Article Written By: Clayton Arnold
The lifespan of industrial assets within an organization goes beyond its initial usage. Equipment, machinery, and MRO that has been used (or is now surplus to operations) still has value. The process of recovering value from industrial assets is known as “asset recovery”. One of the most popular methods of recovering value from MRO is selling it in the second market. In this article, we will share several selling options for your used & surplus MRO.
MRO (Maintenance, Repair, and Operations) is a broad term used to define parts and machinery used to help ensure larger and installed machinery continues to operate. MRO becomes obsolete or surplus to an organization in several different ways:
MRO as a product category can consist of several different types of assets including:
At first glance, you might not believe your spare parts and MRO have value but there is a strong demand for these types of assets. Selling your surplus MRO is a good way to recover value and generate revenue back to your organization’s bottom line; however, the challenge is selecting the best-selling method for your MRO.
There are many ways to sell MRO. The time to sell, amount of engagement (or management) required, prospective costs (advertisements, inspections), and ultimately the estimated recovery value on the transaction are some of the most crucial elements. Below are some of the options to consider when selecting the best-selling method for used & surplus MRO.
If you’ve ever listed or sold anything on eBay or Facebook Marketplace, you should be familiar with how online marketplaces operate. You list each item you want to sell on the platform manually, and you wait for buyers to come across your listing to place a bid or an offer.
Benefits of Online Marketplaces
Challenges of Online Marketplaces
Consignment selling is the process of hiring a third-party company to sell the MRO on your behalf. These companies take possession of the materials you wish to sell and will handle all aspects of the selling process. Once an item is sold, you will receive a portion of the value of the item sold, with the consigner keeping the rest as a fee for selling the assets.
Benefits of Consignment Selling
Challenges of Consignment Selling
Private treaty sales refer to the process of selling the MRO without the usage of any third-party vendor or marketplace. This is when the owner of the assets seeks buyers directly for the items they are selling. This can be done in a variety of ways such as reaching out to known buyers in the community or sending out RFQ (Request for Quote) emails.
Benefits of Private Treaty Sales
Challenges of Private Treaty Sales
Another option for selling MRO is to hire an auctioneer. Auctioneers will help relocate your assets to one of their facilities. The auctioneer will then take on all the responsibility of hosting a sale on your behalf. They will attract buyers and host an in-person auction for your MRO allowing bidders to submit bids in a competitive format.
Benefits of Hiring an Auctioneer
Challenges of Hiring an Auctioneer
The final selling option for used and surplus MRO is through an online auction. In an online auction, you select an auction platform and provide your list of assets that you wish to sell. You can then set the details of the auction such as the removal terms, payment terms, and end date. Once the auction goes live, your items will be sold on the end date you set to buyers on the platform.
Benefits of Online Auctions
Challenges of Online Auctions
Aucto is an online platform for businesses to sell their used MRO. Our easy-to-use web-based platform simplifies the selling process, allowing you to spend less time worrying about selling your industrial assets. We connect our sellers to qualified buyers in over 70 countries and seamlessly deliver the highest net recovery rate. The Aucto Marketplace has over 10,000+ industrial categories, allowing you to sell any industrial assets you may need to get rid of.
Ready to learn more about selling your used & surplus MRO with Aucto? Click the link below to schedule a meeting with one of our Asset Recovery Specialists.
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