The future of asset management is powered by data
24 January 2020
Attend the education session "The Future of Asset Management & Liquidation: New Strategies for Maximizing Returns" on Wednesday, March 11, 2020 from 11:00 a.m. - 12:30 p.m. at CONEXPO-CON/AGG.
What’s our fleet worth? What’s our wheel loader worth? What’s it going to be worth in six months? Contractors look for answers to questions likes these every day.
To find the answer has historically required looking for comparable sales from a variety of sources, evaluating equipment sales trends and in the end, making an educated guess. But in the age of data, finding answers has become easier.
NEW DATA-DRIVEN TOOLS MAKE FLEET VALUATIONS EASIER AND MORE ACCURATE
For example, FleetEvaluator.com, a tool from Sandhills Publishing, tracks $5 billion of retail and auction data every single month.
“It allows you to accurately price a machine in seconds vs. spending hours and hours looking for comparables,” says Matt Sterup, manager of contractor sales for Machinery Trader, published by Sandhills. “Markets can change quickly. Relying on old-school methods to evaluate your equipment can mean losing thousands or even tens-of-thousands of dollars when it comes to buying and selling construction equipment.”
To get an accurate value you need to analyze massive amounts of information including transactional data, asset data and market indicators. “Everything from where the machine is located to yesterday’s auction values, to current economic conditions, fuel prices and tariffs—all of those things are needed to get a real-time accurate value,” says Elli Murray, who also manages contractor sales for Machinery Trader.
TAKE ADVANTAGE OF MULTIPLE PLATFORMS FOR EQUIPMENT DISPOSAL
According to Sterup the future of asset management doesn’t take a one-size-fits-all approach to equipment liquidation. “We believe that every piece of equipment is bought and used differently so it doesn’t make sense to sell every piece the same way,” says Sterup. “We look at every piece differently, depending on the type and brand of equipment, the contractor’s needs and time frame for selling. We can then maximize the liquidation value by looking at pieces individually rather than one singular package.”
“More and more people are using the data in front of them,” says Murray. “They are taking a closer look and realizing that equipment liquidation is a great place to pad the bottom line.”
Murray says smart fleet managers are using a variety of platforms to liquidate their equipment including retail, wholesale and auction platforms. Data helps identify where the best opportunities are to maximize profits based on the situation. Data is also helping contractors make better decisions on when to sell equipment. “Being able to identify trends early on can help anyone in the equipment industry better understand when it is time to move a particular asset,” says Murray.
DATA CAN HELP USED EQUIPMENT BUYERS TOO
Data is equally important if you are buying equipment. “If you don’t buy the machine at the right price, you will be in trouble down the road,” says Murray. “We are able to use data to identify market conditions and values for different types and categories of equipment as well as on different brands.”
If you’d like to learn about new strategies for liquidating equipment, assessing your fleet’s value, or purchasing used machinery, you may want to attend an education session that Murray and Sterup are leading at CONEXPO-CON/AGG in 2020. The Future of Asset Management & Liquidation: New Strategies for Maximizing Returns will familiarize you with accurate, real-time asset valuation and demonstrate how to sell equipment at any point in the lifecycle as a first step to opening up new pathways to profit. It will be held on Wednesday, March 11, from 11:00 a.m. to 12:30 p.m. in Westgate - Pavilion 1.