Stephen:

This is a strategy that implies that the machines are breaking down more
frequently and that not enough spare parts are available.
Therefore, maintain an inventory of used parts and sell them at a
premium during this down-turn.
Similar to a car, the replacement cost of  a single part is worth much
more than selling the total car itself.

In addition, these machines are not sold from inventory so the next best
thing is the repair market.

Just an opinion.

Charlie McMahon



Stephen R. Gregory wrote:

>Just thought I'd pass on something that I've just learned about. We've been
>looking at purchasing some used, or more politically correct I suppose,
>"pre-owned" pick and place equipment.
>
>Have found out that there are OEM's of these machines out there, that are
>buying as many of the used machines that are out in the open market as they
>can, to prevent them from being sold to the general market (like us guys)
>that want to buy them...just found that rather interesting...
>
>They don't want their used machines being sold and traded, and are trying to
>make sure that anybody that wants their equipment has to buy "New" from them
>by taking as many of the used machines off the market as they can...I guess
>that is one marketing strategy...don't really understand it, but I guess
>that's why I'm not a sales guy...
>
>Have any of you heard about this?
>
>-Steve Gregory-
>
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