How to Start Equipment and Machinery Supply Business

Last Updated on October 5, 2020

How to Start Equipment and Machinery Supply Business

Where to Find Used Equipment and Machinery 

In good times and bad, small manufacturing companies and other businesses are always going out of business. Others are just beginning. Some are relocating. Others are renewing their production facilities. Still, others are discontinuing some production lines. 

This constant activity within the economy always means used equipment and machinery being scrapped. Often abandoned or discarded.

As new companies being formed both in your country and abroad, there will always be a demand for serviceable second-hand equipment and machinery. 

If you keep your eyes open and work at it, you could make money by helping companies rid themselves of unused equipment and machinery. 

Consequently, you would find buyers, and you could supply the needs of new start-up corporations for good used equipment and machinery.

Types of Equipment and Machinery 

One of the first questions that may cross your mind is, “What kind of Equipment & Machinery?” You name it! 

Just about any kind of equipment or machinery you can imagine, like:

  • Vehicles (cars, buses, trucks)
  • Electrical Powered Equipment (lathes, presses)
  • Earth Moving Equipment
  • Aircraft Maintenance Equipment
  • Oil Production Equipment
  • Restaurant Equipment & Fixtures (stoves, grills, potato peelers, tables, silverware, china)
  • Construction Equipment (cranes, backhoes, borers, trenchers)
  • Tool & Die Machines
  • Computer & Office Equipment (computers, printers, sorting equipment)

The list is endless. From the smallest Commercial Equipment to the heaviest Industrial Machinery. 

Equipment and Machinery – Source of Spare Parts 

Just let your imagination run wild. Even dealing in “spare parts” for the same Equipment and Machinery can make you a very good living. 

I heard of one fellow who for a song, bought the inventory of spare parts offered by the makers of a certain airplane when they went out of business.

As there were many of these planes flying around the only source of replacement parts was now from this fellow. 

These opportunities are not rare. In order to locate an inventory of spare parts, all you have to do is keep your eyes and ears open. 

Watch for businesses, of any kind, that are going out of business, cutting back on production, expanding production, moving to a new location, or making any kind of changes in their production facilities. 

This information is, usually, reported in your local newspaper, business section. There is a publication called, I think, The Bankruptcy Reporter. Simply, clip these items for ready reference. Be sure to watch for newspaper articles in newspapers from your surrounding area too. 

Also, listen to the news on your local radio & TV stations. Keep a notepad handy and write down the names of companies that are laying-off employees, closing their doors, opening their doors, or of any changing their production capabilities. 

Drive by the various businesses and see if they have any equipment sitting idle in their yard. 

Example of Used Golf Carts

One fellow I know drove by a Golf Course and noticed 60 old Golf Carts sitting behind the Pro-Shop. He stopped and asked about them. They had just purchased all new Carts for the Golf Course and were not sure how to get rid of the old ones. 

He got a firm purchase price as scrap metal and, then, offered them to a volume buyer at $100 more for each cart. As a result, he came away with a serious profit for almost no work.

You could do the same. As you find out about companies that may have the equipment and/or machinery available, go and see them.

Don’t telephone, or write to them. 

Tell them that you read, or heard, about the changes in the operation (whatever that might be; closing, cutting back, renewing equipment, changing production), and you were wondering if they had any excess Equipment or Machinery they would like to get rid of. 

Some will. Some won’t. If they do have excess Equipment or Machinery, get a complete description of the items. And personally look over the items to determine their condition. 

Finally, find out what the item of equipment costs them; new, and how much they will take for each item. 

You may either add-on an appropriate commission for yourself, get an option in writing, or ask if they will pay you a commission if you bring them a buyer. 

Selling the Equipment or Machinery 

Then, offer the Equipment or Machinery you have located to companies or businesses that may have a need for that kind of item. 

When making your offer to buyers, start your letter with the phrase, “Available For Immediate Sale.” Don’t try to sell the equipment or machinery by cold calls on the telephone. It is a waste of time, effort, and money. 

Your form letter to many potential buyers should give a complete description of the item, or items (including the manufacturer’s name) its condition, and the asking price.