Sell Used Machine Tools and CNC Machinery

Selling Used Machine Tools

Selling Used Machine Tools

Here is our brief guide on how to achieve the best price for your surplus machine tools. Generally it’s all common sense but in our experience many points get over looked by sellers.

As in most things in life, to successfully sell a machine tool at the best possible price, preparation is the key.

What are you selling?

This may be obvious but we are always being contacted by people who don’t know the basics about the machine they are selling. Research your machine thoroughly. Type of Machine, Manufacturer, Model, Serial No, Age, service History, Availability of manuals and accessories should all be found out.

Presentation

Clean and prepare the machine for sale. While a service may not be possible or viable a general tidy up and appraisal of the overall condition is imperative. Does the machine work? If not list all known faults and reasons why the machine does not work properly.

Photographs

Today’s technology can be used to the full. Three or four detailed digital photographs of each machine will provide dividends when providing information to prospective buyers.

Price

Research the market to ascertain a guide to what your machine could be worth. You will find similar machines by searching the trade magazines, dealers stock lists, auctions and internet searches.

Sales Document

Prepare a sales document containing all the above information. This is an invaluable tool to enable the purchasers to understand what they are getting.

Now you have properly assessed what you are selling you can progress to actually deciding how to sell. The following examples are shown in a suggested order of approach. This method of procedure will without doubt save time for you the seller and attract the maximum potential from the buyers.

Internal Sales

Word of mouth through group companies, customers and suppliers. It’s a good route for disposal because the price can be adjusted by the goodwill that may also be available as well as the transfer of internal budgets.

Machine Tool Dealers.

There are many machine tool dealers needing quality machines for their stocks. In general they will pay good prices for machines that are under 5 – 10 years old if they are presenting to the UK and European markets. The more sophisticated the machine the newer it needs to be to interest them. There are dealers that specialise in older machines for the wider export markets. It is advised that at least 3 offers are sought from different dealers preferably in different geographical areas. A blanket approach by contacting a lot of dealers can have a negative effect. The trade communicates better than ever and soon closes ranks if a “dutch auction” is sensed.
The upside of this type of disposal is that payment is generally quick with clean removal arranged by the dealer. The sale is no risk to the seller under Health and Safety regulations. The potential downside is that the price offered will obviously allow for a profit for the dealer.

Brokerage

There are a lot of machine tool brokers that have appeared in recent times as the price of individual machines increase in line with sophistication. Indeed we offer such a service to our customers. It is important that the seller is aware of the service that is being provided. We believe it is imperative that an agreement is drawn up between the two parties. The brokerage should work much the same as an Estate Agent sells houses. Areas that should be covered in the agreement are:

What is the Marketing Price?

Does the broker have any negotiating leeway on the price?

What is the commission payable?

Who invoices the ultimate buyer?

Who does the buyer pay for the machine?

Is there an agreed timescale for disposal?

If the machine is being removed from site, will it be available to be seen under power?

What are the transport and storage charges if applicable?

Where and how will the machine be marketed?

What are the on costs of any marketing and advertising?

This method of disposal has the opportunity to realise the best selling price with the selling agent working on a fixed commission and works well over a planned disposal period say before a new replacement machine is delivered. However there are risks attached if the financial control is not retained. An escrow process does remove this risk.
We offer this solution to customers who are waiting to take delivery of a new machine. We work the broker agreement up to the delivery of the new machine with an agreed purchase price if the machine has not sold by the time the new machine is delivered.

Self Marketing

This has the potential of obtaining a good price but the seller has to deal with the whole sales process. In today’s market place it may be difficult to present the machine to the widest market. Valuable time will be taken up with inspections by visitors who may not buy.

Auctions and Tenders

This is a popular route for complete factories and multiple lots. In our experience great care needs to be taken in selecting the right method and indeed the right auctioneer for this process. This method of asset disposal needs more attention to detail than can be given here. We have organised many disposals by this method and will be happy to discuss the processes confidentially and sympathetically.

Take a moment to visit the professional online machinery auction site bid4machinery.com by clicking the link below.

machinesonline.co.uk the online machinery auction and sales solution

E-bay Open Auction Sites

This is a growing area in world of machine tools and engineering equipment. Many sellers and buyers of such equipment have been happy with their experience. Our comment is that many prices obtained here are well below what can be achieved by the previous methods and should be used as a last resort. Obviously the risks here are greater for the buyer than the seller.

If you would like to discuss the disposal of you machine tools or factory contents without obligation please contact Steve Halson on 07802 753474 or by e-mail on the link below

e-mail the machine tool buyer