Shop Sell-out advice

[Randy_che]

My dad has run a starter and alternator shop for over 30 years. Last year, he had some major health problems and has decided that it's time to retire, or at least scale back to the bare minimum. That means selling the shop/land, most tools, inventory, and major rebuilding equipment. We've been posting the large equipment on CL, but not getting a lot of attention. Sold a couple of things, but no calls on the rest. I don't think he's asking too much, but it's hard to tell. Stuff is used and dirty and there may not be much of a market for some of it (large steel media blasters, lathes, arbor presses, huge vises, solvent sprayed shaker/vibratory washers, large sandblast cabinets, etc). Most home users and mechanic shops probably can't (or don't typically) use most of the equipment. It's not for part swapping, it's for cleaning up big metal parts for rebuilding/refinishing and reselling.

Anybody have an idea on how to move the equipment? Are there any industries that use this stuff other than starter and alternator rebuilding? Seems like anything needing to clean up big greasy metal parts could use it, but maybe I'm not reaching them the right way. He's in Oklahoma City, but anything can be shipped if they buyer is really interested. I'd rather have someone come and pick it up since I don't want my dad trying to help wrestle it into some guy's truck and die (sad, but possible). Seems like an auction is going to be a fail. Pay someone it give it away, but maybe I'm thinking about it the wrong way.

Looking for any feedback or ideas. Not in a rush, just trying to handle things in a planned and careful manner.

 

[balane]

Why do you think an auction will fail? I went to a shop closure auction near me a couple years ago. They advertised it weeks in advance on Craig's List both locally and in neighboring areas and kept bumping it up to keep it current until the actual date. I went and there were a lot of people present. It can be a tough pill to swallow but things like this are worth what people are willing to pay and often times that won't meet seller expectations. Good luck and I hope your father's heath improves.

 

[Thumper68]

I would contact these guys, http://www.hoffonlineauctions.com/

They are the go to guys in selling off industrial equipment.

 

[finn]

Either contract with an auction company or deal with the disposition dragging out, possibly for years.

By your own admission, the tooling is worn and dirty. That likely severely limits the market, and the eventual selling price in itself.

If this is a small family run business, I'd guess most of the stuff is decades old, and a lot of it is functionally obsolete.

 

[kunkernator]

Is the equipment located in Oklahoma City, or in Houston where you are? If it is in Houston, I may be interested in some stuff.

On another note, I agree with the auction not being a good idea, since it is "dirty and worn" equipment, people would not want to pay a premium.

 

[LXCam]

Old out dated equipment like this has no real value in this country anymore. Your best bet would be to partner with an auction house that sells to third world nations. I help part out an old rectifier facility a few years back that in this country, all that **** had no value. After some searching I located a company in south America that still used this type of equipment. It took a few months but it all went south.

 

[Lassen Forge]

Why not post an ad (with pictures) here in the for sale side? Might be some stuff that some of the guys would be interested in, if the prices are fair.

 

[Strouty]

Around here an auction would be your best bet. It sounds like the business itself is not worth a lot without your Dad. Look at local auctions and go see what things sell for, then talk to some auctioneers.

 

[zkling]

Basically your dad had a motor shop, and those are the types that would be interested in the specific equipment. Live auctions can be hit and miss on both the buyer and seller side. Sometimes I feel bad for the owner as they watch their stuff go for pennies on the dollar. Other times it is amazing what people will keep bidding on, way beyond market value used and even sometimes new price. Talk to your local industrial auction companies, maybe some local motor shops to get a feel for the local need.

Sounds like you are in no major hurry, so that will help greatly.

 

[Strouty]

The thing with an auction is not to concentrate on the individual items. You are selling it all, people are removing it all and paying you. Basically after the setup, you may have a day or two and everything is gone, you get money and the stuff is no more. You may take a hit on certain things and then others will help make up for it. The only way an auction won't bring in decent money is if it is not well advertised or you are kidding yourself and the stuff is really just junk. Most auctioneers will not do an auction if the stuff is junk, it is a waste of their time.

 

[1950mercury]

I had a friend who passed away that owned a shop that did that here in metro Detroit. It took his family forever to sell stuff on cl. Sadly most of it got scrapped. I would recommend an auction and cut your losses. Its got to be better than scrapping it

 

[2oolhound]

Stuff is used and dirty and there may not be much of a market for some of it (large steel media blasters, lathes, arbor presses, huge vises, solvent sprayed shaker/vibratory washers, large sandblast cabinets, etc). Most home users and mechanic shops probably can't (or don't typically) use most of the equipment.

re your list:

large steel media blasters, alternators and starters are not that big, how big can these be?
lathes, Right, I can't see anyone around here being interested in a lathe!
arbor presses, and who would want an arbor press
huge vises, Again, I can't see anyone around here who would be interested in a huge vise and didn't you say it was dirty too! ahuugggg disgusting! Who'd let their vise get dirty? They must have been actually using it or something.
solvent sprayed shaker/vibratory washers, You can get clean ones from china through harbour freight, maybe not as good but cheaper.
large sandblast cabinets, same again, who'd want one (that doesn't already have one)

I dunno man, this sounds like a gold mine to me. Wish I was closer.

 

[Randy_che]

Lots of replies, so I may not address each point. He's trying to part things out for now and transition to retirement/disability/whatever you want to call it. An auction may make the most sense in the end. I will consider it and start doing my research on industrial auction houses in the OKC area.

There are a lot of tools and items that would be huge hits here. He's not pushing those yet, but it will be soon. I may post some links in the sale area. Not sure of the rules there, but I'll try to figure it out. I'd like to see the transition by the end of the year, but ultimately, it's his business and his schedule. I do have the lathe on OKC CL and that has received no interest. I was surprised by that, given the general lathe attitude around here. He's not really good at giving me a lot of information (model numbers, other info, etc) so I feel like it's hard to make a convincing sales pitch. Sometimes I get one picture of a dirty machine and a manufacturer only.

Some of these items are beasts. I thought the comment about the solvent washer from Harbor Freight was good. his vibratory washer is a couple of tons of muscle and filled with several hundred pounds of aluminum tumbling shapes. It's not going into anyone's garage. Individually, starters and alternators are not too huge (large diesel truck and equipment starters are pretty beefy though). This is a small industrial operation. He does 10, 20, 30 items at a time. Whatever will fit in the machines and he has to build. I can't imagine using most of these things in a normal home or part swapper shop setting. I figured some kind of engine building or transmission building shop would see these things and jump on them. There aren't many manufacturers of these items and they are pretty expensive new.

Thanks for the input. Off to see what the sales area rules are. Maybe if I can get things in front of the right audience, more interest will be generated. Or maybe our country is beyond the industrial needs that some of these tools represent. Honestly, I don't care if some of it gets shipped to Guatemala or wherever, as long as somebody buys it and uses it. I'd feel ashamed if it went to the scrap heap though. That would be too wasteful, and I owe my dad a good try at least.

 

[rsanter]

If it is a viable buisness then how about you sell the buisness and then rent the building to the buyer

Bob

 

[Randy_che]

If it is a viable buisness then how about you sell the buisness and then rent the building to the buyer

Bob

He wants out, and doesn't want to do that. Too much stress and risk for him. I live too far away to help much. He just wants to sell out and retire. If someone wants to buy him out, he would sell out whole, but he's not in the real estate business.

 

[zkling]

Ah, I see the problem, your prices are absurd condition and all.

 

[Randy_che]

Ah, I see the problem, your prices are absurd condition and all.

Maybe so, maybe not. Any specific items you can help me guide his prices on? I don't know the current market prices for these items new or used. You can't exactly look this stuff up on Amazon.

 

[Hiball]

Maybe so, maybe not. Any specific items you can help me guide his prices on? I don't know the current market prices for these items new or used. You can't exactly look this stuff up on Amazon.

It appears you have had some of these items on CL since 7/12/15, Have you gotten any Hits? If Not it's time to lower prices or approach current business's in a attempt to move the tools. The True value of any item is what someone is willing to pay... it seems you haven't gotten in the Ball Park yet based off your own admissions.

Good Luck.

 

[Two Speed]

Has he approached other alternator shops in the area? The local go-to shop also retired, and all their stock and some of the equipment went to the other go-to shop in the area. I'm sure he approached all the shops, but it is probably the fastest way to move a lot of stock out and some of the equipment depending on what another shop may want to augment.

Alex.

 

[marctheprop]

Hi-Just read your thread and wanted to add my 2 cents-If you go the auction route you can't worry about every item's sale price. Some things will go cheap and some will exceed your expectations. If you don't go the auction route-then Two Speed has the right idea. The only problem is that a local outfit will act in their best interest; they will cherry-pick and leave you with the average or worse stuff to get rid of. Then you would have a really hard time getting a good result w/an auction. I know its hard to handle this stuff long distance. good luck w/your situation.

 

[Gogo300]

Is this Jerrys alternator and starter shop? If so I should go by and get an alternator and starter for my 78 caprice.

 

[ChevyEFI]

Wish I could budget a trip and the lathe.

The perception of values of items varies by generation. You couldn't import just anything you wanted for a peanuts on the dollar 50 years ago. People who were working age then view a $10,000 item as worth $5,000 now, no matter what. Even if it can be replaced with a new functional import replacement now for half that. Psychological economics.

Good luck with it all. It may be easier to wash things by auction and less heartache taking less than perceived value in one fell swoop than piecemeal by craigslist.

 

[jimindm]

I think an auction is the way to go for him. It liquidates everything, for real value. I would caution you on selling off the good stuff before calling an auction company. They have a certain amount that they have to make, to conduct a sale. It is much easier to do with some good stuff.

Unfortunately you dad is in the same boat as many. I go to auctions all of the time. Usually the retirement auctions really good, or really bad. It just seems like the older generation was very comfortable making a living with what they had. You can tell by just a few minutes of looking around at the sale.

I have been to retirement auctions that had the latest and the greatest. You know they were on top of things and stayed current on equipment to run the business. Other sales you are looking for something that is even up to current standards.

For me I look at it this way. Auctions will set the actual value of the selling item. For the people that keep modern, there is still a lot of good left in the equipment. For the others, the good is used up.

In the end, equipment is what it is worth. Most do not look at what it has made them over the years. The industrial cleaner may be a good example. It may only be worth scrap prices, but he made a living using it as long as he did.

You obviously can not give stuff away, but if he made a living with it, is that not all you can ask for? Over the years I have seen a lot of stuff that was fully functional, that was not worth nothing, and sold for scrap.

 

[Randy_che]

Thanks for all the feedback guys. Not ruling an auction out at all, but the end goal is to come up with an overall strategy that gets the most out of all assets. My dad's business is his main investment and retirement fund and I want to help him optimize that as much as I can - even if it means "losing" money on some items. In some cases it may be that the effort involved in trying to sell something is not worth the price it can bring. So be it.

I'm going up there in a couple of weeks and will discuss many of these points with him. Maybe I can improve some of the listings with better pictures, better research, and maybe better prices. Even depreciated assets can have some value. Used tools aren't worthless, but they may not be enough for someone to want to buy them. Supply and demand rules everything.

You guys have helped add a few new angles to my plans of attack, and I appreciate it. We'll figure it out in the end.

Thanks

 

[KenC]

I think I found the ad(s) on CL. As others have mentioned, pricing seems high given the type of equipment and condition.

Maybe consider hiring someone to pressure wash everything (and wipe with WD40 afterwards). Then get some good pics and relist individual items. And, price at the true expected selling price with NO OBO. That just screams that the seller has it overpriced and knows it. Consider useing Ebay to get a large audience.

While a lot of hobbyist lust after some of the items, price is king when dealing with discretionary spending.