Buying and Selling Direct vs At Auction

Auctions can be scary. What if I’m outbid? What if I get caught up in the excitement and bid too high? What if the bids don’t match what I wanted or expected for my item?

While auctions can be a good way to find deals on everything from designer clothes and shoes to art and, yes, construction or oilfield equipment, it’s never guaranteed to be the best price you can find, and it’s never guaranteed to be an easy process. Buyers and sellers alike often find that utilizing services like online marketplaces yield higher success rates and satisfaction for both parties over those of auction houses.

When you’re selling, doing so directly often costs little-to-nothing upfront, in terms of both time and money. Maximize the return on your investment by checking out online marketplaces or direct sellers before visiting an auction house.

Keep reading to learn more about the benefits of buying and selling directly versus at auction.

Buying Direct versus Buying at Auction

While many of the big-name auction houses have great reputations and do have their customers’ best interest in mind, there are a few whose practices can be considered predatory. Some may allow (wittingly or not) companies to start bidding on their own items, use “planted” bidders, or start the bidding themselves to drive prices up. Shady sellers may also attempt the latter, even at a reputable auction house’s event. Though illegal, these practices are unfortunately not unheard of. Auction attendees should be aware of these possibilities.

When buying directly from a seller, potential buyers usually have the opportunity to have the item(s) appraised by an independent third party. This gives both buyers and sellers confidence that the price being agreed upon is fair. With auctions, buyers must have an enormous amount of trust that the seller, auctioneer, and any inspectors are pricing items fairly. It’s that, or bring an inspector with you to help determine if an item is worth bidding on.

Selection can also be better when dealing with a seller directly, especially if a buyer is in an area where auctions occur less often or don’t regularly have a large selection of equipment.

Buying direct, in-person, or through a marketplace like Eiffel Trading’s, gives buyers more of a fair chance to secure heavy equipment for a good price. There are no pushy salespeople or extra pressure to make a deal. With Eiffel Trading, buyers submit an offer, and the seller has two business days to accept, reject, or counter the offer.

Selling Direct versus Selling at Auction

A major benefit of selling used heavy equipment directly or through a marketplace is the flexibility of doing so on your own time. When buying or selling at live auctions, you are at the mercy of the auction house’s calendar. Online marketplaces, on the other hand, are open 24x7. Buyers and sellers alike can continue to run their businesses without interruption – no time is lost to traveling to or attending auctions.

Aside from having to work with an auctioneer’s calendar, sellers often find themselves geographically limited. By using an auction house with regional sites to sell equipment, sellers are limiting their audiences. Advertising items for sale online opens up the seller’s potential audience, increasing the chances the product moves in a timely manner and for the right price.

Businesses choosing to sell at auctions are banking on the fact that someone else wants or needs what they have to sell right now. If sellers can have flexibility on their timelines, the right buyer will come across their product to work directly with them.

Sellers are also subjected to listing fees at many auction houses – we’ve seen fees up to 25% of the highest bid. Add in lot/storage, transportation and many other types of fees, and sellers take home a much smaller amount than they had hoped for when pricing their equipment. Businesses looking to sell directly to others can set their desired prices and avoid incurring a major loss of potential revenue. Lot fees are a large source of revenue for many auctioneers – keeping your product at your site also helps increase your return on the investment of your effort.

Another great benefit of selling directly is the fact that you can list your inventory several months in advance of your item actually being available. Many Eiffel Trading sellers list equipment and material before they’re project is completed or ready for liquidation. By doing so, sellers have time to list and market their assets and find a buyer ready to purchase once the equipment is available.

Start buying and selling today!

Eiffel Trading never charges sellers a fee to list, and never charges sellers a commission fee. Our dedicated and experienced team is available to help buyers and sellers connect, schedule appraisals, negotiations, free freight quotes, and more.

From used excavators and used dozers, to drilling rigs and drill pipe, our online marketplace has it all.

All of our listings are constantly being updated, but if you don’t see what you’re looking for, create a wanted listing for free.

Ready to sell your used equipment or material? List your products today for free on Eiffel Trading’s online marketplace.

If you have any questions or would like additional information, please call us at 1-800-541-7998 or email sales@eiffeltrading.com.