Check the Market Before You Buy or Sell Your Equipment
With the increase in infrastructure projects including more investment in highways, rural roads, railways, bridges and ports, growth of building construction segment and booming mining industry, the Construction Equipment (CE) industry is growing at a scorching pace. This is because, there are clear benefits of using CE over manual labour and traditional methods like improved quality, timeliness, better project financials and safety. In fact, it is believed that the CE market will grow by a healthy 20-25 per cent over the next few years, says 2020. Obviously, this would mean buyers demanding more equipment, thereby, leading to increasing sales. Hence, both the buyers and sellers in the CE market need to be fully-equipped with the market knowledge to make the best of the present scenario.
As easy it may look but buying as well as selling Construction Equipment is a daunting task and you need to check the market as well to keep a tap on various factors before taking any step.
Steps to be taken before buying the equipment
A lot of research is needed while buying any equipment. Research is not only needed for selecting the most appropriate equipment model and make but for choosing the right supplier/manufacturer too. Here are all the steps that you should take to know the market before buying any equipment...
1. Due diligence is extremely important: Like you thoroughly investigate and research before buying any long-term asset, the same approach is needed at the time of buying CE as well. You need to define your requirements well in advance and then look for the models of the equipment that can meet all your specific needs. You need to find out as much information as possible about the equipment, its overall demand and performance before buying it. Compare similar equipment built by different manufacturers, as different brands and models hold their value better than others. Make it a point to always opt for those equipment which have large supplies.
2. Do a research on the manufacturer: Find out everything about the manufacturers who are into manufacturing the equipment that you wish to buy. Look at the market report of their equipment and its features. Talk to experts to know whether the company’s reputation is good and its equipment are worth the buy. It is important that you take the previous or present customers’ feedback and read reviews about the company. It is always better to go for a quality equipment from a reputed company or supplier like Mahindra Construction Equipment and the like. This is because these companies are known for their better quality, innovative, energy-saving and high performance equipment.
3. Compare the prices of the same equipment offered by different sellers: Cost of the same equipment sold by different suppliers tends to be different. The same model may be available at a lesser rate at another vendor close by. Thus, you should be clear about what you want and then compare the cost of the equipment of various sellers offering the required features. You should choose the one which fits the bill in terms of price and features.
4. Check for post-sales services: Post-sales service is often one of the primary components that can ensure long-term ROI of your purchase. So, it is important to choose a supplier that offer good after-sales support in terms of onsite visit and the like. In addition, many suppliers/manufacturers give guarantee and warranty of the equipment. So, you should choose those manufacturers. However, due attention should always be given to the length of the guarantee and warranty period.
Steps to be taken before selling the equipment
Not only buyers need to exercise caution but even sellers need to take various steps before selling any equipment and to know the market. Take a look at these steps...
1. Study the market: The first and foremost step is to gain knowledge of the market. You should gather information about the market trends, present demand and statistics and future growth scenario of CE business.
2. Know your equipment’s worth: As a seller, you need to do your homework and do a thorough research on equipment pricing. You need to look at all the exemplary features that your equipment is providing as compared to its competitors in the market and then establish a suitable price range for your equipment. This will help you to negotiate confidently and help set realistic price expectations. Generally, you should keep your quotes at par if not lower than that of the competitors because more often, customers compare rates.
3. Adopt a proper marketing or selling strategy: You should conduct a thorough market research and set business objectives and goals for marketing and selling. Such a research can help you in creating and focusing on a niche market for your business. You should advertise to make your presence felt in the market or spread awareness about your business through word of mouth. In the beginning, you can even offer a promotion or other introductory rate so that you build up on the customer base.
4. Screen the potential buyers: There are many buyers in the market. You need to screen the sincerity of those as you would not want to waste your time on buyers who either are fake or don’t have the required finances.
5. Know your competitors: It doesn’t hurt at all if you know about your competitors. You should know about their offers and selling methods, so as to come up with your own unique way of selling the equipment. In fact, this can help you in providing additional benefits and this will lure more clients for you.
So, in a nutshell, what is needed for buying or selling CE is good planning and the required due diligence. The above mentioned steps may seem time consuming and laborious but they are extremely important when buying or selling any equipment. You need to pay heed to each of them so as to not suffer losses in the long run.