In today’s modern society, auctions have become a widely accepted and favored method of liquidating heavy-duty machinery and equipment because it is fast and convenient in comparison to the traditional method of buying and selling through a dealer. If a company is having a difficult time disposing of specialized equipment, it is important to not let it just sit and lose all of its value. There is one option that many businesses choose to dispose of such vehicular assets – it is to auction industrial equipment!
Following are some of the reasons why some companies decide to sell vehicles in this fashion:
- Flexible Strategy – When a company wants to auction industrial equipment, different sales strategies are used depending on which one is the most effective way to liquidate that type of machinery. The three strategies that are most often used are: online, live, and sealed bids. This allows assets to be marketed to targeted bidders.
- Maximum Net Recovery – One thing that every seller wants is to get the most money possible for the equipment. By selling these vehicles at an auction, businesses can secure the resale value by setting a reserve amount; any bid that is beyond the reserve price gives provides greater earnings. If the unit being sold is in pristine condition and in high demand, it is possible to generate even more profit for a company.
- Extensive Marketing – Sellers can take advantage of the powerful marketing strategies used by auction companies. Equipment is sold through a wide range of media including internet ads, newspapers and magazines, brochures, e-mail marketing and much more. These marketing efforts are directed toward targeted customers who use and deal with industrial machinery and are most likely to participate in the bidding process.
Sellers who decide to liquidate assets through an auction service are making a smart choice, as the units usually sell very quickly due to the sense of urgency that these events convey to a buyer. For a seller to receive the greatest benefits, there are also a few things to be considered.
- Reputable Company – The success of liquidating an asset depends greatly upon the host of the event. The auction company is the one who will decide how the equipment will be marketed; know the right people to participate in the bidding; and actually facilitate the event. This is why it is so important to choose a company that is an expert in all three of these areas. Look for a bidding company that has been in this business for a long time and is a well-known, reputable company.
- Allow Adequate Time – One of the most time-consuming processes is the marketing phase; every seller should keep in mind that the more time that is allotted for marketing, the more bidders who will be attracted to participate in the event. Give the auctioneer ample amount of time to market the equipment to a large number of potential buyers; this will increase the chances of the vehicle being sold as well as potentially increasing the amount of the winning bid.
- Prepare the Equipment – The condition of the machinery being liquidated can significantly influence the amount of the final bid. Buyers tend to look at the physical condition of the vehicle to evaluate the condition of its internal components. Before putting a unit up for sale, a simple repainting job and a thorough cleaning to remove mud and rust can greatly increase the selling unit’s value and boost the interest of the bidders.
Auctions are a fast and easy way to liquidate specialized equipment that requires targeted clients. When a seller wants to auction industrial equipment, this method of selling can help allow for recovery of assets quickly and easily, rather than letting the equipment rust and lose its value as it ages. Hopefully this article has provided some important and helpful information about the many advantages of the modern industrial equipment auction!