How Used Storage & Handling Equipment Can Complement Your Business

Presented By: Al Boston, Business Development AK Material Handling Systems

Monday, September 26, 2011

 Located in Maple Grove, MN Founded in 1988 Full line material handling distributor Specializing in new and used pallet racking Stocking Wholesale Distributor (WPRP) of New & Used pallet racks 1000s of successful material handling projects Largest Stocking Distributor of JL Wire mesh decks in the nation
2
Monday, September 26, 2011

New Teardrop Pallet Rack In Stock Inventory

3
Monday, September 26, 2011

Used Pallet Rack In Stock Inventory

4
Monday, September 26, 2011

Why buy New when Used Will Do?

Monday, September 26, 2011

Customers demand used options even if it costs more.

Monday, September 26, 2011

Out with the OLD...

Monday, September 26, 2011

In with the NEW...

Monday, September 26, 2011

Incoming Lead... Do you supply used?

No.

2. Discussion. 3. Determine that new rack system is what is needed. 4. Quote and sell the right rack system.
9

Yes.

Monday, September 26, 2011

10
Monday, September 26, 2011

Website Landing Page with both options: New & Used

11
Monday, September 26, 2011

2010 AK Sales Breakdown $10,000,000 Gross Sales

Used Sales 5%

New Sales

95%

12
Monday, September 26, 2011

Bottom Line
Usually quicker sale Sense of urgency Convenient generally in stock or just coming down Terms are COD so better cash ow

Monday, September 26, 2011

When to NOT provide used equipment:

Fortune 1000 usually buy new although they can be good sources for trade-ins. When the rack manufacturer provides customer lead. You decide that used would not be appropriate for customers image. Building codes or capacity required may restrict use of used equipment.
Monday, September 26, 2011

What are the RISKS to the distributor:

Your Integrity. quality and representation = customers expectations. Used product styles and nuances will be harder than representing a new product. The inventory of used products coming in will rarely equal the amount used product going out. Trust and integrity needs to be throughout your network. You are only as good as weakest link.

Monday, September 26, 2011

What are the RISKS to the End User:

Pallet rack is a system, not individual parts. Used product as parts most likely do not conform with original manufactures recommendations. PE stamped drawings are valid for current requirements meaning future requirements could be issue. Factory warranty or product liability insurance. Unknown Variables= capacity, condition, engineering design, steel gauge, yield strength, and prole are all up for grabs.

Monday, September 26, 2011

How to Mitigate the RISKS

Be open and honest with end users. Be sure to explain (system vs parts) and only proceed when they understand.

Clearly represent: sizes, condition, structural integrity, compatibility, surface condition, and assumed capacity. Preferably pictures. Verify items like labels/mixed colors or brands. Costs of round trip shipping on mis understandings not acceptable. If using a wholesaler remember the product is a reection on you. What is their guarantee.

Monday, September 26, 2011

18
Monday, September 26, 2011

What do you need to include in your Used Rack Proposal?

WPRP
WHOLESALE PALLET RACK PRODUCTS

QUOTATION # 60042938

Warranty
X NO Warranty
The used product on this quote is sold AS IS and WHERE IS.

8670 Monticello Lane N Maple Grove MN 55369 Toll-Free 888-578-1579 Main 763-488-9777 FAX 763-493-5014 sales@shelf-clips.com

Quote Date: 8/30/2011

Account #: 50102999

Main Phone: Direct Line: Fax: Shipping Point: Shipping Terms: Delivery: Terms:
Maple Grove, MN 55369 Prepaid & Add In Stock Credit Card

Quote To:
Mheda 201 US Highway 45 Vernon Hills, IL 60061 ATTN: Guglielmo, Steve

Proposal For: Used Teardrop Pallet Rack

QTY
100 500

PART NO.
USED USED

DESCRIPTION
USED Frame Interlake Teardrop 48 x 168 Green USED Beam Interlake Lug 4 5/8 x 108 Orange

PRICE/UNIT AMOUNT
$100.00 $25.00 $10,000.00 $12,500.00

Thank you for your quote request, Let me know if you have any other questions. NOTE: The used product on this quote is sold AS IS and WHERE IS.

Product Subtotal: Tax: TOTAL: TOTAL WEIGHT:

$22,500.00 $0.00 $22,500.00 12500 lbs.

You may sign & fax back as conrmation of your order. Your purchase order number:
A signed quote will be accepted as an order providing account is open and credit is approved. Special terms may apply.

All Prices Quoted Are Valid For Seven (7) Days. Licenses, Permits & Building Code Compliance Are The Responsibility Of The Customer.

Credit Card Information: Accepted By:

Credit Card Number: _______________________________________________ Exp._____/_______ Cardholder Name: ________________________________________________________________

Salesperson : Quoted By:

WPRP Jason Kasanezky

Date:

Monday, September 26, 2011

What should & how do you warranty used equipment?

Parts are not damaged

Parts are not altered from original manufacturers intentions

Parts are compatible even if not from same manufacturers

Parts are as represented

Monday, September 26, 2011

Presentation Recap
Offering used options opens the door for increased new product sales Taking trade-ins on used equipment provides full service Know who and when to supply used product Understand the difference between Systems & Parts Warranties should be clear to your client on your proposal Always represent used equipment responsibly~

HAVE FUN : ) !
21
Monday, September 26, 2011

Questions...

22
Monday, September 26, 2011

Thank you.
Contact Information:
Al Boston 763-493-5015 aboston@akequipment.com

23
Monday, September 26, 2011