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THEbelief the usedmachinery
that sector . A strong presence OEMafter-sales a
of in
wouldprosper timesof emnomiccrisis
in market boostthesaleof usedmachin_
will
hasbeensomewhat paradox. ofa The eryfor thatparticular brand
economic slowdown overthe pasttwo lf we taketheexample plastic
of ma-
yearshashada profound impact the
on chineryfactors affect priceof used
that the
retailpriceof newmachinery reports with plastic machinery include brand, auxiliaries
of prices coming downby as muchas 30%. andother equipment accompanying the
Contradictorily; machinery
used prices have usedmachinery; of machine,age stateof
resisted falling thesamerateandtiming
at maintenance, extent refurbishing,
of docu_
as thoseof newmachinery; hencethe ments available, whether machine
and the
gap between respective
the asking prices is in drycycle dismanfled.
or
hasnarrowed, making priceof used
the Dueto theabovefactors; pricevariation
machinery attractive in previous
less than is evident throughout different regions the
in
years. usedmachinery market.
The mainreason thispricedeprecia_
for
tionis thatwhilstusedmachinery sellers Expedise judgingthe used
in
basetheiraskingpriceaccording the to rnachinery rnarketis pivctal
bookvalue; priceof newmachinery
the As a buyeryou needto knowif the used
is determined according supply
to and machinery you'reinterested is oferedto
in
demand. Whendemand high, is prices are youat the rightprice.lt is welladvised to
setat a lothigher thanbookvalue. When takethe helpof an experienceo assessor
demand significantly whocan placea
decreases due(e.9. machinery is beingsolddirecfly the
that by
to economic crisis)
lndustrialistsreap can tangible figure the
on OEM; andnotby a dealer. Whilst suchma_
various aforemen-
thenthe prices new of manifold benefitsthey if tioned influencing
chinery might preliminarily more; is
cost it
morelikely be refurbished, working,
to fully
machinery be sig-
will can theirhands
lay upon factors. can You andcarrythe OEM'sguarantee.
nificantly lowered so
as to shift supply.
the
theright of used
type savean appreciable Therearevalidreasons the high
for
Theseprices are machinery atthe amount, more
and depreciation usedmachinery. risks
of The
importantly; get associated purchasing second_
lowered suchan ex-
to right price. apprised ofthe best
with
handitemwillalways
any
tentthattheyarevery affect demand,
the
dealfor youwhilstit andthentherearealways logistics and
closeto thepriceof the bookvaluethat is available choosing services a
by the of engineering coststo takeintoaccount.
usedmachinery beingsoldat. Moreover, goodbroking
is firm.
fordifferent Nevertheless, industrialists reapmanF
can
sellers, samemachinery
the A broker the knowwillbe ableto
in
mayyieldvarying foldbenefits theycan laytheirhandsupon
if
prices because differ_
of quickly assess whether goingfor thecheap_ the righttypeof usedmachinerv
entdepreciation techniques used. at the
est machinery available bestsuited
is for rightprice.
yourneeds. Veryoftenit is notquitethe
Supply& demandaffectedby right solution. Furthermore, agency
an that $elling processmust irc dsne
rnanyfactsr$ specializes buying selling judge
in and can with forethoughl
Tocompound issues further, demand
the andvaluethe impact a major of technology All thesefactors as important con-
are a
vs.supply scenario fluid,andcanoften
is advance the priceof existing
on technology; sideration theseller theyarefor the
for as
change without notice. Factors affect
that oftenthe introduction newtechnology
of
thedemand supply buyer. Sellers oughtto bearin mindthata
vs. include: candevalue usedmachinery muchmore
. Induction newtechnology dismantled machine immediately
will lose
of whichcan thanwhatthe bookvaluewillsuggest.
freeup the machinery usesexisting 50%of itsvaluein comparison an identi_
to
that Expertise judging usedmachinery cal,yetassembled,
in the
technology the reseller
for usedmachine.
market. market pivotal acmuntof the high
is on
. A shortage newmachinery a particu_ job
A dismantling carried without
out
of in fragmentation the market its many
of and
lar market makeusedmachinerv theOEM's involvement likewise
will bring
can an varying aspects. instance, the used
For in
attractive proposition. downthe price/value. revenue
The flow
beverage machinery segment, market
the fromthesaleof usedmachinery certainly
. Regulatory changes oneregion
in can is
valueof expensive machinery far lower
is notinsubstantial, mostcompanies
render machinery
old yet do
non-compliant in thanthebookvalue; somecases
in as
that particular nothavea specific department dedicated
location, retain usein
but its muchas 75%lessthanthe bookvalue. An to planandexecute saleof theirused
the
othermarkets. expert wouldbe ableto alertvouto used machinery. a hurryto release
In useful floor
-- 32 JUNE / JULY2011 ,,_,-_-,,.,_,-_,,-..,.-_

2. i
t
a;
space on the shop-floor, sellingprocess
the
can be carriedout withoutforethought and
hastydecisions made.
An experienced brokerwill alwayshave
a clearidea aboutthe aspectsthat are of
particularconsequence different
for brands,
machinery type,and markets. This js an
invaluable insightavailable onlyto expeds
and it can make a huge difference both
to
sellersand buyers.
Information acquiredby tne assess_
ment of the direction whichthe marketis
in
movinggivesone the leverage pre-empt
to
scenarios and get valuablefirst-mover
advantage. Veryfew brokershavethe
€ wherewithal and skilledmanpowerto study
and forecastmarketbehaviour oaseoon
marketsize, numberof machinesentering
Sellersof used machinery ought
the market,marketvalue indicators, market
to bearin mind that a dismanUed
machinewill immediately shareof variousbrands,etc. Whetheryou
lose S0%of
its value in comparison to an identical, are rnterested sellingor buyingused ma-
in
I yet assembled, used machine. dis_
A chinery you shouldget rn touchwith those
mantling job carried out without the that can do this.
OEM'sinvolvement likewisebring
will
down the price/value
:., Ine
:- m a - JU N E/ JU LY2011 33
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: n l ng,
:- Hi-Tech Elements (Pty) Ltd
designers & manufacturers
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