When you specialize in a particular industry, you develop and learn as you spend time in that specialty. For instance, a dentist will know more tricks and procedures after 10 years working in their field. They grow as time moves forward, but they also had to learn the basics before starting out. A good dentist does not just wake up one morning and start working as a dentist. They study, practice and get licensed.
The buying and selling of heavy equipment is not that far off from any other specialized industry – like dentistry. True that an individual does not have to go through years of schooling before owning a company, however, the good ones, like Monster Equipment, learn the industry first, study and get licensed. Also, the longer they are in the industry the more they know.
You might be wondering why this is important to you as an equipment owner. Just like the dentist, you specialize in your industry – maybe that industry is signs, forestry or construction. Whatever that industry is, you have learned the trade and continue to grow at your specialty.
Companies like Monster Equipment (M.E.) specialize in the industry of buying and selling heavy equipment. They have years of experience, and the good ones study, learn and get licensed. This can be such a benefit to you when you decide it’s time to let go of your equipment. You don’t want your podiatrist to clean your teeth, in the same sense, why would you want to sell your equipment on your own, when you could work with a professional in that industry.
Let’s talk about consignments. A consignment is a physical contract between an equipment owner (that’s you) and a licensed dealer (like M.E.). Agreements like this can be setup in many different ways. I’m going to talk about the way M.E. handles their consignments, since I am familiar with that process.
When M.E. consigns a piece of equipment, like a truck, they ask for several things:
- This enables them to appropriately price what the equipment is worth, where to market the equipment for sale, and how much is a reasonable asking price.
2) Your bottom line
- They need to know what the lowest amount is that you will accept because for them to make a profit (and make this process worth doing) they need to sell it for more than your bottom line.
- This also enables them to not charge you for the process. We have all heard those TV ads for the personal injury attorneys “We don’t get paid, unless you get paid!” It’s the same concept for consignments. The company doesn’t charge you anything; they just sell the equipment in a way that is profitable to both them and you.
3) Proof of Title
- This one is necessary to ensure the equipment is actually owned by you and being sold legally
4) Signed Contract
- While consigning for you, the company is going to market your equipment. This will take hours of work, phone calls, ads, and marketing materials. Yet there is no cost to you. A signed contract just protects the investment the company is making in selling your equipment for you.
- A standard consignment contract includes your bottom line, an expiration date, and a clause that says you won’t try to sell the equipment yourself or with anyone else. Again – this makes sense. If the company is investing time and money upfront in getting your equipment sold, then it’s a fair trade to make sure you only sell through them.
A consignment is beneficial to both the company and the owner. For the company it means not having to buy a piece of equipment which is thousands of dollars. They can use their resources to focus on the selling of the unit.
For the owner there are a lot of benefits. The first of these benefits is marketability. Dealers like M.E. know where to market and how. They have spent years, and make their living, on the right ways to get a unit sold. This opens up a whole new world for you. M.E. markets world-wide so their potential buyer list is bigger. This leads to another benefit for the owner – not selling to your competition. Let’s face it, even if you don’t want a particular piece of equipment anymore, you probably don’t want you competition to buy it. With world-wide marketing you have a stronger chance of someone, not local, purchasing your unit.
Another item to consider is that a lot of individuals and companies alike, when buying a piece of equipment not locally, want to work with a licensed dealer. They are afforded a certain level of security and with thousands of dollars, and miles, on the line, that’s something they require. Most dealers who have been in the business for several years (like M.E.) also have an established client base. This is another benefit to you because these clients call up, want a specific thing and sometimes only want to work with their dealer.
All of these things just help you sell your equipment faster and stress free.
So if you have equipment you are ready to part with, even if you don’t use M.E., seriously consider using an industry specialist. If you don’t know what to look for or where to start, feel free to call Julie and Mike with Monster Equipment. They have over 10 years of success in this industry and are ready to help you, in any way they can.