Pros & Cons Of Buying Used Restaurant Equipment
Opening and running a restaurant can be costly. You must buy restaurant equipment like a stock pot burner, fryers, warming equipment, and more. Further, you have to think of rent, utilities, insurance, and wages. Thus, you might be looking for a way to reduce costs by buying used restaurant equipment.
Before buying used equipment, you should understand the pros and cons of doing so. With such information, you can be sure you're making the right choice.
Pros of Purchasing Used Restaurant Equipment
You can purchase used restaurant equipment when starting a business or upgrading your appliances. In both instances, used equipment presents a host of advantages, which include the following.
Reduced Cost
The decision to buy used restaurant equipment is driven mainly by cost. There is an estimated 935,000 restaurants in the US. You might want to add to that number by opening one up. However, you may need to reduce your spending on equipment to make room for other expenses.
You can buy used restaurant equipment at lower costs because they have already depreciated. Purchasing used equipment is a wise financial decision. You might not get a return on your investment in the short term. Thus, you may face financial trouble if you sink all your funds into buying new equipment.
Negotiating Ability
It is difficult to negotiate a price decrease when buying new restaurant equipment. However, used equipment has some level of negotiability. That's because it has already depreciated, meaning there's no rigid cost.
Thus, you can negotiate with the seller and buy the equipment at lower prices. Also, you might get a few extra items thrown in to better the deal. That includes items like small spoons and other small utensils.
Getting Equipment in Good Condition
Used restaurant equipment may come from businesses that closed their doors. Thus, the equipment is likely in good condition and worth the money. Sometimes, you may even get an item with its original warranty from the manufacturer.
Ensure you buy restaurant equipment from a reputable vendor. Such a vendor will check every used item they want to resell to ensure it's in excellent shape. They will also make any necessary repairs before reselling. Thus, you'll be getting a good quality item.
Restaurant equipment is usually durable, meaning it can last for a long time with the proper care. For example, you can buy a commercial gas fryer and use it for years, thereby getting value for your money.
Cons of Buying Used Restaurant Equipment
Buying used restaurant equipment comes with an assortment of disadvantages. Weigh the cons against the pros to make the right decision. These are some of the limitations of used equipment.
Limited Options To Choose From
When buying second-hand restaurant equipment, you don't have a lot of variety to choose from. Buying used limits your choices to what's available.
Thus, you might have to settle for something close to what you wanted. If not, you may have to wait for the exact equipment you want to be available. That may take an unknown amount of time, thereby wrecking your plans.
Higher Costs in the Long Run
One of the main fears many have when buying used equipment is that it may fail or break down after a short period. Both these outcomes will lead to losses.
You might end up paying a lot of money for repairs and maintenance. In such a case, buying new equipment would make more financial sense.
There are things you can do when buying used restaurant equipment to ensure you buy quality items. They include:
Buy from a reputable vendor
Test the equipment before purchase
Get the measurements to ensure it will fit in your restaurant
Final Words
When you buy used restaurant equipment, it can help reduce costs. Wanting to lessen the cost of running your restaurant is understandable. However, you must also be aware of the potential downside of buying used equipment. Understanding both pros and cons will ensure you make an informed purchase decision.