Do you own used equipment that you no longer need?
Whether it is a bulldozer or an excavator, you may consider selling it to a prospective buyer. It would not only help you earn capital and save high storage and maintenance costs but will also minimize industrial waste generation. There are several ways to sell used industrial equipment which we have discussed in a previous blog.
Now if you choose to sell your used equipment through auction or liquidation, you need to know how to price it. Pricing your asset is a key strategic decision that will make or break your sale. If you set a very high price, you might lose out on potential buyers. Likewise, if you set a very low price, potential buyers might feel underconfident to invest in the equipment and this might result in losses. It is therefore important for you to price your asset correctly. Pricing the right way will skyrocket your sales and help you make a profit.
Are you wondering if you are going too high or low with your pricing? Pricing your used industrial asset can be a challenging job if you do not know how to align the price with the value of your used equipment. There are several critical factors that can affect the value of your used asset. Understanding these factors that influence the pricing of used equipment will help you set a fair price. In this blog, we have discussed five key factors to help you figure out the best price for your used industrial equipment.
Supply and Demand
When there is a rise in demand for industrial equipment and the supply is low, prices tend to rise. On the contrary, when the market is flooded with a particular type of equipment, prices go down. This is how supply and demand affect the prices of equipment.
Age and Working Condition
People are less likely to buy equipment that is very old as there is a chance of it showing signs of wear and tear. They might also feel that old equipment is outdated. However, if a piece of old equipment is well-maintained and performs well, potential buyers might be interested in buying it regardless of its age. So, if you want to sell your used asset for a respectable amount, ensure that it is painted and repaired and has all the maintenance records.
Economic Climate
The economic climate has a tremendous impact on supply and demand and it subsequently affects the pricing of used equipment. When there is a recession, people avoid investing in building homes. More builders thus try to sell their used equipment. With a fall in demand for used industrial equipment, the prices go down. Likewise, when there is an economic expansion, the prices are likely to increase.
Current Market Price of the Original Equipment
There might be newer versions of your used asset available at a lower price in the market. So, if you set a higher price for your used asset, the buyers might not be interested in buying it. It is, therefore, wise to consider the current market price of the original equipment and set the price for your used equipment accordingly.
Use the Aucto Asset Valuation Tool
If you are unable to decide the right price for your industrial asset, check out the Aucto Asset Valuation Tool. It is a unique tool that allows users to enter a few details about the asset such as the model, brand, category, etc. The tool then analyses the data and shows an estimated selling price of the asset in real-time. It is a highly efficient and useful tool. So, you can set the right price for your used asset by using this tool.
Make sure you consider these factors before listing your used equipment for sale in an online auction. Following this pricing strategy will boost your sales and help you make a good profit in your business.