Heavy Equipment Shipping Transport for IronPlanet Auctions

Before we go into the particulars of heavy equipment and machinery auctions, here is some auction background.

The word “auction” is derived from the Latin augeō, which means “I increase” or “I augment”. So we see an auction is the process of increasing the purchase price; as we will see it is important to know the realistic market value of used heavy equipment and machinery or you will overpay.

In 2008, the National Auctioneers Association reported that the gross revenue of the auction industry for that year was approximately $268.4 billion, with the fastest growing sectors being agricultural, machinery, and equipment auctions and residential real estate auctions. Heavy machinery and equipment is the fourth largest sector in auctions.

Selling items through auction houses has existed for centuries and began around 500 BC. This method of trade was chosen, as it is a time-proven, fair way to buy and sell items.
Using brick and mortar with online presence auctions to sell heavy equipment and machinery has become very popular in the past few years, giving sellers a chance to sell all kinds of items anywhere in the world via the internet.

The online auction method can be very profitable for many; however, one of the main points to consider before working with a company to auction any heavy equipment or machinery is whether they specialize in the particular type of equipment and machinery you have.

There are numerous heavy equipment and machinery auction companies available to serve buyers and sellers interested in purchasing or selling specific items such as heavy equipment. Finding the right auction company can be a very important decision to make, so take into consideration the following different aspects of auctions.

General Auctions

Some sellers may wish to take industrial machinery/vehicles to a large sale that may also be auctioning cars, campers, semi-trucks, etc. While these are all vehicles, the exposure your equipment will receive at such a sale should be taken into consideration. A general auction such as this may advertise in general places, not necessarily where heavy equipment and machinery buyers will be looking. Earthmoving equipment sitting in the middle of cars, RVs and campers is not going to get the proper buyers inspecting it.

Specific Auctions

Auctions that are aimed to liquidate industrial and heavy equipment and are restricted to only certain types of heavy equipment and machinery will get sellers more return than less specialized auctions. Both sellers and buyers have a large selection of heavy equipment and machinery available both for browsing and for drawing more people to the auction. Advertising is more effective as it is more likely to be aimed at the appropriate industry buyers.

Reputation and Attendance

Another factor to consider when selecting your auction company is their reputation and popularity in the industry; plus recent sales success. Closing sales prices that are low can be used to indicate that attendance may be low. Likewise, high ending prices could affect future attendance at the event, as buyers might think that lower prices might be found at other auctions.

Contractual Obligations and Fees

Understanding your contractual obligations, especially any limitations, expectations and expense fees charged by the auction company to organize and conduct the auction. Once you sign the contract, it is final and cannot be changed or altered. If any portion of the contract has not been clearly understood or certain stipulations have not been included in the contract, it is up to the buyer or seller to make modifications; so it should be carefully reviewed and fully understood before it is signed.

Services an Auction Company Provides

When deciding on an auction company to liquidate your equipment, be sure they have a website or online presence where items will be listed and open for viewing (with photos) plus research details and information available to the public prior to the auction. There may also be additional marketing an online auction provides, which could translate into wider exposure to buyers in the market for particular heavy equipment or machinery. Transportation of purchases may also be available if the shipping distance from the sale is not too far away. However, if the transport distance is over 20 miles then the transport costs of a heavy haul trucking company must be considered in the price buying strategy.

Here is a good analogy: a backyard pony would not be sold at a racehorse auction; the same is true for heavy-duty earthmoving equipment. Make sure your equipment is listed with the best fit auction company, so the equipment is presented to the right audience, this will always provide you the best auction results in terms of financial results!

Sales Procedure

The role of the auctioneer has been the same throughout the years; to sell your equipment to the highest bidder. The process has become more efficient through technological advancements. Both consignees and customers can enjoy this efficiency with the two major processes involved: preparing the assets for sale and distributing sold items to the highest bidders.

Preparing Assets

In the past sellers believed too much paperwork was involved to auction an item; this has changed and the amount of paperwork now is much less, as most information is stored electronically. Now, items for sale have all the basic information entered into an auction company’s database system. It is then uploaded to a web server and made available for online viewing, making assets more easily advertised, marketed and sold.

If possible, attempt to secure a limited warranty from the seller or the auction company to cover any problems that may occur within a certain period of time. This may be a 30-day warranty or 3,000 mile limited warranty, this is a reasonable warranty period.

According to the Iron Planet website

IronPlanet® is a leading online marketplace for used heavy equipment. Our sellers achieve more profitable sales through low transaction costs and better price realizations through a global audience of buyers. Our guaranteed inspection reports and exclusive IronClad Assurance® enable buyers to bid with a high degree of confidence. IronPlanet is backed by Accel Partners, Kleiner Perkins Caufield and Byers, Caterpillar, Komatsu and Volvo

In 2011, IronPlanet conducted a record 114 auctions worldwide, an increase of approximately 16 percent over 2010. Through IronPlanet’s marketplace, over 37,000 items were sold, up approximately 14 percent over 2010.

Located in Pleasanton, IronPlanet provides full auction listings on its website, and maintains offices in Europe, Middle East and Asia as well. IronPlanet offers auction services, appraisals, financing and transportation of equipment.

In summary, planning your financial expenditures is an important prerequisite when purchasing anything from heavy equipment auctions. Unlike vehicle dealerships where the price is generally fixed, at an auction the price can go either way or well above your goal target. To find a great deal, buyers must carefully come up with a detailed purchase plan before attending an auction and making an actual purchase!