Why Is Some Machinery Advertised From Multiple Dealers?

Ever go looking for a machine just to find out its advertised from different dealers? Ever wonder why that is? I mean who really owns it and who should you talk to to get the best deal? Here we break down the mystery surrounding the internal workings of selling used machinery, the types of sales that are advertised and the partnerships that occur. All these lead to finding out why you might find it advertised by two or more companies. 

Brokering?
First off machinery you see advertised for sale may or may not be owned by the company offering it. Needless to say, that shouldn’t alarm you at all, as many machines are offered directly from an end user’s floor through an experienced machinery dealer, like Southern Fab for resale. These types of sales are coined with the term “Brokering” although that's not technically correct, the term has stuck. Nevertheless, a quality dealer knows the market, values, challenges with logistics, and can provide financing to make any machine sale happen quickly and smoothly for the seller WHILE netting the seller a higher return then if the equipment was purchased outright and moved to the dealers warehouse. 

“Brokering” Machinery also offers the buyer a chance to see the machine in its ‘natural environment’ (i.e. where it's been operating and cared for most of its life). Here a buyer can easily see how clean the facility is and if they have a preventative maintenance program in place as well as many other factors. Often a potential buyer can talk directly with the machine operator asking questions on operation, maintenance and if there are any known issues so these machinery purchases can actually be preferred by a buyer. 

In some situations where a machine is sold from a user's floor they may have contacted one or more dealers to help them sell it quicker. In these cases the dealers are operating independently and likely on little margin while the seller holds all the cards (often raising the asking price while they are guessing at market values). This type of machinery sale is one that Southern Fab just won’t get involved in as it sets up a losing scenario for everyone, including the seller, from the very beginning. In our direct sales scenarios we operate under a contractual agreement with our seller just as a realtor might do. We throw our effort (and $$$'s) into it just as if we owned the machine on our floor. We agree on a sales price up front and work with any other dealers (a type of business joint venture) making the process much easier for the seller and buyer while protecting the interests of all parties. Here you may see both dealers advertising the same equipment.

Joint Ventures

A Joint Venture (or JV as dealers call it) is simply a business partnership on the equipment being offered or purchased. Joint Ventures can be a very tactfully sound way to either make the most of a brokered machine (see above) or partner in a single, multiple or whole plant purchase.  These all can occur for a variety of reasons  but some of the most common are:

• Location: The machine is found and the purchase negotiated by Company A but Company B is close to the seller and has the facilities to store the equipment thus saving money and allowing for a return on the investment to both equipment dealers. This is a type of strategic partnering.
  Another type of location strategic partnering is offering equipment with another dealer in an area known for a large need for that type of equipment. As an example, Southern California is not known as a vast stamping industry mecca, but Ohio and Michigan are, so a savvy dealer may ask one or more dealers in the MI & OH area to work with them on the sale of a press found in a CA facility.

• Expertise: Another type of strategic partnering is found when Company A finds a machine for sale but is not really an expert in that type of manufacturing machinery and needs help. Well, what better way to get help then to bring in a partner financially vested in the equipment that knows that type of machinery exceedingly well and can likely ensure the equipment is well inspected, proper repairs and maintenance performed, priced correctly and is detailed properly in the advertisement.
  
  
• Market: Another way to use partners strategically is through their marketing. Company A may have a vast database of Injection Molding companies but has purchased a waterjet cutting machine that they know little about nor have little chance of selling to their Molding customers. However Company B, on the other hand, maintains a database full of waterjet potentials and can advertise the machine much more effectively, likely finding a buyer much sooner than Company A would be able to do.

In all these scenarios you will find multiple machinery dealers advertising the same machine for sale. So the basic questions become: 

• Who should I call first? 
• Call the machinery dealer you feel has the best opportunity to support you during, and after the sales process by offering you onsite inspections, inspection checklists, videos, direct factory contacts, aftermarket service, installation requirements (layouts, power, air), shipping weights and dimension or even freight services. At Southern Fab we pride ourselves in having all these items readily available for you.  
• How do I get the best deal? 
• The best deal you can get is the one where you are armed with all the details and data on that particular machine. You can negotiate a buy price up front, however you are better suited to inspect or have the machine inspected on your behalf so you can provide validation for a lower offering price. 
• Do I get quotes from everyone?
• No need to ask for quotes from all the dealers advertising the machine as we all work together on the sale regardless of who buys or which dealer sells the machine. Go with the company you feel strongest with and the one that you feel can best support your needs. 

In the end a machinery purchase through a quality dealer like Southern Fabricating Machinery Sales, Inc. can be an easy and painless transaction. We follow the guidelines and ethical practices put forth by a network of used machinery dealers that have agreed to be bound to a higher standard. This group the MDNA (Machinery Dealers National Association) is another way of assuring your dealing with a quality company interested in getting every transaction right. Also when working with us, there are plenty of safety’s built into our process along with loads of information provided to you to provide for a comfortable and assured transaction. So if you see our machines advertised by another dealer, you can rest assured it's likely someone that meets the high standards that we set for ourselves and that we have had multiple successes with in the past.