How do we sell your used machines - Steps in the selling process

Overview of costs and returns

Here are some steps you can take in order to save time and work, and to circumvent potential troubles that are likely to arise later. This chart might help you to get started.

• Availability from: Should be gone by:
• Machine is occupying valuable space which is needed shortly. YES-NO?
• Costs of upkeep per month.
• Costs of dismantling and loading onto truck.
• Cost of relocating to a new location or storage near you.
• Storage cost per month.
• As a last resort, cost of having the machines scrapped and removed.
• Expected costs and number of hours for administrative work.
• Expected costs and number of hours for marketing work by you.
• Estimated total costs for 1 year of machinery unsold.
• What do you expect for return on this machine. MIN-MAX?

Now you have a rough overview of the (hidden) costs and return on your machine. These steps help you to figure out a realistic price for the machines. Make a machine description with key words such as the machine name, machine type and manufacturer with important details that in your opinion a potential customer would need in order to make a decision.

Marketing

Some basic facts to be aware of: The most time consuming part of the whole process is marketing. Most used machines from Germany find their customers outside of Germany especially in Europe and the European Union.

Most buyers are increasingly end users rather than dealers. Machines sold under power with the possibility of demonstration, sell better. If you can provide dismantling and loading of the machine, this would ease the selling process a great deal.

Use a number of diverse marketing channels to get early feedback on your machine. This will help to see if your machine is in demand or not (helps with finding a realistic price).

Do some direct marketing to the people you know who may be interested.

Advertise on a few internet used machine platforms.

Offer to some specialized and qualified dealers.

As a last resort, it may be possible to offer the machine to some auctioning platforms. The success of auctioning depends on whether or not your machine is in high demand. Be aware that not every machine is suitable for auction!

Pricing

It would be hard to attract serious customers without a realistic price or a good pricing strategy. There are no standard ways for determining the price for a used machine. Age, machine condition, accessories, book value, potential logistic costs, these are factors that affect the price formation. Eventually the market demand, that is - what an end customer is willing to pay - is what might determine the final price. Remember your hidden costs! Are there saving potential in having the machine sold relatively fast? You may pass on some of the savings to a customer if the machine can be sold faster.

• A good starting point on determining a price could be research on similar machines on the market (internet) and some feedback from the marketing efforts
• Not all machines sell quickly or sell at all. This fact needs to be taken into your considerations and calculations
• Consider the hidden costs to your company if the machine is not sold over a longer period.
• Waiting for the right customer over might be a good strategy, however the price of used machines do not usually increase with the time

Most frequently asked questions by buyers

Remember nobody knows your machine better than you. You or someone in your organization have worked with the machine, probably you know the best what a qualified customer could expect or might ask. Use this knowledge! Here is a selection of the most frequently asked questions. An information sheet on the machine with relevant data and facts can save a lot of time answering potential customers.

• Price
• Condition of machine
• Detailed pictures
• Video of machine operating
• Detailed technical description
• Known defects, damages or missing parts
• Working hours, last service or changes made
• Accuracy of the machine
• Accessories
• Machine under power or not, whether or not testing and inspection is possible?
• Possibility of loading on truck?
• The reason for selling

Transactions

Straight facts sell the best! No hidden defects please!

Usually no guarantees are offered with selling used machines, but the basic facts on the machine condition, accurate description, and the exact scope of delivery might matter a great deal for a smooth transaction.

Most used machines are sold to customers outside of Germany; therefore good communication skills and patience are prerequisite! Well prepared technical descriptions or explanations bridge the communication gap in most situations.

Every deal is unique, just as much as every machine or a situation might be. A degree of flexibility in finding solutions in order to make the business happen is a must.

Some transactions might require a knowledge of export and customs procedure ; therefore the services of an experienced custom clearance agent and international forwarder may be crucial.

Using contracts to support the transactions for rather expensive machines or complex situations might be helpful to provide more clarity and securities for all sides. If unsure, seek expert advice!

Logistics

Here some basic facts: A well planned logistics is the main key to the success of selling a used machine.

The main setback to the sale of used machines is usually the high cost of the logistics (dismantling, packing, loading, and transport). Find professional solutions, but try keeping the costs down!!

Use your expertise on the machine to find solutions. Use this knowledge to help the business happen.

Can the dismantling and loading of the machine be organized by you? If yes, this is a big plus for the sales process.

Define dismantling, packing, loading and transport requirements before you start dismantling. Do not hesitate to check with the (original) manufacturer of the machine if unsure. For example make sure software backups are made, batteries changed, liquids and rest material are disposed of properly, wiring diagrams made, etc.

Work with experienced logistic partners or forwarders, and make sure they understand what they have to do.

Risk Management

There is hardly any room for mistakes in a transaction with a used machine deal. Once a heavy or complex machine has been dismantled and delivered, it is hard to reverse the process.

Here are some of the factors contributing to potential errors:

• Lack of experience or expertise
• Poor communication or coordination
• Poor planning or preparation
• Transaction terms not clearly defined or understood by all sides
• Loss of machine information, components, documentation, software
• Unnecessary relocations, poor storage condition
• Poor dismantling, packing, handling. Lack of documentations or wiring diagrams
• Not having backed up the software or renewing the (data storage) batteries
• Not having considered the hidden costs / work / risks
• Lack of inspection or controlling prior to sale or purchase
• Lack of proper insurance

By knowing in advance what the potential weak points might be in the process; and by having the proper care and control mechanisms in place, many potential errors/risks can be avoided.