5 Tips For Selling Machinery
Selling machinery involves many options: auctions, online marketplaces, listing services, dealers and brokers are just some of them – making it difficult to decide the one best suited to your situation and goals.
To make the process simpler, research all available sales channels and select one that provides ease and convenience while helping you meet your business goals.
1. Know what you’re selling
When sell machinery, it’s essential that you know exactly what equipment is up for sale in order to determine how best to market and sell it.
Doing this will enable you to obtain a fair price for your used machinery while avoiding scams and time wasters. Be sure to do research on potential buyers to make sure that they are legitimate and won’t waste either your time or money.
Check whether or not the buyer has purchased heavy equipment before. This can be particularly helpful when selling machinery that has been extensively used or damaged.
2. Get a professional appraisal
Profession appraisals are key in assuring your equipment has an accurate value, helping ensure a higher selling price and protecting against insurance disputes.
Heavy equipment appraisers conduct an in-person inspection and conduct extensive research on industry standards and equipment history to help accurately value it and prepare reports that meet lenders, accountants, attorneys and potential buyers’ requirements.
An appraiser can perform either a Summary Appraisal Report or Desktop Report. A Summary Appraisal Report includes more in-depth analyses and will require an in-person visit, while Desktop Reports don’t necessitate in-person visits and are faster.
3. Do a thorough inspection
Before selling machinery, having it inspected can help to ensure its good condition and avoid repairs that could cost more money in the future.
An inspection service can also help build trust with prospective buyers; they will be more likely to purchase machinery inspected by an reputable third-party expert.
Under the Loading Operations and Lifting Equipment Regulations (LOLER), lifting equipment must undergo a comprehensive review prior to its first use, as well as before and after assembly at each site.
4. Get a good price
Establishing the best price for your machinery may seem challenging, but there are ways to make it simpler. Do your research, take high quality photos, and accurately describe it for optimal results.
Once you understand what your equipment is worth, the next step should be identifying potential buyers. Understanding market needs and creating buyer personas are both vital in finding suitable markets for your equipment.
As part of your equipment sales strategy, it’s also crucial that you select an effective selling method. There are different avenues available such as industrial auctions, reserved auctions, unreserved auctions, equipment dealers and private sellers – each can help to maximize revenue for you and your equipment sales.
5. Stay on top of taxes
Taxes can be an ongoing source of worry when selling machinery, so it is wise to stay on top of them when selling machinery. Doing so will prevent future hassle and save money in taxes. For example, if the buyer pays you more than its market value then taxes might apply; similarly equipment that’s three years or older and has depreciated may owe tax. For best results and to prevent unexpected surprises it would be wise to consult an expert prior to listing an asset for sale.
An additional tip for selling machinery is to form relationships with potential buyers, making selling easier in the future as you already know you can trust them.