In any manufacturing or processing industry, equipment and machinery utilization are critical in calculating production efficiency and productivity that impact profits. Whether you install new machines or buy used ones from companies that act as industrial tools provider, you must closely monitor the utilization of the machines. Do you notice that some machinery is lying idle for a long time and there are no plans for its use anytime soon? Maybe you will no more manufacturers the product? It would be best if you considered the option of selling it to some used equipment buying company or actual user.
Here are the other things to consider for deciding if it is time to sell any of your used machinery.
The extent of equipment usage
Keeping any machinery or equipment idle means that you are spending on its maintenance and upkeep without using the machine enough to recover the running costs; forget about making profits. Besides, the machine is incurring depreciation meaning the machine loses its value over time which is also a matter of concern. Consider the jobs you have in the pipeline for which you would use the machine and keep close track of its usage pattern together with the maintenance and running costs. If the cost of maintaining is higher than what you can earn from the machine, it is better to think about selling the machine.
What is the plan for using the machine again?
Besides considering the profit earned from a machine based on its usage, you should also consider the prospects of using the machine for upcoming contracts, both signed and confirmed and those under process. If there is no certainty about using the machine anytime soon, then it is always a better option to sell it. You can then use the funds for other purposes of your business and even buy some other new machine that helps to increase productivity. It is much more beneficial to focus on machines that have regular use and discard the ones that do not match the business plans.
Timing the sale
Although you might have made up your mind to sell a machine, you must sell it when there is good demand for the machine in the market. Higher is the demand; better is the price you can get for the machine. Therefore, soon upon deciding to sell a machine, start monitoring the market trend to ascertain the demand to sell it when the demand is high. To equalize the market forces and overcome the uncertainties of demand, it is better to sell it through some channels that help to reach buyers across different industries and regions.
When any machine starts aging, it shows signs of wear and tear that lead to frequent breakdowns, which increases the maintenance cost and reduces the output. Add to this the depreciation, and you might find that you are losing on the machine. In such a situation, you have no option but sell it.
However, it is always better to sell a machine during the time it has some resale value.