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Now is one of the best times for your business to sell machinery that is not being used. The demand for used machinery has never been higher, thanks to several factors including inflation, global supply chain issues, and new machinery shortages.
Your idle and used machinery provides very little value to your organization, and the potential benefits you can receive from selling your used industrial equipment and machinery drastically outweighs them. Here are some reasons for your business to sell machinery that is surplus to ongoing operations
One of the biggest benefits you get when you sell machinery you no longer need is the ability to maximize the value of the machinery. Used equipment that is sitting idle in your facility does not benefit your business and it becomes a burden to your facilities and your bookkeeping. When you sell equipment, you can ensure you are getting the most value out of that equipment with the positive cash flow.Â
Another advantage when you sell machinery is the cash you’ll receive for this equipment. This cash can provide much needed additional income for your businesses especially during tough economic times.Â
When you sell machinery, you are preventing that equipment from ending up in a landfill or scrap yard. This simple act helps reduce your carbon footprint to contribute to a more sustainable future, and positions your business as one that is environmentally conscious.
If you sell machinery you no longer need, you can then take the cash from that sale and use it to fund new production lines or projects within your organization. This is a great fit if you are undergoing a facility closure or looking to pivot your organizations’ operations.Â
When you sell machinery that is not being used, you are able to free up space in your warehouse. This space can then be used for more important functions such as storing higher value machinery or expanding operations.
There are several factors that affect how long it takes to sell machinery. Not all machinery is made equally and finding the right buyers can sometimes be a challenge for even the most experienced sellers. Consider all the following factors that will impact how long it takes to sell used machinery:
When you are looking to sell machinery, one of the most important factors that can affect the duration of the sale is the type of machinery you’re looking to sell. The more generic a machine is, the more likely you are to find a buyer quickly. If a machine is custom made for your business, or is for a task that is rather obscure, there will be less buyers interested in it resulting in it taking longer for you to sell. The following types of machinery typically sell the fastest on the second market, Heavy Equipment, Metalworking Machinery, MRO, and Material Handling Equipment.
Another factor to consider when trying to sell machinery is the condition the machinery is in. If the machinery is in good condition and has been well-maintained, it will be much easier to find a buyer quickly. On the other hand, if the equipment you are selling is in poor condition and requires significant repairs and maintenance, it might be harder to find a buyer willing to take on that challenge.
Market demand plays a big role when you are trying to sell machinery. If the demand is high for your type of machinery, finding buyers is simple and you can sell your machinery in a matter of hours. When the market demand is low, it becomes much more challenging to sell your machinery. It is important to study market trends and see what other equipment and machinery might already be on the market before trying to sell your own.
If you are trying to sell machinery, but you are not seeing a lot of attention from potential buyers, you might want to reconsider your pricing. Overpricing machinery can be one of the factors that extends the time it takes to find a buyer for your machinery. At the same time, if you price your machinery too low, you will immediately see a surge of buyers. The goal is to price your machinery in the middle ground to a place where both you as the seller and a buyer are happy.
Not all sales platforms are equal when it comes to helping you sell machinery quickly. The platform you sell on makes a big difference in the time it takes for you to complete a sale. It is important to research each platform and determine what the average time on market is to sell machinery. The longer the time, the more holding fees and costs you will need to pay to keep the machinery at your facility.
Selecting the best platform to help you sell machinery can be exhausting, with no shortage of potential options to choose from. It is important to conduct a thorough investigation into each selling platform before selecting the one that might be best to help you sell machinery. Below are some of the top rated options to consider to help you sell machinery:
One option for selling machinery is to host an in person auction by hiring an auctioneer. Industrial Auctioneers have been around since the 1700’s, and have been used to sell machinery and equipment from facilities from all over the world.
Benefits of auctioneers
Quick turnaround & high sell through rate – When selling with an auctioneer, they will turn your sale into an event. Auctions attract local buyers, which can help ensure items are sold quickly, resulting in a quick sales process and a high sell through rate.
Motivated buyers – Since auctioneers mostly host in-person auctions, you know that the majority of buyers who show up on the day of the auction are interested in your machinery. This removes the potential anxiety of not knowing who is actually interested in your machinery, which may happen in other selling methods.
Challenges with auctioneers
High costs & fees – Compared to other selling options, Auctioneers can be quite costly. You must be aware of all the fees associated with hiring an auctioneer when trying to sell machinery.
Shipping requirements – Auctioneers conduct sales from their own facilities and auction houses, so you must pay to ship the equipment to the auctioneer. This is another additional cost that can be avoided with other selling methods. Â
Dealers and brokers are businesses who specialize in buying and reselling machinery. They will look to purchase this equipment, do minor refurbishments and then sell the machinery at a marked up price.
Benefits of dealers & brokers
Quick turnaround – Brokers and dealers like to work quickly when you are trying to sell machinery. Once you provide them with a list of machinery you are looking to sell, they will review and get back to you with an offer on the material in only a few days.
All in one solution – Since brokers and dealers are professionals in this type of transaction, they handle all aspects of the sale for you, allowing you to focus on other aspects of your business.
Challenges of dealers & brokers
Low recovery rate – Since brokers and dealers make their money reselling the machinery they bought from you, they will often look to pay you as little as possible to ensure they have the best potential margins.
Narrow interest in product categories – Brokers and dealers may only sell machinery if it is a certain type. This means you might need to find multiple brokers or dealers if you have a large selection of equipment.
The first online marketplace launched in 1982. Since then online marketplaces have seen massive growth. Titans in the industry include Amazon, eBay and the Aucto Marketplace. These online marketplace allows users to create listings of machinery and equipment they want to sell. They also have an international presence with listings all over the world. Buyers browse the listings on the site and contact the seller directly to strike a deal.
Benefits of online marketplaces
Minimal cost – When looking to sell machinery, you want to maximize the recovery value of your assets, online marketplaces are a good option for that as listings can cost $5 or less, and in many cases it is free to make a listing.
Large user base – Online marketplaces draw a massive amount of users and traffic. In 2022 a study found there were over 250 million visits to craigslist each month. This large volume of traffic could mean putting your machinery in front of many potential buyers.
Challenges with online marketplaces
Inconsistent experiences – Not all marketplaces are built the same. You need to research into what exactly you get when you sell machinery on their marketplace. Some offer robust invoicing and payment collection features, while others simply connect you to a buyer making you handle all the documentation
Limited categories for industrial machinery – While online marketplaces excels at attracting traffic and potential buyers to their site, the traffic might not be the buyers you want to deal with. Since some of platforms allows sellers to sell anything from baseball cards, to front-end loaders there is a large delta in the type of buyers on the site.Â
A final way to sell machinery that is considered surplus for your business, is selling to scrap yards. These businesses will strip the valuable metal and components from the machinery, and throw away any other component. They usually pay based on the total weight and material of the machinery you are selling.
Benefits of scrap yards
Quick removal – When you sell machinery to a scrap yard, you know the process will be quick compared to other selling methods. They will come and pick up the machinery right away. While this is one of the quickest ways to sell machinery, it does not mean it is the best.
Challenges of scrap yards
Poor recovery rate – When you sell machinery to scrap yards, you will be getting one of the lowest possible returns for your machinery. With the fluctuations in scrap metal pricing, the scrap yard will look to pay you as little as possible, and in some cases, depending on the machinery, and even charge you to remove it from your facility.
Not environmentally friendly – Compared to other selling options this is one of the least eco-friendly. The machinery is broken down with a large portion of it going to landfills, and only the metal components being kept. This could potentially be a bad look for your business especially if the machinery is in good condition.
When it comes to finding the right method to sell machinery for your business, there are several options to consider. Each option offers a different set of benefits and challenges. One option that provides the majority of the benefits are online marketplaces, specifically, the Aucto Marketplace.
When you are trying to sell machinery that is surplus to ongoing operations for your business, there is one platform that stands above all the others. The Aucto Marketplace is one of the best online industrial marketplaces for machinery sales. Here are a few reason why you should use the Aucto Marketplace to sell machinery
When you are trying to sell machinery, a quick sale is always preferred. On the Aucto Marketplace, the average machinery is sold within 17 days or less. This quick turnaround from listing the equipment to complete sale allows you to efficiently sell machinery your business no longer needs.
Our technology makes selling machinery simple for everyone. Take a couple pictures of the equipment, type in a few details and send us your list of equipment. From there we will launch your sale in only a few clicks. Our software and technology removes all the challenges from when you are trying to sell machinery.
The Aucto Marketplace allows you to manage and sell machinery no matter the industrial product category. We have over 1000 product categories allowing you to sell almost anything from your facility. You won't need to have multiple vendors to help you sell machinery from your facilities.
The Aucto Marketplace does not charge you any listing, brokerage or commission fees. Whatever the hammer price is for the item you’ve sold, is what you will receive. This allows you to get the highest possible recovery when you are selling machinery. .
There is no risk to trying to sell machinery on the Aucto Marketplace. As the seller, you get to control all aspects of your sale by setting your own sale terms, removal terms, and reserves on the machinery you are selling. .
The process begins with a quick chat with one of our Asset Recovery Experts to understand your needs. Then they can start setting up your online industrial auction to sell machinery.
Ready to sell machinery on the Aucto Marketplace? Click the button below to speak with one of our asset recovery experts.
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