Whether to sell used industrial machinery at auctions or just stick to private sale is one of the contemporary debates where buying and selling is concerned. Based on validated opinions, each arm believes itself to be the best. Still, an individual just has to be made his or choice based on accurate information. We strongly believe selling your used industrial machinery requires serious attention to details in order to know what works best for you. To make the decision easier for our customers and prospective sellers, we have provided below evaluations on each side of the argument. Study carefully to make an informed choice.
Pros and cons of selling at auctions
You must have heard it before, permit us to repeat it again that selling at auction is second to none when you have the service of a reputable auction company. Among other things, you should consider securing the expertise of an auctioneer or auction agency with legitimate track records, determine a reserve price, provide clear statement of contract(s), and ask as many question as you should from the agency’s customer support representative. The benefits of selling via auctions are considered below:
Benefits of online auctions
For auction, especially when it is online auction, there is restriction in respect to commencement and conclusion of auction. This sense of time compels prospective bidder to make timely decision.
With auctions, used industrial machineries have a tendency to sell even above the value of the property. When bidders haggle against the price of one another, a seller is more likely to gain close to the original price of the industrial machinery.
With auction, there is always a pre-determined price level that used industrial machinery must reach before it can sell. Similarly, there is no definite ceiling price and this means in a highly competitive crowd, it is possible to sell at a price that exceeds your anticipation.
With online auction, industrial machinery gets exposed to a large audience spread across different geographical base. A reputable online auction firm should have unlimited database from which the marketing of your industrial machinery can be targeted at based on previous interest or related analysis.
Limitation of online auctions
Except it is an online industrial machinery auction, auction may mean additional cost. Thus, before you make any decision, you should compare the cost that goes into physical auction or online auction.
For used industrial machinery which there is ample opportunity to get it from anywhere in the market, auction may not be a good idea. Thus, except its specification is scarce and rare, don’t consider auction for industrial machinery.
Pros and cons of selling at private sales/treaties
There is nothing bad about private sales or treaties. You must however be ready to strategize how you will create interest in what you want to sell. Even if it is a private sales, you should consider discussing your options with auctioneers or auction agency. You don’t need to pay to enjoy the benefit of the customer support of a reputable auction company. Similarly, you should be armed with vast knowledge about private sales/treaties method. Make sure you know before going into it because price is often played down by private bidders. Provided below are the benefits and limitations of private sales/treaties.
Benefits of private sales/treaties
While this may not work well for the seller, bidders who prefer private sales have often revealed that they enjoyed doing so because they are allowed to bid without the psychological stress that comes with seeing someone else bids higher than them. All bidders would definitely want to bargain without having to deal with spending more than their budget, especially if the subject is what they really need. Also, there will be adequate time for them to play their cards.
Unlike auction, there is no urgency to sell and the sales might even be possibly adjusted to the terms of the buyers’ offering. This includes extension of period of settlement and subjection of sales to finance.
Personal targeting usually takes place with private sales and this means less is spent on marketing and auction arrangement if it is physical. But then, it is advisable to carefully analyze costs that may accrue where either of the method is involved. The help of an expert agent or auctioneer is recommended.
With auction, information about bidders as well as the item involved cannot be kept out of the publics’ eyeballs. This makes it unattractive to bidders who seek to protect their personal activities from the public. On the other hand, private treaty occurs through closed negotiation process therefore; greater degree of privacy can be enjoyed.
Limitation of private sales/treaties
Due to the absence of auction duration, private sales usually take more time. Absence of any careful sense of urgency places the seller at a disadvantage as the prospective buyer who thinks he just needs time to consider his decisions adequately may just lose interest along the way.
Absence of effective competition
Where there is no healthy competition, there is no opportunity for the seller to sell at a value close to the original price. In fact, the seller is very much likely to sell below an average expectation. That doesn’t sound fair to anyone.
Cooling off period
No thanks to this period, many signed contracts have been breached because private sales/treaties have to be subjected to cooling off. Like what happens when sales are prolonged, a buyer usually ends up losing interest.
What is best for you?
Having provided a careful examination of the two methods of selling used industrial machinery, the ultimate choice is yours. Assess the two and understand which helps best in the sales of your used industrial machinery. While most sellers of used industrial machinery would opt for online auction due to the need to sell quick and eliminate inventory carrying cost, it is still wise to discuss the options open before you for the type of industrial machinery you might want to sell.