EquipNet marketing vice president Ben Potenza offers his top tips for buying second-user equipment.
Throughout the EquipNet toolkit series, the focus has centred on the benefits of asset management - making the most of the equipment already owned, and selling assets which are surplus to requirements.
Through this Q&A however, we will look at the other side of the coin - the benefits (and potential pitfalls) of buying second-user equipment.
Ben, can you outline some of the advantages a company can gain from purchasing second-user equipment?
Sure, in the current financial climate many companies, large and small, are working with restricted budget. Purchasing second-user equipment immediately generates savings of between 25 and 75% off the new price of a piece of equipment. In addition, it can save time too. A user can identify a piece of equipment and then, say, buy it through our online marketplace and have it delivered immediately.
What about potential issues?
Well, buying second-user can carry some risk. ’Buyer beware’ is an often quoted remark. Used equipment comes in all conditions and in most cases has no warranty. I guess this could sound scary to some - and put people off buying this way - but if you approach it right, a transaction should be successful. We have a large bank of stories of happy customers, many who have equipped their entire lab with second-user equipment.
Can you pass on some tips that will make it as easy as possible?
1. Pick the right channel to buy from
- Research the second user market, there are a variety of purchasing channels to choose from
- Choose the channel that best suits the type of equipment you want- be it an online auction or a direct sale
- Assess the risk of buying through that channel and look at their history of sales to satisfy yourself that they are a reputable organisation
- Know your budget and stick to it
2. Know your source
- A reliable source will work with you to provide maximum information about the item you are interested in - its previous history, use and condition, for example
- Check the supplier’s reputation in the market
- Suppliers may take a percentage of the sale as a fee, check the percentage up front to avoid surprises
- It’s highly recommended to organize a pre-purchase viewing of the equipment to personally inspect it prior to confirming an offer or purchase
- Make sure your source has experts on hand to speak with throughout the entire purchasing process - they should know the equipment and its application, and be able to advise you of its suitability to your needs
3. Know your product
- Some products are sold ’as is’ with no guarantee. So before committing to purchase you should gather as much information about the item as possible
- Check if the equipment can be serviced in the future and whether parts are easily replaced if necessary - knowing the exact model designation, year of manufacture and serial number helps here
- Photographs submitted to a sale sometimes feature additional equipment, something that can easily be misconstrued as being a part of the sale. Before purchase ensure you have checked that what is advertised in the images is actually what is on sale to avoid disappointment.
