Many business owners are faced with an important decision when it comes to buying equipment or inventory — should they purchase a brand new or used model? This question isn’t one-size-fits-all since no two businesses or industries are exactly the same.
Purchasing inventory is a significant decision and one that often comes at a great financial cost. When this becomes the case, many companies look at used equipment or inventory to help streamline their costs without sacrificing efficiency or productivity.
If you’re considering purchasing used equipment for your business, there are important components to consider before making this substantial purchase. Let’s explore the qualities and characteristics to look out for before you sign on the dotted line.
1. The Reputation of the Seller
No matter what inventory you’re purchasing, who you’re purchasing from is as important as the condition of the equipment itself. It’s your responsibility to do your due diligence to ensure you’re not wasting company money on products that were sold by a less-than-reputable supplier. If, for example, you’re looking for a used CMM machine for sale, the last thing you want is to purchase a machine from a supplier that is not certified and does not have the capabilities to maintain and sell a coordinate measuring machine — which is a substantial piece of equipment.
As you’re shopping for inventory, one of the first things to look into is the seller’s reputation. If they’re established, they should have reviews posted online and on their website. If they are a local company, ask around your industry, colleagues and other businesses to confirm if they have used or know someone who has used their products and whether or not they can vouch for their credibility.
2. Condition of the Equipment
Before purchasing any previously-owned and used equipment, an in-person inspection is crucial Descriptions online, and photos can be deceiving. It’s always worth looking at the item in person to see if its functionality and conditions match its advertisements.
If you’re more comfortable with a second opinion, bring a colleague or expert in your industry to give the equipment a second set of eyes — taking this extra step could be the difference between a worthwhile investment and a mistaken purchase.
3. History of Maintenance
When it comes to investing in a piece of equipment for your business, especially a used model, you need a complete maintenance report to ensure your investment has been properly tuned and maintained up until the point of sale.
Since the equipment has been used in the past, it may have endured some wear-and-tear, but the current quality and condition will give you the insight you need to determine if it will last for years to come or if it’s on its last legs.
If the item in question has undergone regular maintenance and has the reports to prove its condition, there is a greater chance that it will be able to meet your operational needs, and you can be sure you’re spending your company’s money wisely.