Selling machinery can be an excellent way to recoup some of your investment when no longer needed and can provide funds for other projects.
Understanding how different buyers acquire machinery is vital to increasing your sales opportunities. For instance, certain buyers opt for used equipment so as to reduce expenses and costs.
1. Trade-In
Manufacturing companies frequently opt to sell machinery through a trade-in process rather than an outright sale, so as to apply its value towards purchasing something better suited for their needs without incurring unfavorable tax implications.
Before trading a machine into an equipment dealership, it’s essential that its condition be in top shape. Dealerships will usually deduct significant repair costs from its resale value; prioritise critical components like tires, tracks and undercarriage while keeping track of maintenance records and invoices for any repairs or replacements that might need to take place.
Equipment dealers also often sell machinery on consignment. This involves conducting inspections and marketing the item to potential buyers in exchange for a commission from its sale.
2. Online Classifieds
Online classified ads provide your business with an affordable solution that’s easier and faster to reach its audience than print ads can, saving time and budget by easily reaching its desired demographics.
One major drawback of classifieds ads is their inability to be targeted to specific audiences, making it hard for companies to find buyers at just the right time. To address this challenge, social media platforms and modern marketplaces have taken classifieds to new levels by moving closer to transactions while alleviating fraud, scams, and crime–resulting in significant revenue gains for these platforms. Some classifieds have since moved towards transactional advertising while others continue providing platforms that connect buyers and sellers.
3. Dealers
Dealers specialize in buying and selling securities on the OTC market and profit from any differences between their bid and ask prices. As intermediaries for both buyers and sellers, dealers act as counter parties while contributing to market liquidity and long-term growth.
Dealers are typically your best bet when selling equipment or vehicles, from an entire fleet or piece to one piece alone. From initial sourcing through financing, shipping and fund transfer services – dealers often provide better returns than auctions can.
To do so, they must ensure a seamless customer journey from discovery through purchase and service delivery, meeting customer expectations for flexible access to equipment, revenue-generating fleet management services and connected equipment data. In addition, their operations must become more resilient against market disruption.
4. Auctions
Auctions have long been used by corporations, small businesses and individuals as an effective way of recovering capital from used machinery and equipment. Businesses with strict upgrade schedules or excess machinery often benefit from auctioning their surplus assets in order to improve asset recovery processes.
Auctions can help maximize equipment sales potential by reaching a wider audience. Buyers tend to flock to auctions as there is often an end date and clear incentive for bids; but before participating in one it is wise to do research as prices may differ based on valuation; to get accurate pricing it would help uncover how similar machinery has sold at previous auctions as this information will ensure your machinery is listed for an acceptable price.
5. Private Sale
Private sales enable equipment owners to sell directly to an end user. Transactions may take place through online classified sites or brokers who find buyers. Brokers typically charge commission, which can reduce the overall value of a sale.
Selling equipment privately presents some risks. A buyer could decide at the last minute to lower their offer or the equipment may not arrive on time for shipment – both can significantly affect sales success.
To mitigate these risks, sellers should hire experienced agents who can screen buyers and confirm legitimacy of transactions, preventing a deal from falling through and guaranteeing all sellers are paid. RDO provides affordable machinery financing solutions so buyers can complete transactions without impacting their cash reserves.
