In this article you will learn how to protect yourself, your company and your investment when selling used machinery while increasing the value and reach of potential buyers through a qualified machinery dealer and strategic partnerships. When selling used machinery often a company will reach out to multiple machinery dealers they have done business with in the past, or they will post the equipment themselves in the hopes to "cut out the middleman." We have wrote extensively in the past about the perils of selling manufacturing equipment directly and the reason why machinery may be advertised by different machinery dealers. We will show you how choosing the right used machinery dealer can not only protect you, the seller, but actually gain you a higher return on your sale price. We also focus in this article on brokering (selling equipment from your floor) your machinery for sale which is becoming increasingly more common. 

Strategic Partnerships

In the used machinery business there are several organizations and associations that dealers can join, large or small. These associations allow these distributorships to interact with one another on a professional and social basis. There are educational seminars on everything from rigging machinery to liability insurance. The ongoing education that these member companies endure provide you with a much more educated and secure base to begin any machinery transaction. They are simply exposed to more knowledge and ways to avoid the pitfalls smaller or, quite frankly, self absorbed dealers are likely to miss. Although being a used machinery dealer doesn't require a professional license, such as say a home realtor, ongoing education is a choice that a few professionals in our industry not only make, but ensure their staff do as well. 

Partnerships flourish out of these organizations and associations. Dealers from around the world meet and discuss everything from shipping machinery to providing a better equipment inspection. In these conversations come out the expertises of each individual company, and thus the ability to connect with experts in a given field, process or location. Whether it be an specific industry type (such as wire forming machinery) or a location (such as a warehouse in another state) relationships quickly form. These relationships formed often lead to business partnerships whereby one dealer brings a piece of equipment to purchase or broker for sale and through the use of this strategic relationship, increases value for you the seller.

Choosing The Right Dealer

Choosing the right machinery dealer for your excess machinery can be difficult if you don't know what to look for. There are 3 Major things each dealer you may consider should have: 

  1. Membership in an Association such as the MDNA. 
  2. National Reach and Presence.
  3. Knowledge of the process, companies and manufacturers of the equipment you are selling.

Membership in an Association does not necessarily make any company "better", but it does however ensure that they have at least met the minimum requirements of our industry and are willing to be held to a higher standard of ethical practices, which in turn protects you, the seller. It also ensures that they have access to ongoing training, seminars and association meet ups to better network with other dealers thereby increasing their knowledge in manufacturing exponentially and allows them to meet the experts in various field of manufacturing whether it be presses, heat treating, EDM or just about any other form.

Having next a National Reach and Presence is done through advertising AND through industry contacts. If all the dealer does for you is advertise your machinery for sale then they are not providing a value that a strategic partnership can. A quality machinery dealer will reach out nationally through advertising AND then directly through his industry contacts and partners in that specific field. As an example if your selling an EDM machine dealers that focus on the Tool & Die and Mold Industries are prime partner companies as they may not up to the minute inside information on new machinery availability, price increases, market demands overseas affecting value here and so much more. 

Knowing also the new machinery dealers of your specific type of machinery can provide a quick insight on where it is needed most. Knowing the market for that type of machinery, who would use it, what manufacturers might need it, what geographic location might be best suited to focus on and so much more. This knowledge comes through years in the business and networking with the right people. 

Avoid the Mistake of Direct Sales

Many companies, as stated previously, attempt to sell equipment directly but make many mistakes in the process. They may have modified the machinery over the years, safety devices were removed, no maintenance records kept for liability issues up stream. Any of these issues can lead to liability issues months or years later. They may not be considering the impact to collecting & remitting sales taxes, in or out of state. They may not be aware of Capital Gains taxes that typically by far outweigh the service fees of a typical qualified machinery dealer. They may simply not even know the true value of their machinery giving thousands more away than necessary. 

If your ready to sell your used machinery download our free Seller's Guide, and remember, you can choose to work with dedicated professionals like Southern Fabricating Machinery Sales that make it our mission to take the guesswork out of your used machinery sale as we know the machinery, the market, the values and the venues of selling used machinery. We have the strategic partnerships and knowledge to make your machinery sale the easiest and safest for you. Whether your selling a used machine for the first time, or selling off the plant for the last time, the team at Southern Fab can help you get the most out of your equipment and time!  Call us at 813-444-4555 to talk to one of our industry professionals or certified appraisers today. 

New Call-to-action