Brewing Equipment Contracts?

[BigDave]

Hi!

I am in the Detroit area and am about to plunge into the commercial roasting business. I am in the process of shopping for a roaster and for space (actually have two spaces identified and negotiating with the landlords for the best deal - one good thing about Detroit''s economy, EVERYTHING is negotiable!).

The one piece of the wholesale coffee business that I haven''t figured out yet is brewing equipment that most coffee shops have. The shops and restaurants I''ve talked to who are willing to try me, will only commit to 1/4-1/2 of their monthly order without me \"giving\" them equipment. They get their brewers to use for free and sometimes auto espresso machines for very low lease rates with a minimum monthly order through their current roaster. I''m trying to figure out how I can offer equipment for their use without having to increase my price targets AND without having to raise huge amounts of new capital (which will in essence mean raising prices down the road).

Additional side thought on this, I don''t want to get into servicing equipment, but I''m assuming (haven''t investigated yet) that I''ll be able to contract for service with a 3rd party.

Anyway, anyone had to deal with this and have any thoughts for me?

Thanks! This is my first post here, great forum!

Dave

 

[BigDave]

Shortly after posting this, I found my answer here:
http://www.coffeeforums.com/viewtopic.php?t=7862

I'm leaning towards offering equipment at cost, but not offering any service agreements with it and putting together a small list of reputable service folks to pass along to customers if need be. I'm also toying with offering credit towards equipment if they sign a contract for beans ($XX off for each month you agree to buy a minimum of XX lbs of beans). I figure that will minimize my exposure to loss and I don't have to deal with repairs, etc.

If there's anything else folks would like to contribute, I'll definitely take more info/opinions!

Thanks!
BigDave

 

[GreenDude]

Hi BigDave, I am in the same situation at the moment; minimal capital for machines. I read the posts from the link you provided last week actually and I must say that the guy who said to focus on quality high end coffee and not machines is where im headed, for now.
I believe that the equipment manufactorers do indeed service the equipment. I checked with Curtis, they have a program called CurtisCare where they service machines, or sub-contract the work. I am really not sure what they charge at the moment but will find out soon.

Anyhow, best of luck with the new venture!