Time to Hang it Up

[twabscs]

Hey all, after 12 years of running my part-time, two-man shop, it's finally time to hang it up, I think. With customers taking longer to pay, dealing with finding material, and just general old age (60), it’s time. I’ve been running this since 2012 after the original owner basically gave it to me. We work part-time, but the shop has paid for everything, including the CNC machines purchased in 2014 and 2016 (see below).

Anyway, the shop itself has been around 25 years and we have accumulated the typical support equipment and tools. However, the biggest issue that I have is disposing of my two CNC machines, an Okuma Genos L200E-M Lathe (w/4 live tools) and basic Genos M560-V Mill. I won’t need the tooling for machines and, as you all know, that’s a big investment right there.

Is it a good time to be selling shop equipment, especially the Okumas? Can anyone provide some guidance on a firm to help me sale the two Okumas with tooling? I’ll probably list it here at PM too, but not sure. For me, I’d just like to make a call and have it over with and a check in hand at some point. The machines were used maybe an average of 6-8 hours per week as we had significant manual work too.

Thanks!

 

[Garwood]

Nicer condition quality make later model cnc's sell pretty high currently.

I don't know that the tooling would add value. Tooling is usually sold separately.

 

[twabscs]

Thanks, I have inquired with Hartwig, where I purchased them, to see if they might help with the sale. That is one path to help with the exit.

 

[Kingbob]

I've sold a few machines through resellcnc. They are more of a broker and they take a cut. I'd try on your own by reaching out to local shops first but if all else fails they can get them sold for you.

 

[broke]

I think selling now vs a year from now will be a good move. If the machines are in good shape I would think they will bring a good price.

Good for you to know when to hang it up. A lot of guys seem to hang on longer than they should and pay for it with their health and happiness.

 

[jaguar36]

For me, I’d just like to make a call and have it over with and a check in hand at some point.

If that's what you want and are willing to accept that you won't get as much money as if you sold everything yourself you can hire an auctioneer to do it. Check on bidspotter to see what auctioneers are popular in your area. I also know HGR will buy everything as well.

 

[twabscs]

I think selling now vs a year from now will be a good move. If the machines are in good shape I would think they will bring a good price.

Good for you to know when to hang it up. A lot of guys seem to hang on longer than they should and pay for it with their health and happiness.

Thanks, yeah, also paying my CPA 10K for QB, payroll, RealNetworks, etc. just make no sense. I work hard and everyone else benefits, or so it seems. I'll most likely make more money closed than open. Oh well, more work for you all!

 

[david n]

If you have the ambition, you could easily peddle the whole shop yourself. And in today's mfg climate get good money for all of it. Good time to sell.

Selling stuff here is a start. Nice to talk to someone face to face or at least directly over the phone. I hate used machine dealers with a passion. And giving them a cut is insulting. Make yourself a few extra bucks and save a buyer a little coin............

 

[twabscs]

If you have the ambition, you could easily peddle the whole shop yourself. And in today's mfg climate get good money for all of it. Good time to sell.

Selling stuff here is a start. Nice to talk to someone face to face or at least directly over the phone. I hate used machine dealers with a passion. And giving them a cut is insulting. Make yourself a few extra bucks and save a buyer a little coin............

Thanks, yeah, I've got the Hartwig tech coming out next week to go over the machines. I've been the only programmer and operator so I know their history. No crashes, and our parts are pretty simple overall. Probably best to start with an ad here (and maybe Hartwig, if they're willing to help out), before engaging any used machine dealers.

Also, on selling it in one piece. Maybe, but most of our customer work is very local, and I know shop businesses are mostly sold on their assets, and I don't have any issues keeping all my manual stuff (other business is farming). Primary issue is CNCs and tooling as just too expensive to keep that lying around.

 

[twabscs]

I've sold a few machines through resellcnc. They are more of a broker and they take a cut. I'd try on your own by reaching out to local shops first but if all else fails they can get them sold for you.

Thanks, and wow, they have excellent Google reviews (5.0). That's hard to believe but reading through them they do look like an eventual option, if I need a reseller.

 

[couch]

Thanks, and wow, they have excellent Google reviews (5.0). That's hard to believe but reading through them they do look like an eventual option, if I need a reseller.

I’ve purchased from them and they were great to deal with. Shop I worked at sold some machines through them and it went well as well.

 

[cnctoolcat]

Okuma Genos L200E-M Lathe (w/4 live tools) and basic Genos M560-V Mill

No problem in "disposing" of those!

Find the right Okuma shop, and those things will be snapped-up in a heartbeat.

Brokers are going to want 10%+ to sell them, I would try to sell them myself first.
(Here on PM, and your local Okuma dealer are two places to start...)

Don't undersell them, used CNC's have been pricey the last few years, and later-model, high-end machines like Okuma often bring a mint.

 

[twabscs]

No problem in "disposing" of those!

Brokers are going to want 10%+ to sell them, I would try to sell them myself first.
(Here on PM, and your local Okuma dealer are two places to start...)

Don't undersell them, used CNC's have been pricey the last few years, and later-model, high-end machines like Okuma often bring a mint.

Yes, I reread my post and, not sure why I used "dispose of", should have said let go of or something like that. Kind of funny.

My plan is to start winding down my orders and preparing the machines for sale. I've contacted my dealer and I'll put them here on PM before I do anything with them. Thanks all!

 

[m_jerew]

Can anyone provide some guidance on a firm to help me sale the two Okumas with tooling?

https://machinetoolemporium.com/
He is always on the lookout for machines.

 

[Strostkovy]

IMO list the tooling and machine separately and try to sell both to the same buyer

 

[SMT]

Hey all, after 12 years of running my part-time, two-man shop, it's finally time to hang it up, I think. With customers taking longer to pay, dealing with finding material, and just general old age (60), it’s time. I’ve been running this since 2012 after the original owner basically gave it to me. We work part-time, but the shop has paid for everything, including the CNC machines purchased in 2014 and 2016 (see below).

Anyway, the shop itself has been around 25 years and we have accumulated the typical support equipment and tools. However, the biggest issue that I have is disposing of my two CNC machines, an Okuma Genos L200E-M Lathe (w/4 live tools) and basic Genos M560-V Mill. I won’t need the tooling for machines and, as you all know, that’s a big investment right there.

Is it a good time to be selling shop equipment, especially the Okumas? Can anyone provide some guidance on a firm to help me sale the two Okumas with tooling? I’ll probably list it here at PM too, but not sure. For me, I’d just like to make a call and have it over with and a check in hand at some point. The machines were used maybe an average of 6-8 hours per week as we had significant manual work too.

Thanks!

I agree with everything that's already been posted here. If you want a second avenue to advertise these machines, and you're a facebook person, join the Okuma CNC Users group and post some pictures.

I admin the group and you'd be marketing to specifically an Okuma audience. I'm not too sure on your lathe but the M560 I generally see advertised used in the 90-100k range when they come up for sale.

All my machines are Okuma and I already have an M560 otherwise I'd call you!

Good luck selling your equipment and enjoy the road ahead.

 

[Pete Deal]

Those machines ought to be easy to sell. I’d list locally for a while and see how it goes. Seems 95% of facebook and craigslist contacts are loosers so you’ll get a line of them contacting you. But if you can do it this way you get more of the money. Offer tooling as an optional up charge.

 

[twabscs]

I agree with everything that's already been posted here. If you want a second avenue to advertise these machines, and you're a facebook person, join the Okuma CNC Users group and post some pictures.

I admin the group and you'd be marketing to specifically an Okuma audience. I'm not too sure on your lathe but the M560 I generally see advertised used in the 90-100k range when they come up for sale.

All my machines are Okuma and I already have an M560 otherwise I'd call you!

Good luck selling your equipment and enjoy the road ahead.

Thank you. I'll be joining that group right away. I'll probably sell the Mill first, goal is to have ready to sell (after full PM) in mid May. Have to finish existing orders for it. Lathe orders will take me into June right now.

 

[Farmer Phil]

https://machinetoolemporium.com/
He is always on the lookout for machines.

For what it's worth, this man is in Louisville, Kentucky, I've conducted commerce with him, pleased with his character.

 

[F35Machinist]

I think you could sell more than just the machines. Your business is worth something. You could talk to local shops and see if anyone wants to buy you out. For example, if you have 300k revenue per year, you could arrange for another shop in the area to take over your work and they could pay you out some negotiated amount like 150k over a year where you are kept on nominally as an advisor and to facilitate the transition for your customers. You are missing out on a big chunk of change if you don't do this IMO. The Okumas should be worth 60-100k each depending on the buyer and your luck.

There are also search funds that look for businesses like yours to buy and operate. You could try to find one that is interested and they would probably give you a slightly better price for the whole thing. Otherwise, it is quite normal for machine shops to disappear into the night.