All clubs have to spend money to make money and buying equipment for the club is inevitable. There are so many options: new, used, remanufactured, refurbished. There can potentially be huge savings in buying remanufactured equipment, if clubs make smart choices.
Kathy Feldkamp, the owner of Club West Fitness in Lorain, Ohio, said she has had a very positive experience buying remanufactured equipment. She’s been in business for 16 years and most of her equipment has been remanufactured.
The Basics
Know the facts first. Buying refurbished is essentially buying a product that has been beautified — it’s made to look good. Remanufactured equipment has been stripped down, repaired and restored. It’s essentially “like-new” again.
Then there are serviced products. They are usually “as-is” and companies check to see if it runs and sounds OK and that’s basically it, said Mark Clayton president of Fitness Equipment Source.
A problem is anyone can say that they have refurbished or remanufactured equipment, said Steve Paterson, the vice president of UsedGymEquipment.com. “There are no laws or diplomas or inspectors for the gym owner to rely on.”
Quality control is important when it comes to remanufactured equipment, said Nick Pugh, the president of Fit4Sale. “It is our commitment to achieve the highest level of remanufacturing based on our 20-point inspection list that allows equipment to meet or exceed OEM [original equipment manufacturer] standards in the remanufactured process,” he said.
The savings can be significant, especially for smaller clubs. On average a gym can expect to save 50 percent and on up to 70 percent, Clayton said. The savings are not just on the price of equipment, you can also save on sales tax, delivery and set -up fees. “Typically when you do a transaction with the new equipment company they just charge a 15 percent of gross sale amount as the freight and installation charge,” Paterson said.
Alison Van Horn, owner of Kauai Muscle & Fitness in Hawaii has saved at least 30 percent by purchasing remanufactured equipment. “That is extremely vital when you are starting a business from scratch on a shoestring budget,” she said.
There are warranty options available when purchasing remanufactured equipment. It depends on the company but examples include 90 days, six months, or one or two years.
Buyer Beware
It can be nerve-wracking shelling out thousands of dollars for equipment that is not brand new. The best thing any customer can do is to gather as much information as possible and make the best, educated decision. If it sounds too good to be true it definitely is believes Clayton.
“The most frustrating thing I’ve seen is they (customers) send me checks for $60,000 and they don’t know me, they’ve never met me,” said Clayton. “I could be going to Mexico with their money.”
“The horror stories I have heard over the years is what scares buyers away so they just decide to spend too much money on new equipment,” said Paterson. A full proof method he said, is to put a deposit down on your order and insist to inspect the machines before you pay.
Van Horn hadn’t heard any horror stories before buying her equipment. “My biggest concern was that the process would not produce a product that looked new and polished,” she said. “I was mistaken for all of our remanufactured pieces of equipment arrived in great condition.”
Clayton said some red flags might be in the wording or warranty of a product. If it doesn’t specifically say “remanufactured” then don’t expect it to be. And again, beware of the word serviced. It sounds like the equipment has been worked on, but it really hasn’t. Beware of an extremely long warranty; that’s unusual. On the contrary, if it’s only 30 days, it shows no confidence in the product, he said.
Tips on Buying
When buying remanufactured equipment do yourself a favor and ask the company for references. Paterson said to look for a company with a long-standing reputation and speak to as many customers as possible. “Actually get names and phone numbers and call them,” he said. “An honest and respectable company will give you this, no problem.”
Clayton recommends checking the company out online, asking for older referrals that will show stability in the company and also checking with the Better Business Bureau.
Feldkamp said that she called a couple of her company’s clients before purchasing. “I then crossed my fingers and hoped it would be good,” she said. “They seemed like a company I could trust.”
Van Horn researched a few companies before making her choice. Her decision was ultimately based on not only her needs and the cost of equipment but also the shipping price to Kauai. She researched companies that would be cheap, but were also on the West Coast. She said that East Coast companies couldn’t compete for her with their cost in shipping.
Companies that over perform and answer the phones when there is a problem are a good indicator that they are trust worthy. “Our company policy is to deliver a better finished product than the buyer expected,” Paterson said. “Every remanufactured machine we deliver becomes our future marketing plan.”
It’s more than just price, quality and warranties, but rather a commitment to ensure satisfaction, Pugh said.
“We service what we sell,” Clayton said. His customers have learned to trust his company and his opinions. Long-term relationships with customers are important he said. Some customers call to get his opinions on equipment even if they’re not purchasing it from him.
Fit4Sale tries to bring “added value” to any relationship they have. “Equipment is only one element to the success of any facility, overhead, operations, systems and training, not to mention flooring and accessories are other key areas that we address with our customers,” Pugh said.
Both companies said the savings speaks for themselves when comparing remanufactured with new equipment. Clayton said he is selling to a different market; the small and medium sized markets that couldn’t operate with the cost of buying new — of his business, 86 percent is from repeat customers or word of mouth, and he retains customers who expand their business and can’t afford to buy new equipment.
Paterson sees it as a problem within the industry that companies want to seemingly spend more money on equipment than on personnel. “Save money on our gym machines and hire fitness professionals who want to make it a life-long career in fitness,” he said.
A great advantage customers get in buying remanufactured equipment is buying a piece that already has the bugs and kinks already worked out. Feldkamp said, she likes buying her equipment with all of the kinks already worked out for her. The upgrades are already done from the remanufacturer and the first owner dealt with the majority of problems, Clayton said. And, if it’s done right, customers won’t even know the difference. That way, clubs can put money into other things and members don’t have to suffer in the process. -CS
