Origins

The MachineStock.com trading platform was the FDM’s (Fachverband des Deutschen Machinen- und Werkzeug-Grosshandels e.V. – Trade Association of German Machine and Tools Wholesalers, registered association) reaction to the success of young companies that were mainly trading on the Internet.  These so-called dot-coms themselves only partly originate from the used machine industry, but recently their virtual market places and portals had increasingly poached customers away from the long-established dealers.  At the end of October 2000 the company LogoTech oHG in Werne was commissioned to develop a machine trading system.

The main components of the machine trading system

• Internet market place www.MachineStock.com
• MHS2000 (a special retailing system for trade in used machines)
• Dealers’ internal database of used machines (FDM intranet)
• Transfer of machine information onto the dealers’ own homepages

A survey carried out by Aachen online market research company Dialego confirmed that although FDM launched its Internet service late, it was still just in time.  It revealed that of more than 200 e-business decision-makers asked, three-quarters of them believed that industry portals had better prospects than non-industry-linked solutions from the dot-com companies.  In that respect, the trade in used machines – which as an industry grew evenly – is seen to offer the best long-term opportunities.

The old economy companies that build their own Internet strategies also benefited from the availability of a qualified workforce.  The machine tool trade can quite reasonably play on strategic strengths such as its degree of worldwide recognition, its strong customer relations and knowledge of the markets, logistics, concepts for business and alliance partners, as well as a high level of trust with the suppliers and the financial world.  Kames explains that "anyone looking to buy a used machine tool at machinestock.com will find a broad range, that makes decisions transparent."

In reality, the FDM dealers’ function is no longer restricted to buying, worldwide marketing or know-how.  Now, they offer more of a service package comprising dismantling, transport, electrical, electronic and mechanical inspections, revision and retrofitting, right through to demonstrating the machines in operation, with acceptance protocols, sample processing and financial services.  That these packages have to be seriously presented was just in the nature of the issue for Kames: "Very few people buy a Euro 50,000 machine just on the basis of Internet photos."  In contrast to less complex products, advice and trust are fundamental issues when buying a machine tool.