Companies looking to sell unwanted equipment have several options for selling it off when its no longer useful, including working with dealers, auctions and direct sale to end-users. Each option has its own advantages and disadvantages but all offer ways of offloading valuable assets from their books.
Businesses selling to dealers often find buyers for machinery in almost any condition, allowing them to negotiate directly with their buyer and secure a fair price for themselves.
Trade-ins
Trade-in is an efficient and profitable way for equipment owners to sell their used machinery without incurring losses. This may take place either via an auction house or dealer who will assess and value it according to its condition and current market demand – they may even bundle multiple items together in order to make sales quicker.
In order to ascertain the value of equipment, dealers compare it against similar items on the market or auctions and take into account any modifications or attachments that have been installed on it.
When trading in equipment, it’s always advisable to repair and replace any essential components before selling it to dealers. Be careful not to overrepair, however; doing so could lessen its value in their eyes.
Dealers
Dealers are registered businesses that specialize in selling used equipment. They may sell it on behalf of manufacturers with excess supplies or rental companies looking to update their fleets; commission fees typically apply.
Many dealers will include additional charges in their contract such as S&H fees, PDI charges and dealer prep charges. Although these additional costs are often negotiable, it is wise to inquire beforehand what these additional expenses entail.
Some future dealers begin in the service and parts department of a dealership, where they can learn about the machines as well as how to organize and run a heavy equipment dealership. Through on-the-job training they also gain experience within the construction industry. Weber points out that one goal of any successful dealership should be managing the new/used sales mix until used equipment makes up at least 40% of overall business sales.
Online auctions
Online auctions can be an efficient and cost-effective way to sell equipment because they reach such a wide audience. Online auctions provide sellers with an efficient solution when downsizing, moving or passing along collections as well as companies upgrading or replacing equipment and people looking for ways to save money when making new purchases.
Before purchasing equipment from an online auction, make sure that you know exactly what to expect. In addition to its description, additional details may include its condition, maintenance history, inspection report, fluid levels and more.
Select an auction site known for selling quality products and offering multiple payment methods, while providing receipts as proof of purchase.
Private buyers
Assuming you take the private route when selling equipment is time-consuming and risky. Signs in windows, phone calls and attending auctions all add up – not to mention potential threats such as unqualified buyers.
Your equipment could bring greater returns when coupled with an effective marketing strategy. Collect statistics like unique website visitor numbers and social media audience numbers so that you can reach more potential buyers.
Reservable auctions allow you to more tightly control the sale price. By setting a hidden minimum price and accepting bids that meet it, this approach provides small businesses with more financial flexibility without taking a significant financial hit.
Refurbishing
When looking to refurbish equipment, it’s essential that you choose a company that provides support and parts. That means being able to call, email or visit online with questions answered quickly by technicians with expertise. Furthermore, as refurbishments usually have shorter lead times than new machines this means receiving quotes and products rapidly.
Consider how refurbished vendors handle inspections, repairs and other details when looking at used machinery vendors. A reliable company like Summit 360 should have an established system in place so your machine can be sent off for servicing and quickly returned – saving both money and stress in the process.