Selling machinery is an effective way for any business to generate cash and reduce overhead expenses. Selling obsolete or unused equipment also presents an excellent way of clearing out clutter in the warehouse or clearing out unwanted space in storage facilities.
There are various approaches to selling heavy equipment, from working with an equipment dealer and auction company, or directly selling to end-users. Each has their own advantages and disadvantages; businesses should carefully consider which option best meets their needs.
Getting Started
Once equipment has become obsolete and its utilization decreased significantly, selling it may be necessary. But this task requires preparation, removal, insurance, marketing, advertising, screening for solicitations offers from legitimate sources only, negotiating the deal itself as well as inspections before possibly paying capital gains taxes on profits made from selling it.
Professional appraisal can assist in valuing and selling machinery at fair market value, and help avoid unnecessary taxes.
Online marketing can be an excellent way to sell machinery. While Search Engine Optimization (SEO) takes time and investment to master, its long-term rewards make it worth your while. But to stay competitive in today’s marketplace, monitoring market trends and sales metrics to make sure you don’t lose ground is vital – the top companies use MoneyMap’s comprehensive market share picture feature to understand where sales increases can occur for each of their products.
Pricing
First-time sellers often overprice their equipment. Pricing to sell is an important decision that can affect dismantling, shipping and holding costs – or in the case of machinery storage fees and depreciation costs if applicable – plus it could mean potential buyers cannot afford an acceptable price, leading them to opt out or seek alternative options.
Pricing transparency is of utmost importance, which is why so many companies rely on Rouse Services reports which provide FMV and OLV (Orderly Liquidation Value) pricing information from public sales such as auctions, dealerships and liquidation platforms.
Manufacturer reputation and age and condition of the machine are both key components in pricing, as are its usage history and potential future uses. Usage-based models tying payments directly to intensity of equipment usage have become popular as a means of mitigating upfront capital expenses while shifting service relationships from episodic engagements towards ongoing engagements, increasing customer value and creating stickiness for customer relationships.
Inspection
An effective strategy for selling machinery is giving prospective buyers an opportunity to inspect and test it first-hand, giving them more confidence when making their decision and increasing your return on your machinery.
Buyers want to ensure the equipment they’re purchasing is clean. A bit of deep cleaning goes a long way toward making machinery appear newer and more valuable to potential buyers.
Used machines often experience wear and tear over time, particularly those used heavily. Some issues may not need attention right away; others could prove costly if ignored. To identify any hidden problems on your equipment, RDO provides expert consultation to assess its condition – inspecting its undercarriage, cabin interior and engine compartment in order to maximize return.
