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Pallet Rack Purchasing Tips II

Removing the risks – buying used pallet rack and other pre-owned equipment

Certainly, you can save money by purchasing used pallet rack instead of new equipment. Are there are some risks involved? Yes! Will it likely to have a shorter remaining service life and is there no manufacturer’s guarantee? Not necessarily! A common misconception is that with used equipment you’re not really sure what you’re getting. You can, however, easily reduce and even outright eliminate many of these risks by simply dealing with the right people when entering the used market.

Here is a primer that covers a few of the basics.

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The Next Economic Crisis

Rising steel prices may cause more problems than fuel.

Back in 2006, the price of steel went a little bit crazy for about a month. Base prices, discounts and surcharges all fluctuated weekly – even daily. In the end, contracts were not honored and customers were charged whatever the market would bear on the day of delivery. Scrap, which had sold for 60 dollars a ton back when gas was $1.50 a gallon, was going for 150 to 200 dollars a ton depending on location.

Then things normalized. Prices went down a little and stayed more or less stable. There was some speculation for a while about whether the claimed shortages were real or the steel companies were just being greedy, but generally the whole incident was gladly forgotten. Well I hate to be the bearer of bad news, but the elements are in place for real shortages and even more drastic – even catastrophic – price increases.

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Who you buy it from is often more important than who made it

Pallet rack, like the majority of material handling equipment, is available from several quality manufacturers in the United States. The question of what to buy is normally fairly straightforward. The real question is, who you buy it from to get the best possible deal in terms of price, delivery and support. There are several options.

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