Issue link: http://winesandvines.uberflip.com/i/766392
42 WINES&VINES January 2017 WINEMAKING Visit JSC Booth #906 at the Unified Symposium! www.JimsSupply.com In-House MANUFACTURING into the same dining room space by changing table shape. More tanks equal more fermenta- tion capacity, providing a quick payback for the extra tank expense. Ryan's ordering process starts with a "live date," the day the asset needs to be in service. For example, tanks require a crane, HVAC tech- nicians, plumbing and electricians, so planning the arrival date is complex. He wants to be ready for harvest in late August and needs six to eight weeks to comfortably schedule the service providers. So the tanks will need to arrive between late June and early July. After conferring with his tank supplier, he knows he must place the tank order in early March to hit the arrival date. When ordering tanks, Ryan recommends looking at "less sexy things like cooling capacity" at the same time, as you may need additional capacity. Evaluating quality-based equipment: Ryan justifies quality-based expenditures by stating, "Great fruit needs great equipment. There still needs to be a reasonable period of time for payoff, but it could be five years." Being a cus- tom-crush facility, The Wine Foundry's clients are often the ones requiring new purchases, which makes them easier to justify. Ryan re- cently acquired an optical sorter to meet client needs. It is paying off quickly, as he was able to add new clients who want sorted fruit, but can't justify the equipment cost. New vs. used: Ryan prefers to buy new, as he knows he will utilize the equipment for at least 10 years. He thinks used machinery is fine for new wineries, as long as they have a quali- fied service technician check the equipment before buying. He also encourages newer and smaller operations to use service providers (custom crush, bottling, filtration) rather than buying their own equipment. Service contracts: Ryan advises, "Do the maintenance contract. It's worth it. Pre-harvest checks for all our major pieces cost maybe $2,000—much less than the cost of a single breakdown during harvest." Negotiating tactics: Ryan echoes much of what Brock said, adding that you should "point blank ask your colleagues" about what they paid and purchase terms. He may trade best price for better payment terms and a warranty. Preventing problems and improving quality A final perspective on quality-based equipment purchase decisions comes from Thomas Du- hameau, chief financial officer for Hahn Estate in Monterey County, Calif. Duhameau divides these purchases into two types: equipment that either a) prevents problems, or b) improves quality. For evaluating whether preventing a problem is worth the capital expense, he rec- ommends doing a simple statistical analysis: What is the probability of the problem, and what will it cost if it occurs? Shows like the Unified Symposium are a great place to learn and talk to vendors. It's best to go with a shop- ping list and an open mind. —Steve Ryan, The Wine Foundry