Last month, I talked about the used equipment manager and how the position is different from that of a remarketing manager. Both the remarketing manager and the used equipment manager share 85% of the same characteristics. The remaining 15% is where the most significant differences are.
The remarketing manager is responsible for getting used equipment ready to sell. One of the biggest misconceptions is that selling equipment only starts when the machine arrives on the dealer's lot. The selling of equipment starts when the machine is in the evaluation process. The evaluation process sets the table for how the machine will be priced based on machine condition as much as market condition. The evaluation process has to be managed by the remarketing manager and not the dealer's sales rep. The remarketing manager has to have no emotion attached to the deal. They will need to separate themselves from the customer and the deal to have an objective view.
The remarketing manager has to control the parameters of the evaluation process. The remarketing manager has to control the process because everyone's definition of an "8" is different. The remarketing manager needs to set baseline expectations for what information is required and how the information is gathered. What pictures are needed? A minimum number of views? Does a tape measure reading need to be in the image? These baseline expectations have to be spelled out and enforced. If these expectations are not, The remarketing manager will have difficulty telling the true story of the machine and how it is priced.
During this time, pricing is also established. For me, these are the sources I use in order pricing from the business systems, auctions values within the last 6 months, and retail advertised pricing from the various internet listing sites posted in the previous 6 months. I used these three because I am most concerned with what my dealership's track record is for selling similar equipment. Then I want to know if I had to liquidate the machine, what my exposure looks like, and if I need to put the dealership in this situation. Lastly, because anyone can advertise anything for any price, the retail advertised price has the most negligible impact on overall pricing. When looking at positioning equipment on the Internet, I am trying to settle somewhere in the middle of the pack based on specs, hours, and year.
During the evolution process, the reconditioning budget will be set because of baseline expectations. The reconditioning budget should have little surprise and, for the most be accurate. Although the recon budget is in place, it still needs to be managed. The remarketing manager needs to control the recon process so the budget is not exceeded. If it is exceeded, it was because the remarketing manager was involved in the decision. The recon process needs to be managed so closely because it is a jumping-off point, and this is where a remarketing manager should shine. Because of the remarketing manager's extensive network of dealers, wholesalers, and auction connections, the remarketing manager can control a loss at the time of sale. If the remarketing manager isn't controlling reconditioning costs, then none of this is possible.
After the machine has been through the reconditioning process, the advertising process begins. Ensure suitably and clean pictures are posted. The advertising description is correct, and all specs are accounted for and adequately advertised. If the combine is pictured with singles and the report says duals, trust is lost between your dealership and potential customer. The customer will wonder what else is inaccurate and if the machine's overall condition is correct. How the machine is positioned on the Internet is very important. If the machine has the highest price there better be a good story behind the why. This same concept goes for if you have the lowest-priced machine as well. In my opinion, both of these machines are under the highest level of scrutiny.
The remarketing manager is now ready to Move Some Iron! The remarketing manager is a high-volume selling machine. Because of contacts from around the world, past sales made outside of the area, and incoming calls from outside the site, the remarketing manager should have the highest sales volume and margin capability. Therefore, the remarketing manager needs to be focused on getting machines ready to sell and selling the machines made prepared! Doing this will open more doors for in territory sales reps to sell more new and used equipment.