Before You Go . . .
"Service contracts," Brooks says, "are unaffordable for the small companies."
They need not be, but they are quite crippling to some of the smaller companies who simply cannot be financially competitive while shouldering the monthly albatross. For example, Brooks purchased two pieces of equipment: one from Manufacturer A for $200,000, another from B for $525,000. The equipment from Manufacturer A requires a $2,000 monthly service contract for the first year which, for all intents and purposes, is a $24,000 premium, or 12 percent, on top of the negotiated price of the machine. When a service contract is required toward the purchase of equipment, it is no longer a contract, it is a one-way street. It's like getting charged $1,000 by a car dealer for undercoating as an option when it is already there.
- People:
- ERIK CAGLE
- Justified Brooks
- Places:
- Long Island
- New York Metro