Should You Buy or Use Refrigeration Rentals?

What to Do When Your Refrigeration Equipment Dies
Part 1A

This is the kind of insider information you can’t get anywhere else.

Part 1
Should You Buy or Rent Refrigeration Rental Equipment?

The technician tells you that repair of you refrigeration equipment is not economically feasible. In other words, don’t waste your money on this hunk of junk. He gives you the choices of renting, buying used, or buying new. After you get a price for the option you choose, start negotiating.

Voiding the service call if you buy or rent from the service company is a negotiating point you should not give up easily. Most service companies have no clue about how much labor cost them. They think they break even at 50%, they are wrong. They do know how much the product cost them, though.

It shouldn’t take very long to figure out repair is not economically feasible. The bill should be the company’s minimum charge. This is typically about ½ hour travel time and 1 hour labor. This is a generous amount of time to make the diagnosis, give you an estimate and discuss your options.

First we will look at the refrigeration rental option.

Some air conditioning service companies are realizing they are losing money on service and focusing on installation. They are smooth in doing that. They have charts that you will save many times what you pay them.

Some refrigeration service companies are having a hard time making ends meet with service. Their answer is rentals. It’s very high profit for them.

They buy a unit with a 2-year warranty wholesale. This way, the manufacturer pays the service company for the repairs. They rent the unit and in much less than 2-years the unit is paid for. From then on, it’s almost all profit. That is a great deal for the service company.

Customers seem to prefer renting to buying, when given a choice. I’ve asked several why they want to rent. They all said that they want to avoid repair bills. Maybe they want to avoid feeling ripped off by repair bills.

Now let’s see if it is a great deal for the customer. Should you rent or should you buy your refrigeration equipment? I’ve seen a lot of people make the wrong decision. Let’s crunch the numbers and figure out what is really going on.

In the examples I will use a Koolaire cooler and freezer. It is a good brand and it has a 2-year warranty. The most significant thing is that Manitowoc now owns them. Manitowoc is the king of customer service. They treat the service companies really well, and you have to deal with the service companies.

Click on the example of refrigeration rentals you will find most useful.

Mathmatical Cooler Rental Example Real world numbers are used to determine if cooler rental is a good choice. Don't make a mistake you will pay for every month. FREE REPORT 1B

Mathmatical Freezer Rental Example Real world numbers are used to determine if freezer rental is a good choice. Don't make a mistake you will pay for every month. FREE REPORT 1C
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