Need help with an offer-please help

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Hi I am trying to get some brain power working here. I need help anotherwords. I want to make an offer to buy several pieces of equipment that were bought new less than 4 months ago-barely used. Maybe 100 pieces tops.

I will list these pieces so maybe I can get help.

Fletcher 3000 wall cutter
Fletcher 2200 48inch mat cutter
Hanson chopper-60 inch leg i think
Vacuseal 4468H
Miter Mite VN42 with generic compressor
Miter Mite Sander
2 Vises


I have checked out one website to get some numbers, but I cant find everything.This is a package deal. There is also moulding, mats, glass, and other items-please dont think of that in a price, but a bonus.

So can anyone give me some type of dollar amount to offer this person?

PL
thanks in advance
 
Do the warranties transfer? Four months old still is used. Think how much they say a "New Car" looses vaule as soon as it it titled.

Are you going to need to pay shipping?
What about other transportation costs / labor to get it to you?
How much is all of the bonus stuff worth to you and do you have room for it and really want it.

Is 25% off of list a price you would be willing to pay? Make an offer of 50% or 40% leaving room to negotiate.

I would imagine that if a "Reseller" were going to buy these and resell at a slight discount of 10 -15% OFF that they would be offering less than 50% as they can buy new items at wholesale.
 
The warranties, guess i need to contact the companies themselves. Shipping not needed i will pickup. I will rent a van an that is not a big deal. the bonus stuff is not anything to me, more for the seller to get rid of, not for my benny. I would be amking arrangments to sell it off at next to nothing.

I will go email the companies.

PL
 
Fletcher will transfer-either based on manufacture date or when warranty card was mailed in.
The same applies for Miter Mite.
PL
 
I paid $3500 for

4468
two wall cutters (C&H and Flethcer)
saw with clearmount scale
thumbnailer

no v-nailer, no compressor!

four yrs ago and thought I was getting a great deal. Still do.
 
ilinkah not to be rude, but this equipment is less than six months old, the vacuum press alone is $7800, a good price for this alone would be $4000 to $4,400.This seems extremely low.

j Paul this 40% to %50 off thing is what I am trying to figure. I have only come up with one price for each item, nothing to compare it too at this point.
Thanks


Pl
 
I would normally agree with Jerry on the half price thing for used equipment sight unseen but this stuff is only 4 months old!! I have to agree with you, Patrick, how much use could the owners have given that equipment in 4 months?? It is obvious that they didn't get alot of framing in during those months or they wouldn't be selling all their equipment so soon.

I would call UMS and M&M and a few of your moulding distributors that also sell equipment and get some figures on new stuff and go from there. I will guarantee you that, if you don't come up with a pretty reasonable offer for that nearly new equipment, somebody like myself that sees the value in making an offer over the 50% line will jump in and buy it out from under you while you are playing around with the numbers and waiting for answers on this thread!

Framerguy

P.S. Don't worry I am not in the market for more equipment but, ................. if I were .............!!!!
 
Originally posted by Framerguy:
I will guarantee you that, if you don't come up with a pretty reasonable offer for that nearly new equipment, somebody like myself that sees the value in making an offer over the 50% line will jump in and buy it out from under you while you are playing around with the numbers and waiting for answers on this thread!

Framerguy

P.S. Don't worry I am not in the market for more equipment but, ................. if I were .............!!!! [/QB]
Click to expand...
And that is why you want to keep the sellers name and location under your hat. Better move fast. Make an offer at 50% off new, see how motivated they are to sell right now. (Of course unless they paid cash for the equipment they probably owe almost has much as it cost new having only made 4 payments most of which would have been interest. Better make sure they have clear title to it.) If they don't accept, ask them to counter offer as in real estate transaction. At least it gives you a starting point.

Another point to consider is that if you were buying all of that equipment New from one supplier, what kind of deal off of list could you get? I don't know the answer but saving only 5-15% on used might not be any better than a bulk new purchase.
 
"Fletcher 2200 48inch mat cutter"

If you MUST have one ---do it
BUT you'd do better with the 60"er---arm mass is about the same and there is all that extra cutting length...better to have toooo much than to come up way short!!!!(where did I hear that BEFORE???)
 
Thanks-I am seeing new in the neighborhood of $25,000 new. But this is from an online vendor. This could be high, this is just for equipment. This stuff is all seen-it is in tip-top shape. No funny stuff here, I do need to act quick.

Pl
 
look at basic accounting...

cost - 1 year (4 months) depreciation = Net book value

that should give you a starting point. If it was my equipment, I probably wouldn't let it go for less than the NBV. Unless... I was desparate to sell it, and needed to pay off the debt if any was incurred.

On the other hand, if they Sec.179'd, its fully written off from the books and they have taken the deductions on their taxes. They may be more willing to negotiate to get rid of it.

I like to negotiate, so I would probably lowball it at half price and then go from there :D I also believe in being fair, and would have a fair price number in mind. It would have to be a good buy for me to buy used, or I would otherwise buy it new.

my 2 cents, for what its worth!

All the sunshine today has tired me out!

Elaine
 
NBV and Sec.179'd? I do not know aht these things mean. Thanks for all the help, got a number in mind, but not sure if it will work. Only one thing to do...Hopefully it works.


PL
 
Go buy a new car and drive it off the lot and see how much it's worth...

I would think starting at 50% is good advice. If you were buying everything new, would you buy everything they have in the same size and same model?

The inventory is probably worth 25-35 cents on the wholesale dollar...go ahead and factor that in if you want to, but unless they just happen to have all the equipment you need in exactly the size, etc. you would buy it in...it ain't worth a lot.

If you are buying the assets of a local competitor and possibly setting up a new shop...well, there is value to consider in that too.

Many variables here...


Dave Makielski
 
Why haven't they asked a price? Seems bass-akwards for you to have to figure out what they are willing to sell for. I would get them to blink first. IMHO.
Might give you an idea of how much they are willing to negotiate.
 
I just happen to run into them and they told me. If you want it make an offer. That is the way it went down, so that is why I am looking for smarter folks than I. I think I got what I need to go forth.

Hope it works!!!!


PL
 
Remember as with buying any used equipment!~ They want to sell it, do you really need to buy it or is there other available? There will be other available you can bet on that!~ This year there will be a boarder line cleanse!~
 
Patrick

NBV = Net Book Value. NBV= Asset Cost - Accumulated Depreciation.

Sec. 179. is the allowable deduction on your income taxes in the tax year for equipment - there is a limit (it was $25,000, not sure what it was for 2005) This is the amount of equipment you can deduct in full for the tax year and not have to depreciate it over its useful life (IRS dictated).

Hope that helps explain, but a conversation with the accountant would be better in figuring out how much to offer for used equipment.

Elaine
 
Section 179 since 9/11 has been increased drastically - $105k in 2005 and $108k for 2006 (unless you purchase more than $430k of equipment, then it starts reducing).
 
Thanks for the info Dave! I knew I hadn't kept up with it in the last few years after leaving that world, but that was a dramatic jump!

My equipment purchases have come no where near that :D
 
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