Maybe it comes as a surprise to those in the industry, but starting a restaurant is one of the more common business pursuits capturing the entrepreneurial spirit. Unfortunately, the failure rate exceeds 90% within those first, critical five years.
That’s why prospective restaurant owners are always eyeing used pizza equipment, kitchen grills and a host of other equipment/apparatus to make it easy on the cash flow during the start up period and beyond.
But, and if you do get to the point that you need to sell some, or all, of that equipment, the process does not have to be a daunting one, particularly if your use the services of a proven professional auctioneer service like Lauro.
Granted, the need to sell your restaurant equipment may not always be because you are liquidating the business, but because you can part with specific items to help fund an upcoming expansion, or pay down debt.
Determining ‘fair market value’ of Pizza Equipment
Any equipment sale starts with assessing it’s fair market value. But, first, be sure to check if any warranties are transferable.
Value? The Small Business Administration (SBA) notes that liquidated merchandise in general comes in about 20% of its retail value. As such, it’s best to rely on an experienced appraiser, including the advice offered by Lauro to help set pricing.
Target marketing…
Obviously, a deep fryer may not have any use in some restaurants; on the other hand, a lot of restaurants may be a target for those extra oven or refrigerator racks. Too, a load full of smaller counter top items may catch the interest of many.
“Should I have the auction at my restaurant?”
Common question, and the answer, according to the SBA, is “Yes.” In fact in a way it’s the same philosophy used in ‘staging’ a home to sell: the equipment simply looks good in its working surroundings—the final decision should be based on consultations with the auctioneer.
Our family-run business understands the needs of businesses faced with the tough decisions, like liquidating to raise cash. Contact us. Our team of professionals are ready to handle all aspects of your sale.
