Article Written By: Clayton Arnold
A quick historic overview on lathes
With origins tracing back to Ancient Greece, lathes have been used for a long time to perform various operations. During the industrial revolution, the lathe was known as the mother of machine tools as it was used to create other machine tools that are still used today. This tool is used across a wide variety of industries on an even wider variety of materials. Lathes can be used to cut, knurl, or drill on metal, wood, plastic, and even glass.
Know your lathes
According to Statista, over $304 million worth of lathes are exported internationally from the United States each year. Being such a flexible and reliable machine tool, it is easy to see why the demand for this machine is increasing. As the second market continues to grow and more organizations look for a quick and simple way to sell surplus assets and equipment, the common challenge organizations face is knowing how to price and get the best value out of their used lathes.
How to price your used metalworking lathes
When pricing used lathes, there are several factors you must consider, including the specificity of the equipment along with numerous other variables. Age and condition of the item, models and features, supply and demand, and economic climate will all play a factor in determining the equipment’s fair market value.
Follow these tips on how to price your used lathes for online industrial auctions. Make sure you aren’t overpricing your assets to maximize the return.
Age and condition are obvious factors when pricing your lathes. There is an inherent risk for the buyer when purchasing used equipment, and they will pay more for new equipment to offset that risk. Most buyers will want to know precisely when the machine was put into production, the number of running hours, updates, or repairs to the equipment, along with technical specs and capacities.
The condition of the used equipment or machinery is the second pricing consideration, and it’s commonly tied to age. Here, proper equipment care matters. An item that has either been maintained well with the proper records or one that hasn’t been used much (low usage hours) will usually yield a higher price than one that hasn’t been taken care of.
When it comes to lathes, not all brands are the same, and some brands are much more desirable in the second market than others. Typically, lathes from well-known manufacturers such as South Bend, Mazak, and Hardinge will sell for more value when compared to lesser-known brands. When attempting to price your lathes, always include the brand name.
Certain lathes have specific purposes which will help determine the selling price. For example, CNC lathes will have a much higher selling value when compared to a traditional engine lathe. This is because of the complexity and functions of a CNC lathe. As such, the CNC lathe should have a higher price when compared to the engine lathe. On top of the type of lathe, consider what material the lathe has been used with. For example, is the lathe a woodworking lathe, or is it used for specialized purposes?
In any free market, supply and demand affect the prices of commodities. When pricing your lathes, it’s good to do a little research on the current trends in your intended market. Check out whether demand is high or supply is low. Are there too many similar items on the market? Is there a low amount of buyers looking for the product? In either case, that may hinder your chances of getting maximum value out of your items.
The great thing about technology and online auctions is that, unlike a local auction, you can sell your item almost anywhere at any quantity. Even if the factors are unfavorable in your area, you can reach markets where your equipment can sell for a higher price.
A more generic machine tool is far more likely to sell for a higher price than a machine tool that has been customized for your application. While customization may yield more production and results for you, it may limit the number of buyers looking to buy that item. This is because highly specialized items may suit your needs but the same specializations might make the item unusable to the next buyer.
In the case of online auctions, the more demand for an item, the better. When pricing your used lathes, consider whether or not it is generic and can be used in other production lines without modification or if it’s designed for a specific need. If you feel the lathe is generic, you can price the item higher
Pricing used lathes, and other industrial assets can be difficult and time-consuming. That is why we created the Aucto Asset Valuation Tool. This unique tool allows users to enter a few data points, such as the category, brand, or model of the asset for which they are trying to get an average price. The user will get back the estimated selling price of the asset in real-time. This estimate comes from aggregated historical data pulled from internal and credible third-party sources. When looking to get a selling price estimate for your lathes, we strongly recommend using the Aucto Asset Valuation Tool. Click the link below to start pricing your used lathes!
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