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Selling used units, OMG! are you serious?


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#1 curjones

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Posted 09 November 2013 - 08:09 PM

I am cutting my teeth and grinding them down as well.  My tounge is almost knawed in half for I have had to bite it numerous times as I try to deal with some customers.

 

Guy wants a 90 day warranty, money back if the compressor should blow on a used freezer, selling price 200.00 a 20 cubic.

 

First I had to buy it with no guarntee it worked at all, or I could fix it.  New ones cost over 500-.  Mr if you want a warranty for the parts I did not make, you need to dig into more 100 dollar bills. 150.00 dollars is what I will sell a washer for and it has a 200.00 control board, 150.00 dollar motor.

 

I tell them I give them a 30 day labor warranty.

 

Guy takes dryer home, calls me back says dryer doesnt work,  will I come out and fix it, No sir unless you want to pay my service charge fee.  What's it doing, nothing he says,  When you push the on button nothing happens, he says what on switch?  Then I tell him where the switch is.  He says it did not come on .  Ok you need to bring it back to me, at my shop. (This is now my rule or policy)  He brings it to me and I plug it in it works.  He has a 220 outlet problem.  Thats why I dont do free service calls on units that worked fine in my shop.

 

Had a guy call me on washer, one week later lives 30 miles away, I tried to explain what to look for, he brings it back, they have broke the lid switch, I by pass it, dont charge him, should have but did not.  How did that happen??

 

Then there are the traders, can I trade in my broke freezer, for your working one, will you give me 50.00 for my broke one.  NO I say, If I want to gamble money I'll go to the casino and pull a one arm bandit.  Oh will you take 50.00 off your price.

 

I have found that I need to ask for 250.00 if I think its worth 200.00

 

Dryers here are not valuable, they are 100.00 in the minds.  If you have a washer but no dryer what is the most important part of your laundry equipment.  Can you wear wet clothes, who said a dryer is not worth 150.00.  New ones cost 400.00  go figure.

 

Before you think you can give a warranty on a machine, I say lightning strike, or electrical surge.  Can you control that.  No and I wont insure your machine, the manufacture has already dropped its coverage and I guess you now want me to pick up the tab.  Friends I do my very best to check them out, and get you a good used unit, but I am not God, nor am I a predictor of the future.  It's used, its a machime and like your car it can and will someday break.

 

I am trying to keep a calm cool attitude on the phone or in person, but I tell you its not easy.

 

Told a customer I needed cash flow, to pay bills and he thought he could go for the throat and get 50.00 off.  I told him sir I said I needed cash, but not desperiate for money, I have a great unit, and its priced right,  Go buy Billy Bobs smaller unit.

 

 

Chime in here if you sell used units.  I may need some help here.



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#2 Cactus Bob

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Posted 09 November 2013 - 11:05 PM

we sell used units

 

on a that freezer (if it's frost free and looks good ) 250.00 would be about right

with that he would get

with a trade in , free delevery and pick up of old appliance (first floor only , second or higher extra )

no trade in , delevery cost's 50.00 extra

"one year trouble free ownership " that is 2 service calls to repair any problem you call about , on the 3rd call we replace the appliance (if you want it or not )

 

to be honest , not a lot of warrinty calls come in , we check out every unit that goes out , we get good trade in units

most sales are to rental property's  , the landlord has to call with the problem not the tennent , this cuts down on "nuisance" calls

if there is a problem , we fix it with a large stock of good used parts

lighting strikes or power surges , just never really happen , if it does , we fix it and take the hit

if there is a "big" problem we have no less than 50 appliances in stock and ready to go at any given day

if all else fails ...and the homeowner gets to be to much of a pain in the butt ......break-out the checkbook and give him his money back , this shuts them up and makes the problem go away .....i have only had to do this a handfull of times in 30 years

 

 

we make good money on used appliances , it's one of those things "go big or go home"

 

in the end it's all just a numbers game

 

30 years ago when we where working out of our back yard and selling one appliance at a time out of a newspaper ad , times where tough and a lot of the time it was not worth the trouble , a lot of times it was a money loosing battle


Edited by Cactus Bob, 10 November 2013 - 12:07 AM.

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#3 curjones

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Posted 10 November 2013 - 01:31 AM

If I were big, i could see it working that way,  I have traded back out a dryer, because one quit, bad pulley, but if you only have one you cant replace it with another.  Like you said have to go big, and better be smart.  This starting a business is not easy.

 

I may try the free delivery with trade in, they want that and me give them the fifty too..

 

You have me thinking about the give and take here, most have been reasonable good customers, but its thoes whatever you want to call them that make you sharpen your sales act, or presentation skills.



#4 RegUS_PatOff

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Posted 10 November 2013 - 03:34 AM

... "one year trouble free ownership " that is 2 service calls to repair any problem you call about

does that include parts and labor ?


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#5 Cactus Bob

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Posted 10 November 2013 - 04:14 AM

does that include parts and labor ?

yes everything is included , as long as the repair is within 10 miles of our shop

and 400,000 people live within 10 miles of our shop

 

you do not get new parts in most cases

water pumps are always new , all other parts are used and some are repaired parts ( like WP direct drive lid switches , can be glued back together and work as good and long as a brand new one )

 

it's really not a big deal , all my appliances are older models , no inverter compressors , few motherboards , few front loaders, few electronics .

 

these are collage rentals , these kids don't care what washes there clothes as long as the the thing works

landlords don't want to hear from the tennent , so it's up to me to make sure appliances last , so i pick the best and recycle the rest .


Edited by Cactus Bob, 10 November 2013 - 04:29 AM.

SORRY ABOUT THE SPELLING , I FIX GREAT , I DON'T SPELL WELL

#6 PDuff

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Posted 10 November 2013 - 02:30 PM

I agree with Cactus Bob on every point except with his guarantee.  12 months guarantee against power surges/lightning strikes?  I adhere to the manufacturers warranty when it comes to customer misuse or Acts of God. 

 

I don't purchase used appliances from the public, and I get calls every day. I only take in haul away units from new or used sales.  Any electronic damaged or major rebuilds are scrapped.  Selling used refrigeration can bite you in the ass and often does.  If I don't have to put much into it, I'll sell a refrigerator as a "beer and bait box" for $300,because a working refrigerator is worth at least that.  But with a 90 day part warranty and 30 days labor.

 

But when it comes to any WPL direct drive (Design 2000) washers, and any brand dryer and range, there's your money makers for the landlords, rental and property management companies.  Dryers $100-$150, washers and ranges $200-$250.  Same warranty.

 

We all know the product and how it will hold up.  Sell what you believe in and limit what you have to sink into it.  It's all gravy if you do it right.


Edited by PDuff, 10 November 2013 - 02:32 PM.


#7 Patricio

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Posted 10 November 2013 - 03:07 PM

You mentioned used cars, in Texas the selling sticker says either No "warranty" (as is) or "warranty" (limited)    99% are sold 'No warranty"   That 1% sold with "warranty"   you pay extra for the warranty & it is in writing what is warranted & for how long.

 

You could follow that to some extent with the appliances.   I have sold a few that people have given me because they want a new matching set.   I do not have the market for used here can't get much more than a hundred for a washer & seventy five for a dryer.   Refrigerators, forget that, I not going to throw my back for them.

 

There is always craigs list - As Is- Take it off the property it's yours.


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#8 certified tech group 51

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Posted 11 November 2013 - 10:54 AM

I sell  used appliances....................W/p direct drive washers  and W/P dryers..... ( No Even Heat units )........90 day warranty.............Washer gets new pump, coupler, lid switch..( plus other stuff if needed )...............Dryer gets a maintenance kit.........I do a load in the washer and the dryer to test............I have customers that will buy sight unseen........................................I have a nice looking Maytag top load ( do not have the model # here ) , not a scratch on it.....Slow spin,......... going to the recycle pile soon..............Do not want to sell it, do not want to spend a cent on the repair..........................I get all of the used appliances for free ( I did buy 3 coin-op washer / dryer sets )................Spend a few clam$ to repair and make a few clam$ on the delivery..................On dishwashers that are a bit " too good to throw away",  I will run a cycle or two and if it does not leak it will sit on the shelf untill  I get a call for a dishwasher, I tell them I got one...... Come and get it, You can have it, Free.......No warranty, it's free...........................I take refers if i have worked on then previously.........I.E the customer does not want to do the repair, so I ask if I could have it.............Wholesale parts and a bit of labor plus delivery fees= $$$.............................P.S..... I located and  rebuild a Frigidaire gallery dryer, (with mechanical timer)..........New motor , Main rear bearing,  t-stats,  front seals, belt ......... Special request, had to fit on a tug boat.......



#9 PDuff

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Posted 11 November 2013 - 01:47 PM

15-20 years ago used appliances were like gold.  Back when the big box stores (Lowe's, Home Depot, Circuit City and Best Buy) were just coming on line in this area, they would use sub contractors for their deliveries.  We would buy the haul away stuff from these guys for $20 a piece, no cherry picking, all or nothing.  Worked out pretty good for a while, used units were moving out the door as fast as I could repair them.  But eventually the quality of the stuff the delivery guys were bringing by dropped and we quit buying from them.  Soon after we stopped offering used appliances and concentrated on service.

 

Nowadays, selling new Whirlpool and Maytag products, used appliances take a back seat revenue wise, to service and even over counter part sales.  Still nice to have it on hand, though.



#10 applianceman97

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Posted 21 November 2013 - 01:52 PM

I sell used in my shop. I give a 90 day warranty on all my stuff. 6 months on some. Very few call backs. But when it happens the customer brings the machine back or pays a twenty dollar trip charge and all parts and labor are free. I am a 1 tech shop. The size of your business should not determine your warranty. If you take care of your customers they will take care of you by referals and online reviews. My grandfather started our business by selling used over 30 years ago and by a good warranty and being honest we are so busy I can barely keep up now. What do offer as a service warranty for your in home service curjones?

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#11 curjones

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Posted 22 November 2013 - 02:34 PM

First this is a start up business, I don't have more than 100.00 in my whole account some weeks. I don't have another job and it is in build up stage. Started with one or two, and now growing, I am starting to get a build up of used parts. I sell a washer for 150.00 not 300.00. So if something goes wrong, I'm being honest mr customer, I'm not going to replace that 100.00 motor if it blows up 90 day's away, To be honnest I have no Idea how long the used parts will last. 90 days away I may only have 25.00 cash and no used motors to even replace that one.

This is where I am at, now it is getting trough to the next level that will make or break me, Like castus said it all most seems like its not worth doing. Now if my father had started this business and i got to step in to it, all this start up, building parts, clients, providing good service, would already be in place and I just need to follow what has worked.

The goal for me is to provide service after the sale, not sale any known junk to a customer, but at the same time I cant cover, 200.00 in parts for a 150.00 washer. The one guy said get all his money back, Really, I dont have the money of a walmart.

Had a talk with a customer this morning, he said well I see dryers for 75.00 all the time, and I said yes but if it breaks can you take it back? no he said. He said the reason he came to me is because I know them and fix them, and because of that he would pay more that his 75.00 in his mind price. (dryers can sell for a lot more than even 150.00)

I said and if something happens to it I want you to bring it back to me, and I will fix it, with my parts used if I have them and labor, for free for 30-90 days, however if there is a large cost for a part, you will have to buy that, or share that cost with me. I'm going to provide free labor and my service. That is what you don't get from just joe blow selling his dryer for 75.00. I can't at this point guarntee, and give them the moon if they ask.

Thanks for all the inputs, I need you help and thoughts, and ways. The guy this morning bought the maytag dryer I had, 110.00 going to bring me his broke whirlpool, that wont start, when he picks it up.

#12 applianceman97

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Posted 23 November 2013 - 02:58 AM

Glad to hear your starting up your business. That takes serious guts. I did get very lucky in my case. Keep on trucking. The more customers you get the more money you make which means you can change your policy's down the road if you want to.

Oh and if you really want to get into used appliance sales, go to a new dealer and try to buy their haul offs. That's what I do and it works great. We gets tons of appliances. Not all are fixers bit we pick the good and junk the bad.

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#13 curjones

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Posted 23 November 2013 - 03:08 PM

Applianceman97, thanks for all you input, and I want to hear all the good values, and what works that your grandfather, or father has passed down. My Dad owned a Bait and tackle business, but when I was 17 and graduated from High school there was a divorce going on with my parents, I was not thinking about staying in dad's shoe's I was thinking about not being a burden, grow up and be a man, make it on my own.. Sink or swim. I learned lots from my Dad, and My aunt about the basics of business, but I was still wet, behind the ears. I am still at 49 still wet behind the ears when it comes to good, sound business principles lol. I come here to find, mentors, instructors, and people to bounce that IDEA off. and thats why I appreciate your response, and the response of others. I have learned by doing it wrong..

I have a getting place, but I am at the bottom of the barrel on the list of good, picks. If I can make more money, I can pay to pick first. The ol'e sayings it takes money to make money applies here, and money talks more than my charm.

I am still trying to get the system going and keep it running, and not having customer complaints after the sale is what keep it smooth, and out of the ditch so to speak. Buy, diagnostics, repair/order parts repair, advertise, appointment, sale, close, service after the sale, referals, and buy or get trade in and do it over and over each day.

That does not include admin, books, bad attitude (self) tired, hungry broke,: Problems with truck, at home, worry anxiety and fear... LA LA LA...

Thanks for all yall's comments believe me when I say it helps.

#14 curjones

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Posted 02 December 2013 - 06:49 AM

Just a note to someone wanting to get into the business of selling used units.  I had another customer call me today on another dryer, "hey bud, it runs and has no heat" I go get some used parts off another unit, and drive out tho his house 20 miles away, open up the unit and a wire has popped off the heat element.  40 miles, and 2 hours of your time is how much money? 

The used units can generate cash flow to start a service business, but they can also eat up your profit.  Focus on the service side of this business if you want to make money.  This customer is a satisified customer, and I still made money today.  I proved my word, andI'm sure I will get referals from him for not only sales but service calls as well.

 

I laugh at my self as I think about the emotions we have.  I almost diagnose my self as bi-polar.  Driving down a bumpy country road I said to my self , he probally hit the holes at 50 mph and that would have broken the heat element, then the other side of me says hey bud that's part of doing business be nice calm down be professional.  Went out on Sunday, hey thats suppose to be a day off, not when you own a business.  Just my report...



#15 applianceman97

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Posted 03 December 2013 - 10:26 PM

ere is amazing money in selling used machines. Direct drive washer sell for around $200. Thank will make for a pretty good profit.we do an in shop warranty. If it breaks within 90 days they bring it back and we fix it for free. If they don't want to bring it back in, we charge a trip charge of 20 bucks. This just covers gas. Parts and labor are all free. 


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#16 Cactus Bob

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Posted 04 December 2013 - 12:34 AM

Curjones : was that dryer element connection tight ?  when those connectors are right no bumpy road would have made it pop off

as a rule of thumb , i feel if i can just pull it off then the connector most likely has a crack in it

i always need to get my pocket knife in behind those things to start to move them

 

 


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#17 curjones

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Posted 04 December 2013 - 03:13 AM

The connector was lose, I had replaced the heat element  that burned out, and slid the connector on, not really paying attention (will now) on how easy it slid on.  It was weaken from heat,  I pinched it back tight. This time it didn't just slide on.



#18 micabay

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Posted 04 December 2013 - 09:41 AM

The connector was lose, I had replaced the heat element that burned out, and slid the connector on, not really paying attention (will now) on how easy it slid on. It was weaken from heat, I pinched it back tight. This time it didn't just slide on.


Also any discoloration of the terminal ends. It is usually caused by a loose connection, ie weak spot in the circuit, more resistance=heating up where it shouldn't be. The wire would need a new terminal end. One of the many things we inspect while looking at any appliance.

#19 applianceman97

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Posted 04 December 2013 - 05:52 PM

Micabay is right. Hopefully your terminal wasnt too bad. I hate to see you having to out there again. Each trip takes your profit down the crapper. No fun when that happens.

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#20 curjones

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Posted 09 December 2013 - 12:28 AM

Do yall buy a special style of connector, for  heater element connectors.  These appliance connectors are usually harder to get off, why is that?.  If you buy special connectors, get me a name and source so I can see the difference. 

I thought about the same thing after I wrote I pinched it back together, that it would have been wiser, to replace it.  It was real tight,  the heat came form the bad element, did not look that deteroiated.

 

You guys don't miss a lick, thanks.






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