Trusting a New Remarketing Partner Pays Off

Intro

A construction equipment distributor who historically sold their assets directly to a base of local buyers had a used mini excavator to sell. They felt the excavator was worth at least $17,000; they even had an offer from one local buyer for $20,000.

They gave much consideration to selling the unit through a competitive auction platform. However, they knew they’d be at risk of a lower NET return if:

• They’d have to pay to transport the unit to an auction.
• They had to pay a high commission.
• The auction resulted in a price less than the high offer they had already received.

Challenge

The seller was looking for a trusted remarketing partner who prioritizes long term partnerships, understands the seller’s needs, was willing to create a solution that would alleviate the work effort of selling direct, and could deliver optimal NET auction results.

For this distributor to be comfortable making a change, their new partner would have to check all these boxes:

☑  Innovative, flexible and customer service oriented

☑  Experienced and knowledgeable with a large buyer network

☑  Adaptable and willing to include the seller’s base of loyal buyers

☑  Have low cost selling expenses

☑  Allow the distributor to be part of the asset flooring process, and run the auction with reserve pricing

Solution

The distributor was building a relationship with our fleet management team and learning more about our systems and services. In those discovery conversations, they learned they don’t have to be a fleet customer to use our remarketing services.

With a simple contract, the distributor arranged a virtual remarketing event through our Holman EquipmentDirect system. Holman even included the distributor’s local buyers.

With a clear value goal of $20,000 in mind, Holman engaged the distributor’s and our own prospective buyers in a competitive bidding auction for the mini-excavator.

Results

When the sale concluded, having eliminated the risk of selling the unit for less than $20,000 using the reserve flooring, the final sale price was $26,200. In an “all’s well that ends well” fashion, the winning bidder was the same local buyer who had previously offered $20,000. The larger base of buyers combined with the competitive components of a real-time auction helped drive up the sale price an additional $6,000 – that’s 30% over the committed buyer’s stated purchase price.

Since selling through Holman EquipmentDirect is based on a flat fee and not commission-based, the seller retained almost every penny of the additional $6,000.

Your fleet is an investment. It’s time it paid off.