By now, you may already be aware of some of the various platforms for selling used industrial equipment online. Today, it seems that number is ever growing. Therefore, it can be difficult to determine which is the best option for you. As a business, making the right choice in this matter has huge implications for the success of your asset recovery strategy. Choosing incorrectly can mean a slow turnaround time for your equipment and a drastic reduction in the amount of capital you can recover.
In How to Choose an Online Marketplace, I listed the various factors you must consider when choosing such a website. One of the key differences between Aucto and its competitors is that Aucto doesn’t charge any fees to its sellers. It is completely free for sellers to list and sell on our website. However, one of the biggest questions we are often asked is exactly how we can offer our services for free? One of Aucto’s stated objectives is to provide a cost-effective method of selling industrial equipment to sellers. In this blog post, you’ll find out exactly how we make it possible.
Marketplaces provide a place for buyers and sellers to interact with one another, and charge a fee for providing this service. Often, the accumulation of these fees can equal a substantial percentage of the final selling value, and reduce net profits for sellers. This is far from ideal for a business or seller that’s liquidating assets already being sold at a depreciated price. While unfortunate for their sellers, these fees are a necessary part of the typical marketplace’s business model. When you are looking at marketplaces, you’ll typically find they charge one or more of the following fees:
Commission -The marketplace charges a percentage of the final value of any sold items. This is typically 3-5% of value.
Event Setup Fees - This is a fee for the creation of an auction event, and can typically range from $350-$500 per day.
Webcasting Fees - Webcasting is typically used by auctioneers to open an onsite auction to online bidders. This cost can range anywhere from $350 per day to over $3000 per day.
Software Licensing Fees - Some marketplaces expect auctioneers that use its software to pay monthly or yearly licensing fees. . This fee is typically $3500-$7500 per year.
None of the above fees apply when you sell on Aucto.com. In addition, we provide several benefits not commonly found for free on other websites. The first is our base marketing program. When sellers list their equipment on Aucto, their assets are automatically advertised on other established industrial websites which are part of Aucto’s affiliate marketing network. For example, if you host an auction on Aucto, your lots will be visible on Machinio.com and Global Auction Guide.
The closing price of a typical industrial auction ranges from $500,000-$1,000,000, which would translate to $15,000-$35,000 worth of fees. Not having to pay any of these fees means that sellers get to keep 100% of what they make from their sale. All Aucto's options, features and tools are free for sellers to utilize. Because our success depends heavily on the success of our sellers, we believe that allowing sellers to keep their capital is best for business.
For more on auction fees, please visit: Online Auction Fees Simplified: The Cost of Selling Online.
What's Not Free
To increase exposure for high value assets, some sellers require additional marketing for their sales. Typically, these sellers are auctioneers who are liquidating a complete industrial facility, or are selling highly specialized machinery. For them, it is a critical importance to reach the maximum number of relevant buyers. In this instance, we have several premium marketing strategies. These marketing packages include multiple marketing strategies to attract buyers to the sale. Read more about common marketing strategies here: 4 Principles of Marketing Strategy In The Digital Age.
Chief among these are our targeted and directed marketing plans. To increase exposure to an auction, plans may include the following:
- Industry Targeted Email Marketing
- Web Banners
- PPC Campaigns
- Print Marketing and Telemarketing.
We also have customized marketing packages, which can be created to suit a business’ unique needs. To learn more about Aucto's marketing plans, speak with one of our knowledgeable sales reps.
Through its partner network, Aucto can offer the following services:
- Listing services: for sellers that may not have the time, resources, or knowledge to catalog and list their own assets. In this case, Aucto will handle all stages of the selling process.
- Valuation: for sellers that want to understand what their assets might bring in a sale. This is especially useful for machinery that is industry-specific, large, and very expensive. Although primarily done through desktop valuations, Aucto can also arrange on-site valuations if necessary.
- Comprehensive Buyouts: for sellers that wish to bypass the liquidation process completely. In this instance, Aucto will use its extensive network of industry contacts to find a buyer for your group of assets.
Aucto is a unique and powerful tool for selling used equipment. First, on our site we have eliminated many of the fees common to other platforms. This enables sellers to keep more recovered capital, allowing them to reinvest in their business. Secondly, we have several premium services available to sellers wishing to take the extra step in marketing their machinery. When combined, this makes Aucto an online marketplace unlike any other.