Used Equipment Price Percentage

[KennyMike]

I''m opening a shop and one nearby is closing. There''s a nice 8'' pastry case, sanitizer, Mahlkonig grinder and micros POS system w/ 2 registers that I''m interested in. Everything is 4-5 years old. Is ther a standard percentage of the original price that I should expect to pay?

 

[John P]

If they are 'out of business' and it's sell to you, or sell to a restaurant supply house, it's about 15 to 20 cents on the dollar.
Probably closer to 15 cents/dollar if its nearing five years old.
Or make your own assessment and think of a price you are willing to pay for used equipment that probably doesn't have maintenance records and no warranties whatsoever. Get it if it's a 'good deal' don't get it because it's 'cheap'. :grin:

 

[CafeBlue]

Used equipment rarely sells for more than 50% of new value. Depreciated value is usually decreasing at a rate of 20% of remaining value annually. Auction values can be as little as 1 or 2 %, but usually 10 to 40% of new value, while re-sellers (especially if reconditioned or warranteed) will try for 35 to 65% depending on conditions.
Some types of equipment, furniture and equipment are virtually value-less and worn out or used up at about five years of normal commercial duty. Often a closing ship had less than normal traffic and therefore minimal usage/wear on the capital goods.
The POS system is likely ok, but electronics do not hold value well, since keyboards, printers and pc's wear out and out-date quickly. The 8' display loses more value if it is refrigerated because the compressors need replacement, so consider the price PLUS a compressor replacement at this age when determining value. Mahlkonig grinders are some of the most durable machines and can be refurbished. I sold some heavily used Guatemala and VTA6 models that are still in daily use in their new homes - some still have original motors at 15 to 30 years of service. Switches and discs are worth replacing, but discs are not cheapos.
Be prepared with a price you are willing to pay (and reasons to support your price as best value), and if the seller is asking too much, present your offer with explanation, then the seller may see the light and accept your offer.

 

[KennyMike]

Thank you!!!

Great advice... thank you! My very honest reason for a low offer will be that I don't have a loan just yet and anything I spend on this equipment is coming out of my back pocket.

Kenny