In With the Old or In With the New?
I remember my first trip down to Moench Tanning in Gowanda, NY, contract in hand, hoping to get it signed before returning back to the office. It was sometime in the early 1990’s and I didn’t know much about the Mostardini embossing press the contract referenced. The plant manager offered up some softball questions for me to answer before signing. Even though I stumbled through my rehearsed answers, I managed to get them to put pen to paper.
Over the next few years, I learned about the machines we sold by traveling with a variety of machine manufacturer’s sales people and technical staff. I became familiar with the differences of refurbished equipment and new, and started to recognize trends in the purchases of each. Today, it seems tanners are more inclined to ask, “Can I get a comparable quote for a reconditioned machine?”
As material costs increase and margins decrease, there is more pressure than ever on the capital equipment budget. This means buying fewer pieces of equipment or finding ways to stretch what is available to spend. Like buying a used car over a new one, there are advantages and disadvantages to consider:
Work With a Trustworthy Supplier
New or used, choosing the right machine from the right source is number one. A good reconditioning shop will have the following information available to the buyer:
- Factory serial number
- Year of manufacture
- Original owner
All are important when considering what kind of work environment your machine has endured throughout the years. Pictures and documentation of the work done should be available to the purchaser.
Consider Your Existing Equipment & Process
Take into account your existing equipment when deciding. A tanner may need to replace one in a line of three or four shaving machines. It would be ideal to have all identical machines for consistency and maintenance reasons. However, machine manufacturers change their machines and swap models every number of years. It is possible to find a reconditioned machine resembling your existing fleet better than the newest version of the manufacturer.
Look for Market Price
A reconditioned machine can be more cost effective than new, but it will by no means be inexpensive. Depending on the machine, you could expect to pay 50% to 75% of the value of a comparable new machine. Most of the variance depends on the age and condition of the shell. A proper recondition is not just a coat of paint and a change of the oil. A fully reconditioned machine is stripped down to the frame. Then, reassembled replacing regular wear and damaged parts with original equipment manufacturer (OEM) approved parts. The goal is to supply the end user with a machine that will work like a new machine from start up through its service life. It should also come with at least a 1-year parts warranty, the same most manufacturers offer with a new machine. Being thorough is the only way to ensure success and that takes time and money. If it’s too good of a deal, beware – There are sometimes machines on the market selling as fully reconditioned that are not!
Mind the Warranty
In short, the warranty on a fully reconditioned machine should be the same as the warranty offered by the original manufacturer. Since most warranties cover parts only, don’t rely on it to save you from a bad deal.
Check Upgrades Against Your Needs
It’s the new machine manufacturer’s responsibility to get you into the newest model and showcase new features, updates and improvements. This is why doing your homework is important. New models can sometimes offer significant advances over older technology, but this is not always the case. I recommend something that’s been on the market a few years. Ask for a reference list. Don’t be afraid to use your contacts to find out how these machines are working at other tanneries. The manufacturer should also be able to arrange a test run of your leather on a machine in their facility or at another tannery.
Recently, I had the pleasure of starting up a machine not too far away from that first one we did in Western New York years ago. It was this machine that had me thinking about reconditioning versus new, since the one we put in is identical to the one we installed 25 years ago. The only difference was a digital input controller versus switch and buttons. Weigh the risk, calculate the reward and investigate your options when you begin your next capital investment. Projected reconditioned sales for 2016 are trending up again as used machine inventories remain abundant and tannery budgets continue to be stretched. Sometimes, there’s good match out there for you that will fit in well to your current process. Doing a bit of homework can preserve your coveted capital equipment budget and find the right solutions for your business.
Catch all that? Download our checklist when considering new vs. refurbished equipment.
About the Author: Steve Gilberg
