Gaze into the “crystal ball” of a seasoned equipment remarketing expert and learn how to move old inventory off your lot and onto customers’ operations — quicker and more profitably.

Dear Farm Equipment Dealer,

When managers talk about remarketing used equipment, they often say that there isn’t a silver bullet to selling used inventory. The longer this inventory sits and ages on the lot past the 9-month mark, the harder it is to sell, leaving your dealership with less cash to buy more machines.

But what if there was a way for you to know how much new equipment your dealership can sell and still work its way through the used equipment coming back in on trades? We talked with Casey Seymour, owner of Moving Iron LLC and the remarketing manager for 21st Century Equipment in Scottsbluff, Neb., and got a view into his crystal ball for remarketing used equipment – the washout cycle. 

Our eGuide, The Washout Cycle: A Used Equipment Manager’s Crystal Ball,” brings you Seymour’s top tips and proven techniques so you can better remarket used inventory, especially trade-ins. We’ve made it absolutely free to you so you can start moving your aging inventory and increasing your profits TODAY. 

This exclusive report details the advantages and challenges to using the washout cycle, which uses the number of units generated from the sale of a new machine until the last used unit does not generate a trade. Learn how the washout cycle can improve your used inventory flow and generate more sales by…

  • Controlling current and future inventory
  • Predicting effects on ratios and matrixes
  • Understanding what will happen if the market shifts

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Understanding Your Cashflow

Before your dealership starts selling used inventory, you need to see what inventory you have and where each piece is in the washout cycle, says Seymour. Understanding this volume will help you plan a timeframe to sell machines and examine the state of your cashflow, used inventory turn and return on assets.

Have A Contingency Plan

What will your dealership do with used machines you can’t sell in a certain amount of time? Develop a plan that will answer these questions:

  • How are we going to prospect differently?
  • What’s our marketing plan look like?
  • What kind of sales angles are we going to come up with?

When you look to the future, you can use the washout cycle to help you understand the amount of new equipment you can go out and sell and then wash through what your inventory is to predict where your dealership will end up.

Working the Washout

Seymour says that if a dealership sells a new combine, it should expect to sell 4-5 units until there is a “cash no trade” situation, presenting a 4-5 times washout. This cycle can help your dealership understand the effects that cashflow, return on assets and used inventory turn have on your overall used inventory.

Even more important is moving aging equipment off the lot because holding costs add up as months go on. The washout cycle keeps dealerships from increasing costs by taking in move inventory while still working through the washout cycle for a machine.

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New members, click "Sign Up" for free account. Or, regular members click "Go In".

Yours for a better dealership business,

Dave Kanicki

Dave Kanicki, Executive Editor

Dave is the Executive Editor of Farm Equipment, and the Editor/Publisher of Ag Equipment Intelligence and related properties. 


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