I read an article recently about the dangers of buying used material handling equipment. While it made several good points, I was bothered by our industry's practice of using a single term to cover everything from scrap to mint condition merchandise. People just slap a "used" label on all previously owned equipment, turning it into a pure commodity where price is the only difference between a good buy and a bad one.

My company sells new and used equipment. I'm in a position to tell customers the truth — that there are viable alternatives to buying new equipment, but that not all used equipment is created equal. You need to look carefully to see what you are getting.

There are some concerns in purchasing used equipment. But if these issues can be addressed satisfactorily, customers can get good value from used products.

In some cases, small flaws in used equipment can lead to major problems, if undetected. This concern is not unwarranted, but often these flaws can be detected and fixed.

Used equipment is no longer covered by the new equipment warranty. What if a supplier of pre-owned equipment is willing to offer a warranty that provides the same kind of protection?

Finally, installation of used equipment certainly offers special challenges. This is very true, but what if the supplier of the equipment is willing to install the equipment and to cover that installation under their own warranty?

Obviously, we are not talking about a used equipment broker. Typically, they find someone who wants to sell and someone who wants to buy, and then broker or "flip" the equipment for a quick buck. They frequently know little about the product and usually hire an inexperienced crew to dismantle, load and deliver the equipment. The price may be low, but the risks are obvious.

Legitimate used equipment dealers offer "refurbished" products, but that can be a very vague term. How can you be sure of the quality of equipment and service you will be getting?

One luxury automobile manufacturer has established a reputation for its "pre-owned" vehicles that could serve as a model for the industry. When you buy one of these cars, you get something that looks every bit as good as new, runs almost as good as new, and is backed by a warranty that guarantees both the quality of the original product and the thoroughness of the inspection and refurbishing process.

I use the term "renewed" to describe this kind of top-of-the-line refurbished product. I'd like to see the term catch on, but only if it retains its meaning. Any equipment dealer using the term must have the personnel, equipment and experience to perform a thorough inspection of all equipment. They must be willing to replace any parts that have the potential of causing problems.

They also should have full-time professional crews with the experience to disassemble, transport and reassemble the equipment. Finally, dealers of renewed products should be willing to stand behind the equipment and the work they do on it. Put it all together and you've got something you can rely on.