Reselling equipment no longer in use is a vital component of manufacturing company asset management processes, helping lower capital expenditures while freeing up storage space for newer purchases.
Manufacturing companies have traditionally relied on newspaper classified ads or reaching out to existing end user networks to sell equipment, but these processes can be slow and expensive.
Auctions
Auctions provide businesses with another avenue for large-volume equipment sales. Buyers and sellers compete against one another for the highest bidder, which determines who wins. Unfortunately, auction sales do not allow companies to have control over the final sales price; companies could end up selling equipment for less than it’s worth.
Businesses should carefully research potential buyers to make sure that they are legitimate, rather than scalpers or fraudsters. Businesses may require down payments and review payment histories of potential customers in order to protect themselves against buyers who fail to complete their purchases.
Auctions provide another advantage by eliminating transportation costs, making them an appealing solution for companies selling large volumes of equipment. Unfortunately, auctions typically take an extended period of time and effort to organize and execute, with additional fees due to auction site.
Private Sales
Private sales can be risky and costly. Buyers needing financing options will need to set up financing arrangements, adjust their budgets or transfer money within their business in order to accommodate a purchase, which could slow down the process and disrupt cash flow.
An equipment broker may save time, but their fees still include their industry expertise, connections and cost of marketing your equipment. Furthermore, they will also arrange inspections and vet legitimate offers that come through.
Selling machinery through a dealer is the preferred method, providing access to many qualified buyers ready and willing to buy immediately. Furthermore, dealers often have documentation on your equipment which helps speed up the selling process while giving confidence that you’re getting a fair deal; additionally, dealers provide warranties as well as financing capabilities, making this method popular with finance companies.
Dealers
Equipment dealerships play an essential part in the equipment value chain. They help customers navigate the sales journey, including financing and delivery services, while serving as trusted sources of information about equipment’s capabilities and features. However, some analysts warn of their diminished value due to online sales increasing rapidly and customer demands for more transparency during purchases.
Dealers can increase their value proposition by digitizing customer experience from discovery, purchase, finance, delivery and service. Leveraging data from connected equipment allows dealers to increase customer retention by offering upsell enhancements (such as upselling attachments and accessories based on usage analysis) and create revenue-generating fleet management services.
Dealers can bolster their service operations by enabling technicians to schedule and complete repairs more quickly. Furthermore, connected equipment data can inform service visits while field technicians receive relevant parts and documentation before arriving at a customer site.
