Equipment that is idle in your yard is still costing you money to store, insure, and maintain—which can be frustrating and put a dent in your bottom line. But there are ways to make money off equipment that you won’t be using in the near future. In this post, we’ll go over the different methods of putting money into your pocket from idle equipment.
Going to Need the Equipment Again? Time to Rent it Out
If your idle equipment is something you do use, but for one reason or another it’s going to be unused for a little while, a great option to help cover insurance or maintenance costs is to rent out your equipment. And now with industrial marketplace options, it is easier than ever to rent your equipment.
An industrial marketplace helps connect the best equipment and products to the people who need it. Easily list your equipment for rent on the market place—no legwork required. These marketplaces allow you to customize rates and fees that work for you.
Now your idle equipment which was only costing you money, is making money.
Time to Sell?
If your equipment is sitting idle for an extended period and it won’t be used often, it may be time to sell. One way to know it is time to sell is by calculating the cost of owning your equipment then looking at the cost of renting the equipment when you do need it. If it costs less to simply rent the equipment, it may be time to sell.
As Smith Howard mentions, there is a great market for used equipment, especially since the Environmental Protection Agency’s Tier 4 emission standards have caused the costs of new machinery to be even higher.
There are a couple of avenues to sell your used equipment:
Selling to an Equipment Dealer
An equipment dealer will estimate your equipment value, then you can sell to the dealer or get them to sell for you. When selling to a dealer, they will be able to understand the industry, market, and demand well, but they will often offer the lowest price possible for your equipment.
Using an Industrial Marketplace
Industrial marketplaces aren’t just good for putting up your equipment to rent, they are also a tool to help sell your equipment as well. Marketplaces make it easy to list your equipment, set prices, and get in front of people who need your product. This saves you and the buyer time and effort when it comes to the listing, research, and sales cycle.
There are two types of auctions that can be used to sell your equipment. Unreserved or absolute auctions are usually used to sell a large number of items quickly. At this type of auction, every item sells to the highest bidder. The other type is reserved auctions. Reserved auctions are where the sellers set a reserve price, if the bid doesn’t meet the desired price then the seller can accept or reject the highest bid.
Auctions are great for creating urgency with the buyers to make an offer, but this type of selling can extremely limit the number of buyers you get your equipment in front of.
Equipment brokers are experts in the industry that will help you negotiate and sell your equipment. This can save you time, but it will cost you a commission rate and it doesn’t quite guarantee that you’ll get a good price for your equipment.
Idle Equipment Doesn’t Have to Mean Money Lost
Idle equipment costs end up hurting your bottom line from maintenance, insurance, and storage. But if you can make money off your idle equipment either through selling or renting, it turns unused equipment into revenue.