Buying Equipment: Logic: Chapter 16
When I first started the business that I am in today, I was quite apprenhensive. I was the new kid on the block. The major players had been in business for many years. Some were 3rd generation companies. It is inevitable in this business that pretty soon you get to know all the players. Some of these guys had huge big warehouses full of all kinds of used equipment. They had inventory that was worth millions of dollars. 12 salesmen, 4 gals who answered the phone, accounting departments, shipping departments, overseas offices in several different countries.....you get the picture.Here I was....a one man operation, starting with hardly any capital and no real contacts.
Observations:
The first thing I noticed was that the salesmen at these big companies had an "attitude". They always gave the impression that they were extremely busy....and that taking a call was a special favor they were bestowing upon me. They made sure that our conversation was interrupted several times. So rule number 1 at these companies was "act busy".
Second thing I realized was that these guys did not know equipment. They were salesmen. So if a client had a certain unique need, they had no idea which machine would be the most suitable. Unless, ofcourse, the client gave them the exact make and model of a machine.....well, well...
Third thing I observed was that none of them ever touched any of the machines in inventory. So if a guard was dangling...they let it dangle. Machines were left out in the open, exposed to the elements.
I suddenly realized that here was a golden opportunity staring me in the face.
I started by totally disassembling a slitter rewinder....down to the bare frame. This was a Cam 10, a 72" wide dual drum surface rewinder. The frames, guards, etc. were all sand blasted , primed and painted. All bearings were replaced with high speed needle nosed bearings. This was one of the most difficult and expensive projects, as I needed to hold exact tolerances. The next part was redoing all the idler rollers, the bed rollers, the rider roller, anvil roller, etc.
The cost of having the rollers done was a shock. If only I had a lathe....
I finally finished rebuilding this slitter rewinder. I also built a custom skid for this unit, so it could be moved without damage. I sold this unit to the first customer who came in to look at it.
Dr. Winder buy's a lathe:
It cost me over $2,000 dollars to have a simple idler roller made at the local machine shops. After much thought and calculations, I went ahead and bought a heavy duty Monarch engine lathe. As usual, I took this lathe apart and rebuilt it. This lathe paid for itself in the next winder I rebuilt. Over the years this lathe has paid for itself a 100 times over.
A decision to buy a machine should be very simple. How long before the machine pays for itself...the pay back period is the most critical element. Second, most of the time, you can save a fortune by buying a used, rebuilt piece of equipment.
Third....who to buy from and why.
OCC Orange County Choppers:
I love watching this show on TV, where the father and son team make custom bikes. When the bike is finally done..it's a work of art.
Unfortunately, I cannot do the same to slitter rewinders or sheeters. I bring the machine back or restore it as close to original as possible. Updates can readily be added, if the customer wishes ie.. latest state of the arts tension control system, shaftless unwinds, brand new disc brakes, computerized drive system etc etc.
