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Long-Term Warranties Have Hidden Costs

Published March 3, 2016

Warranties can make purchasing a piece of equipment more attractive to a foodservice operator. While longer-term warranties might seem like a bargain up front, they create other costs that operators and members of the supply chain have to reckon with in other aspects of their businesses.

It’s been said that the entire field of economics boils down to one idea: There’s no such thing as a free lunch. That simple line of thought drives a lot of activity, much of it unseen, around the multi-year warranties some foodservice equipment manufacturers now offer, said Wayne Stoutner, president of Buffalo, N.Y.-basedAppliance Installation & Service Corp.

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