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Buying/Selling equipment without getting screwed?

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  • Buying/Selling equipment without getting screwed?

    Okay, I know a lot of equipment gets bought and sold via Probrewer.com. How do big ticket sales get completed? Buying equipment sight unseen is one thing, but how is the transfer of funds facilitated when the buyer and seller are geographically quite remote? Is a contract drawn up, with half down and half when the shipment arrives? Does anyone use an escrow account? Thanks for any input!

  • #2
    We've bought used equipment we've found on Probrewer, most notably our packaging line. We went out to see it in action and once we were happy we wrote a check. Shipping etc was discussed there and then. I would not part with our hard earned money without actually inspecting the equipment in person. We've also bought new equipment from respected suppliers which is a little less risky. That being said we still went and visited some of our friends who carried that brand of equipment to check in and get their perspectives before writing any checks.

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    • #3
      It would cost a little bit, but escrow would work too. Plenty of companies do that.

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      • #4
        I bought some equipment by sending a money order in the mail, site unseen. It was a bit sketchy, but I wrote up a contract and had the seller email it back, explicitly writing that they agreed to the sale conditions. Would that have held up in court? No idea, but it created a paper trail and some protection at least. Mostly though I was counting on the fact that the brewery (which was expanding, not going out of business) had more to lose in this era of social media from screwing me over (legal stuff aside) than the ~$1000 the sale was worth. (There was also a degree of blind trust built into my decision.)

        If it was a big purchase, I would have tried to keep things as legit as possible, e.g., a real notarized contract, escrow, etc. People in this industry are mostly great, and reputation matters when people know each other like they tend to here, but there are plenty of bad apples: it's part of the human condition. Honestly, given that tight conditions protect both parties, I would be highly reluctant to deal with anyone who wouldn't agree to a very 'legally' purchase arrangement.
        Last edited by NS_Nano; 01-13-2017, 04:01 PM.

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        • #5
          Just to follow up, we had our lawyer put together a simple purchase agreement involving his firm holding the payment in escrow until delivery was taken and the items inspected. Sale went off without a hitch.


          Sent from my iPhone using Tapatalk

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          • #6
            As a manufacturer we value our reputation and in this age of social media you would never not deliver the quality promised if you wish to continue in business.

            In the past things were quite different for companies but with FB, Instagram, Twitter and forums like this you would never survive. That being said, I would still be cautious about any substantial purchase. If you read about a company that is hard to reach or dosen't call back walk away...
            Apex Brewing Supply
            Ashley at 916.250.7700 or Joe at 916.250.7950
            Ashley@apexbrewingsupply.com or Joe@apexbrewingsupply.com
            www.apexbrewingsupply.com

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            • #7
              An additional follow up: we've since purchased several pieces of equipment from various breweries sight unseen, and as none added up to more than 5k we didn't bother with PA or escrow, but for the 10k brewhouse with multiple shippers, it was reassuring to both parties.


              Patrick S. McGinnity
              Whiskey Point Brewing Company
              Beaver Island, MI

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              • #8
                For buying big ticket items the best policy is viewing in person. The cost for a ticket is far less than a rude surprise regardless of legal contract. The term good running/working order can be subjective. BTW, contracts are usually worth less than the paper they are printed on. One learns little tricks particularly with canning or bottling lines, that can get finicky equipment running fine. That doesn't transfer to a new owner/operator leading to frustration. Kettles, tanks and so on are less problematic. However it is always buyer beware.

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