Since then auctions have undergone massive changes to become what we think of today when we here the term auction. Today, auctions are used to sell everything from vehicles to industrial machinery and equipment. As the popularity of auctions continue to grow this form of selling is becoming big business world-wide. It was reported in 2017 that the value of global auction marketed increased 25% from the previous year to a value of $11 Billion.
Of course, your business is about more than just the bottom line, but that doesn’t mean it doesn’t play a central role in your strategies. When you are investing in industrial equipment, you know those investments will only last so long as value for your company. You try to make the best purchase decisions, but things age and processes change. Sooner or later, you will want to upgrade or cut certain machines from the floor. What do you do when you find the equipment you no longer need?
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Too many businesses are operating under popular myths that industrial equipment doesn’t have resale value or trying to liquidate those assets won’t be worth the time. Every year, any equipment not needed just becomes a liability. And, just because that equipment doesn’t hold use for your company doesn’t mean another company can’t use it and won’t invest in it.
Selling assets without being under force means you can select the best equipment for your company to sell. You will be able to select the time of year and selling format to help get the best price for your items. Choosing to resell your assets without being pressured to liquidate means you are being proactive and not reactive.
You will have to start the process by itemizing the excess of equipment you have on hand and reviewing those assets. You must explore anywhere surplus items could be stored, including closets, offices, warehouses and even on the manufacturing floor. Ask around to make sure you are getting everything and not forgetting anything. Organizing your equipment on paper is going to help you see what you have and what prioritizes your top buying method.
There are several ways to sell your assets, including private treaty, consignment and, auctions. You will want to consider the key factors that impact your selection of selling methods:
Of course, you likely would first go for the method you believe will get you the largest return. However, when you consider the time, involvement and cost of everything, you may find your preferred method for revenue just doesn’t make the cut.
An online auction is a newer method for buying and selling worldwide. Most of the aspects of an online auction are the same as traditional, onsite auctions. Like traditional auctions, online auctions feature items that are bid on by potential buyers, have a starting bid point and end within a given time-frame. An online auction can feature specific rules for the terms of sale. Here are some of the ways online auctions stand out:
The biggest advantage of online auctions is the ability to advertise the auction to a much broader audience. By removing limiting factors like geography, you open your used industrial equipment to more potential bidders. By including more potential bidders the greater the chance the equipment sells and the greater chance that you see more value returned than other selling options. Some of the biggest challenges with selling via online auction are:
The traditional way to auction something off is to have a live countdown in front of a bidding audience. Items are previewed and cataloged before taking the stand. The auctioneer talks up the items and mentions any terms of sale before starting the bid. There are some ways a traditional auction stands apart from an online auction:
The biggest advantage of an onsite auction is the focus of the event. If you can draw people to an onsite meeting place to view and bid on equipment chances are these buyers are extremely focused and have the money and the desire to purchase your used industrial assets. Some of the biggest challenges with onsite auctions are:
Auctions can be a valuable way to receive fair market value for industrial goods and assets, whether selecting to sell the assets onsite in face to face auction or online auctions each option offers distinct benefits for the method of selling. When selecting a method, choose the method that works best for the equipment you wish to sell as well as the involvement level you are able to provide.
As an industry leader with over a decade of experience, NRI Industrial is dedicated to helping corporate businesses create and execute investment recovery strategies in any and all ways that we can. NRI Industrial creates turnkey solutions for organizations all over the world ranging from small to mid-sized businesses to titans of industry and fortune 500 companies. Our solutions are designed specifically for your industry and tailored to whatever industrial surplus challenge you may have. Read more about our client’s recent success by browsing our latest case studies
Have a question about how to get started with an asset recovery strategy or looking to leverage the power of industrial auctions to sell industrial equipment? Give us a call at 1 (855) 709-9813 or email at email@example.com and our team will be more than happy to answer them.
Not quite ready to talk? Check out our recent article on The Benefits of Selling Used Industrial Equipment.