Used metalworking machinery dealer

Start-up workshops, small fabricators, farms with repair shops, hobby and training workshops, and established shops expanding on a budget.

You earn the margin between purchase price and resale price, plus extra from delivery, basic servicing and tooling sales.

• Knowledge of machine tools and how to test them
• Negotiating and valuing equipment
• Basic mechanical and electrical know-how

• Check ownership and liens on used equipment through your provincial personal property registry (Quebec has its own system)
• Check commercial general liability and property insurance for stock and premises
• Used machines may need guarding or electrical certification before sale, so check provincial safety rules
• Check customs duties, brokerage and GST/HST if you import machines
• Machines are heavy and tie up cash, so plan lifting, transport and how long stock may sit unsold

Startup costs are typically estimated at around $20,000 to $100,000, depending on how much stock you buy, the size of your unit or yard, and how you handle lifting and transport. Machines tie up cash, so budget for stock that may sit unsold.

Monthly revenue is typically estimated at around $5,000 to $25,000, depending on the machines you stock, how quickly they sell and how much cash you tie up in inventory. Plan for roughly 30 hours a week at minimum.

Check ownership and liens through your provincial personal property registry (Quebec has its own system). Also check provincial guarding or electrical certification rules, insurance for stock and premises, and customs duties, brokerage and GST/HST if you import machines.