The Internet’s flexibility and computational power have made auctions an integral and widespread part of both business and consumer markets. Online auctions have a growing number of sophisticated trading mechanisms and generate multi-billions of dollars each year.
Business transactions are generally conducted by using a specific mechanism. Common mechanisms include:
- A fixed price that is normally posted
- A process of negotiation
- An auction
Casual scrutiny suggests that goods in distinct categories are sold via a specific mechanism.
Although many consumers most often use the price posting mechanism and often think that it’s the most dominant if the dollar volume is taken into account, it’s probably not. It is more likely that bigger transactions in terms of complexity and cost will be done by using a negotiation process between the seller and the buyer, or via auctions.
When to use auctions
Two of the most important factors that determine which mechanism is most suitable are ambiguity about the right price for the services or goods, and the sensitivity to transaction costs. Economists generally agree that perception about price is a reason to use auctions.
The research was done showing that one way to establish whether a specific product should be sold via an auction or not is to determine whether anything can be gained by discriminating the price for that product. If the demand for a product is elastic, price discrimination will not be as effective as when demand is inelastic.
The Internet has had the following effects on auctions:
- Accessibility to more participants, both sellers and bidders
- Reduced transaction costs for both sellers and buyers
- Easier description of complex products
- Easier collection of data about auctions
- The ability to conduct complex auctions
- The possibility for participants to join at any time
Which auctioneer to use
Apart from trying to decide if an auction is an appropriate mechanism to sell your industrial machines and equipment, it can be a daunting task to select a specific auctioneer that is best suited to cater for your specific requirements. Auctioneers offer different services and work in many different ways.
In order to assist you with this, we have compiled a list of selected auctioneers and will discuss the different services they offered and their general typical conditions.
Troostwijk was founded in 1930 and have been conducting auctions for 90 years. The brand is trusted globally and selling through Troostwijk is easy and safe.
One of the services Troostwijk offers is to find the right buyers for your assets. They have an extensive database and combine this with targeted publicity campaigns through promotions, social media, mail and ads to ensures that the right buyers know about your products.
The company uses industry experts located across Europe and have a detailed understanding of your business and the full value of your assets. Buyers are supported in their own language and Troostwijk works hard at ensuring you get the best revenue for your products.
Troostwijk has broken down their selling process into four easy steps:
Once you’ve told the Troostwijk experts what you would like to sell, they will give you clear advice, estimating the total revenue and provide you with a quotation and a clear plan. They also offer the option for you to join a current auction in your industry with only a few items as a sub-seller.
Troostwijk’s specialized staff will handle all the details of running an auction for you. They will describe each of your items in detail and take professional photographs. A publicity campaign is then run and a viewing day organized. They will also answer any question potential buyers may have and run checks if required. Troostwijk’s auction managers are fully conversant with running an online auction.
Once your items have been sold on auction, the successful buyers will collect their items. Troostwijk’s staff will once again ensure that this process is hassle-free for both buyers and sellers. They will also make sure buyers have paid for the items they’ve bought before permitting collection to take place.
The last step in the selling process is for your money to be paid into in your account quickly and easily.
For more information on Troostwijk visit this page.
EquipNet allows sellers to use their self-posting platform to sell their surplus equipment. Sellers can either post their equipment together with similar equipment in an industry-specific global auction, on EquipNet’s global marketplace. A single piece of equipment or hundreds can be listed at a time.
EquipNet has a professional project management team that assists sellers in selecting the sales channel most appropriate to your timeline. This will assist you in generating the highest potential returns on your equipment.
Selling equipment through EquipNet has a number of benefits:
- Multiple channels can be used to sell
- Warehouse consignment available at numerous global locations
- Certified appraisals, inventory services and desktop evaluations are available
- Global, industry-specific sales teams are able to assist in multiple languages
- Biggest global online marketplace with hundreds of millions of dollars of facility support, electronics, test, laboratory, packaging and manufacturing equipment.
- Equipment is listed for free
To ensure that your equipment sells, EquipNet recommends a number of best practices for photos. At least five photos should be posted, including photos of:
- important components
- all sides of the equipment
- covers of manuals/software
- name plates
- changed parts/tooling
- previously run products
- items associated with sale
- noticeable damage
- any additional photos that will enhance the listing
When taking photos, the equipment should be lit well. Blurring, shadows, glare, and other distractions that reduce the quality of the photos should be avoided. Also always use the highest resolution setting possible.
All PDF manuals and plans should be included for a more detailed listing.
EquipNet offers the service whereby they will work with you to identify your surplus equipment and post them for you, but their self-service site also caters for you doing it yourself in 5 easy steps:
- Identify the equipment that you want to sell via auction.
- Either post the listings of the equipment yourself, or send the list of inventory to EquipNet.
- EquipNet will review the information and images provided, and generate a timeline and pricing.
- Once a listing has been approved, it will be activated with global sales and marketing campaigns.
- Once the equipment has been sold, EquipNet will work with the buyer to facilitate shipping logistics.
EquipNet's utilizes a number of different sales channels based on the value of the equipment put up for auction. These sales channels provide unique opportunities to target the right buyers, within the required timeframe, at the best price.
For more information on EquipNet visit this page.
Euro Auctions have simplified their selling process and have made it as straightforward as possible.
- Once you have selected Euro Auctions to sell your equipment, a sales representative will visit you to conduct an inspection and appraise the equipment.
- If you decide to sign a contract, Euro Auctions will take care of everything from that point forward, including repairs, refurbishment and transportation of equipment.
- Euro Auctions will advertise your equipment globally on their website, in auction brochures and in specialized trade publications and websites.
- On average, these auction attracts buyers from more than 40 countries. This ensures your equipment will fetch the highest possible market value.
- Euro Auctions collects the proceeds of the auction and will pay your share within 21 days.
Euro Auctions also offers an offsite auction service to cater for scenarios such as Retirement or Cessation of Trading Auctions, or if you have a larger amount of equipment to sell.
Euro Auctions will ensure that you reach a global audience for selling your equipment.
For more information on Euro Auctions visit this page.
Ritchie Bros summarizes their offering in the following points:
1. Equipment for all industries sold
The company sells more used equipment than other companies. Although a big percentage of their sales comes from traditional construction equipment, they also sell thousands of items used in real estate, farming, agriculture, forestry, oil & gas, mining and transportation.
In short, any equipment that is used to farm, haul, lift, build, or dig can be sold via Richie Bros.
2. Live unreserved public auctions
Ritchie Bros conducts live unreserved public auctions with both online and on-site bidding available. With an unreserved auction, there are no reserve prices or minimum bids, resulting in every item being sold to the highest bidder on the day of the auction.
Unreserved auctions have a number of advantages for sellers and buyers:
Creates global fair market value
- Attracts more bidders
- Gives confidence to interested buyers
- Achieves better returns
- Creates more competition
- Delivers certainty of sale
3. More equipment sold to online bidders than any competitor
Ritchie Bros is the recognized leader in online auctions for equipment and sell more trucks and equipment than any competitor – online, traditional, or a combination of both.
4. No seller too small or too big
Ritchie Bros helps sellers sell one piece of equipment or thousands. They assist companies of all sizes and treat all customers equally, from one person businesses to huge multinational corporations.
5. Many equipment sellers prefer to use auctions
Most customers using Ritchie Bros represent thriving, ongoing businesses. New and used equipment is sold at auctions when a company needs to update its fleet or equipment, when projects are completed, or when the business focus changes, resulting in the equipment no longer required.
6. Global operations
Ritchie Bros has more than 40 permanent auction sites globally, including in Australia, Asia, the Middle East, Europe and North America. Auctions are also conducted on forestry camps, construction sites, mine sites or, farms. If a suitable venue is not available, Ritchie Bros will even go as far as leasing property short term for an auction.
Ritchie Bros takes pride in providing comprehensive solutions that takes care of everything.
When selling equipment, it makes sense calling a professional as this will save you time and money in the long run, while getting the best results possible.
Ritchie Bros has been selling equipment for more than 60 years and sold US$4.5B worth of equipment for their customers last year. They are known as global experts in the industry and deliver comprehensive solutions that help anyone wanting to sell equipment on auctions.
Ritchie Bros has a professional, dedicated team of experts working for sellers to help them sell their equipment. Services include marketing, sales, customer service, internet services, accounting and much more.
This all-inclusive service saves customers money and time, allowing them to focus on running their business while Ritchie Bros works to get you maximum returns. There are no charges for online listings, photos or appraisals, and no other hidden costs.
Surplex Industry Auctions
The used machinery trade has been changed by the digital revolution. Online auctions are now one a very important sales channels and surplex.com is one of the best-selling auction platform in the industry. Surplex sells over 55,000 assets at more than 500 online auctions each year. This enables sellers to generate profits from global demand, while buyers gain access to a huge supply of items.
- Over 500 auctions each year
- Over 50 million impressions each year
- Over 125,000 registered buyers
- Over 55,000 sold items each year
- Auction platform available in 16 languages
Excellent offline and online results
To run a successful auction, you need more than simply a powerful auction platform. Optimal results can only be achieved through the professional organization before and after the auction. Surplex leverages both the human factor as well as digitization. They employ more than 200 experts that offer their customers the most suitable solution for their unique requirements in 20 languages.
ISO-certified Full service
Starting from purchasing, all the way to customs requirements, Surplex brings all relevant parties in the global machinery trade together, ranging from craftsmen, factory managers, machine dealers, insolvency administrators and leasing or banking experts. They ensure that all exports globally run smoothly and make things easy and simple for their customers.
These services include:
- Creation of product catalogues
- Cleaning and preparation of the auction
- Customer service
- On-site inspections
- Invoice management
- Dismantling, transportation and customs formalities
Advantages for sellers
Surplex not only offers a comprehensive suite of solutions that are designed to fulfill each customer’s specific needs, but also delivers high revenues. Surplex will even buy a seller’s machines on fair terms, allowing them to generate immediate liquidity. Sellers may also opt to rather use the efficient Surplex auction platform and let them take care of asset marketing. Surplex will organize the entire sales process, allowing sellers to get the most out of their existing resources.
- Immediate purchase at fair terms
- Higher revenues
- Prompt payment processing
- Flexible marketing strategies
- Market-related evaluations
Advantages for buyers
Surplex offers buyers a wide selection of industrial tools and machinery from wood and metal processing plants, as well as from plastics, construction and other industrial sectors at many industrial auctions held around Europe. Purchase prices are always generated fairly and transparently. Buyers also don’t have to worry about dismantling, transportation and customs procedures. Surplex will ensure that everything goes according to plan.
- Market-related prices
- Wide machine selection
- Service at 360°
- Reliable and fast logistic services
- Free on truck sales
If you need to close a metalworking, glazing or carpentry workshop, Surplex can achieve the best solution for the closure. Surplex has qualified professionals, e.g. locksmiths and carpenters that can advise sellers, while taking care of all tasks and clearing up a workshop in record time. Machines will be sold globally at the best possible prices.
- Specialists in metal and woodworking
- Higher revenues
- All tasks handled
- Qualified staff
- Punctual handover
With 20 years of experience with various types of factory closures, Surplex can sell, clean and hand over any factory site at the best financial scenario. All international challenges are mastered confidently by 200 experts in eleven European countries. Hammer prices of up to 75% more than liquidation value determined by experts are achieved by using professional online marketing.
- Scheduled logistic management
- Great hammer prices
- International team
- 20 years of experience
- Relieving customers’ workload
- Representative offices in 11 European countries
Surplex differentiates itself from their competitors through its professional services. Only a few industrial auction houses provide their customers with services in 20 languages, or offer specialized valuations based on real market prices. There are however no competitors that organize dismantling, transportation and customs clearances from a single source. Surplex’s after-sales service is the best in the industry.
- Comprehensive after-sales service
- Expert valuations
- Free on truck sales
- Comprehensive logistic service
Partnering with machine dealers
Surplex also provides lucrative opportunities for machine dealers. Successful sales of assets are enabled by 50 million views per year, whether it is sales of tools, clean-up of a warehouse, inventory, or peripheral equipment. Surplex is also an ideal partner in cases of the closing down of entire factories. Surplex works on a success basis and takes on all logistic tasks.
- Sale of inventories and peripheral equipment
- High-performing sale channel
- Cooperation during big projects
- Effective warehouse clearance
Ready for Europe
The used machinery industry has been trading across national borders for many decades. The EU’s internal market is the backbone of the machine trade in Europe. Surplex does however go a step further by establishing its own locations in 11 European countries. This makes it easier for customers to sell or purchase machines abroad.
Surplex summarizes their services in four simple steps:
Let Surplex know what you want to sell and they’ll calculate the value of your assets. Their experts not only have detailed experience in their industry, but also use a wide-ranging global sales database that is updated constantly with actual prices from numerous auctions. Their specialized, market-driven appraisal is the best foundation for your success.
Sell or market?
Sellers need to decide if they want Surplex to buy their machines on reasonable terms and receive immediate liquidity with prompt payment, or use the power of their auction platform while letting Surplex handle the marketing. They will advertise a seller’s assets on global markets, allowing them to get the most out of their resources.
Surplex does all the work for sellers, irrespective of how, how much or what they sell. They will start by cleaning the equipment and creating a product catalogue, followed by organizing inspections and optimizing every detail. They will then answer customer queries in more than 20 languages. Once the sale has been concluded, Surplex will arrange for disassembling and transporting the machines, as well as handling customs formalities.
Surplex’s specialists ensure that invoices are paid punctually and according to legal requirements, specifically for sales made to countries outside the EU. They will also manage VAT and origin management smoothly and professionally.
Get deeper into industrial auction world with Bidsuite
In this article, we have provided you with details on how a few select industrial auctioneers work and what services they offer. Although there are many more auctioneers out there that we have not mentioned, the detail described here should make it clear that the range of services offered in this market is enormous, and that you should be able to find an industrial auctioneer that offers exactly the services you need and are looking for.
Finding the exact match for your unique requirements may however be a time-consuming and difficult task. If you would rather not do this exercise yourself but use a professional service, Bidsuite may be the ideal solution for you.
Bidsuite is a suite of tools that can be used for industrial auctions. These tools act as a single source of contact for Sellers, Buyers and Auctioneers.
Kitmondo and Exapro are intermediary services for used machines and they cooperate with Bidderlists to provide advertising for auctions to find buyers - by tailored emails - and to find sellers for auctions as well, using their VIP Auction Program.