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An industrial equipment auction is an auction in which businesses sell a wide variety of industrial equipment and machinery. The available equipment in these auctions varies drastically depending on the seller and what industry they operate in. For example, if a construction company was to host an auction of their used equipment you would expect to see a large selection of heavy equipment, including dozers, loaders, backhoes. Another example would be a manufacturing company, who would have a wide range of used equipment they may be looking to sell. This could mean their industrial equipment auction would have MRO, consisting of motors, pumps, valves, electrical components, as well as plant support equipment like air compressors.
Industrial equipment auctions are normally held in person with licensed auctioneers or online via online industrial marketplaces. These auctions give sellers a chance to sell used industrial equipment and machinery that is no longer needed for ongoing operations, while giving buyers a chance to buy high-quality equipment in a cost effective manner.
There are many different formats of industrial equipment auctions you must be aware of, these include Seal Bid Tenders or Seal Bid Auctions, English Auctions, and Dutch Auctions. The most common type of auction you will find is an English auction, in this format, the Auction house or Auctioneer will set a low starting bid, and bids will increase until a time limit is reached and there are no additional bids coming in. If the seller has a reserve and the highest bid is lower than the reserve, then the lot will not be awarded to a buyer. Otherwise, the winner of this auction type is the highest bidder on each lot in a sale.
Depending on whether you are buying industrial equipment or selling industrial equipment, your first industrial equipment auction will work out differently. Below we have outlined how buying in industrial equipment auctions and selling in industrial equipment auctions will typically work.
The first step is to find an auction with the equipment and machinery you are interested in buying. You can find these by browsing the Aucto Marketplace or by visiting a local auction house.
Before the auction starts, you must register to bid. If you are bidding online, you will need to create an account and verify your identity to be allowed to bid. If you are bidding in person, you will need to register with the auction house and collect your bidding number. Make sure you pay attention during the registration process, as this is where all fees will be explained or mentioned.
Before the sale ends, you will want to inspect the equipment and check for any potential defects, damage or issues. If you are bidding online and you are unable to schedule an inspection in time, it is best to review the images and asset description in depth to ensure you feel comfortable bidding.
If you are bidding online, you will be able to place bids before the lots begin to close, meaning you will no longer be able to place bids after that time. In many cases, if you bid within the final minute before the lot is supposed to close, the timer will reset, as this protects from something known as bid sniping. At an in-person auction, the auctioneer will announce the lot and kick off the bidding process.
Once the bidding has ended or the time limit has been reached, the lot will close and as long as there is not a reserve on the equipment, the highest bidder will be awarded the lot.
When buying used industrial equipment, you get a much better deal than compared to other purchasing options. In many cases, buyers from industrial equipment auctions have reported savings of 30-50% compared to purchasing the equipment from traditional purchasing options.
However, buyers in industrial equipment auctions need to be careful and consider all the potential fees before bidding to ensure they are getting the best deal possible. Not all Industrial Marketplaces are transparent . Other marketplaces will hide fees from buyers and surprise them during the invoicing and payment collection phase.
Fees for small lots, buyer’s premiums, removal fees, sellers premiums are just some of the additional costs some industrial equipment auctions could charge you. Make sure you do your homework and research all the potential fees associated with each sale. Once you calculate all the potential fees, you can then bid with confidence knowing what you will be paying for your equipment.
Ready to start buying in industrial equipment auctions on the Aucto Marketplace? Follow these 3 simple steps to start bidding right away!
Enter your account details to get started. Tell us your name, email address, password.
Complete our 1 step verification process by adding your credit card to your account (you will not be charged on your credit card for anything)
Browse the Aucto Marketplace and start bidding in industrial equipment auctions in only a few clicks
Enter a few details such as your email, name, company, and password
Add in your payment information (don’t worry, you won’t be charged anything until you have won a bid)
Find and bid on industrial equipment & machinery listed on the Aucto Marketplace.
When hosting an industrial equipment auction, you first must gather a list of the surplus industrial equipment and machinery you will be selling. If you have more than one facility, make sure you check with all other facilities to create a larger list. The more used equipment and machinery you have to sell, the more likely buyers will be to participate in your sale.
Once you have the list of equipment you will be selling in your upcoming industrial equipment auction, it is critical that you collect as much information on the assets as possible. Important details, like brand, make/model and serial numbers will be critical to include to give buyers an idea of what they’re buying. Any additional documentation will help provide potential buyers with more information on what they will be bidding on.
After gathering details on your equipment, take pictures of each piece of equipment. This will be used to create your auction catalog. Typically you will want to include 5-8 pictures per asset, making sure you include pictures of any damage, and nameplates. Images should include the exterior and interior of the equipment as well as other key details.
After collecting all your required information, you can create your first industrial equipment auction. It is typically best to end your auction in the middle of the week as this is when most industrial equipment buyers are active.
As a seller, you will want to encourage and attempt to facilitate as many inspections as possible before your industrial equipment auction ends. The more inspections you can hold the more buyers you will have onsite. Typically if a buyer makes the time to inspect equipment before a sale, they will place a bid on that equipment unless they find something fundamentally wrong with the equipment during their inspection.
On the day of your industrial equipment auction, be available to answer any last minute questions from buyers. Do not panic if you think the auction is slow to begin that day. Typically auctions get busy in the final 2-3 hours before it is scheduled to end.
Once the auction ends, you must submit invoices out to all the winning buyers and work to collect payments. If you are using the Aucto Marketplace to host your industrial equipment auctions this step will be done for you to ensure you can focus on more business critical tasks.
Once all assets have been paid for by your buyers, you can begin to let them pick up the equipment from your facility. Unless you have stated otherwise, typically buyers will know to arrange a pickup with you directly. However, in some cases a buyer may want you to ship the equipment to them. You must make sure you make it known how the removal process will go before you have your first industrial equipment auction.
Hosting your first industrial equipment auction can be a large undertaking for any business. For less experienced sellers, there are many critical factors that must be considered to ensure your sale is a success. Here are the most common things you need to know before selling your equipment in your first industrial equipment auction.
When selling for the first time, you must be sure to review the market and properly set realistic recovery expectations for your equipment and machinery. When selling via an industrial auction, it is unlikely that you will recover your full orderly liquidation value. will likely be recovering slightly more than forced liquidation value. If you require a certain recovery value on your equipment, make sure you set a reserve.
The sales terms are the most important aspect of your sale. This documentation dictates how the sale is supposed to go and includes important information such as potential warranties, removal terms, and payment terms. All buyers must agree to these terms before bidding in your sale.
As buyers register and prepare to bid in your industrial equipment auction, it is important to review each buyer. On sites like the Aucto Marketplace, you are able to see a buyer’s history. This means you can see all unpaid invoices, and feedback from other sellers. This will allow you to block or restrict troublesome buyers.
Want to host your industrial equipment auction on the Aucto Marketplace? All you have to do is click the button below to schedule a time with our asset recovery specialist. After booking a time with us, then all you have to do is send us a list of your assets – we will take care of the rest!
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