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New vs. Old Bakery Equipment: The Big Decision

By Business of Baking Blog posted 09-05-2024 05:47:43 AM

  

As a bakery owner, you know that every decision you make impacts not just your day-to-day operations, but also the future of your business. One of the more important—and sometimes challenging—choices you’ll face is deciding whether to invest in new equipment or stick with the tried-and-true machines that have served you or another entrepreneur well. It’s a balancing act!

Newer equipment can offer exciting possibilities with the latest technology, greater energy efficiency, and time-saving features, while older equipment may feel like an old friend—reliable, familiar, and often kinder to your budget upfront. However, it’s not just about dollars and cents. This decision touches on your ability to maintain quality, improve efficiency, and even grow your business in the long run.

In this post, we’ll explore both sides of the equation and help you reflect on what’s best for your bakery now and in the future. After all, it’s about more than just equipment—it’s about empowering your vision and making choices that align with your dreams for your bakery.

New Equipment: Fresh Out of the Box and Ready to Impress

Pros:

1. Reliability and Warranty: New equipment is like that overachieving student who always has their homework done—reliable and covered. With a manufacturer’s warranty, it’s the equivalent of having a personal safety net, ensuring you won’t need to schedule emergency repair appointments or hold impromptu bake-offs with your malfunctioning oven.

2. Advanced Technology: If your bakery dreams include an oven with more tech than the latest smartphone, new equipment delivers. Think touchscreens, precision controls, and features that make your old gear look like it’s from a bygone era. It’s the bakery equivalent of upgrading from a flip phone to the latest gadget.

3. Customization and Features: New equipment lets you pick and choose exactly what you want. It’s like ordering a custom cake, but for your kitchen gear. Want a mixer with a built-in timer and a whisk that’ll whip your meringues into shape? You got it. The only thing missing is a built-in taste tester.

4. Hygiene and Safety: Starting with new equipment is like rolling out a red carpet for cleanliness. You’re starting from scratch, so there’s no need to worry about mysterious residue from the previous owner or age-old crumbs lurking in the crevices. It’s pristine, like a just-baked batch of cookies.

Cons:

1. Higher Costs: New equipment comes with a price tag that could totally bust your budget. It’s like buying the top-shelf flour when you were planning on something more budget-friendly. Your wallet might feel the pinch, but your kitchen will be sparkling.

2. Depreciation: New equipment loses value faster than a freshly baked pie cools down. The minute you bring it home, it starts depreciating. It’s the financial equivalent of watching your bread rise only to deflate.

3. Longer Lead Times: Ordering new equipment can take a long time arrive and be installed at your bakery. The anticipation is real, but the delay might mean putting off that grand opening or expanding your menu.

 Used Equipment: The Thrill of the Chase

Pros:

1. Cost Savings: Used equipment can come with less sticker shock which will help you get more for less. This can be a game-changer if your budget is tighter than a freshly rolled pastry. It’s a treasure hunt where the prize is a more robust balance sheet.

2. Immediate Availability: No need to wait for months or endure delivery delays. Used equipment can be ready for action almost immediately. It’s like scoring a last-minute reservation at your favorite restaurant—it's in, and you’re baking!

3. Depreciation Benefits: Used equipment has already seen its share of depreciation. It’s the financial equivalent of buying a vintage car that’s already lost its showroom sheen but still gets you where you need to go. The value won’t drop like a soufflé under pressure.

4. Value for Money: With careful selection, used equipment can offer exceptional value. It’s like discovering an old cookbook with recipes that are just as good today as they were yesterday. Sometimes, age brings charm and a great deal.

Cons:

1. Uncertainty and Risk: Used equipment is like adopting a shelter animal—you’re not always sure what you’re getting. There could be hidden issues or quirks. It’s a bit of a gamble that requires more than a passing glance.

2. Limited or No Warranty: Used equipment typically comes with less assurance. It’s like buying a pre-owned car without a guarantee. It might run smoothly, or it might need some repairs sooner than expected.

3. Outdated Technology: If you’re envisioning high-tech features, used equipment might not meet your futuristic dreams. If you're looking for all the bells and whistles used equipment may not be the way to go.

4. Hygiene Concerns: Ensuring that used equipment meets modern hygiene standards can be akin to cleaning up after a messy party. It requires diligence and elbow grease, but the end result can be worth the effort.

Key Considerations for the Astute Baker

1. Budget: Your budget is your guiding star. If you’re working with a tight margin, used equipment might be your best bet. If you’re prepared to invest, new equipment could offer more longevity and fewer headaches.

2. Volume and Frequency of Use: How often will you be using this equipment? If it’s going to see daily action, new might be the smarter choice. For less frequent use, used equipment could suffice.

3. Maintenance and Repairs: Consider your ability to handle or outsource maintenance. If you’re not inclined to get your hands dirty, new equipment might save you some trouble.

4. Future Growth: If you’re planning to scale up, investing in new equipment could be a strategic move. Used equipment might serve as a stepping stone, but new gear could better support long-term growth.

5. Supplier Reputation: Whether new or used, choose reputable suppliers. For used gear, a reliable source can make all the difference between a steal and a disappointment.

6. Inspection and Testing: For used equipment, think of it as a thorough vetting process. If you wouldn’t buy a house without a proper inspection, don’t buy used equipment without a close look.

In summary...

Whether you opt for the glitter of new equipment or the charm of used, the key is to match your choice with your bakery’s needs and aspirations. So, mix, bake, and invest wisely—may your equipment always perform as perfectly as your recipes!

Cyd N. Mitchell
Business Blogger, Retail Bakers of America

Cydni N. Mitchell (aka Cyd) is a Bakery Consultant and the Sweet Business Coach behind Sweet Fest®. Based in Atlanta, GA, Sweet Fest® is an online company that supports the business needs of the Sweet Community in the areas of professional development, marketing, branding and web design.

By trade, Cyd is an accountant & financial analyst with a Masters from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. She is the Founder of the Sugar Coin Academy, an online business academy for business owners in the baking and sweets industry, and she is also the organizer of The Ultimate Sugar Show, Georgia’s Largest Annual Baking and Sweets Expo in Atlanta. She is also the Business Blogger for the Retail Bakers of America.