Best Practices for Buyers at Restaurant Equipment Auctions
Purchasing used equipment for your restaurant or foodservice establishment may be necessary at times. Many restaurant owners choose to go with used restaurant equipment to keep within a budget when first opening. There are definitely some good deals to be had when buying used kitchen equipment but like anything else that is bought used, there is some degree of risk. Good used restaurant equipment can be found through a number of resources one of which being auctions. For those considering purchasing equipment through restaurant equipment auctions there are a few points to consider that may help limit risks and poor buying decisions.
1. First and foremost, educate yourself on the pieces of equipment that you might potentially bid on. Auction companies that run online restaurant equipment auctions will post numerous pictures and list model and serial numbers of the pieces of equipment before the auction goes live. If the auction is to take place on site, bidders are usually allowed to visit a location and view what is to be auctioned off some days in advance to the auction date.
Take advantage of this viewing period in order to gain some knowledge about the equipment and to weigh its condition. A best practice when preparing to buy anything at auctions featuring restaurant equipment is to reference any model numbers and serial numbers listed on the data plates. Research other exact used pieces with the model numbers to get an idea of what they go for used. Also, the serial number can be referenced either through the manufacturer's website or by calling that the manufacturer in order to tell how old the equipment might be. Sometimes parts for older pieces of equipment can be tough to find so knowing the age of a piece of equipment definitely helps.
2. Know your limits before bidding and what you are willing to offer. With these limits set in place its easier to walk away knowing that the price has gotten too high. Auctions can be exciting and sometimes nerve racking. Setting a maximum price for yourself will help keep your emotions in check. Remember your bidding to get a deal not to beat out other bidders!
Also, don't forget to factor in any commissions or seller's fees that are due once you have won a bidding. These fees are typically around 13% of what the item was sold for. Take into account delivery or shipping fees as well. Some companies involved in online restaurant equipment auctions do offer assistance in getting the item shipped to the buyer. Others only allow for a local pickup. Freight charges can vary based on weight of the equipment, freight class (how fragile an item is), if a lift gate is required, and of course distance.
3. Don't pay more than what a used restaurant equipment re-seller would sell for. Equipment purchased through auctions are never given a warranty. There's no sense to make a bid equal to the price that you would be paying when buying through a restaurant equipment dealer. Most dealers typically give a 30 or 45 day warranty on their used equipment.
*Note: Refrigeration items that can be found in an auction are especially a higher risk. The cost for repairs on refrigeration is high namely because of the rising cost of freon and labor charges. Licensed refrigeration repairmen typically charge anywhere from $35 - $75 dollars an hour. When previewing any ice machines, prep tables, or coolers check the copper refrigeration lines for any obvious kinks. Fryers and gas ranges have fewer components that may malfunction and the parts are cheaper. These are definitely safer buys.
If you are thinking about buying restaurant equipment at an auction do so after taking into consideration the advice mentioned. There are always restaurants going to auction across the country. The best way to find a certain piece for your restaurant is to browse current listings of restaurant equipment auctions taking place across the country.
Purchasing used equipment for your restaurant or foodservice establishment may be necessary at times. Many restaurant owners choose to go with used restaurant equipment to keep within a budget when first opening. There are definitely some good deals to be had when buying used kitchen equipment but like anything else that is bought used, there is some degree of risk. Good used restaurant equipment can be found through a number of resources one of which being auctions. For those considering purchasing equipment through restaurant equipment auctions there are a few points to consider that may help limit risks and poor buying decisions.
1. First and foremost, educate yourself on the pieces of equipment that you might potentially bid on. Auction companies that run online restaurant equipment auctions will post numerous pictures and list model and serial numbers of the pieces of equipment before the auction goes live. If the auction is to take place on site, bidders are usually allowed to visit a location and view what is to be auctioned off some days in advance to the auction date.
Take advantage of this viewing period in order to gain some knowledge about the equipment and to weigh its condition. A best practice when preparing to buy anything at auctions featuring restaurant equipment is to reference any model numbers and serial numbers listed on the data plates. Research other exact used pieces with the model numbers to get an idea of what they go for used. Also, the serial number can be referenced either through the manufacturer's website or by calling that the manufacturer in order to tell how old the equipment might be. Sometimes parts for older pieces of equipment can be tough to find so knowing the age of a piece of equipment definitely helps.
2. Know your limits before bidding and what you are willing to offer. With these limits set in place its easier to walk away knowing that the price has gotten too high. Auctions can be exciting and sometimes nerve racking. Setting a maximum price for yourself will help keep your emotions in check. Remember your bidding to get a deal not to beat out other bidders!
Also, don't forget to factor in any commissions or seller's fees that are due once you have won a bidding. These fees are typically around 13% of what the item was sold for. Take into account delivery or shipping fees as well. Some companies involved in online restaurant equipment auctions do offer assistance in getting the item shipped to the buyer. Others only allow for a local pickup. Freight charges can vary based on weight of the equipment, freight class (how fragile an item is), if a lift gate is required, and of course distance.
3. Don't pay more than what a used restaurant equipment re-seller would sell for. Equipment purchased through auctions are never given a warranty. There's no sense to make a bid equal to the price that you would be paying when buying through a restaurant equipment dealer. Most dealers typically give a 30 or 45 day warranty on their used equipment.
*Note: Refrigeration items that can be found in an auction are especially a higher risk. The cost for repairs on refrigeration is high namely because of the rising cost of freon and labor charges. Licensed refrigeration repairmen typically charge anywhere from $35 - $75 dollars an hour. When previewing any ice machines, prep tables, or coolers check the copper refrigeration lines for any obvious kinks. Fryers and gas ranges have fewer components that may malfunction and the parts are cheaper. These are definitely safer buys.
If you are thinking about buying restaurant equipment at an auction do so after taking into consideration the advice mentioned. There are always restaurants going to auction across the country. The best way to find a certain piece for your restaurant is to browse current listings of restaurant equipment auctions taking place across the country.