There has never been a better year to start buying used equipment than 2021. Due to the COVID-19-induced inability to source products from overseas, the industrial industry has been relying heavily on the resell of Australian-owned products. And while borders may soon open to the world, the delay in production and delivery still makes used products the fastest and most reliable option for equipment buying. While it’s now the easiest method to source equipment, entering the industrial auction market for the first time can be overwhelming. To help, here is our beginner’s guide to bidding at industrial auctions.
Organisation is key
As any experienced bidder will tell you, do your research. This is especially true if you plan to place bids online. One of the golden rules in online bidding is minimising surprises. By doing your research on the items you are after and thoroughly investigating the quality of the assets, you could save yourself time and money. If possible, inspect before making a bid. If you are bidding online, make sure to read carefully into the condition of the machine to decide if the asset is suitable for you.
Know the costs
When you bid online, the price you bid when the hammer hits the gavel is not the final cost of acquiring the asset. Here are the extra prices to take into consideration before deciding your total budget.
Buyer’s Premium: The buyer’s premium is the charge auctioneers place on a product to cover the cost of the asset’s administration fees. This cost can be between 1-25% of the price you bid. This fee will be disclosed prior to auction and should be considered in your overall budget.
Shipping: For most industrial assets, pickup is the only method of retrieval. If you are not able to collect the item yourself, you will need to include the cost of shipping and freight of the asset to your area.
Repairs: If you are bidding on a used asset, it is essential to check to condition before bidding. This is so you can factor in repair costs into your overall budget.
Know your budget
Experienced buyers know that half the thrill of auction is the competition of bidding. If you’re a first-time buyer at industrial auction it is key to establish budgets before the event begins. Once you have taken into consideration the buyer’s premium, shipping and repairs you must decide the total cost you are happy to spend on the asset of your choosing. If you’ve done your research, you should have a good idea of what the asset is worth on the market and can establish a flexible but healthy budget ahead of time.
Pickles has a quick and easy registration process to get you set up before you start bidding. To sign up simply follow this 5 step process:
1. Create a Pickles account
2. Upload your contact and delivery details
3. Update your preferred payment method
4. Verify your identity and phone number
5. Download the PicklesLIVE app for live auctions
Once you win an asset at auction it will be time to pay. The cost will be charged to the payment method you uploaded during registration so make sure to triple check that you are happy with using that card/method.
If you are interested in bidding but need financing, speak to our team about the different options available. We offer pre-approved financing options that will help you bid with confidence. Talk to our team to discuss which options may suit you best.
Veteran bidders know the benefit and thrill that comes with winning assets for great prices at auction. Industry insiders see the financial value of purchasing used industrial assets instead of buying new products. Buying used is good for your pockets and the Australian economy. If you’re ready to start bidding, register now and sign up for upcoming Pickles auctions near you!