Is Ritchie Bros A Real World Leader

A world leader defines new trends and introduces new directions. If we consider an organization a world leader, then the business has to prove its position. Without a piece of substantial evidence, we cannot call some organization a world leader.

A world leader must be present in the global business scenario and leading the rest of the clan to a direction of positive progress and productivity. Furthermore, a world leader must be an undeniable character at the top of the ranking.

Ritchie Bros Autioneers

When it comes to industrial equipment auctions, a name always revolves around, and it is Ritchie Bros. People who know something about selling at auction and internet auctions call Ritchie Bros a father figure in the business world. It’s because of the organization’s massive operation, which includes all the buyers and sellers. And the figure at auction reaches to millions of dollars.

Ritchie Bros is a giant in selling industrial equipment with a world-wide range of operations. In 2016, the magnitude of auction reached $4.9 billion.

History of Ritchie Bros

Before industrial equipment auctions or any selling at auctions, Ritchie Brothers were just like other folks. One day, back in the 1950s, the Ritchie brothers needed to sell some furniture. So they devised a plan to get rid of furniture by auctioning. That went well, and they sold all of it with high margins. This event made them think, and they started to get furniture and to auction it. The operation began to reap fruits. That’s why they incorporated the company in 1958.

Later Ritchie Bros found that selling industrial equipment is far more profitable than furniture. And the company held its first auction Scout Hall Kelowna.

In 1963, Ritchie Bros were deep in auctions of used industrial equipment. The company evolved during the last 50 years and maintained a strict policy of unreserved auctions. The company does not have a minimum bid or reserve price. That’s why buyers found the policy in their favour and keep coming back to sales.

Facts about Ritchie Bros

The following are the points to keep in mind about Ritchie Bros.

  • Ritchie brothers established the company in 1958, Kelowna, BC, Canada.

  • Ritchie Bros has the Headquarter in Vancouver, BC, Canada.

  • The USA head office is in Lincoln, NE.

  • The USA leadership office is in Chicago, IL.

  • European head office is in Breda, the Netherlands.

  • There are more than 40 permanent auction sites in North American, Europe, Asia, the Middle East, and Australia.

  • The company is a public company, and its stock is on NYSE and TSX: RBA.

  • The company employs more than 2000 persons world-wide.

What do Ritchie Bros do?

The company serves customers in buying and selling of used and unused equipment.

The equipment can range from the following industries.

  • Construction

  • Mining

  • Transportation

  • Agriculture

  • Oil and gas

  • Lifting and material handling

  • Forestry and other similar industries

How Ritchie Bros do it?

The company owns more than 40 permanent auction sites in more than 15 countries. The magnitude of sale is in billions of dollars, and Ritchie Bros does it by the following channels.

Ritchie Bros Auctioneers

The company organizes auctions on 40 plus permanent and temporary locations. The buyers are invited, and there is no minimum bid or the reserved auction. Any person can reach out to the sale and place a bid.

Iron planet

It is a place of an internet auction. The company is managing this online platform and accepting bids from all over the world. This platform acts as a marketplace, and the company regulates the prices and bids. With every sale, an iron-clad assurance certificate is present that validates the quality condition of the equipment.

Private treaty

The company also makes private sales. And it reaches out to sellers and negotiates deals with the buyers. But it is only for mega level. The company does this on a scale. A private treaty is always for millions of dollars.

Salvage sale

The company has a platform for selling salvage and insurance assets. For this, the company accepts sealed online bids. The buyer can be from any part of the world.

How much Ritchie Bros sells?

Industrial equipment auction is complicated. And selling at auction is more complicated. But internet auction is a little simpler than the other two. Following is the data from 2018 that can help you grasp the gravity of Ritchie Bros’ operation.

  • The company sold 4.9 billion dollars’ worth of equipment. 4.9 billion dollars was the gross transactional value.

  • 59% of all GTV was purchased online.

  • All web portals of the company received 580 million views.

  • The average monthly visitors to the web portals crossed 5 million.

  • The mobile app crossed 153K users.

  • $148 million is the gross transactional value on mobile app purchases.

  • The company has more than one million followers on social media

Value-added services by Ritchie Bros

Other than industrial equipment auction, selling at auction, or internet auction, the company also provides value-added services. The detail is below.

Financing and leasing

Ritchie Bros is a big player in the rental. It leases out heavy equipment in specified regions. The company also finances individual projects that range in various industries.


The company does not hand over the equipment right after the auction. But it provides a choice for the buyer. A buyer can avail of the shipping services of the company or take the chances. Most buyers avail of the shipping service. It’s because of the utmost convenience.


The insurance program of the company ensures all types of industrial equipment. The insurance holder has to pay a yearly premium. The auctioned equipment is protected until it reaches the destination.


Buyers always need assurance that the equipment will work for a certain period. That’s why company issues guarantees. But the warranty is only for unused equipment. The warranty is not for used industrial equipment.


The company refurbishes old equipment from specific industries. And the refurbishing charges are not included in the bidding price.

Free auction results

The result of internet auction is made public by publishing on Anyone can get the auction results by reaching the website.

Reasons that favours Ritchie Bros as a real-world leader

Industrial equipment auction and selling at auction are not the things that make a world leader. It requires other things. We will mention points that favour Ritchie Bros as a world leader.

Ritchie Bros is present in every continent

The company has permanent auctions sites in more than 15 countries, and it is present in every continent. It is a fact that every auction covers the entire region. The buyers and sellers of every area can use the services of the company.

Ritchie Bros attract bidders from all over the world

Whenever an auction is held, the company faces people from more than 50 countries in one sale. And the presence of this magnitude depicts word of mouth about the company. People always come with referrals. And Ritchie Bros has that kind of reputation.

Ritchie Bros covers all world through internet auction

Every auction is announced and has a fixed date. Buyers can place their bid via internet portals of the company. That’s why any person with an internet connection can place a bid. Regardless of the location of the bidder. The company will ship the equipment to the buyer by its shipping service.

Ritchie Bros covers a wide range of industries

The demand for industrial equipment is high because of investors’ interest. Many companies buy industrial equipment as assets for leasing out. And Ritchie Bros is one-stop for getting the desired equipment. That’s why it is an investor’s favourite point. And it has stuff for a wide range of industries. Buyers do not have to wander around, looking for the right equipment at the right price.

Ritchie Bros plays at large scale

The trade volume of the company is in billions of dollars. No other company can equal that. Some bids at auctions reach millions of dollars. You can calculate the magnitude and scale of the company’s operational level.

Ritchie Bros plays as a financier and lessee

In the corporate world, finance is the key to every business operation. When a business is financing, then it is at the top of the food chain. And Ritchie Bros is financing and leasing in multiple areas of the industry.

Reasons that are not in favour of Ritchie Bros

Industrial equipment auction, selling at auction, and internet auction does not make a world leader. But it requires transparency, a good reputation, and quality of service. The following are some factors that undermine Ritchie Bros’ ability as a world leader.

Ritchie Bros does not cover all industries

The company is selling equipment for major productions. But it does not have the inventory for all sectors. So buyers have to look elsewhere.

Ritchie Bros is not growing

The company has a massive operation. It sells a vast inventory all the time. But stats show that the company is not expanding the service. But it is only doing a specific amount of business on every auction.

Ritchie Bros stock price is decreasing

The stock of the company is traded in NYSE, and it is not increasing in value. The investors are not putting their trust in the company. That’s why the company stock is not a hot deal to get. If Ritchie Bros wants to be a world leader, then its share must be like blue chips. But it’s not.

Ritchie Bros is decreasing the dividend every year

During recent years, the company paid the dividend to shareholders. But every year there is a decrease of 1.5% in the dividend. If a company wants to be a world leader, then its shareholders must have a taste of profits. But the stats show a decline in earnings. A world leader must take care of its shareholders by an increase in dividends. But that’s not the case with Ritchie Bros.

Ritchie Bros has an issue with CEO salary

There was news about the CEO compensation at Ritchie Bros. the company was paying five million as compensation. But as compared to similar-sized organizations, the repayment of the CEO must be one million. This rings a bell about the internal affairs of the organization. Ritchie Bros is paying too much to its CEO. The compensation of the CEO comes from the dividends, and it has put a negative reputation.

Ritchie Bros is not buying its stock back

Last time Ritchie Bros bought its stock in 2016, and it was only 0.8%, which does not add much to the share price. To become a world leader, the company needs to increase its stock price. And which ultimately benefits the investors. But the company is doing totally against it. And there is also no sign of buying the stock from the company during the last four years, and it is not likely in the future.

Ritchie Bros has regional competitors

As a world leader, this company needs to outweigh the competition. But some local players are selling the industrial equipment similarly to the company. And it is more likely that the future will witness a global player in industrial equipment auctions, selling at auctions, and internet auctions.

A big player with many efficient competitors

Several factors put weight on the side of Ritchie Bros. And with some errors, we can call Ritchie Bros a global player. But it is not a real-world leader. The world leader has to dominate the business with specific strategies that are not present in Ritchie Bros operations. Ritchie Bros will be a significant player in the auction, but it can never put regional players out of business. Furthermore, Ritchie Bros is not presenting new solutions to industrial problems