What are they?
Salvage parts are parts that come from salvage yards, off machines that have met their end of life from one way or another. Usually they are pulled off machines bought at auction. The buying company hopes to make at the very least a 20% profit on their investment. A successful salvage yard will carefully calculate how much it needs to get out of every part on a machine to turn a good profit. The cost of the used parts often varies depending on how much was invested in the machine at auction. These parts are a great option for parts that have been discontinued by an OEM, or just too expensive.
The general rule of thumb is that a used part should cost about half the list price of a new one. There are few things that go into the price of a salvage part as well, and sometimes they end up being more expensive than you'd initially thought.
Factors affecting a salvage part's price
- Labor to get the part: Some parts on a machine are quite labor intensive to get off. A swing bearing, for example, is not a quick process and involves sometimes up to a full day's work to pull off the machine. Then there is usually an inspection of the part, possible testing, moving and preparing the part for shipment.
- Location of the salvage yard: If the yard is in an area where snow is prevalent, and you're trying to order during a winter month, the labor cost may be increased due to technicians having to get a part off a machine that is covered in snow and ice. This can also increase the amount of time needed to get the part to your door!
- Demand for a certain part: If there is high demand and low supply, most likely the price of that part will be increased.
- Quality of the part: If the part is in perfect condition, it'll cost more than a part that has a little more jobsite experience.
Salvage parts can be a cost-effective and practical solution for equipment owners and operators looking to save money on repairs or replacements. However, the cost of a salvage part can vary based on several factors, such as labor, location, demand, and quality. Before purchasing a salvage part, it's essential to do your research and ensure that the part is compatible with your equipment and meets your quality standards. By considering these factors, you can make an informed decision about whether a salvage part is the right choice for your needs.
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