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. 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     you'reinterested is oferedto
                                                                                                      in
        demand.    Whendemand high,       is       prices  are      youat the rightprice.lt 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 OEM'sguarantee.
       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
      vs.supply    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                                                                                      theOEM's    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 ,,_,-_-,,.,_,-_,,-..,.-_
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.
                                                OEM'sinvolvement 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,lr'l:; *;t;r :::...,:

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Paradox of Used Machinery Sales

  • 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 you'reinterested is oferedto in demand. Whendemand high, is prices are youat the rightprice.lt 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 OEM'sguarantee. 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 vs.supply 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 theOEM's 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. 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. OEM'sinvolvement 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,lr'l:; *;t;r :::...,: