Are you a business owner looking to upgrade your equipment or close down your business? Do you have used commercial equipment that you no longer need and want to sell for the highest return possible? Selling used business equipment can be a lucrative opportunity if done correctly. However, the process can be overwhelming, and knowing where to start can be a challenge.
In this blog, I will guide you through the process of how and where to sell your used business equipment and realize the best results. I will provide you with practical tips and resources to maximize your return and minimize your stress. Keep reading to learn more about the steps you need to take to sell your used business equipment successfully. By the end of this blog, you will be equipped with the knowledge and tools you need to sell your equipment efficiently and for the highest return possible.
Why Should You Sell Used Business Equipment?
If you are a business owner and are planning to close your doors, and you do not own the building, you must do something with the equipment. Your choices are to transport the equipment to a storage building for future use or to sell it. The choice of remaining in a rented space is impractical since rent will start to add up and there is no income because the business is closed. Storing the equipment involves the expense of disconnecting, loading, and transporting the equipment to a storage facility. This is an expense that is a bad investment decision. This leaves you with the task of selling the business equipment.
How to Sell Used Business Equipment?
There are two ways to sell your equipment, do it yourself or hire someone to do it for you.
Selling Your Business Equipment Yourself
This process will be time-consuming and probably makes the most sense if you have a small amount of equipment to sell. You will need to take an inventory of all the equipment you want to sell and take photographs of each piece. Make sure when taking photographs that you take all angles, inside and outside. If there is a flaw, such as a scratch, be sure to take a photo of that as well. This way, potential buyers will know you are not trying to slip something past them. Next, you will need to put together a marketing plan. Where will you advertise your equipment? When you find someone interested in one of your pieces of equipment, you will need to be prepared to negotiate with them. Once you have finalized a sale, you will need to oversee the removal and loading of the equipment. You can require the buyer to handle the loading, but if the equipment is hardwired or plumbed, you will have better peace of mind if you have an electrician and/or plumber disconnect the equipment before the buyer removes it. You will need to repeat this process until all of the equipment is sold.
Hire Someone to Sell Your Business Equipment
There are several options available when hiring someone to sell your equipment for you. The easiest way is to hire a professional auction company. They will take care of everything listed above, including taking inventory, photography, marketing, conducting the sale, collecting funds, and overseeing the removal. An experienced auction company will also know where to market the equipment and how to list it in the catalog.
Other options include having an online marketplace list and selling your equipment. This will still require you to provide an inventory and photographs and oversee removal, but the online platform will provide the marketing and conduct the sale for you. Depending upon the platform, you may still have to collect the funds from the buyer. The advantage to this method is that you may save a little on commissions paid. The disadvantage is that you may not sell all of the equipment, and you will not have professional representation throughout the entire process.
Preparing to Sell Used Business Equipment
In preparing to sell used business equipment, you need to be aware of things to do in order to receive the highest price the market will bear. All equipment should be cleaned as much as possible and get everything in operable condition. Equipment that is clean and in good working order will always bring more money. If there are owner’s manuals or original receipts available for the equipment, they should be organized in a folder or placed with each respective piece of equipment so prospective buyers may review them.
Determining the Value of Used Business Equipment
When it comes to pricing your product, you want it to be fair, but you also want to receive the best dollar value. A good way to find how to price your item would be to look at what others have sold for in the past or what they are currently selling for now. One way to do that is to check various websites, including Facebook Marketplace, eBay or even auction results from a professional auctioneer. Be sure to search completed listings or sold items. This can give you an idea of what your product is worth, or not worth, in the competitive market. If you sell through an auction, this step will not be necessary, as the auction market will determine the highest price available in the market.
Where to Sell Used Business Equipment?
1. Sell Used Business Equipment Using Online Marketplaces
When the decision is made to sell your equipment, as the business owner, you must decide where to do so. Let’s start small. Say you have something as simple as a Kitchen Aid countertop mixer that has been taking up space, or you’ve found a replacement. Countertop mixers are usually always at decent demand, so you shouldn’t have trouble finding a buyer. The easiest method is to sell via an online platform such as Facebook Marketplace, Craigslist, eBay, and many others.
If selling through an online marketplace, you will need to price your equipment, provide a complete description, and be prepared to ship the equipment to the buyer or arrange for them to come pick it up in person.
2. Direct Sell Used Equipment to Similar Businesses
While this method may bring you the highest price, it will be necessary to find another business that needs exactly what you are offering to sell. You will need to be able to market to other companies, price your equipment, and then negotiate the final prices. After the sale, you will need to oversee the removal of the equipment from your facility. The biggest drawback is time. This method may take weeks or months to complete.
3. Sell Directly to an Equipment Dealer
This option will typically give you the fastest access to cash, as commercial equipment dealers are often looking for equipment to sell in his/her storefronts. This is the best route to take when you only have a couple of days to remove your equipment from a facility. This route will not result in top dollar, as the dealer needs to buy the equipment low enough to resell it for a profit. Usually, the prices paid by dealers are lower than what the equipment would bring in a professionally conducted auction.
4. Sell Used Commercial Equipment Using an Auction Company
When deciding upon an auction company to hire, search the internet for auction companies with experience in selling similar equipment. On their websites, check for past auctions of similar equipment and see how long they have been active in the auction industry. Once you make contact with the auction company, you will want to schedule a face-to-face meeting with their representative and have a walk-through where you can provide information on the equipment and the facility where the sale will take place. A professional auction company will then provide you with a written proposal, which should answer most of your questions. Be sure to discuss your time constraints and make sure the auction company can meet your goals and deadlines. Once you hire a professional auction company, you can sit back and relax and let them handle everything.
Why an Auction Company is the Best Option to Sell Used Business Equipment?
1. Eliminate Long Negotiation Periods
This is especially true for high-demand or expensive equipment. These assets usually undergo lengthy periods of negotiation just so the seller can find buyers and choose the best offer. During an auction, the seller does not have to negotiate. They only need to hire the right auction company and watch the bids come in.
2. Don’t Leave Money on the Table
Competition can be fierce in an auction, especially for high-demand items. In some cases, the bids in an auction will even exceed the price you may have asked in a traditional sale.
3. Finding the Buyers for Your Equipment
When trying to sell your business equipment, the biggest challenge is finding the buyers. Knowing how to market your equipment will take a lot of effort. An experienced auction company knows where to find the buyers for your equipment, and many times, they will have an established database of buyers ready to bid on your type of equipment.
4. Date of Sale is Known
Auctions have a time limit and give you a set date of when the sale will be complete. Online auctions usually last from a couple of days to two weeks, giving you a known date of when your equipment will be sold and removed and when you will receive your funds.
5. No Need to Handle Shipping
At auction, buyers are usually responsible for the cost of removal and shipping their purchases. Auction staff will oversee the removal, taking you out of the process completely. Many times, auction companies will recommend a shipping company that the buyers can use, especially for buyers out of the area.
6. More Transparent Than Other Methods
This applies to both sellers and buyers. Buyers can see what the price of the item is and know how much they need to offer to buy it – no hidden charges. For sellers, the auction marketplace allows them to actively monitor how much their items are being sold for. If a business has partners or investors or if a bank loan is involved, this process provides the most transparency.
Since 1983, the team at Jones Swenson Auctions has been helping business owners turn their used equipment into cash in the most efficient manner possible. From the turn-key liquidation of a complete business to selling equipment that is surplus to ongoing operations, the Jones Swenson staff is ready to help solve your problems. Most business owners who have an auction, on average, will only do so once in their professional career. For that one experience, it is important to be represented by professionals.
Conclusion
If you are wondering how and where to sell your used business equipment, hopefully this article was of assistance. Remember, the first step is to determine your goals, such as: When do you need the equipment out of a space? In what condition is the equipment? Do I want to do this myself or have a professional handle it? Which method of selling will bring me closest to my goals? After you set your goals, move forward with an educated plan.
FAQs
Q1. What is the best way to sell used business equipment?
All things considered, if you are selling a large amount of equipment, an auction conducted by an experienced and professional auction company is usually the best choice for the highest return in a set period of time.
Q2. How do I determine the value of my used business equipment?
If you are selling the equipment yourself, check various websites for equipment prices, including Facebook Marketplace, eBay, or even auction results from a local auctioneer. Be sure to search completed listings or sold items. This can give you an idea of what your product is worth, or not worth, in the competitive market. If you use an auction company to sell your equipment, this will not be necessary as the auction market will determine the value. Remember, the highest bidder is willing to pay more for the item than anyone else in the market.
Q3. Are online marketplaces a good option for selling used business equipment?
Online marketplaces are a good option for selling one or a few pieces of equipment. If you need to sell all of the equipment from a business, a professionally conducted auction will usually be more efficient and net you the highest return, especially when time is of the essence.
Q4. What information do I need to gather before selling my equipment?
If you are selling the equipment yourself, you will need to develop a complete inventory listing all available information regarding each piece of equipment (brand, model, size, etc) and take photographs of each piece from all angles. You will also need to state what condition the equipment is in; is it currently in operation, in storage, etc. If you are having a professional auction company conduct your sale, they will take care of this process.
Q5. Is it necessary to clean and repair equipment before selling?
Yes, if possible. Clean and operable equipment will always bring more money. If you do not have the resources to accomplish this, talk with the auction company; they may be able to provide these services for a fee.
Q6. Can I sell used business equipment directly to buyers?
Yes, if you have the time. Since you will be responsible for the sale, you will need to describe, photograph, and market the equipment as well as negotiate the sales over a period of time and oversee the removal of the equipment from your facility.
Q7. Are there safety regulations to consider when selling used equipment?
The main area of safety concern would be with disconnecting equipment that has been hard-wired or plumbed. For this, we recommend hiring an electrician or plumber. The other area of concern would be during removal. If you have equipment that is very large or very difficult to remove, you may want to have an insurance policy (or a rider on an existing policy) to cover any injuries suffered during the loading and removal of the equipment from your facility. If a professional rigging company handles the removal of equipment, they will have insurance that covers their services.
Q8. How does the condition of the equipment affect its value?
The bottom line is this – the better the condition, the higher the value. Always clean the equipment and have it in the best condition possible.
Q9. What are the benefits and drawbacks of selling through auction houses?
If results matter, call in the professionals. In this case, an experienced, professional auction company. They have the knowledge needed to have your equipment bring the highest price available in the marketplace in a set period of time. The benefits are several and are listed above. The drawbacks are few, but do include the fact that you will be receiving the highest prices that the market will bear, and sometimes we don’t like what the market tells us.
Q10. How can I advertise my used business equipment for sale?
If you are selling your equipment yourself, you can advertise the sale on online marketplaces such as Craigslist, eBay, Facebook Marketplace, and others. If you are selling through and auction company, they will provide a marketing plan.
