Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Paradox of Used Machinery Sales


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

Paradox of Used Machinery Sales

  1. 1. . E*#EFffigH? XWaehirxePofnt" @@r In d u s tri alMaehi nery Fxperts PmrfrSnx CIf u$em tfi e mffishinerw$mxps THEbelief the usedmachinery that sector . A strong presence OEMafter-sales a of in wouldprosper timesof emnomiccrisis in market boostthesaleof usedmachin_ will hasbeensomewhat paradox. ofa The eryfor thatparticular brand economic slowdown overthe pasttwo lf we taketheexample plastic of ma- yearshashada profound impact the on chineryfactors affect priceof used that the retailpriceof newmachinery reports with plastic machinery include brand, auxiliaries of prices coming downby as muchas 30%. andother equipment accompanying the Contradictorily; machinery used prices have usedmachinery; of machine,age stateof resisted falling thesamerateandtiming at maintenance, extent refurbishing, of docu_ as thoseof newmachinery; hencethe ments available, whether machine and the gap between respective the asking prices is in drycycle dismanfled. or hasnarrowed, making priceof used the Dueto theabovefactors; pricevariation machinery attractive in previous less than is evident throughout different regions the in years. usedmachinery market. The mainreason thispricedeprecia_ for tionis thatwhilstusedmachinery sellers Expedise judgingthe used in basetheiraskingpriceaccording the to rnachinery rnarketis pivctal bookvalue; priceof newmachinery the As a buyeryou needto knowif the used is determined according supply to and machinery youreinterested is oferedto in demand. Whendemand high, is prices are youat the is welladvised to setat a lothigher thanbookvalue. When takethe helpof an experienceo assessor demand significantly whocan placea decreases due(e.9. machinery is beingsolddirecfly the that by to economic crisis) lndustrialistsreap can tangible figure the on OEM; andnotby a dealer. Whilst suchma_ various aforemen- thenthe prices new of manifold benefitsthey if tioned influencing chinery might preliminarily more; is cost it morelikely be refurbished, working, to fully machinery be sig- will can theirhands lay upon factors. can You andcarrythe OEMsguarantee. nificantly lowered so as to shift supply. the theright of used type savean appreciable Therearevalidreasons the high for Theseprices are machinery atthe amount, more and depreciation usedmachinery. risks of The importantly; get associated purchasing second_ lowered suchan ex- to right price. apprised ofthe best with handitemwillalways any tentthattheyarevery affect demand, the dealfor youwhilstit andthentherearealways logistics and closeto thepriceof the bookvaluethat is available choosing services a by the of engineering coststo takeintoaccount. usedmachinery beingsoldat. Moreover, goodbroking is firm. fordifferent Nevertheless, industrialists reapmanF can sellers, samemachinery the A broker the knowwillbe ableto in mayyieldvarying foldbenefits theycan laytheirhandsupon if prices because differ_ of quickly assess whether goingfor thecheap_ the righttypeof usedmachinerv entdepreciation techniques used. at the est machinery available bestsuited is for rightprice. yourneeds. Veryoftenit is notquitethe Supply& demandaffectedby right solution. Furthermore, agency an that $elling processmust irc dsne rnanyfactsr$ specializes buying selling judge in and can with forethoughl Tocompound issues further, demand the andvaluethe impact a major of technology All thesefactors as important con- are a scenario fluid,andcanoften is advance the priceof existing on technology; sideration theseller theyarefor the for as change without notice. Factors affect that oftenthe introduction newtechnology of thedemand supply buyer. Sellers oughtto bearin mindthata vs. include: candevalue usedmachinery muchmore . Induction newtechnology dismantled machine immediately will lose of whichcan thanwhatthe bookvaluewillsuggest. freeup the machinery usesexisting 50%of itsvaluein comparison an identi_ to that Expertise judging usedmachinery cal,yetassembled, in the technology the reseller for usedmachine. market. market pivotal acmuntof the high is on . A shortage newmachinery a particu_ job A dismantling carried without out of in fragmentation the market its many of and lar market makeusedmachinerv theOEMs involvement likewise will bring can an varying aspects. instance, the used For in attractive proposition. downthe price/value. revenue The flow beverage machinery segment, market the fromthesaleof usedmachinery certainly . Regulatory changes oneregion in can is valueof expensive machinery far lower is notinsubstantial, mostcompanies render machinery old yet do non-compliant in thanthebookvalue; somecases in as that particular nothavea specific department dedicated location, retain usein but its muchas 75%lessthanthe bookvalue. An to planandexecute saleof theirused the othermarkets. expert wouldbe ableto alertvouto used machinery. a hurryto release In useful floor-- 32 JUNE / JULY2011 ,,_,-_-,,.,_,-_,,-..,.-_
  2. 2. i t a; space on the shop-floor, sellingprocess the can be carriedout withoutforethought and hastydecisions made. An experienced brokerwill alwayshave a clearidea aboutthe aspectsthat are of particularconsequence different for brands, machinery type,and markets. This js an invaluable insightavailable onlyto expeds and it can make a huge difference both to sellersand buyers. Information acquiredby tne assess_ ment of the direction whichthe marketis in movinggivesone the leverage pre-empt to scenarios and get valuablefirst-mover advantage. Veryfew brokershavethe€ wherewithal and skilledmanpowerto study and forecastmarketbehaviour oaseoon marketsize, numberof machinesentering Sellersof used machinery ought the market,marketvalue indicators, market to bearin mind that a dismanUed machinewill immediately shareof variousbrands,etc. Whetheryou lose S0%of its value in comparison to an identical, are rnterested sellingor buyingused ma- in I yet assembled, used machine. dis_ A chinery you shouldget rn touchwith those mantling job carried out without the that can do this. OEMsinvolvement likewisebring will down the price/value :., Ine :- m a - JU N E/ JU LY2011 33- -i ^: n l ng,:- Hi-Tech Elements (Pty) Ltd designers & manufacturers: -SK S of heating elements to suit- ^! yo u r sp e cific a p p licati on.; r o,-... rani-:"rupon:.:r-: t he: -a I a lse -:: rng : ;l:larnty.s oo- ^r^t ,seo ,;.ant*: .: tgr a..: iil:_lrih Alrill :i3- floor I 11. *rr 51. )tl:]aa: t!*ri, l:ilj Te! lLi 7i-: ).247 l i-,11.::l: r;:rti,lrl:; *;t;r :::...,: