Posted by Wardner on December 27, 2011 at 17:03:21 from (4.154.234.35):
In one of my previous Marty threads, someone said that Marty was making money. I wasn't so sure so I entered all his auctions on an Oliver 1900 into a spreadsheet. The Oliver was powered with a 4-53 Detroit Diesel which he disassembled. I reported here, and on the Oliver Board, that he probably took a loss. He would have done better selling that tractor with one auction.
I wanted to see what would happen with an IH product. The Oliver crowd doesn't seem to be that needy for parts. Marty lucked out with three bidding frenzys on the SMTA grill @ $430, PTO shaft @ $218.49, and M&W (?) live pump @ $300. They total $948.49.
34 no bids
18 one bids for $197.82 total
4 two bids for $53.08
6 three bids for $166.62
7 four bids for $155.49
3 five bids for $207.27
3 six bids for $94.64
2 seven bids for $52.50
3 eight bids for $107.82
13 nine or greater bids for $1708.20
Total bids are $2643.44
Total shipping is $844.00
Residue (scrap) estimate is $350.
Cost of tractor was a confirmed $950.00
The grill, PTO, and pump saved his butt. I don't think he was banking on those items to deliver the bids.
I am still of the opinion that his business is marginal at best. He is cranking out six tractors this week. Hard to know if this is a desperation move or simply a planned sales expansion to coincide with a vacation week.
Parting out tractors can be profitable. I just wonder if his business model actually works. No, I am not doing this brief analysis as a guide to establishing my own dismantling operation. Where am I going to find the inventory in New England?
One of the benefits of Marty's efforts is he has depressed the value of parts for the rest of us who are buyers. It is why I would buy from him if I wasn't blocked. An occasional bad part is worth it when the other low-cost parts are averaged in.
This post was edited by Wardner at 17:04:01 12/27/11.
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