The Market Place
Buying Pre-owned systems
Buyers of pre-owned ATE systems are often purchasing systems to meet capacity requirements and already own one or more units of the same model. They may have discussed purchasing new systems with the OEM and are wondering if they can save some of their capital expenditure budget. If a buyer is very savvy about the pitfalls of software licensing, support issues, option compatibility and rev levels of components/cards, they could save considerable amounts of money.
If you are purchasing equipment through TEAM A.T.E. we will be working to resolve these issues for you to insure that the system will truly meet your needs. It is not uncommon for us to advise a buyer to budget new and expect to purchase from the OEM. Until the market develops for a particular system or the user better fits the profile of a pre-owned buyer, it may make much more sense to buy new. If we are tracking systems for you or know what you are using, we can let you know when interesting systems become available. If the situation meets your timing and needs we will try to construct a deal that makes sense.
Pricing
Although pricing can be a tough subject when it comes to the used market, we try to handle it in a straightforward manner. Pricing is always based on the economic alternatives available to the Buyer. Pricing will not always make sense to different Buyers at the same level. Here are some of the key factors we use to determine pricing:
· What would a like configuration on the same system go for new, today? This isn' t what the system sold for new. Prices generally go down over time as new models improve performance. Sometimes we need help in working out a reasonable range for these numbers. OEM' s don' t publish this kind of exact pricing for the general public, which is understandable. Different volume customers get different discounts.
· Is this system even sold new any more? If this model has been replaced by a newer, higher performance system, we look at the size of the installed base and the current level of demand for this type of model and configuration on the used market. Lower demand equals lower pricing.
· What is the supply of these systems like on the used market? For this type of system and configuration, are there many used systems available? Greater supply equals lower pricing.
· Is this a production requirement or is the buyer looking for a parts machine? As systems get older users will sometimes purchase systems simply for parts. Supply generally outweighs demand for the pricing to work on these kinds of purchases.
· What added value are we able to deliver with the system? In some cases we can arrange the software license, installation and warranty for a system we have refurbished making the purchase very similar to a new system. In other cases we can only deliver a system "as is". Pricing will reflect these differences.
We consider all of these factors when determining the pricing for a pre-owned system.
Selling surplus systems
If you have systems that are no longer needed and could be considered for surplus, here are some key factors to consider:
· Value- what price should you expect? We understand that you want a fair value for your equipment, but fair value has little to do with your book value. When a system is only a year or so old, it is very difficult to sell without a book loss. All of the items the OEM provides in support, training, warranty, and software licenses cannot be resold. Recreating these features can be very expensive or sometimes impossible.
For a Buyer to purchase such a system, a significant discount is required. As a seller you are faced with a decision to surplus a system or hold on to it. We understand that the book value of an asset versus what we can offer is part of that decision.
Conversely, a very marketable system that is four or five years old and in good condition can be worth much more than what a seller has in book value.
· Do we have a ready purchaser for the system or are we bringing it into inventory? If we sell a system in place, one that can be inspected running and in good shape, the value of the system can be significantly higher to the seller. Once a system is shut down, cold, and cannot be shown passing diagnostics, the value will drop. If TEAM A.T.E. is purchasing the system for inventory we must have enough room in the price paid to allow us to do refurbishment and hold the system until a buyer can be found. If we feel the demand for a system is very questionable, we will not consider taking it into inventory.
How should you make a decision?
We are more than willing to discuss specific equipment and configurations with you. We only ask that you are candid with us on the situation. We don't want to represent equipment as available if the seller is only trying to check values.
We try to be creative. Don' t be surprised if we ask you a lot of questions and come up with a possible solution that you hadn' t considered. We have done deals with consignment, trades, rental, time-share and other features. Whatever the case, we will respect your needs and try to make the market work for you.
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