Starting a restaurant is expensive, and it takes time to start making a profit. However, you can cut spending by choosing to buy used restaurant equipment instead of new. Check out these seven reasons you should buy used instead of new.
It Saves Money
When starting your business, you may have limited funds and a lot to buy. Besides equipment, you need insurance, employees, rent, food, etc. Instead of using a large chunk of your start-up money on new, sometimes overpriced equipment, buy used restaurant and bar equipment. You’ll can still get top of the line brands by taking your time and shopping smart. These pieces may be a few months or years old, but you pay a fraction of the price when compared to new items.
You Can Haggle
Typically, when you buy anything new, you expect to pay the full ticket price. However, when buying used items, there is wiggle room for haggling. Hone your bargaining skills before you start buying. Instead of immediately agreeing to the posted price, try negotiating a little lower. Most likely, the seller will be open to price negotiation, especially if they don’t have room for the equipment any longer.
You May Get Free Items
Nothing is better than free, and when you buy new, you rarely get freebies. When purchasing used items, however, it is possible to get some free items thrown in. You’ll probably need to buy a lot of items from the same vendor to qualify for a free item, and the free items are probably smaller (don’t expect a free freezer), but it’s still something for nothing, and you can use that money elsewhere.
The Equipment Is Good
You’ve done your homework and have a great restaurant idea. Unfortunately, not everyone does the legwork needed to keep their business going. In fact about 30 percent of food services business don’t make it past the first year. While that’s sad for them, it creates a good opportunity for you. These failed restaurants recoup some of their money by reselling their gently-used items. These items are still in great condition, and some even still have a warranty.
The Appliances Are Durable
Durable items last. When buying used appliances, you know they must be durable. Appliances and equipment that are flimsy or weak won’t make it long enough to be re-sold because they have low quality parts that just can’t last. Instead of spending more or the same amount of money on new equipment from an unknown brand, stick with durable, used name-brands.
There Is Less Depreciation
Depreciation is the worst. It’s mostly associated with cars, but just about everything, expect real estate, depreciates. New items depreciate faster than used items. This is because they tend to have inflated price tags because they are the newest model. If you purchase used items and then need to sell something to upgrade or because you just don’t need it, you won’t lose as much money as if you sell an item you purchased new.
Used Equipment Is Easy to Find
Used equipment is incredibly easy to find. You don’t have to hunt down an individual whose business failed or who is upgrading their appliances. There are many online stores that sell all types of used restaurant equipment, making it easy to find everything in one location.
Buying used restaurant equipment is a smart idea for your new food service business. The equipment is usually as good as new equipment but costs less and depreciates slower. For more information about used restaurant equipment, contact us today, and we will do what we can to help you save money.