Exapro is happy to share its 5 steps guide to help you sell your used equipment. To make it as clear and simple as possible, we created an infographic that you will find below.
And here is the transcript of the infographics including more details and comments.
I. Make sure you can sell
- Confirm the legal ownership of the machine, making sure there are no loans, grants or leasing on the equipment and possibly blocking a sale
- Be sure about any regulatory restriction which would limit or forbid the sale of the equipment
- Discuss all internal contraindications with the Accounting department (eg amortization or residual value) and the Executive Management (eg competition looking to acquire some know-how or set production tools to steal some of your clients)
- Think through the pricing of the equipment and expected revenue. Consider a range with a minimum sale value, a target but also some reserves for the upcoming negotiations. Your goal is to get as close as possible to a fair market price but also consider the cost of selling (commission, premium, time)
II. Choose your sales medium
You then have to choose one or more sales channels to find prospects for your machine
- Scraping – yes, this is a possibility, one which is usually fast and brings you the minimum you can get for your equipment. Perfect if you just need the space as soon as possible and have no expectations on revenue.
- Dealers – there are plenty of serious professional resellers on the market, many of which are specialized in the equipment you want to sell. This is usually fast but will bring you a minimum value for it (though higher than scrapping). They take care of most of the service and logistics around the machine. Best if you do want not to trouble yourself with details around the sale.
- Your network – if you feel you have contacts who might be interested in your machine, this is an alternative sale channel. You can contact your professional associations, ask at the Chamber of commerce, and contact contractors and clients. This usually takes some time to find someone in need of the specific production tool.
- Auctions – there are quite a few international auctioneers who can help you get rid of your equipment in a timely manner. This usually means sacrificing the revenue but like Dealers, some of them are bringing some expertise in machine handling. Choose your partner carefully on the basis of services offered but also marketing power as auctioneers expect full exclusivity on the sale for a set period of time. Some might push your initial price down just to let the market react to the opportunity a cheap machine presents.
- Marketplaces – while auctions work with a bottom-price-up approach, marketplaces will allow you to test the market starting with a full market price before negotiating with interested prospects. This can take longer but will usually guarantee you the best revenue possible.
III. Optimise your offer
Please always remember that no matter how nice your equipment is, you have to be generous about the details in the listing. This will both boost serious interest for it and speed up any discussion during the sale. If most cards are on the table, you improve greatly your chances of selling effectively.
- Write complete specifications for your machine
- Specify a clear manufacturer, model, and year (or a list if the equipment is composed of multiple machines)
- Gather a full technical description
- Mention the serial number
- Add a history of the machine (type of use, of production, maintenance)
- Include all extras such as parts, and tools and explain specific options of the machine as many models can integrate added value details
- Define the machine condition including the number of hours
- Add plenty of pictures and video, including
- all angles, inside and outside with a focus on wearing parts of this type of machine
- manuals
- the manufacturer’s plate and the serial number
- number of hours
- the video under power or production
- possibly parts it used to produce
IV. React during the sale or negotiation
Once you start having prospects, make sure you:
- Understand the buyer, his/her motivation, financial but also technical concerns
- Set up a visit so buyers know what they are acquiring. This also builds a lot of trust and loyalty to the purchase
- Consider the logistics required and split clearly the responsibilities on dismantling, handling, and shipping along what is included and what is not (eg training, after-sale expectations, contacts for parts…)
Close the sale of your machinery
And finally, consider all final aspects to conclude the deal in the best possible conditions:
- Agree on a clear payment process including all deadlines
- Take care of your part of the handling and logistics described in the previous step
- Validate the transfer of ownership so that all parties are legally protected
- Accept some reasonable and well-defined after-sales support
- Close all financial and legal aspects
All that is left is for you to enjoy the boost of revenue, space, and peace at mind.
Sell your machine
