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VALUE & OFFERS

Why replacement cost is different from your used generator offer

By SellMyGen Editorial Team

A quote for a new installed power system answers a different question from an offer for your used equipment. Compare their scopes before using one number to judge the other.

01

Break down the replacement quote

Identify which items are equipment and which are installation, engineering, commissioning, site work or other services stated in the proposal. Preserve its assumptions and date. Do not treat the full project total as the price of the generator alone when substantial work or additional equipment is included.

02

Describe what your sale provides

List the exact used set, accessories, condition evidence and delivery or pickup terms. Identify services that you are not offering. A buyer’s proposal for an installed unit requiring removal has a different scope from a quote for a new delivered and commissioned package.

03

Use an illustrative scope comparison

Suppose a hypothetical project quote contains a generator, transfer equipment and installation work. Your used sale might include only the generator as it sits. Dividing the project total by an arbitrary percentage does not produce an evidence-based offer. First identify genuinely comparable equipment transactions or obtain current bids on the stated used package.

04

Keep the decision questions separate

Use replacement quotes for the organization’s replacement planning and used-equipment bids for evaluating the surplus sale. Document any costs that connect the projects, such as agreed removal work, without counting them twice. If someone proposes a target sale price based on replacement cost, ask them to state the assumptions explicitly.