Market update from Raffi Aharonian, Managing Director of Rouse Appraisals
Last month we posted articles about pricing trends and monitoring market indicators, where we outlined some of the unique market dynamics we have been experiencing around supply shortages, healthy levels of demand, and resulting record prices for used equipment.
While supply constraints and elevated pricing may bring frustration for some, this environment creates a compelling opportunity for equipment sellers.
Simply stated: there’s no better time than now to sell equipment.
For equipment owners, this presents an ideal opportunity to examine their fleets and identify underutilized machines. Perhaps there’s some equipment in your fleet you don’t foresee using in the immediate future. Fleet owners could sell these assets at a premium price today and use the proceeds to reinvest in their business or for future equipment needs. It’s a valuable rebalancing exercise that might be healthy for contractors during this time.
Finding the right solution for you
As the sale decision comes into focus, equipment sellers should educate themselves on the best path to market—considering time budgets and potential pricing outcomes—to be strategic about the sale process. Below are some potential sale mechanisms and time vs. outcome expectations.
Sellers can tap into traditional unreserved auction channels where they can consign equipment for sale, such as the scheduled Ritchie Bros. site events or IronPlanet weekly online sales events.
Another good option is Marketplace-E, a 24/7 online marketplace with Make Offer and Buy Now options, which does not leave you exposed to the unknowns of an unreserved sale. You have the opportunity to consult with your Ritchie Bros. representative who can provide accurate pricing guidance in order to drive strong returns with reasonable time expectations.
And then, there's Ritchie List, which is more of a retail marketplace that allows sellers to post equipment for sale with less time certainty but the potential for a better sale outcome.