The growing trend for online auctions is allowing businesses large and small to sell their unwanted plant and construction equipment quickly and easily, providing a welcome cash injection. Marcus Smith, from BPI Auctions, explains the benefits of using a leading auction site.
Asset disposal can be problematic. Selling on surplus plant and construction machinery is often a time-consuming process, from placing advertisements online or in print publications, through to chasing payments and organising deliveries or collections. Specialised equipment in particular can prove onerous as the market is by nature fairly limited.
However, selling good quality used construction machinery and tools is an important stream of revenue for a business. A substantial cash injection from the sale of extraneous or end of line equipment can have a significant impact on a company’s bottom line, and make a meaningful contribution towards the purchase of replacement equipment.
Increasingly, companies in a variety of sectors are turning to online auctions as a means of asset disposal. In fact, the growing trend for online auctions has seen the sector become one of the most rapidly expanding markets in the UK, with businesses keen to take advantage of benefits such as collective auctions and smooth business transactions.
It is a sales method which works particularly well in the construction industry, given that building is one of the fastest paced sectors in the UK, with tight turnaround times with the movement of plant and equipment. A quality auction site will provide a dedicated team of operations staff and distribution partners who work to ensure transactions are smooth and timely.
Often clients can work on two fronts with an auction company, auctioning unwanted assets at the same time as sourcing replacement equipment with a view to achieving maximum value for money. At any one time, thousands of former hire tools can be available on a single site, alongside a good selection of medium sized plant materials, forklift trucks, HGVs and generators.
Leading online asset clearance specialists will manage the entire process, from photographing equipment and gathering information, to managing the auction itself and issuing invoices to buyers once the sale is complete. Far from adopting a one-size-fits-all approach, the best sites will put together bespoke sales strategies to suit the individual client.
Some businesses may require auctions of individual items, whereas others may be looking for a collective auction, site clearance or even a joint sale with multiple vendors. Market-leading auction companies will offer these tailored services as standard; some may also arrange transport and offer temporary storage where needed.
This flexibility makes the platform of online auctions an attractive option for businesses of all sizes, from multi-national enterprises with an entire fleet to sell to small and medium sized concerns looking to offload a handful of items.
Route to market
Typically, once contact has been made, a member of the auction company’s valuation team will make an appointment to view the assets and advise on the best route to market. Following appraisal, an accurate prediction should be provided which outlines the highest and lowest price the lot is expected to fetch, and a reserve price agreed.
Options exist for agents to handle the entire sale from the vendor’s site, whereas templates can also be provided for companies to list their own sales. On occasion, it may be possible for equipment – such as liquidation stock – to be bought outright by the auction company.
This speed of payment is just one of the major advantages to online asset disposal. Add to this the professional and efficient service provided by an experienced company, and the benefits of online disposal are difficult to dispute.