Reconditioning with Purpose
During my time managing used equipment sales for a large John Deere dealer, our organization experienced significant growth. As we expanded, it became clear that we needed a structured, consistent process for equipment reconditioning. At the time, there were differing philosophies across locations, and aligning those viewpoints was critical. Reconditioning wasn’t just about making machines look good—it was about driving smarter decisions, creating synergy between stores and departments, and protecting margin on every used unit that hit the lot.
Why a Defined Reconditioning SOP Matters
In a dealership with multiple locations and dozens of people touching equipment, inconsistency is costly. A standardized reconditioning procedure ensures everyone—from technicians to territory managers—is working from the same playbook. It eliminates guesswork, sets expectations, and sets up your dealership to maximize your return on used equipment.
That said, it’s no small task to implement a best practice that actually sticks. Every dealership is different. What works on paper doesn’t always work in the shop. The key is to adapt the SOP to fit your dealership’s structure—and just as importantly, include your team in mapping it out. Involving your people early on builds buy-in, encourages feedback, and leads to better execution.
When done right, this kind of process delivers four major benefits:
- It creates alignment between sales and service. With clearly defined categories, budgets, and approval checkpoints, both departments know their role. Service understands when and how to execute repairs. Sales takes responsibility for making decisions based on cost, condition, and marketability.
- It prevents runaway spending. We’ve all seen it: a machine gets sent to the shop and racked up $10,000 in repairs without anyone asking if it made sense. A defined process ensures that reconditioning dollars are only spent with proper review and authorization.
- It empowers salespeople to represent units confidently. Especially when they didn’t take the trade themselves, having inspection reports, service summaries, and standardized reconditioning helps them talk about the equipment like they’ve been around it since day one. It also helps them determine eligibility for other programs such as extended warranty coverage—an increasingly important part of the value proposition.
- It inspires confidence with buyers. A documented inspection and reconditioning process helps reinforce trust. When a buyer sees that a combine has been serviced, fluid-tested, cleaned, and priced appropriately based on its condition—and even prequalified for warranty eligibility—they’re far more likely to move forward. On the other hand, when a prospect calls in and the only information available is the year, make, model, and hours, it raises red flags. How prepared is your team to inspire confidence with the next prospective buyer?
Categorize and Communicate
The first step is to clearly categorize your equipment—and publish it. Call the tiers whatever fits your culture, but the key is to establish shared expectations across stores and departments. Alignment starts with clarity. Here’s a simplified structure I’ve found highly effective:
- Tier 1: Premium Trade
Demo units or low-hour used equipment still under base warranty. These machines require only minor service—fluids, filters, inspection—and a strong presentation. Think full detail and a clean, professional look. The market for these is tight, and it’s hard to stand out if your $500,000 tractor with 200 hours shows up looking neglected. Especially when you’re sitting on $90/day in interest. Presentation matters. - Tier 2: Late Model Trade
Powered units under 15 years old with low to moderate hours. These are typically eligible for extended warranty. They should be fully serviced, fluid-sampled, and detailed. Minor cosmetic flaws are acceptable but should be disclosed. Just make sure you’re consistent: if you’re priced at the higher end of the market, your reconditioning and marketing should reflect that across all stores. - Tier 3: Legacy Trade
Older units no longer eligible for warranty. These machines must be safe, functional, and clean—but don’t aim for perfection. Reconditioning should be evaluated case-by-case with sales input. Price them right, represent them accurately, and move them “as is.” - Tier 4: Value Trade
Equipment over 25 years old or with very high hours. These are washed, minimally serviced, and sold 100% as-is. Basic inspections only occur under direction from management. If safety or mechanical issues are present, consider alternative disposal options—retailing this tier can often create more problems than profit.
The WISE Process
We followed a simple acronym to guide the flow of every unit:
- Wash: First impressions matter. Every piece gets washed within two weeks, that way it is presentable even if we don’t have a chance to get to the rest of the reconditioning.
- Inspect: Standard forms and job codes are used to document condition and identify the areas that should potentially be addressed.
- Stop: Before any repairs begin, the inspection is reviewed with sales to decide what to fix and what to skip.
- Execute: Only approved work is performed. If new issues arise, the work pauses until sales and service regroup can decide how to proceed with the new information.
Keeping Everyone Accountable
One of the most important elements of the SOP was accountability. All inspections were documented, and uploaded to the business system, and included in monthly reporting. It is very difficult to achieve 100% because of work flows, but 90% completion rate for inspections within 30 days of arrival was very achievable.
We also established some reconditioning guidelines by equipment category—so service knew a realistic range, and could make informed decisions. These benchmarks kept decisions grounded in reality and helped avoid both over- and under-reconditioning.
Balance Process with Empowerment
While structure is essential, so is flexibility. In my opinion, the best SOPs combine clear guidance with the what, why, and how behind each step—and then allow latitude for your team to make smart decisions. Hopefully you hired capable people—trust them. A good SOP should create a shared understanding of the objectives, not a rigid set of rules that stifles initiative.
Final Thoughts
At the end of the day, a standardized reconditioning process isn’t just operational housekeeping—it’s a business strategy. It gives sales the tools they need to close confidently, protects service from spinning wrenches on the wrong jobs, and ensures every dollar is spent with intention.
If you’re serious about improving used equipment turns, protecting margin, and building trust across departments, put the process in place—and make sure your people have a seat at the table while you build it.
