Price Signal Flashing
OK, those of you looking for a business opportunity, Taylor dominates the soft-serve ice cream machine business. Today one of our machines broke. We got a quote for a refurbished machine -- with trade-in of our old macine - $14,000! The brand new ones cost as much as a car.
So investors -- there is your flashing price signal. There should be a big enough umbrella here to make some money with a good design and thoughtful sourcing. And I can tell you everyone who uses these machines is eagerly awaiting such an entrant.
Aaron C. de Bruyn:
$14,000 used? New ones cost as much as a car?
Ouch. My new cars cost about $12,000. What the heck do you drive, an Audi? ;)
March 5, 2012, 9:59 amRich Ridenour:
Every ship in the US Navy has one or more of these machines and I think we get raped even worse than you do Warren.
I am retiring soon and have been looking for an opportunity, I will definitely look into this!
March 5, 2012, 12:53 pmChris:
I wonder how the $14,000 price is allocated among
March 5, 2012, 1:32 pma)Materials
b)Labor
c)Profit
d)Liability insurance for the inevitable attempts to blame the machines for food poisoning, death and the occasionaly dispensing of severed fingers and/or rat bodies.
iceberg:
I often buy equipment overseas for this reason, especially from China. I just tried AliExpress.com and they list soft ice cream machines that cost between $2000 and $5000. AliExpress listing.
If you don't like the options there, contact some of the factories you see here listed on Alibaba and they will be more than happy to get you the exact machine you are looking for 25% of the cost in the USA.
March 5, 2012, 2:33 pmSteve Burrows:
You often get what you pay for. I'm guessing this is industrial quality equipment that can run 24/7 for years before major overhaul. A quick internet search yielded several other brands that seemed much less expensive, but perhaps come with a narrower service network and spotty parts availability. If that isn't the case, then opportunity abounds!
March 5, 2012, 3:12 pmA Friend:
Taylor customer service is headed by a guy named Mike Biggerstaff. Can't beat that.
March 5, 2012, 7:15 pmH Williams:
There used to be a head of a big Public Sector Union in the UK called Rodney Bickerstaff.
There was an archbishop of the Phillipines called Cardinal Sin.
March 5, 2012, 7:43 pmRob:
Backwards integrate! Who cares if your focus is on a different industry... This is ice cream and it's for the kids! :)
March 5, 2012, 8:45 pmJ Cuttance:
Considering economies of scale (especially as compared with cars) specialist/patented technology, non-standardised components, food service regs, known and unknown unknowns, I'm not going to take you up on that offer. I suggest you just pay the $14,000. At least the machine is going to generate some cash.
March 5, 2012, 11:45 pmDaveH:
Chris forgot line item (e) lawyers, lawyers and more lawyers. Patent infringement and all that stuff...
Iceberg mentioned quality -- there is a lot in what they say but I own a small rural grocery store and have purchased commercial grade compressors for my cases that have failed in two years. The old Hussman cases and compressors were going great for 40+ but the new stuff is pure crap.
March 5, 2012, 11:57 pmRyan:
"Aaron C. de Bruyn:
$14,000 used? New ones cost as much as a car?
Ouch. My new cars cost about $12,000. What the heck do you drive, an Audi? ;)"
I guess he drives something other than the cheapest 6 cars on the market. Best selling car is a Toyota Camry at $22,000.
March 6, 2012, 8:01 amelambend:
He buys used.
March 7, 2012, 7:51 amepobirs:
A quick googling shows options starting under $6K.
March 8, 2012, 3:00 am