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AED Welcomes Newest Distributor Member MGB & Company

Last October, IntegraVision LLC, dba MGB & Company, became AED’s newest distributor member. MGB is based in Caldwell, Texas, and specializes in the buying and selling of used mining and concrete equipment. By taking into account the objectives of both buyers and sellers, MGB & Company is forging “win-win,” high-value deals that build trust and create repeat buyers and sellers.

CED recently had a chance to speak with Michael Bandas, MGB’s owner, president and “chief deal-making officer,” about the early years of the company and where he would like to take it. Bandas has been involved in heavy construction, mining and material industries since 1982 and uses this firsthand knowledge of the industry to better serve his clientele.

“We have been in business under the MBG & Company name for more than ten years, but the company has seen a lot of transformation in that time,” Bandas said about MGB’s unconventional development. “I was interested in precast concrete and was going to get into that, so I bought up a guy’s equipment – but I didn’t need all of it, so I decided to sell it off.”

Through Bandas’ first sale of this precast concrete equipment, he realized he had a knack for spotting quality equipment and restoring such equipment to its former glory. But at this point, he considered the sale to be a stroke of good fortune rather than a business model. It would be his next sale that cemented MGB & Company’s current identity.

“At the time of the precast concrete equipment sale, I was operating out of a general contractor’s yard. The contractor had an identical concrete conveyer to the one I had just sold off. When inquiries kept coming in about the already sold conveyer, I asked the contractor if he would consider selling his.” Relieved to get rid of his extra conveyer, the contractor was happy to sell. Happy to apply his mechanical knowledge of the equipment he was selling, and realizing the value added to both buyer and seller, it was after this sale that Bandas knew he was on to something.

He then expanded his resale operations to include scissor lifts, forklifts and extendable forklifts. Bandas’ family had had a base paving, drainage, water and sewage business, so he was comfortable assessing and working on this new inventory. MGB & Company is expanding the types of machines they are dealing in and currently serve the sand and gravel, crushed sand, frac sand, and concrete industries.
Bandas stated that the secret to his success is his ability to distinguish hidden value from junk. “My idea of quality is probably a lot different from most of my contemporaries, because I am coming at this from the viewpoint of the end user. Just because a piece of equipment has been out of commission for years and looks nasty does not mean it cannot be restored with a little TLC.

“The ideal arrangement for us now is to buy the machinery, refurbish it, restore and find a buyer. Not only is this more profitable than simply brokering deals between buyers and sellers, it allows for a more personalized approach to the transaction. Plus, I love working on the equipment,” said Bandas. “But whether we are buying the equipment or acting as broker, we inspect the machine to determine that it is in the actual condition that the words and pictures used to market it say it is in.” 

When selling a piece of equipment for an owner, MGB & Company lists and publishes pictures and descriptions of the machine on their website and on several other industry-leading web-based marketplaces. In most cases, MGB will also assume the costs and responsibility of preparing the machine for shipping.

Bandas is dubbed the chief deal-making officer at MGB and believes that his value to his clients is the difference between making a deal and making a deal that will work. The cornerstone of MGB’s deal-making approach “is and must be integrity,” said Bandas. “It’s more than a buzzword or catch phrase; instead, we consider it our most valued asset.”

The future looks bright for MGB, and Bandas was happy to comment on the direction he is planning on taking the company. “We have been in our current location for the past 18 months and are really starting to build up our client base. I am working with a colleague that rebuilds concrete plants and doing marketing for him. But as for the near future, I am hoping to acquire a truck with a crane, so I can add field servicing to MGB’s offerings.”

MGB is also in the early stages of becoming an authorized dealer for a manufacturer in addition to their current used equipment buying and selling business. Bandas was quick to emphasize just how early in this process MGB is, but he listed some of the qualities he was looking for in a manufacturer. “Finding the right manufacturer could take a week, or it could take a year. I want to find a manufacturer that is willing to work with a dealership of our size, one that is looking to establish or develop their presence here in Texas.”

One of the primary reasons MGB decided to join AED was to get involved with the Small Dealer Conference and the Small Dealers Committee. Bandas remarked, 

“I am excited to start thinking like a dealer. Attending the Small Dealer Conference this November, my motivation will be to take in as much useful information as I can absorb. My background is in construction and production, so I expect I will be learning a lot of new information.”

“I am excited to start thinking like a dealer. Attending the Small Dealer Conference this November, my motivation will be to take in as much useful information as I can absorb. My background is in construction and production, so I expect I will be learning a lot of new information.”

Only time will tell what is in store for this industrious small distributor, but if its future is anything like its past, we can expect intuitive growth that stems from the needs of the industries that it serves.

Collaboration between MGB and AED’s other small dealers is sure to be mutually beneficial as Bandas brings a unique perspective to the committee.
 

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