1. Know What The Equipment Is Worth
The first tip is to do your homework and research the machinery's pricing with industry trends for comparable equipment. Utilizing current information available, establish a price range for your machinery. By having a reasonable price range, you can negotiate the cost of the equipment confidently and set realistic price expectations.
2. Researching Selling Methods
Regardless of your situation, the type of machinery you are selling, its condition, and how quickly you need to complete the transaction, there is a selling method most suitable for your equipment and case.
To know which sales technique is most suitable for you, it is important to educate yourself on the benefits and drawbacks of common machinery selling methods, including industrial equipment auctions, reserved auctions, unreserved auctions, equipment dealers, equipment brokers, and private sellers.
3. Speak To An Expert
Speaking with an experienced salesperson about developing a sales strategy designed to help you receive the best return on your investment is highly recommended. While it can be tempting to "go it alone", considering the amount of time and effort you need to put into the selling procedure - you can save a great deal of time and money with a full-service specialist solution. This is particularly true in a case where you are selling a large amount of items and do not have a dedicated asset manager or operate in a region with high supply/low demand for used machinery.
4. Identifying The Value Of The Machinery
Refurbishing can be a small investment that nets big returns when it comes to selling used heavy machinery.
The way equipment appears can either deter a buyer or attract a higher offer. Before selling, it is advised that you consider some heavy machinery refurbishment. Refurbishment can include elements such as cleaning, upholstery repair, glasswork repair, decal replacement, painting, and many other aspects. Typically, refurbishing can be a small investment that brings about large returns.
5. Targeting Buyers Wisely
It is recommended that you try to target as many machinery buyers as possible, but do not sacrifice quality for quantity. When working with an equipment seller that actively markets to a large population of machinery buyers, it is important that the seller uses marketing efforts according to the industry to which the equipment is best suited and where there is the greatest demand. Marketing the machinery independently can be a highly time-consuming procedure; therefore, using an equipment seller with proven expertise in this area can help save time, effort, and make money.
6. Being Transparent
It is important to provide detailed photographs and information pertaining to your machinery. The photographs must document the condition of the equipment's undercarriage, cab interior, engine compartment, and other details. Remember: buyers appreciate all online access to machinery information; however, there are buyers that are weary of purchasing machinery that they are unable to view or test first-hand. If you utilize the services of a selling agent, it is recommended that you choose an agent publishing detailed information of your equipment online PLUS accommodating on-site inspections.
7. Screen Buyers
When receiving an agreeable offer, the last thing you want is for the deal to fail. This is why it is vital that you screen any potential buyers before accepting any offers or working with selling agents who will verify the legitimacy of buyers on your behalf. Here at Ritchie Bros. Auctioneers, our team will qualify potential buyers beforehand to prevent any failing deals and ensure that all sellers will be paid. To assist buyers closing the deal, Ritchie Bros. Auctioneers also offers affordable machinery financing.
8. Taking Advantage Of Tax Breaks
If you operate a company in the United States or are a taxpayer in the US, then you may be able to defer taxes via a Like-Kind Exchange. The Like-Kind Exchange allows one to defer taxes through reinvestment of gains made from sales of old machinery into replacement gear or models.
9. Minimizing Uncertainty
When selling any heavy machinery, do not wait too long for payment and this is particularly true if you are planning on replacing the sold equipment with newer machinery.
The equipment market can change regularly where supply can increase while prices decrease. If you wish to have money in hand quickly, then you need to be prepared to act on a profitable deal and minimize disruption to your business by choosing a sales method offering a certainty of sale. By knowing the exact date of the transaction of machinery sale, you can remove guesswork from the equation and minimize uncertainty.
10. Establishing A Relationship For Future Trading
If you present with a fleet that you will be changing every three to five years, it is recommended that you locate a sales representative you can trust. The more you work together, the greater the representative will understand your company and the better your sales results will be.
By having a good relationship you can ensure better trading in the future, regardless of whether you are turning over a fleet every few years or need an upgrade every ten years.
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