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my competition gofish 05-15-2007
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Posted by Geoman on May 16, 2007, 8:40 am
Snipped

>
> Very true, most commercial accounts will pay BIG bucks for repair before a
> replacement happens. They will end up paying more in a few years, but they
> never take that into consideration.
>
And ther reason they will repair over replace???
(drum role please!)

DEPRECIATION

Yep, if the unit isn't depreciated they won't replace it
Also, repairs are 100% deductable THAT year while a new unit has to be
amoratized over 18.5 years
LASTLY, if they rent the place they refuse to replace it, even if its a long
term lease. If its a Net Net Net lease then they 'may', but usually they
don't because they want to use the equipment as a negotiation item to keep
the leases renewal lower or to have the owner pay the costs in order to
renew the lease.

Rich

>



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Posted by on May 16, 2007, 1:12 am
Jake wrote:


>As for Paul's comments... well, in all due respect, Paul... things are a
>lot different out here economy-wise than they were. People WILL NOT, in
>most circumstances, invest in new commercial equipment until it cannot
>ever, ever be fixed again. That's sad... and terribly inefficient, but
>that's the way it is. Eventually, energy will become so awfully
>expensive that becomes more of a concern, but it isn't right now... and
>that's what modern business folks worry about. Surviving...


Jake,
For being an electrician by trade, you're one astute, sharp cookie.
:-)

Personally I dont think the cost of energy by itself will drive
replacement of worn out equipment vs repair, there has to be much
stronger benefits, such as federal tax credits.
Locally gasoline is $3.59 a gallon and the freeways are still parking
lots, even when everybody is supposed to be at work.

Posted by on May 20, 2007, 9:08 am
your not married to the guy, but i know what your saying. keep it
professional and youll be the better man for it.

http://www.minibite.com/america/malone.htm


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