Surplus machinery auctions are a popular method for selling industrial machinery and equipment that is no longer needed by a company. Auctions can be an efficient way to liquidate assets, recover value, and free up space. Westbrook Asset management is a full-service industrial auction and liquidation company, offering a wide range of programs for sellers to put out these auctions and earn cash for their surplus machinery. Below is a detailed at how surplus machinery auctions work.
When planning and preparing for a surplus machinery auction, the assessment and inventory of the surplus machinery comes first. These are critical steps, as they will set the tone of the auction.
The first step involves cataloging all the machinery and equipment to be sold. This includes detailed descriptions, conditions, and photographs of each item. Westbrook Asset Management offers a turnkey program that covers every aspect of this service.
Along with creating a collective auction inventory, Westbrook also offers a condition assessment for each machine provided. Equipment is often inspected to determine its operational status, which helps in setting realistic expectations for potential buyers.
After taking inventory and assessing the condition of each machine, marketing for the auction begins. This takes place via two methods, Online Advertising and On-site Visits.
Westbrook Asset Management will launch a marketing campaign to attract potential buyers based on the budget given. This may include online listings (Machine Tools, Machine Hub,etc.), email newsletters, social media promotions, and advertisements in industry publications. An auction flyer featuring the key machinery and equipment is created and distributed via bulk email.
After extending the reach of the auction through the marketing campaigns, the seller would then open up inspection opportunities for potential buyers. Potential buyers are offered 1-2 supervised inspections days to visit the site and inspect the machinery and equipment in person. This is particularly important for high-value or complex machinery and equipment where buyers want to verify conditions before bidding.
After the marketing campaigns and onsite inspections, the auction is ready to begin. Bidders will compete to win the machines of their choice, and this is done in one of two primary auction formats.Typically, the two formats used to conduct a surplus machinery auction are timed online auctions and competitive bidding auctions.
Timed Online Auctions are conducted on an online platform (BidSpotter) where bidders place bids electronically over a specified period. This format can reach a global audience and includes extended bidding times. Competitive Bidding Auctions allow bidders compete by placing higher bids until no one else is willing to bid higher. The highest bid wins the item, subject to any reserve prices or minimum bids set by the seller.
After the auction, we dive into the final processes to transfer the machinery to the new owners. This typically involves three different processes, Payment and Settlement, Transfer of Ownership, and Finalization of the Sale.
Winning bidders are required to make payment in full according to the terms set by Westbrook Asset Management.
Documentation: Once payment is received in full, Westbrook Asset Management provides the necessary documentation for the transfer of ownership, including bills of sale or transfer certificates.
Pickup and Removal: Winning bidders are provided several days of supervised moveout where they arrange for the pickup and removal of the machinery and equipment. Westbrook Asset Management may assist with logistics contacts, or the buyer may handle transportation independently.
Settlement of Proceeds: After the auction, the seller receives the proceeds from the sale, minus any applicable fees or commissions. Westbrook Asset Management will provide a final report detailing the sale outcomes.
When all said and done, there are many benefits that can be found in surplus machinery auctions. The benefits listed below highlight how doing these auctions can provide a strong form of cash flow for your business.
Westbrook Asset Management surplus machinery auctions offer a structured and effective way to sell machinery and equipment that is no longer needed. The process involves careful preparation, marketing, competitive bidding, and post-auction supervision. By understanding how these online auctions work, sellers can maximize the value of their surplus machinery and equipment and efficiently manage asset liquidation. Contact Us Today to learn more.
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