Consignment Case Studies
Selling your used manufacturing equipment can be complex and confusing. At Aaron/AEK, we are your guide to the sales process, beginning with what outcome do you want to achieve? Below are 3 case studies illustrating how Aaron/AEK was able to help equipment owners achieve their desired outcomes.
Cleaning Out The Storage Room
A client purchased a spray dryer for over $1 million dollars in anticipation of a new project. When the project failed to occur, the client stored the spray dryer in a warehouse. The spray dryer was a “white elephant” requiring sixteen containers to store it in entirety. After storing the dryer for twenty years, the client engaged Aaron/AEK to sell the spray dryer on consignment.
After the initial round of marketing did not produce a buyer, Aaron/AEK launched a specialized marketing campaign resulting in a sale of the spray dryer for several hundred thousand dollars.
Growing Pains
A client’s business was experiencing significant growth requiring the purchase of a larger machine capable of higher speeds. As a result, the existing in place machine, a Weighpack Systems Swifty pre-made pouch machine, was no longer required.. Within 5 months, Aaron/AEK sold the machine from site at a price exceeding the client’s expectations.
The client was able to use the sale proceeds to help pay for the purchase of the larger machine, freeing up space as well as generating cash from an unused asset.
Show Me The Money
A bank client had repossessed an Arpac Shrink Bundler and wanted to sell the machine on consignment to recover its loan proceeds. AEK brought the machine to our warehouse where the AEK team inspected the machine and cycle tested it to demonstrate to prospective customers the machine was in good working order. By using AEK’s powerful search engine optimization and a proprietary mailing list of over one million prospective customers, AEK sold the machine at pricing and timing that met the bank’s expectations.
Despite the machine’s narrow market applications and market uncertainty because of the COVID pandemic, the bank was able recapture its investment.
