A friend has offerred to sell me his used powermatic lathe with associated tools. The equipment is all about 10 yrs old and has been very well maintained. He has original pricing for everything. I want to make an appropriate and fair offer for it and am looking for a good rule of thumb. A search of eBay has not been particularly helpful.
So the question is: what rule of thumb would you use to discount used equipment and tools from the original price – given the age and very good condition and maintainence? 1/2 original price? 2/3rds? 3/4?
Thanks,
Randall
Edited 2/6/2009 10:09 am ET by rhagenstein
Replies
Having worked for a tool dealer it varies with location and type of tool. A table saw or jointer in pristine conditon can sell for the original cost of the tool in many cases. More likley from a dealer with a warranty. A lathe typically can sell for less as it's not as high a demand tool. Name brands sell for more than lesser known brands. Big three phase tools can go 10 cents on the dollar as many folks don't know how to deal with three phase tools. Plus the size is intimidating. My 16" three phase used Oliver jointer cost me $1700 but at the time it was still in production and new was $11,000.
Offer a friend too little and you will tick him off to no end. If you offered me 2/3's I'd show you the door so fast. Let him suggest a price. If it's something you want be prepared to pay 3/4 to cost of new unless there are others circulating at less on Craig List locally. Ebay depends on the location as well. Getting one sight unseen from 1,000 miles away involves some risk, so take that in consideration or just buy a new one if the warranty is an issue.
Edited 2/10/2009 7:30 am ET by RickL
Rick's post is a good one. I will add: I'll always pay more when it's a tool that's obviously been super-well cared for. Nothing I love more when buying a used car or tool that someone who's obsessive/compulsive about how they care for it.
If he is a friend, then tell him to tell YOU what his price is. Don't offer him anything. "What do you need for this?" Make HIM start the price bidding. If it is too rich for you, then tell him and negotiate. If way more than you want or or willing to pay, then tell him you can't afford it and walk away. His original price at this stage is really worthless. A lot depends on your location. Way down south where I am, prices are much higher on good equipment than up north. Look up something new that is comparable, Half of that is a good start.
Rick, FG, and jwoodck:
Thanks for your input and advice. I very much appreciate it.
Randall
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