When new warehouse businesses start up or are in between spending tons of money for an overhaul of old equipment, then the temptation is to buy new equipment. Buying new is okay. However, it might not be the best move for your company under all circumstances.
For example, a startup may have issues concerning financing. Under these circumstances it may be more cost effective buying used equipment rather than new equipment so you have extra money for some other important segment of the business including hiring personnel and selecting and renting or purchasing a facility. This is also true if you plan to expand the business.
For example, a startup warehouse is going to need container-handling equipment. There are a number of benefits to buying used rather than new. For example, such a move can:
· Reduce startup costs.
· Offer a higher and quicker Return on Investment (ROI).
· Save money for expansion.
· Receive equipment immediately rather than wait to have it manufactured.
· Permit you to buy name brand equipment at a reduced cost.
· Save money for other uses like upgrading preventive maintenance or allow you to take a machine out of service for maintenance work while using other machines.
· Be eco-friendly because the equipment has already been made, so there is no need to use more raw materials to make more.
· Save a lot of money. In some circumstances, used equipment could cost less than 50 percent of a new machine.
Finding good used equipment may not be as difficult as you might think. Many companies have been known to divest themselves of good reliable used equipment.
The same philosophy can be used in purchasing used office furniture. However, you need to take the time to inspect the used products. If the quality of the used furniture is bad, then it could fall apart on you only months after you purchase it.
Used office furniture that might have spots, nicks or scratches can easily be refurbished. For example, putting vinegar on a cloth and then rubbing that cloth over a surface can restore furniture so that it looks like new.
So now that you know there is another alternative to buying new equipment the obvious next question is: how do I go about selecting used warehouse equipment?
Exploring how to select used pallet racks can provide you with what you need to know when buying other used equipment.
Things you must do to select the right used pallet racks include:
· Inspecting the product. Take a person who is very familiar with the product, in this case pallet racks, with you so that he can inspect the item and ask pertinent questions. A person who works with the equipment can determine whether a used version is up to snuff.
· Asking if the equipment can be refurbished. There is a distinction between offering just used products and refurbished products. Used products are sold as is while refurbished products have been restored to like new condition.
· Selecting an established company from whom you can buy the used product. You want a company that has been in the industry for a number of years and has a tradition of performance and satisfied customers. Buy the used equipment from a company that has substantial stock. Make certain that the company you buy from will service what they sell. Ask about the cost of repairs. In short, get all the information you can and make sure you understand it before making a purchase.
· Making sure that the product fits the specifications you need and will do everything it is supposed to do.