With today's volatile economy, purchasing new capital equipment can be a risky endeavor. Many companies are struggling to maintain profitable contracts against competition overseas and purchasing new equipment raises overhead that can decrease their ability to facilitate those profits.
Instead, many companies are realizing that they can purchase quality used equipment to meet their contract needs while, keeping costs low, increasing their output and upgrading their line to become competitive in the global market.
However, as with used dealers in any industry, there are concerns when procuring used equipment. This article should help serve as a guide for future pre-owned equipment purchases and dealings with pre-owned SMT equipment dealers and brokers.
Dealers vs. Brokers
The main difference between a used equipment dealer and a broker is how much personal risk they have invested in their industry.
A used equipment dealer will generally have their own storage space and will maintain their own inventory of equipment. Owning this equipment demonstrates the amount of personal investment they have in their business. In addition, this gives them the opportunity to thoroughly inspect, possibly power and demonstrate, and accurately represent what they are selling.
Along with the equipment the dealer owns, they will often have equipment that has been consigned to them, either on-site or at a client's facility.
The dealer's on-site consigned inventory is a good indicator 0f how they are viewed by their other clients. Inventory that has been consigned to the dealer's warehouse shows that the other clients trust the dealer to maintain, accurately represent, sell the equipment and pay them a fair portion of the final sale price.
Brokers in the used SMT equipment business do not own inventory. Instead, they utilize their contacts to discover the location of different pieces of equipment for sale in their local area and, at times, nationally. However, without full access to the equipment, they have to rely on the specs and options that are disclosed to them. In addition, they are often unaware of the actual condition of the equipment they are trying to sell. This can become risky for potential buyers.
Be Aware:
- Due diligence – Know the Seller - Find a reputable, experienced Dealer with many good references. They should know the equipment along with the application process in order to represent the equipment they are selling.
- Does the Seller know the equipment? Without a thorough knowledge of the equipment, the Seller, most likely, will not know its condition or specifications.
- Machine Representation - Are the specs complete? Have the options been verified?
- Machine Condition - Is the machine in operational condition? Can it be demo'd upon request?
- Right to Sell - Has the owner company contracted this person to sell the equipment? Will it be released within the time-frame that is required?
- Warranty - Does the Seller have the ability to provide a warranty? What does the warranty cover? How do you submit a claim?
- Third Party Inspections – There are many experienced technicians available these days that will perform a full inspection for a fraction of the cost to travel plus your time.
- Inspection – The only way to qualify equipment to ensure it meets requirements and standards is by thorough inspection. Most companies offer videos and photos, however the only way to be certain is to inspect the item at the site.
- Understand the Terms –Will my purchase order hold a machine? What does Sold As-Is really mean? What if I don’t inspect, but purchase anyway? Many Brokers and Auctioneers will change the terms or add costs during the process.
- Payment Terms - Why prepay? Once an item is placed on the Buyer’s approved carrier the Buyer has control of the item and is considered to be delivered. Unless credit is established, almost all payments for everything new and especially used requires prepayment. Ensure you know the seller the items and the terms prior to sending payment.
- Shipping – Since most used equipment requires payment at or prior to shipping, it is always best for the Buyer to handle shipping to ensure proper transit and insurance requirements.
OnlineSMT.com
OnlineSMT's global clients have trusted us to provide them with quality Surface Mount Technology (SMT) and Pin-thru-Hole Equipment (PTH) for over twenty years. Utilizing our forty years of printed circuit board (PCB) assembly experience, we accurately match equipment to streamline our client's process, while increasing their manufacturing capabilities.
Many of our clients upgrade their assembly lines with equipment procured from our inventory and, either, sell their surplus equipment to us or consign it to us for remarketing and sale. Repeat business and our reputation for quality equipment and services at fair prices has been the benchmark for our continual growth.
We provide more than equipment for our clients. We provide solutions and strive to meet our governing tenets:
- Quality, clean and tested SMT Equipment reflecting today's Fair Market Value.
- Expert process analysis and equipment matching.
- Clear and accurate equipment representation and demonstration.
- Installation, training and support by industry professionals.
- Utilize our technical expertise...We know your equipment.
- We will work to satisfy your specific demands.
To purchase quality pre-owned SMT equipment or to utilize any of our other services, please contact Sales@OnlineSMT.com.
