Machinery Auctions Benefits The Dealers Too

Machinery Auctions Benefits The Dealers Too
June 23 15:52 2019

The stigma of auctions

It was probably around a decade ago when auctions were perceived by most dealers as a last resort when trying to sell off their items, especially those that cost quite significantly. It is, after all, where buyers would go to when they’re trying to purchase heavy equipment and machineries at a significantly lower cost. Machinery auctions were avoided by most dealers as much as possible before.

A paradigm shift

Recently, there has been an observed change of pace as an increasing number of dealers start participating in such auctions. Executives from dealer-principles have started utilizing auctions as part of their marketing strategies citing that there is a better focus on inventory management in machinery auctions.

This plan, of course, is not always the case for all dealerships. There are still those that are reluctant in putting their items up for auction, being unfamiliar with how the process goes in machinery auctions. However, the numbers of dealers considering auctions as means to rotate working capital and inventory versus those that still see auctions as a last resort have shifted dramatically. There are even instances where the dealer themselves will recommend that the customer take their business to auction rather than in the trade. For dealers, this path provides liquidity and is serves as a no-trade transaction for both them and the customer.

Auction as an effective marketing tool for dealers

However, there are still instances where a dealer puts up on auction items and equipment they couldn’t move, which can practically be considered as junk. This puts the auctioneer and the auction company at a bad side towards the consumers, as it may feel like the auction is trying to take advantage of them.

But now, when auctions are perceived as a marketing strategy for most dealerships, the quality of equipment dealers commit in auction have become significantly better. This has made machinery auctions a viable channel for both dealers and buyers to a fast and reliable sale and acquisition.

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