The time has finally come to purchase equipment for your new restaurant. Congratulations! For many people this is the most exciting step. If you’re not careful, though, purchasing new equipment can quickly devour your startup capital, leaving you unable to afford many other important things you need to open your doors to customers.
Which brings us to this week’s SRE Pro Tip for starting a restaurant- BUY USED EQUIPMENT. Purchasing used restaurant equipment is one of the best, most cost-effective ways to get your restaurant up and running. Buying used can save you bundles of cash and put you on the fast path to profitability. But great prices aren’t the only reason to buy used. Here are 6 reasons why you should consider shopping for used restaurant equipment.
1.) High Quality
Buying used does not mean buying low quality. The current market is flooded with name-brand, gently used equipment. The fact is, about 30% of new food service businesses close within the first year. The owners of these businesses often recover their costs by selling back their new equipment to the dealers they bought it from. That means you can purchase “like new” equipment at a fraction of the cost. What’s more, normally the equipment has only been used a couple of times (if at all) and may even still have a warranty on it.
Poor quality equipment breaks down and can’t be resold. It’s as simple as that. So, when you are looking at a pre-owned item, you know it has been used in a real kitchen, was durable enough to be repurchased by the dealer, passed a thorough inspection, was cleaned and tuned up, and is ready to be used again. Chances are, you are looking at a high quality machine that will serve you for years to come.
3.) Negotiating Price
The price of new equipment tends to be fixed. Not so with used equipment. Used equipment dealers usually have some wiggle room in the price. This is particularly true if you are buying more than one piece at a time. Every dealer is a little different, but most will create package deals for multiple purchases, giving you even greater savings. And remember, this tends to be high quality equipment.
The IRS will allow any business to deduct the full purchase price of equipment for the current tax year. This applies to both new and used equipment. Compound a tax break with already lower prices, and you may be looking at serious savings.
There is a huge push in the restaurant industry to make commercial kitchens greener. Buying used equipment and supplies is an excellent form of recycling, and a great way to make your kitchen more eco-friendly. Your customers will love knowing they are eating in an environmentally conscientious restaurant, and you’ll love the savings.
To learn more ways to make your kitchen more environmentally friendly, check out our post, “Going Green In Your Commercial Kitchen.”
6.) Saving Money
And, of course, the most obvious reason to buy used equipment is the low price. As we’ve already mentioned, used equipment is usually as good as new equipment, but at a fraction of the cost. Even online mega-stores (who only carry new equipment) can’t offer prices as low as your local dealer can on used equipment. By keeping start-up costs down, you’ll be turning profit in no time!
* An Important Warning About Buying Used Equipment!*
Only Buy from reputable sources
Do not purchase your precious kitchen equipment from a stranger selling out of their storage unit or garage! Your kitchen equipment is the single biggest investment you will make. You need it to be right and you need it to work. This is why you should only purchase from legitimate, well established businesses. Your equipment should be cleaned and inspected by a professional. You should get a receipt and you should be given a guarantee of quality for the machine you have just purchased. Don’t trust something as important as your equipment to someone who might just sell you junk and disappear.
Need A Little Help? Call Us.
Spokane Restaurant Equipment has been helping clients launch the restaurant of their dreams for over 40 years. As we are a complete resource to restaurant owners, we are proud to offer you the Inland Northwest’s largest selection of used restaurant equipment- with over 60,000 square feet of inventory in-stock right now. All of our equipment is inspected, cleaned, and maintained by our professional maintenance staff in our state-of-the-art repair shop. We offer a full return policy and an industry leading warranty on all used equipment, so you can buy with confidence. Plus, if we don’t have what you are looking for, we’ll help you find it. We want to be part of your success story. Check us out online HERE, or call us at 509.534.5500