Especially if you want to buy at the same time, selling your used industrial equipment can be exhausting. A quick result means you can secure your next industrial equipment without having to apply for costly bridging finance. However, quick results can leave you feeling that your price is too high. When entering the market, it is a good idea to understand the different sales methods of used industrial equipment.
Should you sale by private treaty, auction or offer when preparing to sell your used industrial equipment? We describe the pros and cons of each option.
Selling via private treaty
Private treaty refers to used industrial equipment stores, physical or online. When you set a price for selling your industrial equipment, your agent negotiates individually with buyers to make a sale. He comes as close as possible to that price.
Pros
Selling by private treaty has many advantages. This includes:
- An improvement concerning flexibility during the negotiations . For example, you can sign a contract under certain conditions, such as building supervision and financial approval.
- Flexibility over the period in which your used industrial equipment is up for sale. Unlike auctions, you do not work on a specific date.
- Reduce marketing and advertising costs for auction campaigns.
Cons
- The sale of used industrial equipment may take longer than the auction.
- You may need to provide your used industrial equipment to prospective buyers for periodic inspection and review.
- If you or your agent set the market price incorrectly, you may be listed below the market price which means you lose money.
Selling via online auction
At an online auction, prospects come together to bid on your industrial equipment. If the highest bidder matches or exceeds the highest bid price at the end of the online auction, the highest bidder is the highest bidder. “sale by online auctions is definitely one of the most exciting, effective, and rewarding ways to buy and sell used industrial equipment,”.
Pros
Selling your used industrial equipment at online auction has several advantages.
- The online auction involves a marketing boost from the 3rd page as it is possible to sell used industrial equipment if you hand over the property before the opening of the online auction, on the auction day or immediately after the end of the auction.
- You can set the lowest price and the lowest billing date.
- The online auction process creates urgency due to its nature. Buyers have clear timelines to act.
- The online auction process promotes the tender. In other words, there is no price barrier.
Cons
Before you sign up with a dotted line in the general auction campaign, you must pay attention to the following points.
- In general, online auctions, promotional campaigns costing $ 5,000 to $ 10,000 can be see as personal sales.
- Even if the machine don’t find , the seller bears the cost of advertising out of his pocket.
- In order to make a sale, your agent may be under pressure to drastically lower your reserve price during the rush hour of the auction.
- The online auction process is not suitable for people who feel uncomfortable about promoting their apartments via the Internet or other advertising media.
Selling via tender
In the silent auction or sale by tender, the bid is confidential so shoppers cannot bid on the basis of the amounts already offered by others. There is no obligation to accept a bid offer. If lower bids are made more attractive by other terms, you will not have to accept the highest bid.
Pros
- Since quiet auctions are still competitive, there is a possibility that buyers who do not want to overlook the property can get a “best offer” offer.
- Unlike buying the next higher bidder, such as an auction, the bid is promoted for what the buyer personally can satisfy, so the competition may be higher.
- If the offer does not reach your reserve, the price delivered is generally unknown and it is unlikely that the possibility of a later sale at a higher price will be affected.
Cons
- Confidentiality may encourage more competitive offers, but if shoppers do not want to gamble or do not know the true market value, it is possible to lower offers.
- The sale can take some time if the offer of the first tender round is not high enough. Once you have approved a proper offer, the property will be sold and you will not be able to approve higher offers later.
Which option will be the best for you?
It is not always easy to choose the best way to sell used industrial equipment. Since there are options, it is important to understand what happens in the local market. Talk to local agencies and monitor sales and auction results. If you want to buy and sell your next industrial equipment, your local broker can help you choose and provide monetary options and guide you in the right direction.
That’s how I found out the pros and cons of each sales method. How do you decide which method is right for you?
“All sales methods have proven themselves over the years for the providers,”
“Your agent can give you more clues as to which one is the best way for you and to sell your used industrial equipment.”
