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Category: Juicing

March 12, 2021 by admin 0 Comments

How Much Does a Commercial Juicer Cost?

This is a very simple question than can be answer very simply or with some additional insight and perspective.

The simple answer is: A juicer can cost anywhere between $3.00 (yes, only $3) and upwards of $30,000.00. A commercial juicer will cost more than a residential juicer.

The real answer is: It really depends on what you’re trying to achieve, what you’re juicing, how much you’re juicing, why you’re juicing, where you’re juicing, and how you’re serving juice. In addition, there are more factors that will be important to you that you’ll want to consider to help you answer this question.

BUYING A JUICER IS SIMILAR TO BUYING A CAR

Before we dive into the juicy details, let’s talk about cars. Most people understand cars and there are some interesting parallels. Here are some considerations when buying a car:

  1. What kind of vehicle do you want? A car? A truck? An SUV, or something else? If a car, are you looking for a 5-door hatchback, a 4-door sedan, or a 2-door sports car?
  2. Do you want a daily commuter, a long-distance family hauler, a weekend head turner? Will you rely on this car on a daily basis or will it be an extra weekend ride? Other specifics?
  3. Are you looking for the most modern and safest car possible? Or are you interested in a beautiful old classic car that has barely any of today’s safety features?
  4. Are you looking for high performance, great gas mileage, long range, the latest hybrid or EV technology? Or are you looking for a car that can do it all?
  5. Do you want to buy a new car, covered under a full warranty? Or are you looking for an old classic that needs a little extra TLC on the weekends?

Once you’ve answered this short list of questions and considered what you’re looking for, in terms of aesthetics, image, brand, etc. you’re then prepared to set a budget and go shopping. Most people will come out with a range between $5,000-$50,000 for their desired vehicle. Some people will value, and be able to afford, a $100,000 vehicle, or even spend $500,000 for the ultimate in performance, luxury, or simply a rare old classic beauty to admire and take to car shows.

After you’ve considered all the above, you’ll also need to consider the car dealership or mechanics available in your area. It’s been my own personal experience that I bought a car from a dealership and salesperson that I really liked and the car fit all the criteria I had. Unfortunately, the dealership provided a series of truly awful service experiences. These were some of the worst service experiences I’ve ever encountered: not just technically, but the low-integrity service managers they had running their service department were downright insulting. I didn’t take it personally as I joked with some friends, “They’re equal opportunity losers – they treat everyone like dirt.” I sold that car off and moved on.

Here’s an important note – I didn’t stop driving, but I did move on to another vehicle, another brand, and an entirely different ownership experience.

COMMERCIAL JUICING EQUIPMENT

Similar to buying a vehicle, here is a quick introductory list of questions that you’ll need to answer before defining what kind of juicer you’re looking for and how much you’ll need to spend. Initial questions to consider:

  1. Are you looking for a home juicer? A juicer for a small commercial operation? Or a larger, busier commercial application? If a business, what type of business? Grocery store? Hotel? Restaurant? Café? Juice bar? Catering operations? Educational environment? Travel hub with grab & go options?
  2. Are you juicing citrus juice, for example, oranges, lemons, limes? Are you thinking about juicing other fruits and vegetables?
  3. Are you planning on juicing ‘on-demand’ or will you prepare larger batches of juice?
  4. Where are you planning on juicing? Will you juice where the customer, the consumer, can see you juice? Or in a back kitchen? Or in an off-site commissary?
  5. Finally, will you need technical and training support for your juicing endeavors?
AN OVERVIEW OF JUICING EQUIPMENT

Here is a very brief overview of different types of juicing equipment. We’ll provide a brief overview of centrifugal juicers, masticating juicers, cold press juicers, and citrus juicers. Each has its own special areas where they excel at extracting juice from the fruit and vegetables you’re wanting to juice.

MASTICATING (SINGLE- OR TWIN-SCREW) JUICERS: Without getting too complicated, masticating and triturating juicers use special augers, or screws, to shred up the produce to be juiced then push it through a specially designed screen to separate the juice from the solids. For the purpose of this article we have grouped them together but there is a broad range of technologies available driven by single- or double screw, use of plastic vs. metal, screen types and materials, etc. This broad range of juicers lead to some units being highly effective while others are only good for the most basic residential applications. Their yields tend to be higher than centrifugal juicers and these units are better at juicing leafy greens. There is also less oxidation than with centrifugal juicers so juices may last longer. They can be slow on the production side but are quieter than centifugals and have their advantages. Cost: $200-$4,000

COLD PRESSES: Historically speaking, the cold pressing of juices is the oldest, most basic technology available. You can easily squish grapes with your fingers, step on them with your feet, or with larger manually driven screw presses designed to exert enormous pressure on the object to be pressed. Technology has advanced quite a bit of the past few thousand years and there are some great options out there. Today’s cold presses rely on a two-step process, first shredding, or grinding up, the produce to be juiced and then squeezing it between two surfaces using hydraulics or other mechanical methods to exert force and extract juice. Most juicers in this segment require the use of special filter bags, which you need to clean and/or replace regularly, which are made of special material to let juice pass while retaining the pulpy fibers. These juicers tend to have high juice yields and produce a quality juice. Due to their high costs, these juicers tend to be strictly for commercial use but there are some models in the $2,000 range some people may buy for home use and this juicer class can cost well over $25,000.

CENTRIFUGAL JUICERS: Simply put, centrifugal juicers spin at a high speed (2,000-15,000 rpms) and shred up the produce you want to juice, slam it against a fine mesh screen and separate the liquid from the fiber. They are excellent for extracting juice from slightly harder products, such as apples, carrots, and ginger and are very good for juice-by-the-glass applications. They are not good at juicing citrus or leafy greens for various reasons, nor are they very good for anything requiring a shelf life of more than a few hours, due to higher separation and juice oxidation rates. Cost: $200-$4,000.

CITRUS JUICING

We’re Citrus America, so, naturally, we’re going to have a lot of insight into citrus juicing, in addition to our general juicing knowledge.

When life give you lemons, make lemonade. There’s more than one way to juice an orange… so let’s talk about some different options below.

MANUAL CITRUS JUICERS

If you’re juicing at home and only juice a few fruit at a time, you might consider a completely manual juicing solution. Personally, I have a few options in my own kitchen that I grab for depending on what I’m doing.

 

Citrus Hand Reamer: If I’m just juicing a lemon or lime for marinating fish or sprucing up a cocktail, I may reach for a little citrus reamer. It’s fast, easy, and nearly indestructible. It has good juice yield, but can be a bit messy. These tools are not so labor efficient but very fast to clean up, so, an excellent choice for 1-2 fruit. You’ll pay somewhere between $3 for a basic wooden one to $40 for a designer, hand-crafted ceramic one that looks nice in the kitchen.

 

Manual Reamer with Sieve and Bowl: If I’m going to juice a few lemons or limes for more cooking or a few cocktails, then I’ll probably grab for this juicer. It’s a bit faster and more efficient than the Hand Reamer, and a lot cleaner to capture the juice and filter out the seeds. There is a sieve and a bowl, so it requires a bit more clean-up compared to the Hand Reamer, but it pays off in other ways. You’ll probably spend in the $5 to $20 range here for different juicing options made of plastic or stainless steel.

 

Citrus Hand Press: I know this sounds crazy, but I love my little hand-squeeze citrus press. When it’s time to shake up a few Cosmopolitans or Margaritas on the weekend with a few friends coming over, I grab for this crazy little tool. It’s relatively fast and efficient, gets out most of the juice without over-juicing the peel, takes up very little space, good for smaller fruit, and cleans up quickly. That said, it’s great for juicing 5-10 or even 20 fruit, but I’d never want to have to juice a 40 lb box of limes using this. I’ve got better things to do with my time, as do your restaurant staff, truth be told. But for limited juicing, quickly adding some key ingredients, home use, etc. a hand press is an excellent option. A good quality one will cost between $10 and $30.

 

Geared Manual Citrus Press: When it’s the weekend and I’m juicing a small batch of oranges or grapefruit for breakfast with the family, I grab for the Italian geared citrus press I’ve owned for nearly 20 years. When all is said and done, I can whip up a few glasses of juice for the family and clean up the small mess in about 10 minutes. This is great if juicing 5-10 fruit. For any of the readers out there who remember their grandmother making them fresh orange juice, it was probably on some version of this classic technology. This juicer takes up limited counter space, is great for small batches of juice, and is relatively easy to clean up. You’ll probably spend between $50 and $300 for these juicers, but I’ve seen really nice ones up over $500.


Semi-Automatic Citrus Extractor: Well, I’m gonna shoot straight on this one. I’m not a fan of this type of juicer. You still have to manually cut the fruit you’re going to squeeze, you still have to juice it with manual pressure, you still have to remove the peels, you can only juice one-half at a time, and, finally, you still have a piece of equipment you’ll have to clean up in addition to the knife, cutting board, and juicing area. The difference here, is that there is a motorized, spinning reamer that’s designed to get more juice out of the fruit. Well, that means if you press aggressively, you’ll have a bit higher yield, but you’ll likely find yourself with more peel oil and bitterness in your juice, which is where you don’t really want it. Personally, I don’t see any labor savings with manually cutting, manually pressing, manually removing peels, and then the required cleaning. In addition, a quality semi-automatic motorized juice extractor will cost you hundreds of dollars and will take up counter space. They range in price from about $50, for plastic residential units, up to $1,000 for heavier duty commercial varieties.

FULLY AUTOMATIC CITRUS JUICERS

Citrus juicing is a pretty simple process. However, once you start juicing more volume, you’re going to need a real solution that you can count on every day. This juicer will need to be highly reliable and be able to deliver on Taste, Hygiene, and Efficiency.


Once you know you’re going to be juicing a full 40 lb. box of fruit per juicing session or per day, or like many of our customers, who are juicing at least 1-2 boxes per day, with medium customers juicing 5-10 boxes and larger customers juicing 10-20 boxes per day, we highly recommend a fully automatic citrus juicer. We have options with highly attractive ROIs for many different applications and volumes.


It’s hard to believe, but we have some large juicing operations and grocery store customers who easily juice a full pallet, that’s 56 boxes of fruit, nearly every day. When they say they make a ton of juice… they mean it, literally! One pallet of oranges, at 40 lbs per box, is more than 2,200 pounds of fruit. These customers easily juice more than 1,000,000 fruit per year.


We also have, for example, Mexican restaurant customers who juice between 5-15 boxes limes per day for both their bar (think Margaritas) and kitchen (think salsa and guacamole) applications for the freshest, best tasting products.


A fully automatic citrus juicer cuts and squeezes the oranges, or other citrus fruit, in an integrated 2-step process. It also has an integrated peel removal solution, which then guides the juiced peels into either a peel chute or a peel bucket, depending on the choices you make.


Our line of commercial automatic citrus juicers offers a range of options regarding fruit feeding, electrical vs. hand-crank, serving options, fruit sizes, and range of other features with plenty choices in between. Commercial automatic juicing options range from in the $3,000s up to $15,000, if you include the additional value-added options and peripherals to support your merchandising and increase efficiency.


It’s important to remember: You don’t just buy an automatic juicer, you have to operate it every day, so quality matters. Regardless of your size or application, we have the right option for your commercial juicing operation. These options will support attractive ROIs, so you know your investment make a lot of sense.

CLICK HERE FOR PAY BACK INTRODUCTION

 

Citrocasa Eco – This is an awesome juicer if you’re juicing at least a box per day, or session, and can easily support operations juicing more. Plus, the huge benefit of this juicer is there is no electricity required… it’s hand-cranked. You can use this on a food truck, juice at art fairs and farmer’s markets, or, if you want to think “fancy”, you can juice table-side Mimosas or simple fresh orange juice served to your guest. If you run a country club, wheel the Citrocasa Eco out to the first hole to juice up your memberships’ game. There’s no electrical plug to worry about and you’re free to roam. This juicer starts at $3,490 and has all of the amazing stainless steel, robust engineering and other amazing design features we’ve come to know and love about Citrocasa juicers but without the plug. Cut the cable and start juicing!

Citrocasa Fantastic Series – This aesthetically appealing juicer series is where big volumes can start… with the small footprint only 11” wide, it can completely transform your business and at 30 fruit per minute can juice for all but the largest and busiest operations. The Fantastic M/AS is an amazing choice for cafés, bakeries, juice bars, cocktail bars, Mexican restaurants, and even for small production facilities requiring volumes of citrus juice… think about popsicles, Italian ices, ice cream as well as facilities making fresh guacamole, salsa, marinades and salad dressings. The Fantastic F/SB-ATS has an amazing automatic hopper and offers excellent options for self-service locations in grocery stores and hotels. The Fantastic M/AS starts at $5,490 and has plenty of options to juice up your operations. The Fantastic F/SB-ATS starts at $8,590 depending on the options you choose. When you need to really start juicing, start juicing right. Let the volume begin.

Citrocasa 8000 Series – When you’ve got volume to juice, require more flexibility on fruit sizing, and are looking for a large billboard for freshness in your location, then the 8000 Series has a lot of options to offer. This is a fully automatic juicer. At 40 fruit per minute, you can squeeze out a box of 100-count oranges in 2.5 minutes, yielding more than 2 gallons of juice… this is the ultimate in on-demand juicing efficiency. In addition to all the food service and hotel options, this is the king of in-store grocery juicer options. This juicer can also master many juicing applications across full service hotels, catered operations, and a range of other operations. Options start at $8,890. When you’re serious about volume juicing then get serious with our highest ROI juicer, the 8000 Series.

SUMMARY
  1. There are many options for juicing for juicing different types of fruit & vegetables
  2. Buying a juicer is, in some ways, like considering buying a car and having to decide if you want a sports car, a sedan, an SUV, a van, a 4×4 truck, etc.
  3. Know why you’re juicing and what you’d like to achieve, this will help you select the right juicing solution for your needs. You’ll need to decide on the type of juicing you’re going to do, then select the type of juicer, and consider the quality and support you will need to support your business.
  4. Understand the economics of juicing so you make the right investment and ownership decisions and keep in mind that for commercial operations, you’re making an investment into an operating piece of equipment to use on a daily basis
  5. Your options can easily range from $3 up to $30,000, but it really depends on what you’re trying to achieve.

Regardless of what you’re trying to achieve, in the end it’s a matter of Taste, Hygiene, and Efficiency for the given task you’re trying to accomplish. A successful juicing program requires some thought and consideration which we help our customers address every day.

Contact us to discuss your juicing program today.

March 12, 2021 by admin 0 Comments

Building Trust with Your Customers to Grow Your Brand: The Juice, The Whole Juice, and Nothing But the Juice

What is “natural”? What is “fresh”?
These sound like very simple questions, but, apparently, they are not.

A huge challenge for food retailers and food service operators today is to not only provide fresh and natural foods, but to be able to convince their customers, the consumer, that they are actually providing what they say they are. There is an increasing demand for transparency. There is also an increasing willingness for consumers to pay more for what they want as well as an increased readiness to switch brands and stores if they’re not satisfied with the products and services they receive.


DOCUMENTED CONSUMER TRENDS

Prior to COVID there was already increasing demand for “fresh”, “natural”, and “healthy” products. These trends, driven by millennials and Generation Z, have all been accelerated due to the COVID crisis.

In its 2019 paper, The future of fresh, Strategies to realize value in the fresh food category, Deloitte highlighted that “Produce is the key driver of perimeter growth” outstripping “total foods” as well as “total fresh foods”. (see graphic below) In its paper, The future of fresh, Patterns from the pandemic, Deloitte highlights that “Contemporary Consumers” (versus “Conventional Consumer”) “are more willing to pay a premium for fresh food (75% versus 62% for conventional consumers… … Contemporary consumers say they increased their fresh purchases in the last four months at a level almost double that of conventional consumers (50% versus 27%, respectively).”

Source: Deloitte

In its article How COVID-19 is changing consumer behavior – now and forever McKinsey highlights that “many of the trends are accelerations of past behaviors” and that one of the enduring trends will be consumers’ focus on health and hygiene. Furthermore, in its article (and podcast) Meet Generation Z: Shaping the future of shopping, McKinsey highlights more trends are being driven faster by Gen Z and Millennials, with topics surrounding sustainability and niche diets (eg. vegetarianism, veganism, keto etc.) driving a need for these consumers to fully understand the food supply chain.

Source: McKinsey & Co.

 

THE TRUST FACTOR

What does it mean when a grocery store or restaurant claims they’re serving “fresh” or “100% natural” products? What does it mean when a brand advertises “nothing added” or “no preservatives”?

There are multiple government agencies involved in defining what companies may or may not claim with many regulated terms and claims. There are also multiple class action lawsuits against major branded companies fighting about what’s meant by “fresh” and “natural”, and then, if companies made false claims. Regardless of how many and which of these lawsuits have been won, lost, or settled, it indicates a huge breach of trust with certain consumer segments who feel so betrayed they take their concerns to court.

In its 2019 Review, Perkins Coie LLC highlights that “False claims” and issues related to “All Natural” still made up more than 50% of industry legal filings in 2019 (from a peak of 73% in 2017) and that there were 177 filings in 2019 alone, a highwater mark in their review.

Source: Perkins Coie LLP

Source: Perkins Coie LLP

Once again, this article is not analyzing if any of these lawsuits are with or without merit. This article is about satisfying the consumers’ growing demand for fresh, natural, healthy products plus a growing desire for more transparency and understanding into the food value chain.

Even though it can be a very complicated discussion, we can keep it simple. Let’s not rely on the government to define the solution. The industry needs to give the consumer high quality products, provide proper transparency and they, the consumer, can make the right decisions for themselves. Naturally, government agencies are there to keep things ‘safe’ and to keep things ‘truthful’, but in the end, the consumer will make their own informed purchasing decisions. However, it’s up to us, as responsible business managers, to provide transparency so they, the consumer, can make properly informed decisions.

Businesses provide the choices and the transparency: The consumer will decide.

 

BUILD TRUST CAPITAL

As discussed above, there is a certain “trust deficit” present today. This term is not a new term, being first used, as far as we can tell, over the past two decades, but this trust deficiency seems to be invading everywhere in business, in social networks, in politics, in the media, and even in schools. We can observe lawsuits, academic honesty statements, fact checkers, regulatory actions, and plenty of other related symptoms of this trust deficit. As business leaders, it’s up to us to overcome this trust deficiency with our customers and build what experts have coined “Trust Capital”.

In fact, Larry Light, in his 2015 article 4 Guiding Principles for Overcoming the Trust Deficit Syndrome

argued there are not three (3), rather four (4) major sources of organizational wealth:

  1. Financial Capital,
  2. Human Capital,
  3. Intellectual Capital, and now,
  4. Trust Capital.

Mr. Light goes on to say that it’s the CEO’s responsibility to build a company’s “Trust Capital” and thereby become the most trusted company in its targeted market segment, thus reinforcing its brand. Mr. Light goes on to provide four (4) guiding principles for developing a company’s Trust Capital:

  1. Create a cross-functional, cross-geography team of which the CEO is the leader.
  2. When strategy and culture conflict, culture wins.
  3. Do what you say you will do.
  4. Generate a plan to boost leadership, credibility, integrity, and responsibility

Deloitte, in its 2020 study recommends building a fresh image. “Retailers might accomplish this by emphasizing fresh attribute messaging as a core part of their own brand. If done properly and backed by trusted and transparent supply chain management, customers may begin to feel that all fresh food bought in your store must have those attributes.”

 

CITRUS AMERICA’S ROLE IN BUILDING TRUST CAPITAL

At Citrus America, we think the best way to build “Trust Capital” with the customer is to actually earn their trust. That sounds simple, but we know it’s not. It takes a lot of commitment and work.

  1. Citrus America helps our customers, provide The Juice, The Whole Juice, and Nothing but the Juice. We help our customers earn Healthy Profits with Juicing by following THE Strategy, based on Taste, Hygiene, and Efficiency in Juicing.
  2. Our customers, in the retail, hospitality, and food service trades earn Healthy Profits with Juicing by providing their clientele with the highest quality, best tasting, freshly squeezed juices and support their brand by supplying “fresh” experiences, thus building Trust Capital with their customer base.
  3. Citrus America helps its customers provide fresh on-location juicing experiences that, when properly executed, remove the need to make claims because the consumer can actually see and experience the freshness being performed every day, for them, the consumer.
  4. Our commercial juicing solutions help our customers use freshly squeezed citrus juices to enhance their beverage offerings, improve their food ingredients, and provide an image and brand boost that consumers are looking for.
  5. Citrus America provides the know-how, the commercial juicing equipment, and the technical support to help its customers provide daily fresh juice experiences and strengthen its Trust Capital with the consumer

 

EXPERIENCE FRESH

BE “fresh”. SHOW “fresh”. SERVE “fresh”. You, the grocery retailer, hotel, bar, restaurant, café, bakery, etc. have the ability to serve “fresh” and “natural” and you have the ability to demonstrate to your customers that you are providing them with high quality “fresh” and “natural” products.

Naturally, you can offer a wide variety of packaged products as well. These other, alternative products are also high-quality products. However, “fresh” is an option you can offer your clientele. If you offer fresh choices then you should show your customers what you are doing for them – be transparent. Demonstrate to your customers what you are doing and earn their trust and build more Trust Capital.

For Citrus America, there’s is no better way to earn the consumers’ trust than by preparing your fresh juice right on-location, every day, in front of the customer where they can experience it:

  • Let them see what you are doing,
  • Let them smell what you are making,
  • Let them taste what you are serving,
  • Let them experience fresh.

For many customers, experiencing the real fresh, on-demand, in-store, squeezed citrus juice may be a first-time experience for them. People are surprised to find out what fresh juices actually smell and taste like. Once somebody tastes freshly squeezed orange juice, especially with less bitter peel oil for increased sweetness, cocktails made with fresh citrus juices, and other high quality fresh products, it’s tough to forget the fresh experience. Lower quality products simply lose their appeal and, in the end, quality wins every time.

 

QUALITY COSTS BUT QUALITY PAYS

Providing high quality isn’t easy, but it doesn’t have to be overly complicated either. It requires some thought, some planning and some effort, but we all know it’s worth it when we see a happy customer who enjoys their experience at your location and, in the near future, comes back again to enjoy your products and services. 

Smart investments with fast paybacks that help our customers develop and strengthen their quality image has paybacks far beyond just earning attractive margins directly from juicing. Improved brand image, increased Trust Capital, gains in market share, increased in-store customer frequency are some of the additional benefits that build long-term value.

Click here for pay back introduction

 

OUR JUICING SOLUTIONS ARE REVOLUTIONARY

Making juice has been around for many thousands of years. Squeezing grapes and making wine are the earliest documented forms of juicing going back to biblical times. Making juice, one glass at a time is a relatively simple process. However, making many servings, or even hundreds or thousands of servings per day requires some know-how and some excellent commercial juicing equipment so that it can be safe and efficient.

There are some simple guidelines that can help you implement a successful juicing program… and there are some clear things that can bring a juicing program down and prevent a roll-out across multiple locations.

 

Here are 5 Key Elements for Juicing Success:

  • Use quality fruit if you want quality juice
  • Select the best equipment if you want to be the best in Taste, Hygiene and Efficiency
  • Develop clear internal communications about why juicing is important to your organization
  • Implement clear, easy to understand processes to support a successful program
  • Provide quality training to your staff so they understand juicing and are good at it

Click here if you’d like to learn more about how your organization can implement a successful juicing program or improve the one you’ve got

Back in 2010, before Citrus America was formed, it was easier to get a quality glass of orange juice in Vienna, Austria  Click here to see juicing in Vienna in 2010

, where Citrus America’s founder was living, than when visiting his parents in Florida. Let’s repeat that: It was easier to get high quality, freshly squeezed orange juice in Vienna, Austria than when he was visiting his parents in Florida. Brian Framson, and his father, Ron, decided to get into juicing equipment to address the many issues they identified at the time. They partnered with Citrocasa, an Austrian juice equipment manufacturer, to become the leading quality brand in the fresh orange juice equipment segment.

We’ll cover a lot of topics here at THE JUICE, but the first guideline, however, is if a retailer or food service operator is telling the consumer they’re serving 100% fresh and natural juice, then that is what they should be doing. Anything else will decrease Trust Capital. The opposite is also true: juicing where everyone can see it, serving fresh juice and keeping things transparent and with quality will help increase Trust Capital.

 

That’s The Juice, The Whole Juice, and Nothing But the Juice!

Citrus America, Inc. will be sharing our thoughts and insights into fresh juicing here. We hope to help you be successful. In the meantime:

WELCOME TO “THE JUICE”. We will be positing to this blog page on a regular basis. Feel free to reach out to us to share your thoughts, questions, and concerns. We’re looking forward to a long and fruitful dialogue with you, our reader.

November 24, 2020 by admin 0 Comments

Generating positive cash flow faster. What is the Section 179 Code?

What could be better than making a smart investment and having it be cash flow positive even faster?

When it comes to owning a small business, there are several tax deductions one may encounter. If a company is starting up from the ground or focused on continued overall growth, it is important to be educated on this tax code and similar, as well as understand what tax regulations mean and what they can determine for your company. Section 179 is “a tax incentive that allows small businesses to write off the entire purchase price of qualifying equipment in the year it was purchased. If a business bought a piece of equipment before Section 179, they would have had to write it off over its normal recovery period.” It may be possible that 100% of the equipment cost can be deducted from a taxable income in the same year it’s purchased. 

 

As this code applies to equipment, clearly the equipment options will vary per company. Equipment should be physical – such as furniture, or mechanical – such as machinery. As long as it is tangible, it can be deducted. With Section 179, eligible businesses are able to deduct the cost of any qualified purchase. Although, this equipment can only be deducted if purchased within the tax year. There is a limit to how much a company can deduct as per income and owner. 

 

As 2020 is coming to an end in two months, businesses should be well aware of what this tax code is. For companies that are going to make a profit this year, they can seize the opportunity to still invest in equipment this year and write off the entire amount, as opposed to depreciating over three, five, or seven years. In order to do so, they must speak with their tax advisors to properly determine the value of savings and to ensure they’re taking the right steps to leverage Section 179 properly.  

 

This can also apply to equipment leased or financed, not only bought outright. Leasing equipment may be more attractive and provide additional benefits. Benefits include preserving your cash flow, maintaining/developing credit, increasing flexibility, customized financing, and easy approval. Most importantly, this enables a small business to gain quick access to the Section 179 code and generate positive cash flow. 

The best way to understand how this all works is with an actual juicer example: 

 

Let’s say a customer buys a $5,500 juicer and decides to lease it at $121 per month for a 5-year lease. The transaction is in November; therefore, they have to make their first payment in December for $121. If we assume a 35% tax rate and the company was profitable in 2020, then 35% of $5,500 would be a $1,925 increased refund for 2020, which would be payable in March or April. For 2020, a company has spent $121 cash out for this juicer (December payment) but generated $1,925 in tax benefit for the year 2020. In addition, there is also the positive revenue, cash flow, and image boost from the juicing business. This example company’s transaction is a cash positive one once they receive their tax refund if they are going to lease equipment. 

 

Section 179 can be used every year and with having a strong understanding of it, any company can effectively make and save money. A professional tax advisor should support any specific calculations. To better help you, use this calculator to determine how much money you can save in 2020.

Citrus America, Inc. was formed with the purpose of addressing all those issues.

Our path to success was simple – provide the highest quality equipment, thorough product training, around the clock technical support, and coach customers on how to be successful with their investment in our equipment. Our original vision has expanded to a variety of juices. Our juicers are now used for fresh lemon, lime, grapefruit, tangerine, and pomegranate juice. Our juice can be used for pure juice enjoyment or for craft cocktails, as cooking ingredients, and to be mixed in with other fresh juice and smoothie concepts. 

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November 3, 2020 by admin 0 Comments

Welcome to “THE JUICE”.

The Juice, The Whole Juice and Nothing But The Juice