Heavy machinery sale can be a challenge, given the limited number of buyers. But it can also be a profitable niche business. Farmers, contractors and businesses buy and sell all heavy equipment. A good broker becomes the go-to person when others need to buy or sell heavy machinery. Heavy machinery market is more segmented and specialized than the automobile market. Although there is no specific license required, heavy equipment distributors-usually regulated as a car dealership in most states. Knowledge of machinery and the industries they serve is vital.
- Contact state, county and municipality in which you conduct business. Most states treat a seller of heavy machinery as a distributor of motor vehicles. Generally the same licensing and bonding required. Sales people who work for you must also obtain state licenses to sales. Sales office will have to comply with local zoning requirements. Often you have to sell in a light zoned area, industrial area rather than simply a business area.
- Follow the market trends in heavy equipment. When the economy is in an industry, companies sell a lot of equipment. The prices can be drastically affected by the season and trends of local construction. If your business is the purchase of used equipment and resale, price fluctuations and demand mean the difference between being profitable or losing all their savings to buy the inventory that is difficult to sell. The resale market for heavy equipment is more volatile than the market for used cars.
- Learn the ways in which different companies with heavy machinery for example, agricultural machinery and construction equipment have different market cycles. Meet local businesses that use equipment so you know what type of machines to offer for sale and rent.
- Hire a sales staff familiar with the equipment, which have been the heavy equipment operators in the past. They will know the most common problems with models and managers and can help the buyer to identify the intangible benefits of one brand over another. Buyers are heavy equipment operators who do not personally need to operate the machines but often buying advice.
- Raise capital or develop credit lines. Large fleets of vehicles are sometimes available in distressed companies at deep discounts. Your business will prosper if you have the financial ability to act quickly and have a reputation of having funds available to take advantage of bargain sales and liquidations in the fleet.