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Tuesday, January 13, 2009

Should I Go for Brand-new or Second-hand Equipment?

While buying second-hand equipment carries risk, there are ways by which you can minimize ending up with lemons.

Q: I need to buy new food processing equipment to satisfy bigger volume requirements, as I plan to set up at least two new outlets next year. Should I go for brand-new or second-hand equipment? My limited budget tells me I should go for the latter, but isn't buying used equipment risky? What if I ended up paying more in terms of repair/upgrade to make the machine work?

— EDMOND, San Pablo, Laguna

A: Why don't you test-run the second-hand machine before you finally buy it? Observe how the machine operates through at least one — better two — complete production cycle. That is a reasonable condition before purchase which I am sure any second-hand machine supplier will understand.

Here are other guidelines that may help when shopping around for used equipment:

* Check the reputation of the supplier.
* Shop around and inspect several machines before you actually buy.
* Determine the age of the machine and history of usage so that you can predict its performance in your business.

However, there is another option which you might have overlooked. Have you considered the possibility of having machines fabricated by local machine shops? You are in food — you must have heard of Almeda food processing machines. The Almedas have a reputation for being able to fabricate food machines at less than half their imported price. Big food retailers like Jollibee, McDonalds, Goldilocks, and La Chesca, to name a few, purchase their customized food machinery from them. Last I heard, the Almeda factory is still in Gagalangin, Tondo, Manila. Check it out.

Good luck on your expansion!

Source:Philstar

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