Lease or own

Blue Line Barbecue · Newbie Joined: 09 Feb 2007 Posts: 85 Location: Purcell,Ok

Ok everyone we are looking into opening a place and were wondering
is it better to lease or buy the equipment we need.
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Pit Boss · Posted: Feb 20 2009 Post subject:

Why pay for something that you don't own. Buy it...and if possible, pay in cash.

There's a reason Dave Ramsey calls it a "flease" instead of a lease.
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Harry Nutczak · Posted: Feb 20 2009 Post subject:

it depends on what equipment, most leasing agencies have outrageous rates. there is alot of great used equipment floating around for a great price. and the benefits of having equity is always good.

The one thing that is good to lease instead of owning is your dish sanitizing machine.
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Pit Boss · Posted: Feb 20 2009 Post subject:

I owned my last sanitizer...but here's the good deal. My food supplier paid to have it serviced (and fixed if anything broke) simply because I bought my chemicals from them. It was a pretty good deal.

Actually, I have to hand it to my food sales rep. My sanitizer was on the blink one day. It happened to be the day of the week my rep stops by. When he caught wind that we were having problems he quickly spoke up and said, "You know we can handle that for you." From that day on I let them.

The only things I didn't own were my tea and coffee machines...and everyone knows they are free from whoever you buy your supplies from.
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marvsbbq · BBQ All Star Joined: 15 May 2005 Posts: 6186

One of the BIG things to lease is a ICE MACHINE. They seem to break down more than just about anything else.

Pit Boss · Posted: Feb 21 2009 Post subject:

I probably wouldn't go out and buy a used ice machine (unless it was in working order and was a steal of a price). A new machine should give fairly trouble free service. In my experience with new ice machines is that most of the stuff that goes wrong with them can be fixed in house w/o having the service guy come over. Actually my service man would typically give me things to troubleshoot over the phone before committing to make the service call. That taught me alot and I started calling him less for a variety of problems around the restaurant.

Everyone is different...I'd rather own.
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Herman · Posted: Feb 21 2009 Post subject:

leasing is means to enable you to get equipment with very little down payment that regular lenders will require about 50% down unless you put up other collateral

I would not recommend that you buy any of your refrigeration equipment used only buy new-the reason being that service calls on refrigeration equipment is extremely expensive

Herman

Harry Nutczak · Posted: Feb 21 2009 Post subject:

The typical stated life on an ice machine is 10 years, (according to my equipment repair guy) so if you find a properly sized ice-machine for your needs, divide the new cost by 10 and subtract the years it was used to see if it is a fair deal.
I would also ask your refrigeration equipment specialist if there is any items in the water for your area that would shorten the life of the machine, many places have high calcium and or iron that creates a mess
in the freezing blocks and makes it difficult to maintain. A proper filtration system can negate these problems.
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Just remember that the toes you may step on during your climb to the top will also be attached to the a$$es you'll be forced to kiss on your way back down!

Joe Bryant · BBQ Fan Joined: 22 Apr 2008 Posts: 183

Nothing to add other than to say thanks to you guys that are contributing. This is valuable infor for those not in the know (like myself) Thanks.

J

Blue Line Barbecue · Newbie Joined: 09 Feb 2007 Posts: 85 Location: Purcell,Ok

Thanks for all the replies everyone. We are looking at a place and there is only a vented hood and walkin freezer. We will be doing only barbecue and sides. So I am looking for equipment suggestions if anyone has any. I just hate to buy any equipment that I don't need.
_________________
What got me started was a
Members Mark LPG
Vertical Smoker.

Pit Boss · Posted: Feb 22 2009 Post subject:

The good thing is that bbq doesn't require that much equipment. To get an idea of what you need we should know how many seats you have, how much business you predict on having, and exactly what menu items you plan on having.

It would also be helpful to start a new thread with your question as not to hijack this one too far.
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Somewhere in Kenya...a village is missing their idiot.