The risks of online buyingThe risks of online buying

Most of us have experienced the benefits of shopping and buying products online rather than from local stores or dealers. It’s easy to compare equipment and prices, and with one click the item you need is on the way to your restaurant or loading dock.

For pots and pans, smallwares, and simple equipment like blenders, this may be an attractive alternative to a traditional restaurant supply store. A few minutes after the FedEx or UPS person delivers the box, the item is unpacked and begins its useful life.

If only it were as easy with larger equipment like refrigerators, stoves and dishwashers.

Until recently, one of the major benefits of online shopping was that there was no requirement to pay sales tax. In some areas this amounted to as much as a 9-percent discount over a local source. With the new legislative changes, though, most sales online will be subject to
local sales-tax rates.

With many premium brands the price benefit of online buying also has been largely negated with the rise of “minimum advertised price.” Manufacturers have put these policies into place to eliminate lowball or bait-and-switch advertising. Sometimes these policies can be circumvented, but it usually requires extra hassle.

Freight charges also add to the cost of some equipment purchased online. When a local kitchen dealer purchases common equipment like refrigerators and dishwashers, it buys them by the truckload. In most cases the freight is included as part of a volume discount. A single large order can be shipped without crates or packaging, further reducing the shipping cost. But most online orders are for small quantities, so the buyer covers the freight cost from manufacturer or dealer warehouse, whether as an added cost or already built into the price. 

When local dealers deliver equipment, they usually have a truck with a lift gate. Several items may be delivered to the same place, or there are multiple stops within a small area, resulting in no added cost for the delivery.

Standard truck delivery means the equipment is brought to the front or back of a restaurant on a 36-inch-high truck bed. The truck driver isn’t equipped — or obligated — to get that item to the kitchen without a loading dock. For facilities that don’t have one, an additional $100 fee usually is charged to cover the cost of a truck with a lift gate. Even then, the piece of equipment sits on the sidewalk, not in the kitchen. There also is no allowance for handling the old piece of equipment that’s being replaced. 

Other hazards

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When freight, lift-gate charges and local taxes are factored in, online ordering becomes less attractive. But it doesn’t stop there.

1. With online purchasing, an accepted piece of equipment may have dents or damaged hinges, legs or casters. Or even worse, the equipment might look fine, but the control panel may be damaged. If any of this happens when an item is delivered by dealers, they take it back and replace it with a new one. If something goes wrong with online ordering, it’s the buyer who bears the burden.

2. When purchases are made from a local dealer, the start-up services and training, including  how to install, maintain and use the equipment, usually are part of the deal. Buying online requires the buyer to read the manuals and train any users on how the equipment works. If the installation instructions aren’t followed and damage occurs as a result, the buyer pays the repair bill.

Local manufacturers’ representatives provide the start-up services that cover training and support, which includes verifying the equipment is working properly. Some manufacturers pay a fee for start-up services for online orders, but the buyer must contact them, assuming the buyer knows who they are.

3. To save assembly time and packaging costs, manufacturers are shipping more items in “kit form,” sometimes referred to as “KD” or “some assembly required” in small print. These items take time and effort to put together. Local dealers usually furnish fully assembled products, although there may be an extra charge for “set in place” installation for some items.

4. What happens to the equipment being replaced? In most areas the refrigerant from any discarded refrigeration unit must be removed before it can be scrapped. A local dealer can take your old equipment back on the same truck that brought the new equipment and also may be able to provide a trade-in credit if the old equipment can be refurbished and resold. 

5. What do you do when a piece of equipment arrives, and it’s the wrong voltage, it’s too noisy, or the chef hates it? Or it doesn’t fit into the door, under a hood or down a steep staircase? Trying to return a piece of equipment purchased online that is not defective is much more challenging than returning purchases from a local dealer.

Just at the time it starts making sense to buy locally, an e-mail arrives advertising unbelievable prices. A brand-name fryer for $600 and a four-burner gas range for $800. How is this possible when regular prices on similar items are double or triple those numbers?

The first answer is that these products are usually “de-featured,” meaning they are stripped-down models with things like stainless steel sides or frames, digital controllers and various convenience features removed. These blow-out units often are manufactured in limited runs during periods when equipment factories have fewer orders. Or it’s possible the items were returned to the factory and have been refurbished for Internet sale. Internet specials often have more-limited warranties without after-sale support from a local dealer or manufacturer’s representative.

What are other options for getting a great price?

Many local dealers offer discounts on what is known in the trade as “B” merchandise, which includes equipment with minor scratches or dents that was used for demonstration at a show, or returned items. If local dealers don’t have an item, they can often get lists of “B” equipment that the local manufacturer’s representative or distributor may have in the warehouse. Or they can contact manufacturers who stock this type of equipment.

It’s not uncommon to find blemished or restocked items online, but a local dealer can provide a list of what is available. Sometimes these items have significant discounts over online prices and include delivery and installation.

If equipment is purchased in November or December, dealers and factories usually offer special incentives in order to meet sales quotas and gain year-end rebates. Buyers can score real deals during this time period and have just what they need for the busy holiday season.

Buying racks, chairs and tables, smallwares, and small electrical equipment like microwave ovens and toasters online may offer discounts worthy of the risk and required assembly. But buying whole kitchens — including heavy equipment like ranges, ovens, refrigerators and dishwashers — online should be done with caution and a full understanding of the cost, assembly, delivery, installation and return issues involved.

Foster Frable is a founding partner of Clevenger Frable LaVallee Inc., a foodservice consulting and design firm in White Plains, N.Y. He has designed more than 400 foodservice projects, including restaurants and operations in hotels, colleges and more. He can be reached at [email protected].