Recently we went on our road trip to pick up some used equipment. We also bought some used frozen custard machines from an old customer (and paying for shipping) but also declined to purchase a couple of machines from other sellers.
So what makes us decide to buy or pass on used frozen custard (and other) equipment?
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Price. We sell any custard machines we refurbish with a warranty. It may only be a 90- day warranty on parts but our reputation is important and this is a necessary part of our business. That means we’re probably spending at least $500 a barrel on parts plus our labor cost to make sure everything functions properly. We’re also potentially paying for things during the warranty period. If we can only make $1-2,000 per barrel, it’s not profitable to buy them.
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Machine history – if we know the seller, it’s easier for us to check our records on the amount of maintenance done on the machine. We’re more likely to buy from people we know who we’ve had a previous relationship with (similar to buying a car from the same dealer time and time again). There’s an inherent trust factor in there.
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Age and manufacturer of the machines. This is where it gets a little more complicated. Our history in the frozen custard machine business gives us knowledge that others can’t have. Using cars as an analogy again, certain model year cars have more problems than those built in other years. It may be supplier related, or an influx of new employees and a learning curve for them.
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Pictures/appearance/completeness of the machine. Pictures can be deceptive, the machine will need deep cleaning no matter where it’s kept. Some parts may need to be swapped out and some may not even be there. Knowing the cost of parts that are missing gives us a basis for deciding to buy that used frozen custard machine or not.
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Ease of loading. If the machine is not on casters or stored inside a building, loading is complicated. Frozen custard machines are heavy and pallet jacks are not easy to move across soft ground. If you have to load a machine with a forklift truck, the pick-up becomes more expensive and complicated.
There are no hard and fast rules that govern whether we buy a frozen custard machine or not, but these are the factors that go into our decisions.