One of the biggest expenses that new business owners face, is obtaining equipment.

The equipment required to set up, even a small distribution centre, can quickly run into thousands of pounds.

New business owners are encouraged to save on initial cost by:

• Buy only the essentials.
• Shopping around extensively to get the best possible price.
• Leasing instead of buying.
• Buy refurbished or second hand.

In our last article, we showed you the benefits of taking advantage of close-outs and auctions, to buy second hand shelving and other warehouse equipment. While it helps save on the initial cost and can aid intelligent warehouse design, buying second hand is also fraught with difficulties.

90% of the time, the choice to buy used is based in price.

You can save up to 40% off the price when you buy refurbished, but that decision requires careful consideration.

The following are common misgivings buyers have when buying second hand shelving:

1. Unclear classification.

Different sellers classify or grade their stock in different ways. One seller can grade ‘presentable with some wear and tear’ as a grade C product. Another may describe the same condition as a B. Buying unseen can lead to unpleasant surprises.

2. No warranties.

When buying older configurations, it’s impossible to get a manufacturers warranty. This means parts may be hard to come by and support may be non-existent. This is made worse if the manufacturer has gone out of business.

Since you are basically taking the word of the seller, you rarely get a solid warranty. There is always going to be a level of insecurity regarding just how long the equipment will last.

3. You cannot inspect before you buy.

Sure, a competent reseller would straight and repaint any refurbished equipment. But can you really be sure of the condition BEFORE it was touched up? Do you know if it was bent out of shape before being straightened? You never really know the extent of wear or the estimated service life left.

4. Always request the manufacturer’s documentation.

This documentation should clearly show the UDL and a maintenance note/log, This information can allow you extrapolate just how reliable it is. This allows you determine if this it is prone to collapse during peak.

In the bid to save money, don’t end up with an inefficient process/warehouse.

5. Check the cost.

There is always the possibility that the shelving will cost you more than it’s worth. If the shelving collapses when fully loaded, your business will incur an unwelcome expense.

Buying used equipment is a lifeline that many new businesses take advantage of. The simple solution to avoiding any of the cons listed is to buy only from a company you know and trust. Granted, problems may still arise, but it is easier to avoid the common ones if due diligence is carried out. Avoid buying unseen, don’t believe any descriptions you are given and know the going rate so you can tell if the deal is too good to be true.

Monarch Shelving Limited is a seller of new and refurbished shelving, racking, bins and other warehouse equipment. Want to upgrade your warehouse storage without breaking the bank?

Contact us today, our experts will help you.