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  1. #1
    Join Date
    Jan 2004
    Location
    Massachusetts
    Posts
    665
    Any companies out there renting ice machines to customers? Is it worth it? Doesn't seem to be a good idea but heard of people doing it.
    "The value of quality is long rembered after the thrill of low price is forgotten."

  2. #2
    My employer used to do it. I know a guy who manages hundreds of Hoshi's all around Austin. He says he makes out okay with it if .... IF he keeps them clean.


    HUNDREDS OF EM!


    Wants some phone numbers?

  3. #3
    Join Date
    Feb 2004
    Location
    Midwest
    Posts
    9,932
    The companies making the best profits in the leasing business are the ones who also own icemaker distributorships. It's hard to compete with them. They get the machines and the parts at much lower prices, which makes them very hard to compete with.

    The local Hoshi distributor/leasing co. owners rob their competitors blind when they're forced to buy parts from them too. Complaints to the manufacturer fall on deaf ears.

    Typically, ice maker leasing companies plan on getting their money back on a machine in about 2 years, which is what they base the monthly lease payment on.



    [Edited by midhvac on 05-05-2004 at 10:05 PM]

  4. #4
    Join Date
    Sep 2001
    Location
    Rochester, New York
    Posts
    1,385
    I've been renting ice machines for a number of years. It's been fairly good. Hardest and most frustrating part is trying to get money from some of the deadbeats. The deadbeats are about 60% of the customer base. So then, I think back and forth about pulling the machine and installing it with a new customer, but if I don't have a new customer lined up, am I better off leaving the machine???? Once I decide to pull the machine, the renter all of a sudden has the cash to "catch up" his account.

    I spend allot of time trying to get some customers to pay. Almost have to threaten them to get them to pay. The money is good, but very frustrating dealing with some of the bar/restaurant owners. Have had to call the sheriff on more than one occasion.

    The customers that appreciate the ice machine renting service make it worthwhile.

    2-year pay back is about right for the equipment itself. However, once you add in the service required in that 2 year payback, fuel, parts, maintenance, cleaners, water filtration, installation time and materials, etc... The financial payback is between 3-6 years.

  5. #5
    Join Date
    Jul 2000
    Location
    Guayaquil EC
    Posts
    10,460

    Icemaker Rentals........

    I've been renting out machines for about ten years, not in a big way but I've had up to about ten and now down to only a few. Makinice hit the nail on the head when he brought up the "deadbeat" issue. After all these years I've learned that it's mostly those who haven't got any money are the ones who want to rent machines. That's the main reason why I haven't got more out there now.......there just aren't enough "quality" people looking to rent because they know that they're better off buying outright, financing or leasing to own.

    Except for a couple of new machines, I've always rented out good reconditioned used ones that I take in trade or pick up at auction, etc. In 1995 I bought ten 2-3 yr old 600 lb Manitowocs for $500 each from an Amoco C-Store maintenance shop clearance sale. I had better luck with the used ones than the new machines....go figure.

    If you handle the renting of the machines like a pit bull and not a pussycat you will make out pretty well. The I'm more like an ole' hound dog at it,


  6. #6
    Join Date
    Jun 2003
    Posts
    160
    The best way to make money in the refrigeration business is when they are begging you to come and fix their stuff. Collect while the smile is on their face after you fixed it. The next day they forget the prodicament they were in. Renting I've also thought about, but forget it. I hate dead beats and done need that in my life. Dead beats get double the price until they disapear...and I smile all the way to the bank with sweet revenge.

  7. #7
    Join Date
    Jun 2001
    Location
    Michigan
    Posts
    12,077
    I will explain how I do it in site supporter section..

  8. #8
    Join Date
    Jun 2001
    Location
    Michigan
    Posts
    12,077
    I want to add one thing about the best way to make money in the refrigeration business. In any business. Offer options over the spectrum of your services and use your imagination. Absolutely you want your customer to call when he is stuck, but that is not truly the relationship you want over and over and over. Don't be arogant. Sucesful companies are there all the time for everything, not just when there stuck.

  9. #9
    Join Date
    Dec 2000
    Location
    phoenix, arizona
    Posts
    1,133
    Originally posted by Makinice
    ..... Hardest and most frustrating part is trying to get money from some of the deadbeats. The deadbeats are about 60% of the customer base. So then, I think back and forth about pulling the machine and installing it with a new customer, but if I don't have a new customer lined up, am I better off leaving the machine???? .....

    I spend allot of time trying to get some customers to pay. Almost have to threaten them to get them to pay. The money is good, but very frustrating dealing with some of the bar/restaurant owners. ....

    The customers that appreciate the ice machine renting service make it worthwhile.

    I have very similar experience. I don't rent them anymore.


  10. #10
    Join Date
    Dec 2001
    Location
    Ocean Pines, MD
    Posts
    7,010

    Same here.

    We made money at 1st, then when we got more machines out there things started getting bad. We installed them with filters and maintained them. In alot of cases the customer got a good idea what his ice use really was and bought a new one, from us. But the seasonal rentals were the undoing of the whole idea. I'm thinking of giving it a try again, thinking.

  11. #11
    Join Date
    Jun 2003
    Posts
    160
    I've learned how to make money, I then used my option to burn and cut out waste of time dead beats. It's like a good waitres and a bad one. I take the tip I was going to give the bad waitres and give it to the good one. I give the club to the bad customers and the carrot to the good ones. That's just me, and it makes me very happy.

  12. #12
    Join Date
    Dec 2001
    Location
    Ocean Pines, MD
    Posts
    7,010

    ????????????

    Originally posted by patchdf1354
    I've learned how to make money, I then used my option to burn and cut out waste of time dead beats. It's like a good waitres and a bad one. I take the tip I was going to give the bad waitres and give it to the good one. I give the club to the bad customers and the carrot to the good ones. That's just me, and it makes me very happy.

    Translation needed or just look at post time and forget?

  13. #13
    Join Date
    Nov 2005
    Location
    New York
    Posts
    189
    Quote Originally Posted by icemeister View Post
    I've been renting out machines for about ten years, not in a big way but I've had up to about ten and now down to only a few. Makinice hit the nail on the head when he brought up the "deadbeat" issue. After all these years I've learned that it's mostly those who haven't got any money are the ones who want to rent machines. That's the main reason why I haven't got more out there now.......there just aren't enough "quality" people looking to rent because they know that they're better off buying outright, financing or leasing to own.

    Except for a couple of new machines, I've always rented out good reconditioned used ones that I take in trade or pick up at auction, etc. In 1995 I bought ten 2-3 yr old 600 lb Manitowocs for $500 each from an Amoco C-Store maintenance shop clearance sale. I had better luck with the used ones than the new machines....go figure.

    If you handle the renting of the machines like a pit bull and not a pussycat you will make out pretty well. The I'm more like an ole' hound dog at it,
    When you rent / lease to the customer. Do you cover all maintenance and service repairs? Or you make them pay extra?

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