How To Buy & Sell Used Equipment and Heavy Machinery Like A Professional

HOW TO BUY & SELL USED EQUIPMENT AND HEAVY MACHINERY LIKE A PROFESSIONAL
1
Used Equipment and
Heavy Machinery
How To Buy & Sell
Like A Professional
A Publication of
Version 1.0.0

Contents.
03! INTRODUCTION
05! SUPPLY & DEMAND
07! MARKET CONDITIONS
09! RISK
11! AGE & CONDITION
13! PLANNING
15! BUSINESS INTELLIGENCE
17! CONCLUSION
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Introduction
Thousands of people, all around the world, have built their
career and enjoy a high standard of living, by specialising in
the buying and selling of used equipment and heavy
machinery.
At Resale Weekly, we specialise in helping customers to buy
and sell in the most proﬁtable way. Sellers constantly ask us
how they can get the best price for their used equipment and
heavy machinery. Buyers also want to know how to identify
the perfect piece of equipment for their needs and how to
avoid ending up with a lemon, or even worse, paying for a
machine that they can never use.
As part of our celebrations for our 50 year anniversary, we
have prepared this guide, as an expression of thanks to all of
our fantastic customers. We hope that it assists you in gaining
the upper hand in your business dealings.
3
.

How do you command the
best price for a piece of
heavy machinery or
equipment
Whilst the answer isn’t always simple, it also
isn’t that complex—once you understand the
factors that are involved in formulating
the price.
Professionals use the following key
points to help put them in the
driver’s seat.
4
?

Supply & Demand.
5
01FACTOR

Of course, you already know that price is determined by the principle of supply and demand.
But do you know how to tip the balance between the two in your favour? One way is by
knowing how and when to manipulate the perception between the quantities offered for sale
versus the volume of demand.
Tipping the balance will be harder to achieve when dealing with common or general purpose
equipment models because they naturally appeal to a larger audience. This is why their prices
ﬂuctuate less and are easier to sell than specialised equipment. On the other hand, when
transacting specialised equipment, the seller needs to do extra work in order to target the
right audience and engage with them using the appropriate messages.
So, how do you gain the advantage? If you are a seller, you will capture the greatest reward if
you do all the work needed to draw the most attention to your products by targeting,
reaching and engaging the best audience. You will get more interest in your piece of
equipment if it stands out in the crowd of seemingly identical items and the best approach is
to strengthen the perception that your item offers the best value for the money.
Equipment doesn’t sell itself; it takes someone to do the work. Selling often takes more work,
time and effort than people realise. If a seller does a poor job of collecting, organising and
marketing their items, it will take them longer to complete the transaction as well as reducing
the opportunity to get the best possible price. Poor marketing and/or sales skills produce
fewer leads. Fewer leads reduce the price by opening doors for challenging negotiation.
If you are a buyer, use the seller’s mistakes to your advantage and drive a better bargain.
6
Ability will never
catch up with the
demand for it
– Confucius
“ .

MARKET
CONDITIONS.
7
02FACTOR

It is extremely common for a piece of equipment or machinery
to have been owned and operated in several countries during
the course of its lifetime, because many savvy professionals
exploit market conditions.
The greatest price ﬂuctuations occur when there is either a
surplus or a scarcity. Seasons (e.g. harvest, industry cycles,
etc.), governments (e.g. economy, projects, etc.), international
transactions (e.g. currencies) and speculation are most often
the key factors that affect the ebb and ﬂow of pricing.
Seasoned professionals leverage this in their favour by
tracking the global marketplace to command the best price
when they buy or sell.
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Some people say they want to wait
for a clearer view of the future. But
when the future is again clear, the
present bargains will have vanished.
In fact, does anyone think that
today's prices will prevail once
full confidence has been restored
– Dean Witter
“ ?

RISK.
9
03FACTOR

How safe is the investment? Is the piece of equipment you are looking to
acquire right for the job you have in mind? Use product speciﬁcation and data
sheets to assess this.
Is it in good working order or how quickly can it be ﬁxed and how much will it
cost? Premium brands often appeal to a larger audience as parts and service
are readibly available and should something go wrong, it is typically easier and
quicker to put right. This does however have the affect of driving up price
because of their widespread recognition, reputation and service support
network.
Foreign brands, however, may be just as capable and provide an acceptable
level of risk, if you are able to do a good job of managing the repairs and service
your equipment needs.
10
Risk comes from not
knowing what
you’re doing
– Warren Buffett
“ .

AGE & CONDITION.
11
04FACTOR

Two seemingly identical pieces of equipment of the same age can command
vastly different prices. So what can cause one to command a higher price?
Maintenance and condition—because wear depreciates the price by shortening
the remaining life.
If an item had a hard life in the early years it potentially will have more problems
as it gets older. If it is a low hours and light use machine, it is likely to require as
much ongoing maintenance going forward.
The best way of assessing the condition of any equipment is to have an
inspection report prepared by a credible inspector.
The reason why age can play a major factor affecting price is when technologies
become out-dated; displaced by newer technologies.
12
No object is so beautiful
that, under certain
conditions, it will not
look ugly
– Oscar Wilde
“ .

PLANNING.
13
05FACTOR

Another key factor to consider when buying any piece of equipment as part of
the buying process, is what you intend to do with it once you’ve ﬁnished with it.
If you intend to run a machine into the ground or scrap it once the project is
complete, you’ll want to buy it at the best possible price but age and condition
may not be a contributing factor, and the residual value would probably not be a
factor either.
If you only envisage adding minimal hours then you may consider buying an
over hours / for the age machine, which you may acquire at a reduced price.
Then when you come to sell it, the hours may be more in step with the age of
the machine and you could achieve a better sales price.
This means your overall cost of ownership is minimised. Do, however,
remember that implementing any repairs that are required will need to also be
factored into this cost of ownership.
14
Planning is bringing the
future into the present
so that you can do
something about it now
– Alan Lakein
“ .

BUSINESS
INTELLIGENCE.
15
06FACTOR

For many people in this industry, they see the opportunities to transact used
equipment and heavy machinery in a manner that is not dissimilar to the stock
market.
By being well versed in the above factors, they have become extremely adept
and efﬁcient in analysing pricing trends; using both historical and current selling
price data; and analysing this at the continent, country and region level. They
also keep an eye on economic and currency ﬂuctuations, plus know how to
transport or arrange for the transport of equipment, plus understand the intricies
of import and export regulations, etc.
16
BI is about providing the
right data at the right
time to the right people
so that they can take the
right decisions
– Nic Smith
“ .

Conclusion
Even if you are a novice, you can buy and sell like a true
professional if you use the information presented above and
do some basic work to determine the worth of a piece of
equipment, and negotiate the best price.
From all of us at Resale Weekly, we wish you the very best of
success.
17
“
Opportunity is missed
by most people because
it is dressed in overalls
and looks like work
– Thomas Edison
.
.

LET US HELP YOU
Improve your ability to buy and sell used
equipment and heavy machinery like a
professional
Visit us today!
http://www.resaleweekly.com
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How To Buy & Sell Used Equipment and Heavy Machinery Like A Professional

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How To Buy & Sell Used Equipment and Heavy Machinery Like A Professional