When you specialize in a particular industry, you develop and learn as you spend time in that specialty. For instance, a dentist will know more tricks and procedures after 10 years working in their field. They grow as time moves forward, but they also had to learn the basics before starting out. A good dentist does not just wake up one morning and start working as a dentist. They study, practice and get licensed.
The buying and selling of heavy equipment is not that far off from any other specialized industry – like dentistry. True that an individual does not have to go through years of schooling before owning a company, however, the good ones, like Monster Equipment, learn the industry first, study and get licensed. Also, the longer they are in the industry the more they know.
You might be wondering why this is important to you as an equipment owner. Just like the dentist, you specialize in your industry – maybe that industry is signs, forestry or construction. Whatever that industry is, you have learned the trade and continue to grow at your specialty.
Companies like Monster Equipment (M.E.) specialize in the industry of buying and selling heavy equipment. They have years of experience, and the good ones study, learn and get licensed. This can be such a benefit to you when you decide it’s time to let go of your equipment. You don’t want your podiatrist to clean your teeth, in the same sense, why would you want to sell your equipment on your own, when you could work with a professional in that industry.
Let’s talk about consignments. A consignment is a physical contract between an equipment owner (that’s you) and a licensed dealer (like M.E.). Agreements like this can be setup in many different ways. I’m going to talk about the way M.E. handles their consignments, since I am familiar with that process.
When M.E. consigns a piece of equipment, like a truck, they ask for several things:
- This enables them to appropriately price what the equipment is worth, where to market the equipment for sale, and how much is a reasonable asking price.
2) Your bottom line
- They need to know what the lowest amount is that you will accept because for them to make a profit (and make this process worth doing) they need to sell it for more than your bottom line.
- This also enables them to not charge you for the process. We have all heard those TV ads for the personal injury attorneys “We don’t get paid, unless you get paid!” It’s the same concept for consignments. The company doesn’t charge you anything; they just sell the equipment in a way that is profitable to both them and you.
3) Proof of Title
- This one is necessary to ensure the equipment is actually owned by you and being sold legally
4) Signed Contract
- While consigning for you, the company is going to market your equipment. This will take hours of work, phone calls, ads, and marketing materials. Yet there is no cost to you. A signed contract just protects the investment the company is making in selling your equipment for you.
- A standard consignment contract includes your bottom line, an expiration date, and a clause that says you won’t try to sell the equipment yourself or with anyone else. Again – this makes sense. If the company is investing time and money upfront in getting your equipment sold, then it’s a fair trade to make sure you only sell through them.
A consignment is beneficial to both the company and the owner. For the company it means not having to buy a piece of equipment which is thousands of dollars. They can use their resources to focus on the selling of the unit.
For the owner there are a lot of benefits. The first of these benefits is marketability. Dealers like M.E. know where to market and how. They have spent years, and make their living, on the right ways to get a unit sold. This opens up a whole new world for you. M.E. markets world-wide so their potential buyer list is bigger. This leads to another benefit for the owner – not selling to your competition. Let’s face it, even if you don’t want a particular piece of equipment anymore, you probably don’t want you competition to buy it. With world-wide marketing you have a stronger chance of someone, not local, purchasing your unit.
Another item to consider is that a lot of individuals and companies alike, when buying a piece of equipment not locally, want to work with a licensed dealer. They are afforded a certain level of security and with thousands of dollars, and miles, on the line, that’s something they require. Most dealers who have been in the business for several years (like M.E.) also have an established client base. This is another benefit to you because these clients call up, want a specific thing and sometimes only want to work with their dealer.
All of these things just help you sell your equipment faster and stress free.
So if you have equipment you are ready to part with, even if you don’t use M.E., seriously consider using an industry specialist. If you don’t know what to look for or where to start, feel free to call Julie and Mike with Monster Equipment. They have over 10 years of success in this industry and are ready to help you, in any way they can.
It's Time! You are in need of a bucket or sign truck! Before you lock yourself into a deal that's going to cost thousands of dollars, there are a few things to look for and consider.
1) Price! Price! Price!
There are a lot of pieces of equipment and utility trucks out there for sale. If you don't have a clear idea of what you are looking for, and a reasonable price range, you may end up over-paying. There are a few ways you can protect your wallet during this process. To start, figure out exactly what you want. Drive, Transmission, Boom Height, Mileage and Body Model are all really important factors to focus on! Once you know what you are looking for, don't stop with the first person who has it for sale. Shop around! Take a look at what's out there, and the price ranges, and come up with an average idea of what the truck is worth. Once you know what you want and about what you should spend, you are ready for the next step.
2) Know the Seller!
This industry has created quite a market for Brokers. A broker is a third-person or middle man. They often times can be a benefit to a buyer because they research and have first hand knowledge and experience with multiple sellers. They also use the industry tools regularly, such as marketing websites and auctions, so they can find things a bit faster. But BEWARE there are a lot of brokers out there who aren't legit and will end up costing you more money.
While Brokers can be an asset in a sale, they are an asset you pay for. The fact still remains that you will get a better deal buying direct from a dealeror an owner as they will not be adding a broker commission to the sale. You are also afforded certain levels of protection when you buy from a licensed dealer. Licensed dealers are regulated by the state, so the first thing you should do is verify that the dealer is licensed. Then check their reputation. Don't be afraid to google your dealer. A truck purchase is a huge investment, and you don't want that investment to turn into a regret.
3) Personally Inspect the Equipment
If you are considering a purchase that is out of state for you, get as much information from the seller as you can upfront. You can ask for photos and videos of the truck running and the boom being operated. THEY ARE THERE TO SELL IT, so ask away. Don't spend time and money traveling to inspect a vehicle with a major problem you would have seen in pictures or a video.
4) Close The Deal
After you find the perfect vehicle or piece of equipment and you have checked out and verified who you are buying from, it's time to close the deal! Don't Wait! You don't want to take the chance of your dream truck getting away from you! Another plus if you choose to buy from a dealer, is the option to put a deposit down. This will often satisfy the seller long enough for you to finalize and secure financing. There are always additional legit fees that are added to a sale like this, registration fees, dealer fees, taxes etc. Just make sure they make sense and are not extreme.
*There are a lot of trucks and equipment out there for sale, if you need assistance finding what you are looking for at a decent price, give Monster Equipment a call! We'd love to make this experience a great one!
What to Look for When Purchasing a Used Crane Boom
If you’re thinking about purchasing used equipment for your construction business like a crane boom or bucket truck, it’s very important to do your homework. Regardless of how heavily you plan on using this vehicle, your main priorities should always be price, safety and warranty. This article will briefly outline why these elements should always be put at the forefront and hopefully influence you to make a smart, educated purchase.
It’s no secret that crane boom equipment, bucket trucks and diggers can be quite costly. However, there are two things you can do to ensure you get the best price and don’t end up biting off more than you can chew. The first point is to consider buying used, and the second is to inquire about financing options. Used equipment can sometimes cost tens of thousands of dollars less while being capable of the same work as a new piece of machinery.
Whether you’re buying new or used, ensuring that a crane boom or digger is safe should always be at the top of your priority list. Ensure that they’ve gone through rigorous inspections and don’t be afraid to ask about what types of safety ratings come attached to the vehicles you’re interested in. By doing so, you’ll be ensuring that you’re doing all you can to keep yourself, your employees, and your customers safe. That alone can help drive a business.
Heavy equipment should be able to last, especially at the price you’re paying. Shop around with different retailers and see who can provide you with the best warranty. With such an important investment on the line, it’s crucial that you ensure you won’t be shopping around for a replacement a year or two down the road. By taking these three simple points into consideration, you could end up preventing yourself from making an impulse buy you may later regret.
Monster Equipment, LLC is a leader in the used construction equipment industry. With an extensive inventory available to view online, simply visit http://www.monsterequip.com today, and learn more about their business and the used equipment they currently have for sale.