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How Used Storage &

Handling Equipment CanComplement Your Business

Presented By:

Al Boston, Business Development

AK Material Handling Systems

Monday, September 26, 2011


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Located in Maple Grove, MN

Founded in 1988

Full line material handling distributor

Specializing in new and used pallet

racking

Stocking Wholesale Distributor (WPRP) of

New & Used pallet racks

1000s of successful material handling

projects

Largest Stocking Distributor of JL Wire

mesh decks in the nation



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New Teardrop Pallet Rack

In Stock Inventory



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Used Pallet Rack

In Stock Inventory



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Why buy

when Will Do?



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Customers demand used options evenif it costs more.



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Out with the OLD...



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In with the NEW...



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Do you supply used?

Incoming Lead...

2. Discussion.

3. Determine thatnew rack systemis what isneeded.

4. Quote andsell the rightrack system.



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Website Landing Page with both options: New & Used



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5%

95%

Used Sales

New Sales

2010 AK Sales Breakdown

$10,000,000 Gross Sales



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Convenient generally in stock or just coming down

Usually quicker sale

Sense ofurgency

Terms are COD so better cash flow



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When to NOTprovide used equipment:

Fortune 1000 usually buy new

although they can be goodsources for trade-ins.

When the rackmanufacturer provides

customer lead.

Building codes orcapacity required mayrestrict use of usedequipment.

You decide that usedwould not be appropriatefor customers image.



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Used product styles and nuances will be harder thanrepresenting a new product.

Trust and integrity needs to be throughout yournetwork. You are only as good as weakest link.

The inventory of used products coming in will rarely

equal the amount used product going out.

Your Integrity.

quality and representation = customers expectations.

What are the RISKS

to the distributor:



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Used product as parts most likely do not conform with original

manufactures recommendations.

PE stamped drawings are valid for current requirements meaningfuture requirements could be issue.

Unknown Variables= capacity, condition, engineering design, steelgauge, yield strength, and profile are all up for grabs.

Pallet rack is a system, not individualparts.

Factory warranty or product liability insurance.

What are the RISKS

to the End User:



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Clearly represent:

sizes, condition, structural integrity, compatibility, surface condition, andassumed capacity. Preferably pictures.

If using a wholesaler remember the product is a reflection on you.What is their guarantee.

Verify items like labels/mixed colors or brands. Costs of round tripshipping on mis understandings not acceptable.

Be open and honest with end users.Be sure to explain (system vs parts) and only proceed when they understand.

How to Mitigate the RISKS



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Mheda

201 US Highway 45Vernon Hills, IL 60061

ATT N: Gugl ie lmo, S teve

Quote To:

Proposal For: Used Teardrop Pallet Rack

60042938QUOTATION #

8670 Monticello Lane N Maple Grove MN 55369 Toll-Free 888-578-1579 Main 763-488-9777 FAX 763-493-5014 [email protected]

8/30/2011uote Date:

Credit CardTerms:

Prepaid & AddShipping Terms:

Shipping Point:

Direct Line:

Fax:

Maple Grove, MN 55369

In StockDelivery:

Main Phone:50102999Account #:

AMOUNTQTY PART NO. DESCRIPTION PRICE/UNIT

WPRPWHOLESALE PALLET RACK PRODUCTS

$10,000.00100 USED Frame Interlake Teardrop 48 x 168 Green $100.00USED

$12,500.00500 USED Beam Interlake Lug 4 5/8 x 108 Orange $25.00USED

Thank you for your quote request, Let me know if you have any other

questions. NOTE: The used product on this quote is sold

AS IS and WHERE IS.Tax:

TOTAL:

Product Subtotal: $22,500.00

$0.00

$22,500.00

WPRPSalesperson :

uoted By:

A signedquotewill be acceptedas anorder providingaccount is openandcredit is approved.Special terms may apply.

You may sign & fax back as confirmation of your order. Your purchase order

number:

Accepted

By: Date:

All Prices Quoted Are Valid For Seven (7) Days.

Licenses, Permits & Building Code ComplianceAre The Responsibility Of The Customer.

Jason Kasanezky

Credit Card

Information:

Credit CardNumber: _______________________________________________Exp._____/_______

CardholderName: ________________________________________________________________

TOTAL WEIGHT: lbs.12500

What do you need to include in your

Used Rack Proposal?

NO Warranty

Warranty

X

The used product on this

quote is soldAS IS and WHERE IS.



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What should & how do you warranty used

equipment?

Parts are not damaged

Parts are not altered from originalmanufacturers intentions

Parts are compatible even if notfrom same manufacturers

Parts are as represented



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Presentation Recap

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Taking trade-ins on used equipment provides fullservice

Of

ering used options opens the door for increasednew product sales

Know who and when to supply used product

Understand the diference between Systems & Parts

Warranties should be clear to your client on yourproposal

Always represent used equipment responsibly~

HAVE FUN : ) !



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Questions...

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Contact Information:

Al Boston

763-493-5015

[email protected]

Thank you.
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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