How to Prepare Machinery for a Liquidation Auction
If your business is considering liquidation and you deal with heavy machinery, then you’ll likely be familiar with liquidation auctions. If you’ve got surplus stock or items that you need to get rid of and want to make a quick buck while doing so, then machinery auctions are a great choice for you. Many companies also sell surplus industrial equipment to capture the latent value from old and used machinery and their parts. If your business deals with a constant inflow of new technology and you need to maintain equipment upgrades, selling old machinery helps recover some of your costs.
Warehouse liquidations are becoming increasingly common, with many auctions now moving online as well. However, to recover your profit margins and quickly sell your equipment, you need to ensure that the items sell. If you’re closing or moving your business, the added stress of constantly trying to sell your items can be frustrating. Here are some best practices to follow to make your machinery sell in the next liquidation auction:
1. Make sure everything works well
The most important thing to ensure is that the machinery is working properly and in good functioning order. Regular check-ups, cleaning, and maintenance schedules ensure that your equipment is in the best possible condition for re-selling. Faulty machines will not pass quality checks during warehouse liquidations, so it is important to keep checking on the state of your items.
Another tip is to always have your manufacturing machinery, construction equipment, or vehicles cleaned thoroughly before putting them up for auction. This adds value to your items and makes sales much easier. If the items are heavily used, it could lead to less bidding or rates below your asking offer. With just a little bit of effort, you can extract the maximum price and value out of your warehouse liquidation experience.
2. Do your research
It is important to research the current market trends in the equipment industry and understand the general asking price of the items you wish to sell. Come up with a pricing model that benefits both you as the seller and the buyer, who is probably looking for a good deal. Often, buyers will be on the lookout for the lowest priced items, which means that if your products are not competitively priced, you could lose sales. Consistent pricing across all your equipment, such as tiered pricing or bundle deals, is a great way to incentivize the buyer into choosing your inventory.
Also, consider a relative selling method. Some items will sell better than others, and can incite a bidding war amongst buyers. Pricing these products higher will get you higher profit margins, which you can use to price the stagnant or low-selling items at a more accessible cost. It is important to be flexible when trying to sell your items and adapt to the market trends and what the buyer is looking for.
3. Be wary of common scams
Putting items up for auction can be difficult and frustrating; it is hard to verify buyers, follow through on sales, maintain profits, and manage transportation and location costs. If you’re selling on generic public platforms such as Kijiji, eBay, or Craigslist, it is important to watch out for signs of fraudulence, such as:
- Third parties representing the buyer
- Buyer wanting to overpay
- Buyer wishes to use a personal check
- The buyer doesn’t seem to know anything about the items they wish to purchase
Do your due diligence to ensure you don’t miss a red flag. If you want the headache taken out of the process, then connecting with a reputable liquidation service is probably the best bet for your business, whether you’re looking to reorganize, upgrade, downsize, or relocate. At Michaels Global Trading, we provide a smooth transition for your business, which includes dismantling, packing, and preparing your decommissioned equipment. Professional liquidators will help you account for quality assurance by inspecting your items and helping you repair or reconfigure the equipment for buyers.
4. Provide as much information as possible
Buyers do their due diligence and can easily spot discrepancies, as they are regular practitioners or experts in the industry. Therefore, it is important to fill out all product information accurately when presenting items for warehouse liquidation. Inaccuracies will cause the items to get invalidated, leading to penalties and fees or delayed liquidation.
Customers are generally looking for information from pictures, descriptions, and technical specifications to help them make important purchasing decisions. Therefore, provide as much information as you can upfront to ensure the customers have all the knowledge they need and can buy as soon as they wish to. If some of your equipment needs a special explanation, then be sure to mention that. This maintains transparency in the transaction and will ensure things go smoothly, with no issues arising later. If your business participates in regular warehouse liquidations, then it is a good idea to follow these practices to ensure a good seller reputation.
5. Get your records in order
When you’re selling your items in a warehouse liquidation, remember that you’ll need to provide documents to back up the sale of your machinery. Keep your proof of purchase, repair bills, and any other receipts associated with the machinery you wish to sell. Providing this at the auction will ensure you get reputed customers who are serious about buying and will not flake out the last minute. Documents add value to your machinery and authenticate it. Company records are great documents to show a potential customer because they list the history of the business and its customer base. Buyers can then reserve items that you wish to liquidate in the future, thus saving you time in having to find a serious buyer.
There you have it: that’s how you prepare your machinery for liquidation. It is important to follow these best practices to ensure a stress-free, easy warehouse liquidation. Reach out to our team anytime for more information or easy solutions for your liquidation journey. To book an appointment, call Michaels Global Trading today at 888-471-5066 or contact us here.