Resources

February 15, 2016

When to Buy Used Warehouse Equipment

New Vs Used

You probably expect me to bad-mouth used equipment in this post because DAK makes more money from selling new. In fact, nothing could be further from the truth.

If there is used equipment available that meets your needs and is in good condition, I’ll happily sell it to you. After all, if my goals don’t line up with yours, I won’t get your business at all.

That said, sometimes used equipment just isn’t the right solution. Today I want to help you understand how to choose the best solution at the best price.

Making an Informed Choice

Let’s face it:  Used equipment is great when it fits your needs.  In fact, I can sell you some 96″ beams for about 80% of what my new inventory would cost you.  Who doesn’t want savings like that?

However, there are a handful of things you as the customer need to watch for:

 

Condition

Quality Check MarksWhen you elect to purchase used, you inherit any previous damage done to the equipment.  This includes weather-related damage if the equipment is stored outside.  Go to http://images.google.com and search for “used pallet rack” and look at just how many pictures pop up of used rack that is stored out of doors.  Add lift truck damage to corrosion and rust and you could end up with racking that has significantly less than its original capacity.

When shopping for used rack, it’s important to ask for pictures before purchasing to get an idea of the quality of the equipment.  Once you’ve purchased it, it’s just as important to inspect it for damage and rust.

Finally, used rack is almost always sold “as-is” and does not include the manufacturer’s warranty, which means you end up with all the liability and responsibility if something goes wrong.

 

Quantity

Inventory Word CloudThose used 96″ beams I mentioned?  As of this writing, I only have 180 of them.  If you need ten times that amount and are determined to get used, you’re going to have to shop around.  At this point, you’ll want to consider what your time is worth to:

 

  •     Find them
  •     Ensure the quality is acceptable
  •     Inspect multiple shipments

You’ll also need to consider the expense that multiple shipments from multiple points of origin will add as well.

 

Price

cashYes, I know it’s odd to mention price as a concern with used.  After all, what’s the point of used if it isn’t price?  But now that the availability of used is starting to resemble normal levels as the economy improves, it’s entirely possible to find used racking that costs as much or more than new.  Add this to the “soft costs” discussed above and there may not be any savings.  This is particularly true when you’re looking for large quantities and may be able to negotiate a deal for new material.

I hope the information I’ve provided is useful.  As you can see, making a choice between new equipment and used is more complicated than it appears at first glance.  If you’re interested in what used equipment we have available, please visit http://www.warehouserackused.com/  While much of our used inventory is shown there, it doesn’t reflect everything so if you’re looking for something and don’t see it, call me at 630-516-1115 or get in touch.

 
 
 
 

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