If you are thinking of selling heavy equipment and trucks, you probably want to sell them quickly and get the best price. It may seem like a simple task, but with all the options available for the sale of equipment today, not to mention the constantly changing needs and demands of businesses, the endeavour can become extremely complicated and time-consuming.
When you consider how much time (and therefore money) you can afford to spend on the process, carefully consider how you sell equipment and trucks. Identifying a buyer is only one small step in the process. Marketing, inspections, negotiations, insurance, vetting offers, and other factors must also be considered. That all adds to hundreds of hours and lots of money spent on the effort. Taking the potential return against the possible cost should be considered.
Selling heavy equipment can be done yourself or through a third party. All of them have their pros and cons. You can use this overview of the most common sales channels to make educated decisions on how to dispose of your assets.
Here are four heavy equipment selling methods.
If you have many items to dispose of, live or online, it is convenient to remove them quickly. Each item is sold to the highest bidder on the auction day with no minimum or reserve prices. The more potential buyers you can attract from various industries, the better your equipment will fare. These auctions are attended by buyers looking for equipment they can immediately use.
This type of auction can ensure a quick sale since the seller does not have to negotiate with buyers; however, with no reserve pricing there is no guarantee the sale will be profitable.
There is increased competition and urgency when holding an auction, with both on-site and online bidding allowing more potential buyers. If there is high demand for an item, you’ll get better returns and increased certainty of a sale.
You must rely on the auction company’s skills, experience, and market reach. Some added services may cost extra. Determine the value of the service. The final selling price is not guaranteed and it is possible to come out of this owing more than the equipment was sold for.
Reserve prices are a common feature of auctions. Items are auctioned with a hidden reserve price attached to them. A seller reserves the right to accept or reject the highest bid if it is less than the price set by the seller (the reserve price). This means sellers won’t have to worry about their equipment selling for less than expected.
There is often little competition in auctions with reserve prices since buyers have no idea whether the equipment will sell. This results in lower prices.
You can set a minimum sale value and ensure your costs are covered..
If equipment excludes a large pool of potential buyers or is not priced appropriately, it may not sell. There are generally inspection or advertising costs that still apply regardless of equipment sale.
Most people sell equipment through their network of equipment users, through ads in a newspaper or online listing site, or even by simply posting a sign stating “for sale.”. This method of selling equipment can be profitable if the market is right..
Selling privately, however, can require considerable time, effort and financial investment on your part, depending on how you do it. In short, beyond price, the process is mostly out of your control, and the risks are high. Contacting potential buyers, arranging inspections, dealing with “hard-to-please” buyers and negotiating the deal can be tedious and frustrating.
The seller receives high potential returns, pays little or no commission to third parties, and controls the entire transaction from beginning to end.
It takes a lot of time and money, has higher risk, has no guarantee of sale, and has an unknown timeline for the process.
When it comes to selling heavy equipment, you need to consider your selling method carefully
There are definite advantages when you sell to a dealer or have them sell for you. Their knowledge of the industry and the market will enable them to present your equipment in the best possible light. They generally have solid connections and can market your equipment effectively. You can often display your equipment at a dealer in a prime location.
Dealers like to maximize profits, just like any other business. As commissions are percentage based, they are working to sell your equipment to maximize your return, as well as theirs.
In addition to being motivated to sell, they can often offer buyers financing to facilitate the deal but cannot guarantee when your equipment will be sold or when you’ll be paid. Insurance, storage, and other services, including advertising, may incur extra charges or hidden costs at some dealerships.
An understanding of the industry and the market, openness to trade-ins, and a comprehensive marketing plan.
There is no guarantee of a sale or payment time.
Here at Great West Equipment, when we partner with somebody selling their equipment we consider it just that – a partnership. We have an extensive network of potential customers looking for all types of equipment across BC and the Yukon, as well as our dealership network across North America and online advertising that reaches local and international markets. We are also able to offer services that yourself or the potential buyer might require to finalize a deal including repair work, inspections, modifications and logistics.
We have a qualified sales staff that can help guide you through the sales process and a dedicated Used Equipment Manager monitoring the market every day to ensure you get the best value for your equipment.
As soon as you’ve determined the right sales channel for your business – a dealer, auction or private sale – it’s time to select the best dealer, auction or listings service. The quality, cost, and experience of different vendors and services vary.
Find out more about heavy equipment for sale by contacting Great West Equipment today. You can also call us at 1-888-492-4365.
Great West Equipment 2011-14th Ave, V9W 4J2
Great West Equipment Cranbrook Branch 1032401 Cranbrook Street North Cranbrook, BC, V1C-3T3
Great West Equipment 12623 Charlie Lake Frontage Road Fort St John, BC V1J 2B0
Great West Equipment 1220 Chief Louis Way Kamloops, BC V2H 1J8
Great West Equipment 2115 South Wellington Road Nanaimo, BC V9X 1R5
Great West Equipment 4759 Continental Way Prince George, BC V2N 5S5
Great West Equipment 3830 Sharples Road Terrace, BC V8G 5P8
Great West Equipment 18995 - 94th Ave Surrey, BC V4N 4X5
Great West Equipment 123 L & A Cross Road Vernon , BC V1B-3S1
Great West Equipment 4700 Collier Place Williams Lake, BC V2G 5E9
Great West Equipment 10 Lindeman Road Whitehorse, YT Y1A 5Z6