Equipment Dealers- My new take on the equipment industry

Hello all,

My name is Brian Tunink, and I have been in the used printing industry for going on 8 years. I started work at Technigraphics Inc as a rigger/installer, then moved into sales. I left there in 2012 to start my own company, The Press Link. After a falling out with a business partner, I acted as an independent sales representative for M3 Graphic Machinery for a period of about a year. I spent this time thinking of new ways to grow in the printing industry. New ways to sell equipment, new ideas to give me an edge on my competitors.

After all my thinking I figured the best way to help myself, is do what I've always done: be aggressive, be transparent, and be innovative.

This led me to start a company called: Sellyourpress.com.

I know what you're thinking: He's just another dealer, pedaling the same stuff that everyone else is. If you'd thought that you'd be wrong.

My take on used equipment is quite different. In that, I've always felt a personal connection, a sense of respect for the printers I've dealt with. I've never thought of myself as a salesman. I've always thought of myself as a customer service rep more than anything else.

In saying this: My company is totally different, in that it focuses on the end user, the printer, that has worked very hard to survive and thrive in these lean times. I can with my head held high state this with a straight face say that profits are not my main concern, not even my secondary concern.

I can point to my business model to show that my focus is on the customer:

My model is a radical departure in that I net retail end user pricing to printers. What does that mean? Let me give you an example:

A printer that is a running company has a 1999 SM74-6P+L. He plans on liquidating this press to purchase the next new thing in digital equipment. A dealer would approach said printer and most likely offer $150,000 to $170,000 depending on the condition of the machine.

The dealer that ends up getting the deal usually will end up selling the press for $245,000 to $295,000 or even more depending on the dealer.

What my business does is it goes out finds said printing press, comes to an agreement with the printer, then seeks the highest dollar possible for the press, let's say $225,000. I would then net that dollar figure to the printer less a certain percentage, say 2.5%. The buyer that purchases the press would also pay a 2.5% commission. Making my total commission $11,250.00, split between the buyer and the seller. This number is far less than normal commissions made on presses that sell on the market today, but that's the point. I make less money, but the printer NETs far more than what other dealers are offering.

Using my model, the seller of the press receives a 22% or $50,000 higher net number, and the buyer potentially saves up to $70,000 or 31% off a figure of $295,000.

The reason for my explanation is that it's pretty obvious that it's a different idea, but also because I wanted to engage printers on this forum and get their opinions on the idea.

I am more than happy, and willing to answer any questions that you may have about this side of the industry.

Thank you for reading, and I appreciate the feedback,

Brian

 

Hi, just checked out your website...
Having a "contact us" instead of $ amount is not innovative as pretty much all dealers practice hiding the prices which I don't understand, I mean if you want 225K for a press, what is the point to hide it? waiting for a chance to find a fool who will bite on to 240K? nor it is a transparent - same shadowy - call us for a sales speech approach
But idea was nice, I guess.
I have a Polar ES-78 cutter and want $27K for it, Duplo DBM-5000 w 2 towers and want $42K for it, Heidelberg QM46-2 with Strate-Flo Envelope feeder for $8500, Like new Konica Minolta Bizhub C65HC with EFi Pro 80 Fiery, only 229K pages price $14500.
Not ground braking, not innovative but honest and transparent, I would obviously consider reasonable offer but being a straight forward is important. If I have only 170K for the press you want 225K for and it is transparently displayed on your website , I just did not waist mine and your time calling and asking...
Good luck.

 

Thanks for the feedback.

When I email inventory I always include pricing.

If the idea is to preserve value, yes hiding pricing from the website generally speaking keeps the item from becoming a comp for other dealers ie a price to undercut.

I don't set pricing. I can propose or suggest but ultimately the printer sets the price point.

using my system I can't tack on any extra money. My commission is set via a percentage and once contacts are signed I put buyer and seller directly in contact with one another.

Again everything is totally open book and geared towards money/equity being kept with the printers and out of the dealers pocket.

Brian

 

Hi, I don't mean to pick at your business model, please don't get me wrong but, if you, for example set a lowest price based on some researched, and this comes directly from the owner of the equipment and some dealer can undercut it... perhaps it is priced wrong, I mean assuming it is a exact same piece of equipment, if some dealer could buy it from the owner, dismount it, transport it to his warehouse, perhaps assemble it for possibility of demo, possible do some fix-uppings to make it more attractive and still undercut the price form owner directly - there is something wrong here. Plus you go to a supermarket or where ever - all pricing is displayed upfront, look at amazon.com for example, there is no undercutting, i mean, there most likely is but hey, i have a product, this is a condition, this is the details, here is my best price take it or leave it... The whole world based on this simple transparency, well, may be not whole, I guess print industry's gears turning in different direction.

 

The only issue is the fact that most dealers don't do all that you are listing.

They generally broker, and do not buy the item.

True dealers are FAR and few between. They are not putting out the money on inventory unless they can down right steal it.

I will definitely consider your suggestions for sure, I just need to make sure that I maintain the ability to net the highest dollar possible for my customers.

Brian

 

Just a quick update:

So far so good! From June 15, 2014 to December 31, 2014 we have saved printers over $1,228,500.00 on their used equipment purchases!!!!