“Their Loss is Your Gain” or so the saying goes, and that can be true, however a Win Win can be achieved by getting the right advice and by having a sobering look at where your equipment stands in terms of the market place. Processes change, markets change, products change and somewhere along the way most of us have experienced being caught on the wrong side of change, but it’s important in business to make the best of it and move on quickly.
The Graphics Segment (as opposed to the Textile Segment) of the screen printing industry has most of all been affected by the advent of digital and as a result much of the equipment once used to print the posters, stickers, signage that adorned our shopping malls and places of business, is obsolete.
So what is the upside you may ask?
When the value of anything drops, it opens up demand which wasn’t there before. All of a sudden, it may be profitable for someone to start printing their own short run posters and need a machine. Some machines have become priced low enough to convert to other uses and sometimes in unrelated industries. It’s a matter of making contact with the people who have leads coming to them for such purposes. Howard Debney fromLeapfrog Machinery says, “over the past year we have converted a couple of smaller semi auto flatbeds to single colour label and bag / t-shirt printers, while some larger dryers have been sold and then converted to bake painted car parts, dry grains, and currently we have a request for one to dry very small granules”
On an optimistic note; in many cases the machinery now obsolete has more than paid for itself and has been depreciated off the books. This presents some personal advantages, just ask your accountant and with it so close to the financial year end, do it this week.
If you are serious about moving your late model well maintained machine, there is a slow and much smaller market than years ago, so you may have to wait for quite a while to find a buyer who will appreciate it enough to pay you close to what you think it’s worth.
Get the right advice and weigh up your options balanced against your business plan for the future. If you have the space and can store your surplus machinery that may work out ok, but you need to consider a couple of things:
Firstly, is there any new demand for this type of machinery, find out from the suppliers of new equipment whether they are selling anything new and why buyers would prefer the new over your older machine – are the features that much better?, safer for the operator?, more productive?, quieter?, takes up less space?, require less labour to operate? All these factors can help you gauge the demand.
Secondly, If the answer is Yes it is worth holding onto, then also consider the effect on the machine of it sitting idle for an extended period of time. Pneumatic seals, especially with condensation in the cylinder, can perish with lack of use. Will the machine be in a good working state in 6 months or a year’s time – if not then what?
Thirdly, if you decommission the machine, can you easily reconnect to power and air if you need to show a prospective buyer? If not you could lose up to 50% of its value, as the buyer cannot test and must therefore make allowance for the worst case scenario in terms of repairs. In many cases a buyer will walk away from such an unknown.
Leapfrog Machinerycan work with you, helping you understand all of these options specifically in relation to your business and machines. They can also help provide further information regarding the market demand and the best approach to sell your surplus machinery. CallLeapfrog Machinerytoday on +61 (0)2 9482 4999 to determine what is best for your business.