Re: Commercial machines
Hello Michels,
The value of a commercial esp machine differs depending on who is selling.
A)
If the vendor is a trader that either traded it in, or bought it for resale, he has to be able to make a profit dependent on what he paid, and what he spent repairing & servicing & cleaning to present well, plus a fair margin.
B)
On the other hand a machine being sold directly by its cafe owner can have far less value. The cafe owner can work it out by taking into account stuff like:
How much money has it returned in turnover over the period in use, and how old therefore what advantage has the cafe owner gained by "writing down" its value every year.
Example: A three year old machine that does an average of 10 kilos a week, with an estimated 90 cups per kilo actually sold for money (accounting for wastage & freebies to staff & friends etc) , $3.00 per cup, returns 3 x 90 = $270.00 per kilo = $2700.00 per week = a return of $421,200 over the 3 years.
If said cafe owner sticks it in the shed as a "spare", it sits there long terms, seals perish, leaks develop, pumps seize, pipes scale up, it collects dust and takes up space getting in the way.
For what they return to the cafe owner, cafe owners should seriously consider turning their machines over every 2 years so they have the benefit of equipment in best possible condition, with less likelihood of breakdown, and even if they recouped only a thousand dollars for it after 2 years, they are still streets ahead in the total scheme of their business.
Of course they should try and get the best possible price for their old machine, but if it takes a long time to sell, with time wasted demonstrating, the equipment languishing in the way & deteriorating whilst unused, this is very inconvenient in the scheme of things and sometimes its better and cleaner to just act swiftly to get rid of the obsolete stuff at a price designed to offload quickly, and get it out of the way.
Equipment sold directly by the cafe owner doesnt carry a guarantee, is often not in a very good state (reason for upgrading) , & with respect usually hasnt been cleaned up or presented well....just ripped out and left sitting out the back. These are all reasons why it is most convenient (for the cafe owner) to offload the equipment at a "convenient" price and have it gone. Kindly note this is not intended to offend, its just the way it is.
Both secenarios are quite legitimate, and I dare say others can come up with even more scenarios.
Hope this helps,
FC.
Hello Michels,
The value of a commercial esp machine differs depending on who is selling.
A)
If the vendor is a trader that either traded it in, or bought it for resale, he has to be able to make a profit dependent on what he paid, and what he spent repairing & servicing & cleaning to present well, plus a fair margin.
B)
On the other hand a machine being sold directly by its cafe owner can have far less value. The cafe owner can work it out by taking into account stuff like:
How much money has it returned in turnover over the period in use, and how old therefore what advantage has the cafe owner gained by "writing down" its value every year.
Example: A three year old machine that does an average of 10 kilos a week, with an estimated 90 cups per kilo actually sold for money (accounting for wastage & freebies to staff & friends etc) , $3.00 per cup, returns 3 x 90 = $270.00 per kilo = $2700.00 per week = a return of $421,200 over the 3 years.
If said cafe owner sticks it in the shed as a "spare", it sits there long terms, seals perish, leaks develop, pumps seize, pipes scale up, it collects dust and takes up space getting in the way.
For what they return to the cafe owner, cafe owners should seriously consider turning their machines over every 2 years so they have the benefit of equipment in best possible condition, with less likelihood of breakdown, and even if they recouped only a thousand dollars for it after 2 years, they are still streets ahead in the total scheme of their business.
Of course they should try and get the best possible price for their old machine, but if it takes a long time to sell, with time wasted demonstrating, the equipment languishing in the way & deteriorating whilst unused, this is very inconvenient in the scheme of things and sometimes its better and cleaner to just act swiftly to get rid of the obsolete stuff at a price designed to offload quickly, and get it out of the way.
Equipment sold directly by the cafe owner doesnt carry a guarantee, is often not in a very good state (reason for upgrading) , & with respect usually hasnt been cleaned up or presented well....just ripped out and left sitting out the back. These are all reasons why it is most convenient (for the cafe owner) to offload the equipment at a "convenient" price and have it gone. Kindly note this is not intended to offend, its just the way it is.
Both secenarios are quite legitimate, and I dare say others can come up with even more scenarios.
Hope this helps,
FC.

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