How to avoid the downsides of private sales

By Phillip Weston, key account manager at Ritchie Bros. Middle East and Marketplace-E

Missed appointments and failed price negotiations

You’re probably familiar with the time, effort, and inconvenience involved with private sales if you have ever sold any household items or assets privately. Whether it was an unused TV or a car, listing your item or asset in a newspaper or online, you’ll know that dealing with inquiries as they come through by phone or text can be time-consuming. Screening callers to identify legitimately interested buyers from those that are not, arranging viewing times, negotiating prices, and finally, hopefully closing a deal and securing payment can be challenging.

This process becomes even more time-consuming when dealing with high-value, heavy equipment. And before you can even begin the selling process, you’ll need to spend time researching used machinery and equipment values so that you can establish a realistic asking price according to current market conditions.

Waiting for buyers can be a hidden cost

You will need to think about paperwork, maintenance records, and log-books, deal with any issues getting internal clearance for asset disposition, and ensure you have a secure payment method. It’s also important to consider the added ongoing costs associated with storage, insurance, and depreciation during the asset disposition process.

Consider convenient online auction options

The good news is - the heavy equipment auctioneering industry has been listening to your needs and has responded with new solutions. There is now a range of online auction options - built upon the previous success of traditional, live auctions designed to facilitate and speed up the selling process and embrace the internet to increase global reach and target new buyer groups in remote locations. Heavy equipment auctions are no longer just a 'one size fits all' solution.

The auctioneering industry's objective is to make the equipment-selling experience easy, quick, and profitable for sellers and as straightforward and safe as possible for buyers. In 2021, sellers have more options regarding when, where, and how to sell surplus equipment than ever before in the history of auctioneering – whether it's one machine or an entire fleet.

Here's a quick overview of the new options available to you to take the stress and hassle out of selling:

1. Get your equipment independently appraised

Firstly, arrange for your equipment to be appraised by a professional auctioneer. Most major auction houses provide this free, no-obligation service. Generally, these experts will visit the consignors' site for personal meetings with key decision-makers to discuss the seller's needs and objectives and advise on the best options to get the best returns. They will also draw on industry pricing and market trends data to help guide decisions. Maintenance records are assembled, and the equipment is valued, with recommendations on how to increase the potential sale price of the asset. 

The selling process is further aided by these experts who can facilitate offline negotiations between buyers and sellers and provide after-sales support.

2. Choose your selling channel and method

Choose the auction service that works best for you.

Do you want to achieve maximum exposure for your asset and allow the free market to set the price? If yes, then maybe an unreserved Online Timed Auction is right for you.

An example of this is Ritchie Bros.' Online Timed Auctions held quarterly worldwide, including in Dubai, which services buyers mainly across the Middle East, Africa, and the Indian Subcontinent. With an easy-to-use website, Ritchie Bros. enables sellers to increase their global reach by accessing new buyer groups from remote regions through strong online infrastructure and digital marketing campaigns.

OR

Do you want to sell your equipment quickly and for a set price? Then consider consigning your equipment on a reserve price, everyday online auction. An excellent example of an everyday asset disposition solution is the Ritchie Bros. reserved 24/7 online marketplace called Marketplace-E. It holds weekly online auctions and provides sellers with control over price.

3. Choose your consigning location

Deliver equipment to the auction site as this takes all the pressure and responsibility of storage, buyer inquiries, and inspections off the seller. Generally, the auction house will handle matters from this point and keep you informed of progress.

OR

You can choose to sell equipment online from your own location. Auctioneer equipment inspectors can visit you to inspect items and produce an equipment condition certification report and prepare detailed photos, enabling online buyers to see exactly what you are selling and providing additional confidence in the assets they are buying.

4. Access global buying audience

Generally, global marketing campaigns will commence as soon as your equipment is in the auctioneers' yard or photographed and inspected. One of the biggest advantages over private selling is the auctioneer's multi-channel marketing campaigns. Email shoots to regular buyers, powerful social media, digital marketing, and more ensure more eyes are on your equipment resulting in more bidding competition and better pricing opportunities.

5. Sell your equipment for global market value

Generally, auctioneers will conduct the sale and then handle all post-sale tasks for you: coordinating official ownership checks, invoicing and payment, the release of equipment, and remittance of any applicable taxes on your behalf. Finally, proceeds of the sale will be remitted within the agreed period.

For buyers, auctioneers also provide an international shipping service, which means they can offer a total online solution without the need for buyers to travel to Dubai.

So, whether you want to trust the keys to your assets to a reputable auctioneer or have some involvement, there is now a range of online asset disposition solutions open to meet all your asset and fleet management needs in 2021.

For more information on the range of selling options on offer, visit the Ritchie Bros. Middle East website by clicking here