As an Industrial Auctioneer of 20 years, I’m always asked when is the best time to sell machine tools.
Surprisingly, the first quarter of each year is a great time to sell and historically generates higher prices. Why? That’s simple. Procurement and plant managers receive their new operating budgets and are eager to get newer equipment in place. They tend to spend more when they’re looking at an entire years operating budget than later in the year when the budget is thinning. Sellers of machine tools do great in the first quarter of the year.
The second most asked question is how do you set an appropriate sale price? At the Accelerated Group, our approach is simple and logical. We look at machine tools the same way we’d look at any other valuable commodity….let’s say real estate. Ask yourself two questions. What has sold in the same make and model in the last six months? Also, what is currently on the market of the same make and vintage? Basically, where is my competition priced? Keep in mind that “asking” price is not “selling” price. Just because you see a Bridgeport Mill on someone’s web site or EBay for $9,500.00, doesn’t mean they will sell it for that. The pricing of Machine Tools sold at auction and via traditional methods is very much based on supply and demand. As supplies of Bridgeport Milling Machines fluctuate, so do their sale prices.
Setting an appropriate sale price is individual to your situation too. How fast do you need to sell the machine tools? Set your price to MOVE if you’re in a situation where the machine must leave its current location in short order. Don’t get mesmerized by the prices you see on EBay. Don’t be one of the folks that pay to have the machine moved to storage and two months later the cost of moving and storage has eaten away your profit. Even if you do ultimately obtain the higher sale price, did you really? After expenses, you would have been better off selling quicker and having the cash in hand to invest.
The truth about online machine tool auctions is that supply and demand affects the ultimate sale price.
Demand is high as the New Year starts when procurement managers get their new acquisition budgets. Get it while the getting is good!