Especially if you want to buy at the same time, selling your used industrial equipment can be exhausting. A quick result means you can secure your next industrial equipment without having to apply for costly bridging finance. However, quick results can leave you feeling longer that you may have been priced higher. When entering the market, it is a good idea to understand the different sales methods of used industrial equipment. So, you can be sure that you have the most likely choice to realize the desired results and the desired timing.
Should you sale by private treaty, auction or offer when preparing to sell your used industrial equipment? We describe the pros and cons of each option.
Selling by private treaty
Used industrial equipment stores are referred to as private treaty. When you set a price for selling your industrial equipment, your sales agent negotiates individually with prospective buyers to make a sale that comes as close as possible to that price.
Selling by private treaty has many advantages. This includes:
- The flexibility of the negotiations has been improved. For example, you can sign a contract under certain conditions, such as building supervision and financial approval.
- Flexibility over the period in which your used industrial equipment is up for sale: Unlike auctions, you do not work on a specific date.
- Reduce marketing and advertising costs for auction campaigns.
- The sale of used industrial equipment will take longer than the auction.
- You may need to provide your used industrial equipment to prospective buyers for periodic inspection and review.
- If you or your agent set the market price incorrectly, you may be listed below the market price of the asset and mean you lose the money.
Selling by online auction
At an online auction, prospects come together to bid on your industrial equipment. If the highest bidder matches or exceeds the highest bid price at the end of the online auction, the highest bidder is the highest bidder. Sale by online auctions is definitely one of the most exciting, effective, and rewarding ways to buy and sell used industrial equipment.
Selling your used industrial equipment at online auction has several advantages.
- The online auction involves a marketing boost from the 3rd page as it is possible to sell used industrial equipment if the property is handed over before the opening of the online auction, on the auction day or immediately after the end of the auction.
- You can set the lowest price and the lowest billing date.
- The online auction process creates urgency due to its nature. Buyers have clear timelines to act.
- The online auction process promotes the tender. In other words, there is no price barrier.
Before you sign up with a dotted line in the general auction campaign, you must pay attention to the following points.
- In order to make a sale, your agent may be under pressure to lower your reserve price during the rush hour of the auction.
- The online auction process is not suitable for people who feel uncomfortable about promoting their equipment via the Internet or other advertising media.
Selling by tender
In the silent auction or sale by tender, the bid is confidential so shoppers cannot bid on the basis of the amounts already offered by others. There is no obligation to accept a bid offer. If lower bids are made more attractive by other terms, you will not have to accept the highest bid.
- Since quiet auctions are still competitive, there is a possibility that buyers who do not want to overlook the property can get a "best offer" offer.
- Unlike buying the next higher bidder, such as an auction, the bid is promoted for what the buyer personally can satisfy, so the competition may be higher.
- If the offer does not reach your reserve, the price delivered is generally unknown and it is unlikely that the possibility of a later sale at a higher price will be affected.
- Confidentiality may encourage more competitive offers, but if shoppers do not want to gamble or do not know the true market value, it is possible to lower offers.
- The sale can take some time if the offer of the first tender round is not high enough. Once you have approved a proper offer, the property will be sold and you will not be able to approve higher offers later.
Which option will be the best for you?
It is not always easy to choose the best way to sell used industrial equipment. Since there are options, it is important to understand what happens in the industrial market. Talk to local or international agencies and monitor sales and auction results. If you want to buy and sell your next industrial equipment, sales and auctions providers can help you choose and provide monetary options and guide you in the right direction.