If you're in the printing industry, you may have considered having a printing equipment appraisal performed to determine the value of your machinery. But what exactly is involved in having your machine appraisal performed and what is an equipment appraiser looking for when they inspect your machinery? Here's our take on what is considered when a printing equipment appraisal is performed:
What an equipment appraiser looks at during a printing equipment appraisal
- Does the printing machinery perform properly? This will take a solid look at the quality of the materials the printing machinery is producing, whether it's in the printing quality itself, the binding, edge cutting and trimming or similar processes that are common to printing industry production work. A machine that isn't doing its work properly or needs to be constantly reset to stay within specs may receive a much lower machine appraisal than printing equipment that is functioning as it should, due to the problems such machinery may have down the road in maintaining regular quality.
- Has the equipment been well maintained? This will tell the appraiser about whether further inspection of related systems is warranted. If needed repairs have been put off, it can cause additional wear and tear to connected systems. A qualified machine and equipment appraiser knows they need to check for further issues at that point. You can provide easy documentation of maintenance and repairs through logs, receipts or other service records, helping make that part of the process go a little easier. Poorly-maintained printing equipment tends to have a shorter lifespan and lower value.
- Is the machinery being kept in extremely hot, cold or humid temperatures or dusty, dirty conditions? If it is, it may also wear faster than other machinery that is kept in better conditions. This will also usually cause a lower valuation due to a shorter expected lifespan.
- Does the machinery show signs of significant damage or abuse? If your printing equipment has serious dents, bends or structural issues, it may cause safety issues or fail much sooner than similar printing equipment that has been taken care of properly. A good appraiser will take this into account in terms of how such abuse will affect the expected value of the machinery.
- Has the machinery been altered or had features added that were not approved by the manufacturer? If after-market additions make the machinery work harder to get the job done, even if it provides better features or more convenience, it may cause the machinery to wear faster and have a lower value.
- Is the machinery in demand in your industry? Current market trends can affect the appraised value of your equipment, no matter what your reason for having the appraisal performed. If your industry is booming, the equipment may be valued at a higher figure, while an industry that is in a serious slump may have a hard time selling used equipment.
By knowing the value of your printing machinery, you can make better business decisions, whether it's when to sell old equipment, if you have the assets to back up a potentially risky business opportunity or to gain financing for an expansion that uses your equipment for collateral. If you need to have your printing equipment appraised, please contact our certified equipment valuation specialists to schedule an appointment.