Lifestyle of rich and famous machine tool dealers



Specializing in one area might be proffitable depending on what the compition looks like.
Your gonna have to have a alternative in place should your specialty become obsolete.
The problem as i see it is, does igy have the contacts to get in the door and sell his expertise?
What igy is considering is a very complex with a lot of variables.
Best Regards Tom.
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The "falling bottom" is simply prices of used machines that fall. Lower prices are available for buying, when that happens. 2008-2009 were great years, for me, to make money. Example was Syncrowave 250s bought for $150 each and resold for $750 each. Very typical of the time in question.
i
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wrote:

Ok, again, you're talking about welders. Selling to service businesses may be completely different than to machine shops.
But when you bring up CNC machine tools, you're getting into machine shop territory. There, you can count on the bottom end of the market being very fragile in a weak economy.
--
Ed Huntress



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On Tue, 02 Aug 2011 23:51:14 -0500, Ignoramus2407

With that outlook and flexibility, you should do well as long as you have ideas for the next phase of your business career. The down side of being a solo business is that if for any reason you have to stop working for awhile, the business stops. Having employees is a hassle, but it's insurance for you if you manage the business well.
RWL
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<GeoLane at PTD dot NET> wrote in message

I think you hit the nail on the head. In chicago there used to be 100 used machinery dealers on lake street. I knew most of those guys, they were for the most part a product of the post WW2 industrial boom. A lot of them were father son bussineses. Had dinner with a lot of them, they all had the same problem of the boom or bust cycle. Some of the younger guy's insisted that globalazation was just another down turn and things would return to normal eventually. They actually believed globalaztion was just a fad!!! Some of them had an emotional attachment to thier business and would do anything to save it. They used up thier line of credit and at the very end were paying thier bills with credit cards. Eventually the banks took over thier property because they had taken out loans to support thier business. In 2000-2001 i was getting calls, hey tom you like that XXXXX come and get for free before the bank takes it. The smart ones seen the wrighting on the wall and changed thier bussines model. A couple of guys i know scraped everything they could not sell right now. They converted thier buildings ( some of these places 3 to 5 stories high filled with machines and tools) to lofts or condos. One dealer junked his entire inventory and is now a fine arts dealer and converted his wharehouse to a gallery. They survived because they were able to change thier business model and didn't beat a dead horse.
As far as buying cheap and selling cheap, it's a great hobby. All the guys i knew ( the real machinery dealers ) would buy low and sell high. Your not going to make a living making selling something for a couple of grand every 3 months. The basic mode of operation for decades in used machinery was to buy a machine bring it in to the warehouse. Clean it up paint and repair if nessesary. The margins for decades was 10:1 Min. often times more than that. And you have to cutomers for your machines that are end useres ( factories). Developing contacts and buyers is very hard to do in manufacturing. The purchasing agent has to know and trust you. Cold calling won't work. Most of the time your gonna need an intro from someone they trust before they even talk to you. Its like a big family within a given industry, everybody nows everybody and they talk to eachother. If you get a bad rep your done. In todays ecconomy with outsourcing and globalazation there is not much of a market for used machinery, i don't think you can make a decent living (Long Term) selling to the HSM market.
Just a small offering from my point of view after 32 years in business.
Best Regards Tom.
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Thanks Tom.
Great post (and thanks for the private email also).
i

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wrote:

That's what I told a nearby machinery dealer when I bought a machine from him for a lot less than he normally sold things for. As long as they have volume of reasonably priced stuff to sell, they'll have a business. If their source dries up they lose out to the imports.
RWL
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<GeoLane at PTD dot NET> wrote in message

Yep seen it happen, there was a family business selling used tools to the hobby market in chicago, the owner would go to auctions and buy inventorey and his brother and mom ran the store. Every time i went into his place he was bitching about Enco killing his business. They closed thier doors in 1995. One saturday i seen him kick a guy out of his store when the customer said i can get the same thing at Enco for half price.
In the hobby market the buyers want it cheap, on used stuff thats common you have to offer it at about 1/4 the price of Enco. Hobbyists don't always consider quality just price.
Best Regards Tom.
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I look at it very simply, if I cannot make money on something by selling it on ebay, I do not buy it. Thus, I can easily sell to hobbyists.
I do, however, know super cheap people, who like to snoop around my garage, asking a lot of questions, wasting my time, always wanting to get the deal of the century from me. I do not particularly seek such buyers.
i
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wrote:

Thats a real problem, the time wasters. Your gonna have to find a way to filter them out so they don't have access to you. Selling on ebay is one way to do it. Not dealing with general public personaly is the only way your going to have enough time to run your business properly. When i first started out i had my office in the back of the store. When a customer came in i greeted them and tried to help them myself, that was a big mistake. Within a few months of advertising in the local trading times paper i had aquired some of these time wasters. Most of them are looking for a hang out to shoot the breeze with someone. Others wanna pick your brain and will never buy anything from you. You don't want end up doing the normal paper work until 3am because of some ratchet jaw. I hired a woman to take care of the store and moved my office to my other building next door. I installed a CCTV camera in the store and ran a cable next door so i could see who was in the store. I also installed a sensor in the front door that chimed me when someone came in. I instructed the gal that worked the store to tell anyone asking for the boss or the owner to tell them he is not here right now. If they asked when he would be back she would reply with a i don't know. It worked very well for me and allowed me to filter out the insurance sales men, tire kickers, time wasters and brain pickers. When someone came in that i did want to see i would come in thru the front door and greet them. Never told any customer i was next door. Never put anything on display unless it has a price on it, that keeps the cheapskates at bay. If you like the person thats buying the item give them a discount, that will keep real customers coming back.
If you go thru with your warehouse deal build yourself an enclosed office where cutomers cant see your in the shop unless you come out. After a few months the time wasters will find a new home and won't come around anymore. Also wall of an area and put the stuff you want to sell in that area. Put your new arrivals in the back room where customers can't go digging around. If a customer asks for something you have thats not on display but in your back room, tell them you have one at your warehouse. Give them a price and tell them you can have it brought over in a half an hour. Most of the diggers and bargain hunters won't stick arround. Never Ever take a customer in the back room to dig arround thats one of the things dead beats like to do. Be friendley but be firm. You can always sell your widget on ebay.
Some of the stuff i did when i had a retail surplus stores.
Best Regards Tom.
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Yes. I have done this for years. The timewasters are few and far between.
One guy specifically annoyed me a great deal, he would waste a lot of my time and almost never buy anything.
Altogether, this is not a problem, I just cut the conversation short when I feel like.

Yep.
Like I said,m the business of surplus has changed, and I sell most stuff online.
i
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On Mon, 01 Aug 2011 22:01:39 -0500, Ignoramus13162

and another reality check. Gunner has been doing this for awhile and isn't getting rich at it. He occasionally runs across similar deals, although not as frequently as you.
RWL
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On Tue, 02 Aug 2011 23:12:31 -0400, GeoLane at PTD dot NET <GeoLane at PTD dot NET> wrote:

Gunner has a good hourly rate but he doesn't bill for every hour he puts in at a client's site. I stopped doing that last year and we're all happier, I think. (I hope he sees this, but I won't see his reply unless it's via email.)
I'm not sure how much he makes on refurbing machinery.
-- Win first, Fight later.
--martial principle of the Samurai
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This has not been my experience. I just sold a 8" cross slide rotary table on ebay for $240, for example. I think that it is a great price.
i
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This listing (25086254524) has been removed, or this item is not available. Please check that you've entered the correct item number Listings that have ended 90 or more days ago will not be available for viewing.
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Gunner Asch wrote:

It looks like that link is missing the last digit. There are only 11 instead of 12.
Is this the item? http://cgi.ebay.com/250862545246
--
It's easy to think outside the box, when you have a cutting torch.

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I sold $2,303.42 worth of stuff on ebay only, in the last 31 days. This does not count the $2,000 diesel engine that I sold to its rebuilder, $1,000 sandblasting pressure pot, $100 anvil, $150 Miller welder, drill chucks, and more stuff that I cannot even remember.
i
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and a $300 Quincy 10 HP QR-25 compressor (cost $25 plus $40 loading).
i
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...

The people I know who do this have large warehouses full of junk they can't sell, or even identify. That's how I bought my load cells for ~5% of their original price.
jsw
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who do what "this"? sell to me? or who do what I do?
if the formr, i agree 100%.
i may regret having sold that quincy very soon.
** Sent from my Google phone ** I apologize for any typos **

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