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In the News
United States, August 11, 2010
Food Processing Equipment Auctions used more often
This FoodProcessing.com article provides more insight in how auctions of Food Processing equipment can be used to buy or sell equipment, processing lines or entire plants.
It addresses the pro's and cons of buying used equipment...
In an auction sale, "It's all as-is, there's no warranty or return policy, and we don't test the machinery out," It's not bad, it's just a different business model. In exchange for getting what may be a bargain, buyers who use auctions should perform their own inspections before the auction, and know what they'll need to do to bring the equipment up to snuff. And in a recession, bargains have become an increasingly relevant means of budgetary survival.
Buyer and seller both can win in the used equipment market. Equipment in the food industry tends to retain its value better than that in other industries. Even a 10-year-old machine that is well maintained may still bring the seller up to 50 cents on the dollar if the processor conducted good preventive maintenance. And it can bring the buyer savings of 50 percent or more.