Question: With the ability to shop inventory to death on the internet, what do you guys do to make your inventory stand out and separate it from everybody else?
There’s three things a used piece of equipment — or even a new piece of equipment —has to do in order to be successful when selling it. You have to mitigate risk somehow, increase efficiencies, and hopefully either maintain or increase the customer’s cashflow.
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When you look at a piece of equipment and how you have that machine priced in the marketplace, the first thing you need to do is ask yourself if that price makes sense. Is it worth that much?
After you’ve assessed the price, offering a warranty is a big thing. Right now, we have more equipment than we’ll ever get sold with some sort of a warranty on it. We have some in-house warranties that we do inside of our area, that we do stuff with, outside of and beyond that you see with your typical extended warranties from either the manufacturer or from an aftermarket vendor. Any time that we can structure that payment to where they’re increasing their cashflow or something like that.
But I’ll also say right now, it’s a generational thing. You have 35-year-old guys right now that are coming back to the farm. They’ve bought everything they’ve ever owned on the internet. Then the 20-year-old somethings that are coming back have only bought stuff on the internet.
It’s not a big deal to them to go shop for a piece of equipment on the internet or go to an auction and buy a piece of equipment or whatever it is that they’re doing. When eBay first was invented, I thought it was the dumbest thing ever. I was in college when it came out. Like who was going to buy a car that they haven’t even looked at? That’s dumb, you know? You’re just asking for a problem. But now, it’s a common day thing.
When you look at everything out there, the transparency of stuff on the internet now is so great that you can be as open and honest as you want to be. You can post inspections out there, you can do all that stuff that you want to do. They’re still going to beat you up; that’s just the nature of the beast. But being transparent and being able to do one of those three things I mentioned earlier is going to help you sell that piece of equipment.