3 Secrets to Buy Used Equipment like a Used Machinery Dealer-EP 231

Swarfcast

Have you ever wondered how a used machinery dealer like myself approaches buying secondhand equipment?

About a month ago, I did my first LinkedIn live talk and featured that subject. I focused the talk on my techniques for communicating with sellers and equipment experts.

I believe the majority of people these days lean too much on online networking, emailing, texting, and instant quotes. I discussed the art of actually talking to people to better understand the machines they’re looking at, to discover serendipity, and negotiate the best price.

This episode is a little different style than our typical interview or my solo podcasts that are scripted, but if you like me or at least like my stuff, I think you’ll dig it.

FYI, I reference a few slides of machines in my stories, so if you’re listening to this you’ll just have to use your imagination.

I hope you find a few little nuggets of wisdom in this.

It might help you avoid making a some of the mistakes I’ve made in the past when specking on old iron.

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Link to Graff-Pinkert’s Acquisitions and Sales promotion!

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Interview Highlights

Main Points

After 14 years of buying and selling machinery at Graff-Pinkert, our family business specializing in precision turning equipment, I’ve learned that successful machinery purchases hinge on one often overlooked aspect: communication. The following are some of the most important principles I’ve learned over my career for making smart purchases in the used machinery market.

Build Your Network of Experts

The first crucial step in buying used machinery is developing a network of industry experts. Even if you’re knowledgeable about the equipment you’re seeking, having connections with specialists can provide invaluable insights. I have specific people I go to for advice before I buy various machines. I have a Tornos Swiss guy, a couple of INDEX guys, a robot guy and a some other machinery dealer friends who are helpful with all types of equipment.

I’ve also found LinkedIn and industry forums to be excellent starting points for building these type of relationships. It was a little surprising to me at first, but people genuinely enjoy sharing their expertise when approached respectfully. It actually creates friendships and bonds beyond just work.

These connections have saved me from making costly mistakes and helped me understand the true value of machines I’m considering.

Uncovering the Machine’s Story and Serendipity

Something I’ve learned the over the years is that every used machine has a story. While it’s tempting to rely on email communications and online listings, picking up the phone and speaking directly with sellers is the only way to reveal crucial details about a machine’s history.

For example, several years ago, Graff-Pinkert bought some Hurco mills from an auction that had been in a shop which had a fire. The machines looked good in the photos, and the price seemed right. And overall, they were in decent working condition. But, while we were transparent about the machines’ history with customers, not all sellers volunteer such information. But, if you speak to a seller on the phone and ask the right type of questions, you have a better chance of uncovering the background of a machine. Of course, one of the most important ways to understand the condition of a machine is go inspect, but still, talking to the seller is a good first step.

Another crucial reason to call a customer rather than just emailing is it enables the potential for serendipity—lucky breaks that lead to different opportunities than you planned for.

A while back, we had a potential buyer request a quote for a Tsugami BO205 Swiss machine we had in stock that we were struggling to sell. Rather than email him a quote, I called him and discovered he actually needed a different model, a BO325. I quickly remembered another dealer who had that exact model and we got a quick deal done. That customer might not have found the machine he was looking for had we just sent him a quick quote.

Negotiation on the Phone

Talking to someone during a negotiation is invaluable to both the buyer and seller. You get to feel each other out. When someone names a price you can get a sense if a buyer or seller is angry or nervous, or seems like they’re lying.

New information and creativity for deals often appear when talking rather than emailing or texting.

Conversations humanizes each other. They create trust.

I finished my talk by recounting what I sometimes say to endusers when we are haggling over just a few dollars to complete a deal.

While dealers like me focus on resale value when purchasing machines, I suggest that end-users prioritize long-term value over small price differences. A few thousand dollars in purchase price becomes less significant when considered against years of production value.

To sum it up

My advice to used equipment shoppers is to not buy a machine just because it looks pretty online and the price seems right. I’ve made that mistake before, and unfortunately there is a good chance I will make it again.

The secrets to making great buys are cultivating great relationships, gathering information through direct communication, and mindful negotiation—on the phone or in person if possible.

The post 3 Secrets to Buy Used Equipment like a Used Machinery Dealer-EP 231 first appeared on Today’s Machining World.