If you’re in the restaurant business, you’re no doubt familiar with the concept of commercial kitchen equipment auctions. Auctions are a great way to get the equipment you need at a fraction of the cost of buying new from a supplier. But what do you need to know before you head to the auction? Here’s a brief overview of the basics.
Types of Auctions
When it comes to commercial kitchen equipment auctions, there are two basic types: online auctions and live auctions. Online auctions are conducted via the internet and require you to register and bid with a valid credit card. Live auctions are conducted in person and require you to register and bid with cash or a certified check.
Researching the Equipment
Before you head to the auction, it’s important to do your research on the equipment. Not all equipment is created equal, so you’ll want to make sure you know what you’re bidding on. Take the time to read descriptions and look at photos of the items. If you can, try to get an expert opinion from someone who knows the equipment and can tell you if it’s in good condition.
Know the Rules
Before you start bidding, make sure you understand the rules of the auction. Who is allowed to bid, what forms of payment are accepted, and what the buyer’s premium is are all important questions you should have answered before you participate. Some auctions also require a deposit or a minimum bid, so make sure you know these details too.
Inspection of Equipment
In most cases, you’ll be allowed to inspect the equipment before you bid. This is an important step, as it will allow you to determine the condition of the equipment and make sure it’s in good working order. If you’re not familiar with the equipment, it’s a good idea to bring an expert with you to inspect the items. This will help you make an informed decision when bidding.
When it comes to bidding on commercial kitchen equipment, it’s important to have a strategy. Before you get to the auction, decide on a budget and stick to it. It’s easy to get carried away when the bidding starts, so having a plan in place will help you stay focused. It’s also important to know when to walk away. If the bidding gets too high, don’t be afraid to walk away and wait for the next auction.
A buyer’s premium is an additional fee that is added to the final bid price of the item. This fee is typically a percentage of the final bid and is used to cover the cost of the auction. Make sure you understand the buyer’s premium and factor it into your budget when bidding.
Paying for the Equipment
Once you’ve won the auction, you’ll need to pay for the items. Most auctions require payment in full before you can take possession of the equipment. Make sure you know what forms of payment are accepted and bring the appropriate form of payment with you to the auction. You may also be required to sign a contract of sale.
Taking Possession of the Equipment
Once you’ve paid for the items, it’s time to take possession. Most auctions will allow you to take the equipment with you at the time of purchase, but some may require you to arrange for delivery or pickup of the items. Make sure you understand the rules of the auction and have a plan for taking possession of the equipment.
Taxes and Licensing
When you purchase commercial kitchen equipment, you may be responsible for paying taxes and licensing fees. Be sure to check with your local government to determine what taxes and fees apply to the items you’ve purchased. You may also need to have the equipment inspected by a qualified inspector before you can use it.
It’s important to keep records of all of your purchases at auction. This includes a record of the auction, the items purchased, and the prices you paid. This information can be used to track your expenses and help you create a budget for future purchases.
Commercial kitchen equipment auctions can be a great way to save money on the equipment you need. However, it’s important to understand the basics before you participate. Make sure you know the types of auctions available, do your research on the equipment, know the rules of the auction, inspect the equipment, have a bidding strategy, understand the buyer’s premium, be prepared to pay for the items, take possession of the equipment, and keep records of your purchases. Following these tips will help ensure you get the best deals at commercial kitchen equipment auctions.