How Online Auctions Can Boost Your Recovery Rates From Surplus Machinery

Between 2021 and 2026, the market for online auctions is expected to grow by $1.9 billion, at an acceleration of 9.7% CAGR.

There is a reason for this. Online industrial auctions have emerged as boons for organizations to manage and sell their used and surplus equipment effectively. There are several factors as to why an organization may look to leverage this online ecosphere for this bid-based commerce:

• As a method for dealing with excess or unsold inventory
• Using event-based selling to recover valuable storage space
• Preventing end-of-life assets from ending up in the landfill
• Maximizing the value of equipment/assets

Interesting fact: According to a study conducted by CAPS Benchmarking and the Investment Recovery Association over 20% of an organization’s assets are surplus to ongoing operations.

By selling your unused and surplus industrial assets, you can recover value from this equipment. It saves you from paying to dispose of these assets or losing their value completely. 

Online auctions have emerged as an excellent avenue to quickly and easily sell surplus machinery and equipment, especially if you are looking for qualified equipment buyers. If you wish to optimize resource use and spending, managing your equipment surplus is imperative.

In this blog, we’ll explore 10 ways equipment and machinery auctions can help you boost your recovery rates.

10 Ways Online Industrial Auctions Improve Recovery Rates from Used and Surplus Industrial Equipment

Industrial equipment isn’t the easiest thing to sell. Thankfully, online industrial auctions make it easier to sell machinery online by connecting you directly with qualified buyers who are actively seeking the items you need to sell.

1) Recover Value from Idle Equipment Quickly

If you have idle and surplus equipment and machinery in your business, you could be staring at high holding costs and additional expenses because of space occupancy. One of the best ways to recover value quickly and free up storage space is to sell machinery in an online machinery auction.

By choosing to sell machinery online through an auction, you can quickly recover the value of that equipment. The machines will find a new home where they are needed instead of populating a landfill.

2) Work With Experienced Experts

Recovering the costs of your unused machinery relies on getting the right price at the right time. Online auction platforms provide you with a team of experienced and dependable experts who know when a deal is worth accepting. 

3) Get Competitive Prices

One way to sell surplus, unused, or excess assets in your facility is to list your products on an eCommerce store at a set price (which may or may not be agreeable to you) and wait for a buyer. This does not help your recovery rates much, though.

The other method is to actively engage in online auctions to look for interested buyers. Online auction platforms host open bidding that encourages competition among the buyers to purchase an item. This allows you to get a higher return.

4) Get Qualified Leads with High Purchase Intent

Equipment buyers come to an online industrial auction with only one intention: buying industrial equipment and machinery. Auctions place you in the position to get your equipment noticed and sold to interested buyers.

The benefit of displaying your products to audiences with a high purchase intent is that it helps you sell your surplus assets faster and for higher recovery.

5) Know When to Sell the Right Equipment

Part of getting good recovery rates for your equipment is knowing the right time to auction it. You need to monitor all your machines closely for the following factors:

• Age – The older your machines get, the fewer buyers you find for them. The moment you put up old equipment for sale, the buyers would want to know its date of manufacture. This is because they don’t often find parts for an old machine. Furthermore, newer machines would do the same job better. This is one of the reasons selling old machines doesn’t help recovery rates.
• Condition – Its no surprise that well-maintained equipment will likely yield a higher return. Buyers want to see proper machine maintenance records to pay your asking price for it, which directly impacts recovery rates.
• Use – You know it is time to auction your industrial equipment when you aren’t using it much. It makes sense to put a machine on auction if it remains idle for over a month and keeps aging without use.
• Ownership costs – Is your equipment costing you more than it is working for you? Storage, maintenance, repairs, etc., are just examples of the expenses you incur on idle machines.

6) Improve Outreach

With online auctions, you don’t need to have any experience in selling industrial equipment; your auction partners help you with everything.

The likelihood of a successful sale is extremely high on these platforms because online platforms have the right base of industrial buyers they can tap into.  They also have access to buyers on other channels that the general public may not have.

7) Smooth and Seamless Sales

Partnering with an online auction platform makes the entire process more efficient. Their workflows, auction infrastructure, execution teams, payments, and security are already set up. They help you catalog your items and present them to the bidders. They conduct the auction and offer end-to-end management if you request it.

All this helps you save on the potential expenses of auctioning the inventory yourself while improving your recovery rates.

8) Motivated, Fast-Paced Sales

Online auction platforms offer a time-based bidding format. In these bidding sessions, the buyers keep bidding until the time runs out, and that’s when the deal goes to the highest bidder. Since there is a set time for a bidding round to complete, it keeps the equipment buyers motivated to seal the deal within the given time limit.

The time-based bidding mechanism also helps keep the buyers engaged in the entire process and encourages them to participate actively. This works to get you the best price and improve the equipment recovery rates.

9) End-to-End, Holistic Solutions

Some of the better online auction platforms are a one-stop solution for all your idle or surplus equipment. You wouldn’t need to segregate the equipment based on specific categories to list them on relevant auction websites. The convenience of letting one auction partner manage the sale of all your equipment and machinery is a big bonus and takes a lot away from the stress of keeping pace with multiple auction platforms.

Furthermore, you get a dedicated auction partner who knows the complete scope of sales for your establishment; this helps them get you better prices for everything.

10) Market Insight

Selling industrial equipment is tricky without knowing the market dynamics. Online auctions help you with price discovery and negotiations by getting your machines out into the right market at the most opportune time. Auction partners can help you with expert insights on demand and supply and, assist you with establishing a price point for your equipment that maximizes the chances of selling.

In Conclusion

Online auction platforms offer some of the best advantages when it comes to recovering value for industrial surplus equipment and machinery.  If you find the right partner who has your best interests at heart, the process can be simple, quick and a one-stop shop experience.

Want to learn more about selling industrial equipment in online auctions on the Aucto Marketplace? Click the button below to speak with one of our asset recovery experts.

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