Tag Archives: construction equipment auctions

How does Auction Companies work for heavy equipment? What do they charge?

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

When you do not need the services of your heavy equipment, you got to get rid of them. There is no point in keeping the machines with you and see them getting rusted during different seasons. Now there is a smarter way to get rid of heavy equipment and that is by selling them in auction. So while you put them up for auction, you generally give them the minimum price to start and it takes up from there. People will place their bids on the item and the guy with the highest bid will eventually become the new owner of the machine. It is no big deal to locate a company that is into selling heavy equipment through auction. In fact, you will come across many companies that see this business with huge potential and with larger margins for profit. So finding a company who can help you to do away with your old heavy equipment is no problem.

Get all machines at one place:-

Auction of heavy equipment is more like an exhibition. It is not just your machines that will be slated to get auctioned on a particular day but heavy equipment belonging to many other people will be put on sale on that day. So these companies if they are selling it offline then they advertise about the mega event where they rent a huge place to put up your construction equipment and invite people who belongs from the construction or mining industry. The invitation happens through ways of advertisement, cold calls and online registration. So once people gather at the venue, the auction begins and they bring each equipment at a time. The possibility of a construction equipment not getting sold exists but the larger possibility is that it may get sold off quickly out there than any other forum.

Online auction companies:-

There is also good number of auction companies who deals exclusively on the internet. They make members by asking them to register on their site and then use the site for buying and selling heavy equipment. So a person who is a buyer can also become a seller using the same User ID. He need not change any of his details to sell anything especially when his prior transactions were restricted to only purchases.

Different auction company charges differently:-

The seller has to pay good chunk of money to the auction company to sell his machines. Firstly, some auction companies charge money for registration. It may vary from few hundreds to thousands of dollars. It also covers the listing cost. For offline auction, they do charge for using their services to auction the machine. The amount may be minimal for putting the machine on auction but if it sells of, they may charge from 2% to 10% of the sales price. Sellers take advantage of both the platforms to sell their heavy equipment. Online auction companies charge not only for listing the item but also for enhancements like making the description part look more attractive or to just put a star on the listing which makes it a bit catchy. Any additional feature will cost the seller more and therefore one needs to first understand the costing before going for it.

The do’s and don’ts before auctioning heavy equipment

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

It has always been a challenge to heavy equipment owners when it comes to auction their heavy equipment. The main reasons for this could be not maintaining the equipments and keeping it in a state where it may catch rust. The rust on the machine slowly and steadily eats away a good portion of the machine and one fine day, the owner realizes that the machine requires immediate attention of a mechanic. The result of this is that the owner then has to shell good deal of money on getting the rusted part repaired and if there is any harm caused to the vital part of the machine, then it may become all the more expensive for him.

As a result of this entire episode, the owner is also setting a price tag which is most possibly high on the scale. This means that the owner will want to fetch a good price for the machine if ever he/she wants to put it on auction. There are few important pointers that an owner might want to consider before he/she decides to auction the equipment.

Decide the price of the equipment:-

An owner may want to consider the price of the equipment after taking few things into deliberation. For instance, the overall life of the equipment and how many years will it perform with the same pace. The wear and tear on the equipment is another crucial factor that the current owner may want to consider. Also, if the equipment has met with any past accidents and which part of the machine has been recently replaced. After taking into account all these factors, the owner should decide the price of the stuff.

Always check the price of the item getting sold by other competitors:-

This is another important thing that the seller just can’t avoid to ignore. He/she needs to keep a keen check on the price of item getting sold by other competitors. He/she may underestimate the price of his item and therefore he needs to know at what price other competitors are selling the same item. Also, he/she needs to check their configuration. He/she just can’t afford to compare apples with oranges. At times, the seller may also overestimate the price of his product. This comparison check will help him/her to keep his feet grounded and list the item on auction with the correct price tag.

Check the venue of auctioning and if proper advertisement has been done to gather potential buyers:- 

While preparing the format of the auction, it’s very important to mention the venue of the auction very clearly in the advertisement. Alternatively, one also has to see that the advertisement is made in some reputed newspaper, internet, and publication with good circulation. This will allow more exposure to the item and a good number of people may turnout for the auction. Ideally, such auctions happen in a fete which is exclusively meant for such work. The seller only needs to book a place for himself in that fete. He will find potential prospects turning in for the auction.

Related articles across the web