14
B 2 B
Essential Guide to ... Second-hand machines
Sector Overview
SWOT ANALYSIS
SWOT ANALYSIS SECOND HAND MACHINES
STRENGTHS
• Second hand equipment is often familiar , well-known steady cashbox earners
• Cheaper to purchase than new equipment
• Second hand machines often include new features which had been overlooked in the original spec
WEAKNESSES
• Some end users may not realise the machine has had new content added
• The kudos value of buying new still underpins purchasing decisions for some
• Parts , peripherals and spares for the original machines may have become obsolete
OPPORTUNITIES
Coin-op sector has always had an eye for a bargain
• Particularly in the UK and US , equipment is built to last , with huge numbers of machines on site 10 years old or more
• Second hand machines in part exchange can stimulate new purchases
• Non-reclaimable VAT on new machines may see operators favour older product
THREATS
• Certain heavily-branded machines may be hard to move on
• Rise in finance deals for new products by specialist dealers
• Cheaply manufactured machines from Far East
Economic circumstances aside , the UK amusement and gaming sector simply wouldn ’ t be where it is today without a steady stream of high-quality second hand machines .
W hile thrift is certainly in vogue at present , due to the after-effects of the credit crunch and the double dip recession , it ’ s always been in fashion in UK coinop circles . Yes , the UK has a manufacturing sector that it can rightly be proud of and which deserves wholesale support , but regardless of what ’ s going on in the inextricably linked worlds of retail and entertainment , the fact is that we ’ re looking at ways in which to make our money go further . There are many reasons for increasing numbers of distributors and - in turn - operators turning to second hand stock equipment .
When some of the UK ’ s leading distributors and suppliers openly advertise their reconditioned stock alongside new products , it is clear that the industry accepts that , while it is a delicate balancing act , new and used can coexist in the market without wholesale implosion .
To some , the existence of a thriving second hand market in the coin-op arena could be seen as a sign of desperation or an overall lack of willingness to invest in new equipment , the truth is actually a little more sophisticated .
Firstly , the fact that second hand equipment is freely bought and sold illustrates that , by definition , the products in question must have been well-built and proven popular . Secondly , the machine market reflects the current economic situation whereby all sectors of business are looking to squeeze the best value out of low-cost purchases . Thirdly , the second-hand market in the coin-op industry is so long established that there is no stigma in buying second hand , nor is there any suspicion that refurbished or rebuilt goods might be in any way substandard , due to the professionalism of the firms dealing most heavily in such items .
Moreover , faith in the second hand market breeds confidence and if good deals are on the table where machines look and play as good as new for a fraction of the price it is inevitable that operators will literally buy into the idea .
A machine that has found favour with customers in its halcyon days immediately after purchase , will undoubtedly entertain more players when it re-enters the market as a second hand model . While it could be argued that UK manufacturers are a victim of their own high standards , used machines are testament to their efforts and keep their brand name and qualities in the public domain for longer . Therefore , on the occasion that an operator feels the time is right to invest in new product , he knows immediately which manufacturer he can trust to give him a good ROI and a model which will hold its value when it comes to upgrade and update his stock in years to come .
UK-based used machine dealers rightly pride themselves on quality , therefore whether their equipment on sale is a rebuild , an upgrade or a straightforward refurbishment , there is no room for inferior service - especially in these cash-strapped times .
The overall cautious attitude to spending has further increased the opportunities available to experts in upgrades across the board , be it in cash handling peripherals , SWPs or even amusement-only products . Thankfully , by using firms such as those showcasing their wares in this issue , the essential prerequisites of any coin-op related equipment - quality , value for money and innovation – operators can make their budgets go further than ever before .
The 2011 change in B3 stake and numbers permitted , presented a welcome and significant opportunity for the traditional land-based gaming sector . The inevitable raft of high-quality , original B3 games have been manufactured since , but not every operator can afford such a luxury . This is where the UK ’ s leading distribution firms come in .
Additionally , seaside operators who use redemption machines to lure families into their arcades and FECs , can rest assured that if they need a creative rebuild of a machine that originally didn ’ t dispense tickets , there are firms out there that can meet this demand .
Furthermore , opportunities have arisen for single site operators and seaside operators who believe that SWP machines are an integral part of their product mix , with new content being placed in old cabinets . The list , it seems , is endless , and while it ’ s a sign of the times that operators are looking to rebuilds in greater numbers nowadays , at least they can be assured that the machines they buy are fit for purpose , meet technical standards and are , effectively , ‘ as new ’.
A leading distributor , known equally for his firm ’ s ability to shift new and second hand machines , recently told Coinslot : “ Operators are desperate for quality second hand Cat C , B3 and video product .”
The bottom line is that a never-ending stream of high quality refurbs , rebuilds and reconditioned used equipment is permeating the UK market nowadays - a sign of the times , yes , but also testament to the professionalism , variety and level of service underpinning the sector .
Coinslot JUNE 14 - JUNE 20 , 2013