Businesses may sell equipment in order to offset costs or once it becomes obsolete. Used machinery can be sold either through dealers, auction houses or directly to buyers.
Selling at auction offers sellers with one of the highest returns; however, this process involves more work and expenses. Another alternative would be selling on consignment to expand reach while decreasing marketing expenses.
Advertising
Are You Selling Equipment Or An Entire Fleet? Utilizing effective marketing techniques is the key to reaching your target audience and selling equipment faster. This may involve advertising through social media channels, journal articles or directory listings and also creating a strong and responsive website, where potential buyers will often visit for information about it.
An effective website is key to raising brand recognition and building your reputation within an industry. In addition, it enables you to collect contact details of prospective buyers, making research such as verifying business licenses or tax records much simpler.
Timed auctions can also be an effective way to showcase your equipment. These events may take place either physically or online and allow bidders to submit offers over an agreed-upon timeframe. Furthermore, some companies specialize in advertising packages specifically tailored for machinery fleets - these often combine digital and print media media.
Online auctions
Online auctions are an efficient and safe way to sell equipment quickly. Buyers can browse their desired equipment at their leisure while the payment system ensures safe transactions. This enables sellers to focus on inventory management and other tasks without worrying about managing an auction process themselves.
When selling used industrial equipment online auction style, it's essential to find a trustworthy and experienced auction platform. An auction platform which follows best practices with SEO and content marketing will attract the highest qualified buyers while fetching you maximum return for your equipment.
When listing equipment for online auction, it's essential that you include both photos and an accurate description for every machine. In addition, consider working with a company that sends representatives out physically inspecting each piece before listing. This adds value both buyers and sellers by offering transparent condition reports; plus this saves both time and money by eliminating buyers having to travel long distances just to see it in person!
Selling to a rental company
Renting out equipment to a rental company is an excellent way of disposing of unwanted pieces. Selling it at its full value helps avoid liability issues while giving potential buyers access to all its potential uses.
When selling to a rental company, it is crucial that your sales process remains as transparent as possible. Prospective buyers will want to understand how you have grown the business and whether its expansion can be sustained; an ERP system can centralise essential data and speed up decision making processes.
Attaining the value of a rental company requires several methods, including future earnings and comparable sales valuation. Future earnings involves projecting revenues into the future and then using an appropriate discount rate to discount back to present value. Comparable sales valuation uses multiples averages to estimate value.
Selling to a dealer
When replacing equipment or reallocating machines to their optimal place in a company's fleet, several avenues exist for selling them. These may include selling to or trading with an equipment dealer; working with an auction company; or selling directly to buyers themselves - although this latter method presents numerous challenges that the seller may be unwilling or unable to address such as marketing the item for sale, price negotiation, showings/walkarounds/showings as well as potential reconditioning costs.
Weber asserts that dealerships should evaluate used sales from a margin perspective rather than profit over assets, which means measuring margins by how often a machine turns (one turn equals 20% and two equals 10%).
