MACHINERY

THE MARKET for used industrial equipment is a big one withmany sellers out there. Any purchase decision regarding usedmachinery has to be made after considering many thingsbecause even in the secondary market for machinery, thecosts are high and you are making a significant investment.Here are the factors that you should consider whenpurchasing used machinery:

lYour requirements. You need to have a clear idea ofwhat you wish to buy and how it will add value to yourbusiness. This entails knowing the process flow at yourmanufacturing base and the remaining useful life of theequipment.

lYour budget. Your budget will dictate many thingsincluding the brand and exact model type that you canpurchase. You need to have a clear breakdown of costsassociated with your purchase decision. These include cost ofadditional space required, if necessary; cost of transportingthe machines to your factory; dissembling and reassemblingthe machines; cost of machines and various dutiesapplicable, etc.

lPartnering the right people. Given the global nature ofthis business, it is not possible for a buyer tobe in the know about the best deals out therein terms of cost and quality. This is wherebrokers come in. A good broking firm will beable to present you with multiple options andhelp you select the best used machinery foryour needs.

lVisual inspection. The importance ofthis aspect cannot be overstated. Theinternet has made communication easy andyou can conduct a lot of your businesscommunication online but there is noalternative to physically inspecting themachinery. Used machinery is usually notwarranted. You need to know the extent ofrefurbishment, and get an idea of the actualstate of the machinery. You should insist ona test run and keep your eyes and ears openfor tell-tale signs of machine ill-health suchas unusual vibrations or noise. Find outabout the state of maintenance and keepyour eyes open for worn out parts.

lTrade fairs. Businesses, whether big orsmall, benefit immensely by regularly visitingused machinery trade fairs. Learningacquired and contacts made at such tradefairs can often prove invaluable when you getdown to making decisions.

lNegotiate. Yourphysical observation ofthe machineryempowers you tonegotiate with the selleror the broker. Do nothesitate to name aprice that you feel is fairfor the machine. Tryand get favorable termsof delivery such as freeto your site,transportation to beborne by the seller, etc.Get everything on paper. This is a very important step inbuying used machinery. Get everything on record, from thefirst formal quotation.

Machinepoint's global HQ is in Valladolid, Spain; thecompany also runs an office in Ahmedabad, India, whereRohan Shahane, who deals with South Africa, is based.

powerfulrobust

reliable

THE MAXIMA SERIES

5,000 – 30,000 kN

Hydraulic injection molding

machines for large parts

�Maximum mold installation area

�Minimum space requirements

�Built to last

Tel: +27 11 902 1010/1 Fax: +27 11 902 1187 email: sales@sescc.co.za www.sescc.co.za

Unit 2, Wadeville Industrial Village, Crocker Road, Wadeville, 2420

Machinepoint, a global supplier of used

machinery for the plastics and rubber industries,

supplies a guide of what to pay attention to

when buying used machinery

At MachinePoint, agents searchthe world over for quality usedmachinery

www.machinepoint.com

Wales to impose bag levyTHE Welsh government is planning to enforcea nationwide charge of 7p (about R1) onsingle-use bags from March 2011, butbusiness leaders have warned that this couldleave consumers hot under the collar, whileretailers have allegedly been given insufficienttime to prepare. As in South Africa, the newWelsh law affects every kind of retailer.

BUYERS GUIDE

68 AUGUST / SEPTEMBER 2010

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