Is your restaurant going out of business? If YES, here is a detailed guide on how to sell restaurant equipment and the best places to sell them fast.
When it comes to business, especially those involved with food, there are no guarantees that the business will still be fully functional in the next three years. In fact, according to entrepreneur’s research, 90% of restaurants go out of business before reaching their fifth year anniversary.
A lot of factors account for this, but all these factors will be discussed in a subsequent article. When a restaurant business is facing desolation, one of the ways the restaurant owner can recoup some of the invested capital is to sell off equipment used in the restaurant.
Again, even if the restaurant is not closing shop anytime soon, there is always a need for restaurants to change their main equipment from time to time, and one of the ways to effect this change is to sell off old equipment and buy new ones.
Selling off old restaurant equipment can help put money back into your pocket or business, and if you are planning to put your old stock in the market, here are ways and avenues you can use to sell off your old restaurant equipment, and the tips that would help you make your sales quickly enough.
6 Steps on How to Sell Used Restaurant Equipment
1. Make a list of the equipment you want to sell
If you have made up your mind to sell off the equipment in your restaurant, the first thing you have to do is to make a list of the equipment you want to sell. Of course you may not want to sell everything in your kitchen, that is why you need to make a list. This list would also come in handy when talking to dealers and when you are making contacts.
2. Put your equipment in good selling condition
After you have made a list of the equipment you need, you now have to put those equipment you have picked out in good selling condition.
You must know that no one would buy your dirty stove, unless you are selling it dirt cheap. You do not only need to wash your restaurant equipment, you must also effect repairs where necessary. Note that any broken down part would mean a deduction on the revenue you would get for the equipment.
3. Determine a fair market price for your equipment
Another way to prepare for the sale of your restaurant equipment is to determine a fair market price for them. Take into consideration the age and wear of the equipment before fixing your price. According to the Small Business Association, (SBA) liquidated merchandise is normally priced at 20 percent of the retail value. You may want to consult with an equipment appraiser to get a suggested price for your equipment.
4. Engage in massive publicity
Once you have determined a good price for your equipment, it is now time to start massive publicity for it. It is now time to make online listings, contact dealers, put up adverts, contact restaurants, and every other thing you need to do to ensure you sell off your merchandise in good time and with a reasonable price.
5. Contact used restaurant equipment dealers
If you want to use dealers, this is the right time to get in touch with dealers who specialize in buying used restaurant equipment for sale. You should contact as much dealers as possible so that you can make a choice of those who give you a reasonable price.
6. Settle best ways to handle shipping
If you are selling your restaurant equipment individually, you must have to settle the best ways to ship the equipment to your buyers. You should determine if you would bear the brunt of the shipping, or if the buyer would be made to pay for that. Once your equipment has been shipped, then the deal has been concluded.
8 Best places to Sell your Restaurant Equipment
1. Restaurant equipment or supply stores
One of the best places you should look out for when you want to sell off your used restaurant equipment is at restaurant equipment or supply stores. These stores usually stock used equipment in their warehouse, so what you have to do in this respect is to contact them and tell them that you have restaurant equipment that you have to sell.
If they are willing to do business with you, they would ask for a listing of the equipment you have. You would then have to negotiate the prices you want for the various equipment you want to sell. The dealers may off to buy off the equipment outright from you, and others may require that you wait till a sale is made.
2. Restaurant equipment dealers
Restaurant equipment dealers are another popular way restaurant businesses sell off their equipment. There are a lot of retailers dealing in used restaurant equipment.
Pierce Food Service Equipment, Restaurant Equipment World, ACityDiscount and ABC Restaurant are some examples of these dealers. Selling your equipment to resellers reduces the time and effort involved in online selling or posting adverts.
To sell your used restaurant equipment to a dealer or retailer, you have to first of all contact the dealer and give a description of the product, model and its working condition. You can deliver your equipment directly to the dealer’s warehouse or have a representative visit you on-site.
The representative evaluates your equipment and negotiates a price. You may have to contact more than one retailers and choose the one offering the best price for your equipment.
Use telephone directories, online search engines or consult friends and colleagues in the food service industry for reliable dealer contacts. Remember to ask the dealers about their experience in the field and request customer references.
Another great way to sell of your used restaurant equipment is via auctions. Auctions often have good deals and nowadays many auction companies offer online bidding with the option to ship. These companies often list on craigslist, Page on Auctionzip, and a few are listing on Live Auction Schedules for Used Restaurant Equipment.
If you cannot got through big auctions, you can organise your own mini auction, but you must know that a lot would be involved in this, so it would be best that you contact the professionals.
4. Contact restaurants directly
Yet another good way you can sell off your used restaurant equipment and get good prices for them is to contact restaurants you think would be interested in what you have sell. One way you can do this is to perform an email outreach.
You should put together a list of 75-100 of restaurant contacts in your area. Cold e-mail these contacts letting them know that you have some restaurant equipment for sell at a very reasonable price. There is a good chance you will get restaurants that are willing to take what you have to sell.
5. Advertise your used restaurant equipment on websites such as eBay, Amazon or craigslist
Nowadays almost everything is done on the internet, so this is another good place to sell your restaurant equipment. You can open accounts on websites like eBay, Amazon or Craigslist and upload good images of the restaurant equipment you have to sell.
You can now create good adverts for your products, and start publicizing them on your social media pages. This will expose your listing to the widest possible market for your used equipment. The only problem with this method is that you have to make provision for shipping.
6. Get in touch with regional hotel and restaurant associations
Yet another good way you can sell your used restaurant equipment is by getting in touch with regional hotels and restaurant associations.
What you have to do is approach regional hotel and restaurant associations, restaurant supply or equipment supply associations, and let the members know that you are looking to sell your used restaurant equipment. You may find potential buyers in these associations.
7. Search out related websites
Yet another way you can sell your used restaurant equipment is through related websites. There are a lot of websites that are specialized in buying and selling off used restaurant equipment. You need to search for these websites specializing in the selling of used restaurant equipment.
Such websites allow you to reach your exact target audience quickly. Check out websites such as Double Take Auctions and Equippers, they can help you out.
8. Don’t forget offline adverts
While posting your used restaurant equipment online is a good way to get publicity, but does not mean you should totally neglect offline adverts. You have to post advertisements in magazines and other publications specific to the restaurant industry. You can even make flier and hand them out in the right places.
Tips on How to Sell your Restaurant equipment
Selling your used restaurant equipment is not easy and you must strive to get enough money from your sales so that it can be enough to settle other issues. For that to happen, there are tips you have to follow that can help you make the best of your sales.
Keep your equipment clean
One good tip you must have to observe when you want to sell your restaurant equipment is for you to thoroughly clean the equipment in question. Who wants to buy an equipment that’s covered with grime and food residue? Wash and clean your equipment so it looks sparkling clean when you try and sell it.
Locate equipment manuals and warranties
Selling your equipment with everything it originally came with will only increase its value. One way to do this is to dig out the warranties that came with the equipment you want to sell. Keep in mind that some warranties may be transferable to a new owner.
When you can sell your kitchen equipment with everything it was originally bought with, you can ask more for it, especially if it’s in great condition.
Find a local restaurant equipment dealer
If you want to sell your restaurant equipment fast, it would be in your best interest to contact a local restaurant equipment dealer. If you get one, you may have pay less in commissions. Again, they can take the equipment off your hand and conclude the sale for you.
Keep Items Together
If you have restaurant equipment that goes together—say, a matching custom counter with shelving—try to keep it together. Breaking items apart will ultimately decrease their value. If you sell one small piece, it can also make it more difficult to sell the other pieces individually.
Make good use of time
The more time and effort you put into selling a piece of used restaurant equipment, the more you will likely get back in return. However, you have to weigh the time it may take to generate exposure and interest versus selling it quickly for a lower wholesale price. You have to find the right balance between selling time and the money you get back from it.
Consider Selling in Bulk
If you need to sell a lot of restaurant equipment quickly, your best option will be to sell everything at once to a buyer or dealer. There are dealers that can purchase it all at a fair price, handle the removal, and allow you to move on with minimal interference.
Leave your equipment in the premises
The SBA warns that some restaurant equipment loses value if moved to another location, so it will be in your best interest to keep your equipment on the premises for as long as possible.