We have been trying to sell a CO2 extractor for like 2 years now so we can stop paying to store it, but the values of this stuff have fallen so hard that no one wants it even basically giving it away.
We’re considering trying to scrap it for the 400+ lbs of stainless. Has anyone here done this and was it a good move?
It was a $100k machine, it seems like an extreme choice but we’re not sure what to do.
It happens all the time in manufacturing, unfortunately. I spend more time fighting to make sure capital isn’t spent on equipment we don’t need / can’t fit / wouldn’t fit our process than I do on scoping out new equipment. So often people think you can throw money / new equipment at a problem, and that will be the panacea.
A robust capital approval process can help prevent this kind of thing, but it still can happen. But when it does happen, you just have to write it off, cut your losses, and don’t hold on to junk because of the sunk cost. Sometimes the manufacturer might be willing to buy it back in exchange for a discount on another purchase (if you’re buying other equipment from them).
We got a lot of use out of it, but everyone upscaled while we were shut down trying to get a license, suddenly we could buy distillate cheaper than we could make it. We were going to keep it to extract terpenes, but then we never got to open…
Dang, its worth less in scrap than we will have to pay to move it. I guess we should have just abandoned it at our old location to let the prick landlord than screwed us deal with.
There are some auction sites that you can negotiate having your gear attached to big lots, you might have some luck if you can sneak it into one of the many cannabis processing facility liquidation sales.