There are some executives of industrial concerns who either lack confidence in their own ability in buying used machinery or confidence in the ability of the rebuilders. However, this condition doesn’t seem to exist among the larger users of machinery. In fact, where possible, the majority consider used equipment first.
One of the largest orders for a single used machine tool was recently placed with an eastern machinery dealer. The price paid was $57,500. A nationally known manufacturer purchased during the month of August twelve carloads of used machinery. Another case was an export shipment of Boring Machines which ran well into the five figure class. At this writing one of the best known concerns in the United States is in the market for a complete Compressor plant. A “Want-Ad” appeared in our September issue for a Turbo Generating plant with a capacity of from 10,000 K.W. to 20,000 K.W. Not many months ago an order for approximately $20,000 worth of rebuilt construction equipment was placed with one of our advertisers. This equipment was shipped to Mexico.
These facts about sizable purchases of used and rebuilt industrial equipment are not unusual. We could mention dozens of similar cases. We have noticed that it is alert executive who is taking advantage of these economies.
We hear a lot about price quotations on used or rebuilt machinery. Every now and then we learn of some ridiculous counter offer which has been made by some buyer who has the mistaken idea that the used machinery business is of a “horse-trading” nature. Some people think the dealer has an asking price which only hopes to get. Of course, bargaining is somewhat of a Yankee prerogative but we think it is about time for someone to correct this impression of the Used Machinery Industry. In the first place, the majority of machinery dealers buy the machines they offer and pay cash money for them. Then there are freight and handling charges, reconditioning and warehousing expenses, organizations to maintain, selling and overheard expenses. Most dealers always have a tremendous inventory which is hardly liquid, like scrap or pig iron, so this represents thousands of dollars of invested capital. Why then should anyone feel privileged to bargain? We are not trying to “whitewash” anyone, but we do know that the real people in this game don’t do business that way.
We have observed that the buyer with a horse-trading instinct usually gets less value for his money than the one who accepts a quotation as being fair and does not try a lot of fancy maneuvering in order to beat down a price. If you cannot pay the price—say so, but don’t insult the guy by offering fifty cents on the dollar, or something just ridiculous.