As a ice cream consultant, I assist many clients in design and building of a ice cream shop or manufacturing facility. During the layout design process the client will inevitably say “I want to use as much used equipment as possible and I do not want to spend a lot of money.” No surprise there, but do they really understand the request. Sounds good in theory and clearly understand the intention, but are there any concerns one should have when making the request, let’s look at a few.
The obvious I would say is age, followed by how the items had been used. For example and since I’m talking about the food industry and consumable goods, I do not recommend a piece of equipment that had been used in a non food environment. A refrigerator would be an example where possibly it was previously used to store a non edible item.
If we were working on a retail shop, I would say we have more latitude and opportunity, because in most instances the operator is re-purposing food rather than making from scratch such as manufacturing ice cream.
For a manufacturing facility “used” concerns should be of higher interest, because core ingredients are being put together, with the finished product going out to a much broader customer base. With budget limitations may startups incur, I typically suggest looking at used equipment as long as the right questions are presented by the buyer and answered by the selling party.
As a basic rule, I recommend to the client to avoid purchasing a piece of equipment with moving parts and the purchase is out of town and unseen. The exception to this would be to purchase equipment on line from a company rather than a individual trying to move something. For example I would purchase a stainless steel table from anyone based on a photo, but would stay away from a refrigeration unit offered on line.
If you find a good, clean used item then ask for proof of operation such as video and showing temperature recordings. A well spelled out warranty is advisable and if the selling party has documentation or proof of the last service date. If an item is sold “as is” then understand you are being held fully responsible when taking possession of the item.
What are the recommended ways to find and purchase used equipment?
- First locally within a 50 mile radius, for a shop it would be a restaurant supply house. For manufacturing, a national company specializing in commercial equipment and in most cases the company will specialize in field, such as dairy manufacturing.
- For a retail shop, look for regional auctions or online from a company specializing in restaurant/ice cream shop equipment. With a legitimate company you should be able to access a photo, model and serial number, age of the item and if “as is” or reconditioned. In many instances the price will not be posted, I’d say because the seller knows they have an opportunity to make the transaction at a higher price and if the buyer does not know the market. An item being sold by an individual usually has a posted price in the listing and in either case, make an offer, the seller will accept it. When purchasing in person, make sure you witness it in operating mode.
- For commercial manufacturing equipment, national auction where all items will be posted online so you can see it. From a company where the item was used in the same field, possible out grew the piece and knows it’s history. Another place to look is a equipment manufacturer selling a floor model, trade show piece or trade-up from one of their clients. You pay a little more, but the value proposition is you purchase at a depreciated price and the item is backed with a warranty and tested by their service department.
What to consider after making a purchase, such as freight and delivery?
- Notice that above I mentioned in looking for ice cream shop equipment, to look locally within a 50 mile radius. The reason is to allow you to be the delivery service using your car, truck or rental van. Unless a company offers a delivered price (notice I did not say free delivery) then the potential for the merchant to boost the delivery cost to make up for a sweet deal is high. Planning to arrange for delivery of your purchase is desirable.
- For commercial equipment, if you are purchasing from an auction, then they offer a freight logistic service that works out very well. Your payment will include removal, crating and delivery by a bonded service. If the online purchase is from a company, they will arrange the packing and usually the carrier; if the purchase is from a individual conducting a one time sale, then utilize a pack, ship and go service. I would not reply on the quality of service from this seller when dealing with equipment over 50 lbs.
Again, when considering a used equipment purchase for your retail shop or manufacturing facility, keep in mind a few basic points.
- Do not buy a piece of equipment with moving parts sight unseen, conduct due diligence prior to making a purchase.
- Be aware of the age of the equipment and how it was previously used.
- Know the value of a like piece in new condition to see how much you are really saving.
- Understand the warranty and if there is a return policy.
Contact Darryl, he can help determine if it is better to buy new or used equipment for your specific operation.
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