean that: INSANE) price difference between used and new restaurant equipment. For example, new Hobart 60qt, mixer cost about $14.000. Used-one price varies between $2000 to $4000. I bought and sold loads of Hobart mixers. Let's say about 120-150 in my life. From those 150 mixers, I had very, very few that did not work - I am guessing: 4-5. I also had Hobart power heads made in 1920's (close to 100 years old!) that worked like a dream when I got them.
My opinion on purchasing new or used Hobart mixer for business start-up: USED.
If decide to buy new - buy warranty on $14000 machine? You betcha!
In the case that you may need item (e.a. single full size pan steam warmer) priced $150 new, I would recommend buying it new versus spending $80 for used-one. Purchase warranty on it? NO.
Food equipment value depreciates so much and in short time frame - I have a feeling that it depreciates fasted and steeper than value of new vehicles.
Buy brand new machine today for $4000, I guarantee you that you will not be able to sell it for $500 in a week. Buy warranty in this case: YES.
It is huge dilemma for a small business owner whether or not to purchase warranty on equipment they purchase, and the best answer on that dilemma would be to use you healthy sense and reasoning.
I hope this helps - please, and if this review was useful/helpful, do not forget to marked it as helpful - it means a lot to me to know that I helped someone.
Thank you & best of luck!
I noticed someones posting about used equipment listings / warranties.
Here is actual cited text (this is posted not to mock another reviewer but to make a better point - I hope that original poster will not mind): "You've seen them. I've seen them. We've all clicked on them... links promising restaurant equipment for mere hundreds of dollars. You're in the market for new equipment at a wholesale price, but you often find a wholesale price on a "like new" or "barely used" unit. Well, that just won't cut it when a manufacturer's warranty is on the line! How can you be sure you're actually finding a new piece of equipment?"
While this reviewer is making a nice point there, I can not say that I completely agree to it. Seller is obviously "pushing" for sale of new products. Warranty is nice way to make extra bucks on top of sale (my personal experience: in my past, I worked in sales and you would be amazed how many times I witnessed buyers being scarred in order to purchase additional warranty). Warranties are nice idea (and great money maker for the one who sell them), but let's be honest: how many times did you actually use one in your life? I did it 2 times in my life: first time my $200 TV started loosing colors and I called technicians to fix it. Worked like charm! I paid $80 for that TV's 3 years extended warranty. $120 more and I could get new TV. Second time, I had trouble with my home CD player, I called manufacturer, brought CD player to one of stores and they just gave me another-one. Entire unit price was worth less than cost of repairing it.
Now, how is all of my warranty story from above applicable to used/new restaurant equipment purchasing decision? Here is how: there is insane (and I mean that: INSANE) price difference between used and new restaurant equipment. For example, new Hobart 60qt, mixer cost about $14.000. Used-one price varies between $2000 to $4000. I bought and sold loads of Hobart mixers. Let's say about 120-150 in my life. From those 150 mixers, I had very, very few that did not work - I am guessing: 4-5. I also had Hobart power heads made in 1920's (close to 100 years old!) that worked like a dream when I got them.
My opinion on purchasing new or used Hobart mixer for business start-up: USED.
If decide to buy new - buy warranty on $14000 machine? You betcha!
In the case that you may need item (e.a. single full size pan steam warmer) priced $150 new, I would recommend buying it new versus spending $80 for used-one. Purchase warranty on it? NO.
Food equipment value depreciates so much and in short time frame - I have a feeling that it depreciates fasted and steeper than value of new vehicles.
Buy brand new machine today for $4000, I guarantee you that you will not be able to sell it for $500 in a week. Buy warranty in this case: YES.
It is huge dilemma for a small business owner whether or not to purchase warranty on equipment they purchase, and the best answer on that dilemma would be to use you healthy sense and reasoning.
I hope this helps - please, and if this review was useful/helpful, do not forget to marked it as helpful - it means a lot to me to know that I helped someone.
Thank you & best of luck!
Guide created: 05/07/08 (updated 10/07/08)

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