Across the globe, countries’ economies have been severely impacted by the arrival of the Covid-19 pandemic, and we still are seeing and feeling the consequences. Because of the uncertainties brought about, many companies have seen great economic losses and have adopted new strategies to overcome the situation. Cost reduction is an opportunity that can positively benefit companies in the midst of recovery, and can be a great ally in world of used goods.
Choosing to buy or sell used equipment can yield savings up to 75% for a company. EquipNet, a global asset management company with more than 20 years of experience, assists its clients through the process of negotiating used or decommissioned industrial equipment, of any value, in more than 20 industries, such as Food, Pharmaceutical, and R&D. “To remain active in the market and without losses, companies need to look for ways to meet these new needs,” says Roberta Bosignoli, Operations and Business Development Manager at EquipNet’s Brazil Headquarters. “In addition to reducing costs through the sale of equipment that is no longer useful to the company, our service also offers a restructuring alternative through the purchase of used equipment, which has a much lower cost and offers quality in efficiency.”
There are four main benefits of entering the used equipment market.
Reduced maintenance costs
Keeping equipment up and running generates maintenance costs, a need for additional labor, and additional expenses such as energy consumption. Selling equipment that no longer has functionality for a company can bring significant opportunities for cost reduction, in addition to profit from the value of the product.
Reduction in depreciation costs
Depreciation expense is the amount lost from general wear and the expected life of a piece of equipment. By selling a product that is unused and no longer contributes to revenue generation through lack of use, it is possible to eliminate depreciation and performance costs.
Tax reduction and insurance
Selling unused or unneeded equipment can reduce the cost of taxes on the piece of equipment itself. Also, it is possible to achieve reduction in insurance costs. Often, unneeded pieces of equipment are still covered by insurance, so determining what needs to be covered and what can be removed can help save money as well.
Service and warranty
When buying used equipment from a reliable company with a specialized focus, it is possible to verify, through a registration request, if a piece of equipment has received proper maintenance during its life. This serves as a guarantee that the asset is in good condition and will perform well for a company.