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Can buying Used Industrial Woodworking Machines Impact your Bottom Line?

If you think that only companies with small budgets invest in used industrial woodworking machines, think again. Even when times are prosperous, large companies often buy their machinery used instead of new, and not just as a cost saving measure. They also do it increase their bottom line. And when you investigate the sticker prices of popular industrial woodworking machines, it’s easy to see why.

The CNC Router Effect

Consider the impact of purchasing a high grade, multi motor CNC router at roughly 50 percent off its original price, which could easily approach or exceed $250,000. Almost every large woodworking operation employs a top grade CNC router. But the difference between buying it new and buying it used in a well-maintained state could be negligible. Why? The answer is simple: industrial grade machinery has a long life span when properly serviced, making it possible to buy it used and receive new machine quality at a used machine price (with the price difference big enough to impact a company’s profit margin). In the current economy, what company wouldn’t preserve over $100,000 of its income at no cost to other areas?

Why Do Companies Get Ride of Good Industrial Woodworking Machinery?

There are several reasons why companies decide to liquidate good woodworking machinery, including: prevention of budget reduction, the desire for newer machinery, and going out of business liquidations.

Prevention of Budget Reduction

When an entity that performs woodworking receives its annual budget from a parent entity, it must usually meet that budget to keep it from being reduced the following year. As a result, perfectly good machinery is often sold off at a fraction of its original price, making it easily to purchase late model machines that other companies would hold onto for years before selling them. State sponsored entities are common sellers of used machinery.

The Desire for Newer Machinery

Just as some large companies attempt to economize on machinery to maximize their profits, other companies barely let dust settle on a machine before they replace it with a newer model. As with liquidating machines to meet a budget, companies that are only too happy to replace their machinery give you the chance to buy almost new machinery for less than its sticker price. However, companies that purchase their own machinery and can afford not to sell it usually don’t offer the deals found at going out of business liquidations.

Going Out of Business Liquidations

Going out of business liquidations are an excellent opportunity to purchase quality industrial machinery, often at prices that drop to as low as 30 percent of the machinery’s market value. However, you also have to be careful about purchasing a machine that may or may not be in good condition. Unless you have expertise in assessing the value of used woodworking machinery, the best options is to purchase it from a professional seller of used industrial woodworking machines that buys from individuals, companies, and auctions then repairs any outstanding problems before reselling the machinery.

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This post was written by who has written 35 posts on Industrial Woodworking Machinery Blog.

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