New. Used. Refurbished.
You will come across these classifications any time you want to buy any type of equipment.
In the warehousing industry, some countries have even added Renewed to this list of classifications, but what do they all really mean? How do they affect your business?
We know setting up a new warehousing or distribution business can be expensive. You may have access to unlimited funds; you may also be on a tight budget. The question is how can you spend wisely and get the most bang for your buck?
With many options and even hybrid options available, knowing the differences will allow you make a decision that benefits your situation. This article will walk you through the differences between new, used and refurbished pallet racking.
NEW RACKING.
New pallet rack is always sold through authorized rack distributors. They source the racking directly from the manufacturer. They are classified into Stocking and Non-Stocking distributors. Depending on the type of racking needed, the prices offered can vary across the board.
Stocking distributors and dealers can usually offer the best discounts as they have a better profit margin to work with. They also sell a huge volume hence can get great manufacturer deals.
Non-Stocking dealers, on the other hand, use a drop shipping model. They do not stock the pallet racking. They receive the orders and ship directly from the manufacturer. This model takes time to get to the end user as there may be a shortage of a particular type at the time of purchase.
Regardless of time taken, any pallet racking classified as new, comes with a vital manufacturers’ warranty.
New racking offers the guarantee of a manufacturers’ warranty, but it can be expensive and may also take a long time to get delivered to you.
USED RACKING.
Used racking is generally sold based on the condition. From ‘new’ beams to rusted and dented uprights, there is a wide spectrum of parts available. Used racking can be a good investment for first time buyers on a budget. Buyers should ensure a thorough inspection is carried out to ascertain the structural quality of the pallet rack.
Using the internet to find dealers can be a bit of a hit-and-miss, as anyone can set up a website and claim to b a dealer. To increase your chances of getting the best used racking:
- Look for dealers who have been in business for a while;
- Ring them up and speak to someone about their equipment;
- Offer to drive down so you can inspect before you buy (this also allows you see if they actually have an office/equipment on ground);
- Keep an eye out for the degree of rust on the rack. Just because you want a cheaper product doesn’t mean you have to buy scrap.
If you are not satisfied with their used racking options, it is time to look for Refurbished Racking.
REFURBISHED RACKING.
This is also a low priced alternative to new racking, but there is only one problem. With no industry enforced standards for what ‘refurbishing’ actually entails, it is subject to the dealers’ interpretation. Knowing this, you should ask the dealer what their version of refurbished means.
They should be able to tell you what processes do they use to refurbish the products.
Equipment advertised as refurbished should be:
- Thoroughly inspected and all cracked parts replaced or repaired.
- They must also be thoroughly cleaned. Dirt, old labels, stickers, rust must be scraped off.
- Paint for industrial applications should be applied after the first two processes have been successfully done.
At this point, the rack is considered as good as new. Some dealers go this far, but sadly many do not, and still claim they do. A thorough in-person inspection is necessary, if you want to buy a refurbished pallet rack.
Knowing what kind of racking you want just isn’t enough. You need to decide what condition will suit your needs and budget, and be willing to put in the leg-work to guarantee the quality of what you are buying.
At Monarch Limited, we specialise in thorough refurbishment and speedy delivery of pallets, pallet racking, shelves etc. Call us today and have a word with our knowledgeable sales staff.
