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Thread: window units

  1. #14
    Join Date
    May 2001
    Location
    Bennington, Vermont U.S.A.
    Posts
    13,864
    Originally posted by thehumid1
    The three new units financed all under warranty for 3 years was less monthly than my service contract with them but they could not do it because the company was not allowed to finance capital improvements. Go figure.
    When I was a young business man I did go figure this out.
    It never made sense to me either. The cost of doing business you can take right off the top. Repairing something is considered "the cost of doing business." When you buy a new piece of equipment the only thing you can deduct from your taxes is the depreciation on the equipment.

    Same thing in new construction. The bank will only give them so much money per square foot to build a building. So they cut and cut to get the cost down. First place they look to cut is the air conditioning systems. After they get into the building and start making money then they upgrade the equipment.

    When the down time of a piece of equipment cuts into your production then it is time to look at replacing it. But when you have 300 rooms in a hotel what's the chances that they will be 100% full.

  2. #15
    Join Date
    Mar 2004
    Location
    NJ
    Posts
    1,214
    Thanks Benncool I must say a lot things i have scratched my head about seem to get answered on this forum!
    thehumid1-------I live in NJ, a state where it's free to come in but you have to pay to leave!

  3. #16
    Join Date
    Dec 2003
    Location
    Middle of Florida
    Posts
    2,159

    Confused

    [i]Originally posted by benncool But when you have 300 rooms in a hotel what's the chances that they will be 100% full. [/B]

    I did a couple of Hampton Inn's, the manager of one of them told me she only needed 60% occupancy on weekends to be profitable.
    If common sense is so common how come so few of us have it!

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