5 common mistakes in re-marketing of machines
Sometimes our company must sell some unnecessary piece of machinery or equipment. This process is called re-marketing. In the present article we will look at 5 common mistakes made in re-marketing in Bulgaria. These mistakes hinder the re-marketing effort for the machines, or in the instance of success, the price reached is substantially below the market value.
Why does a need for re-marketing of machines occur?
Each company sometimes needs to sell some of its equipment. The reason may be “obsolescence” and its change with a new more modern one. Sometimes the reason is a liquidity problem, which may get remedied by re-marketing some part of the machines and equipment of the company. And, of course, there are the instances when the company simply discontinues some of its activity or production and needs to remarket the respective machines and equipment.
Re-marketing of cars
Cars are “machines” too. We will use their re-marketing as a benchmark for common mistakes. When re-marketing of a used car is needed, the possibilities in Bulgaria are considerable. It is possible to remarket the car by ourselves – some perfect internet platforms exist like www.mobile.bg , www.cars.bg and many others. If you have some knowledge about cars /potential buyers will be asking questions/ and you have spare time – you can at least try.
If our car-knowledge is limited and/or we do not have so much free time, then the used car dealerships around Bulgaria offer a perfect solution. … well, we need to be careful with the dealership’s reputation, but this is valid for all market sectors.
The car dealership, whom we hire to do the re-marketing for us, will provide:
- An advice for a reasonable market price;
- A specialized place for displaying our used car /maybe even a showroom /;
- Sales employees, who will meet potential buyers and answer their questions;
- Advertisement – in specialized internet sites and in magazines;
- Car maintenance during the sale period;
- Buyer paperwork consulting;
- Sometimes even ready financial solutions for facilitating the buyers.
The major reason for the relatively many opportunities and quick and easy re-marketing of a used car is the strong and well developed market for used cars in Bulgaria. We only need to mention here, that during the last decade each year sales of used cars in Bulgaria exceed 200.000! Just for comparison – the sales of new cars barely reach 20.000 p.a.
5 common mistakes in re-marketing machines and equipment
The re-marketing of used cars in Bulgaria is relatively easy. However, when re-marketing of expensive machines and equipment is needed, the possible options are few and limited. Unlike the highly liquid secondary market of used cars, the secondary market for used machines and equipment in Bulgaria is underdeveloped and poor. Accordingly the approach, which will give results in the re-marketing of used cars, will render limited results here. The mistakes, which are commonly made in re-marketing of used expensive machines and equipment are linked with the process of re-marketing and its participants. These mistakes can hinder the re-marketing or make it impossible altogether.
As such a need occurs rarely, it may be expected, that the company will not have dedicated specialists for re-marketing of the unnecessary machines and equipment. Therefore the re-marketing is often appointed to:
- The vendor, from whom the machines were purchased initially. Although often the dealers of machines and equipment will undertake the re-marketing of used machines purchased from them, it is clear that their interest normally lie elsewhere – in selling new machines. Re-marketing used machines actually is frustrating them in achieving their main goal.
Often the dealers of machines and equipment have “promotions” offering the buy back of used equipment when purchasing new from them. The problems here are two – first the client may not need new equipment, and the second – the price for buy back is usually extremely low /which depicts the interest of the dealer as described above/. Therefore the use of the vendors of machines as agents for re-marketing of used machines is not a good idea;
- To some of the sales employees, working in the company.
They may be experts in selling the goods and services of their company, however they are seldom prepared for re-marketing of used machines and equipment;
- To the secretary or some other administration employee of the company.
They will tediously search out a re-marketing web site and publish offers for the re-marketing of the unnecessary machines and equipment. Such sites in Bulgaria are www.olx.bg , www.bazar.bg as well as other such sites.
In itself this is not a bad approach. However it is applicable only for small office equipment and inexpensive standard machines. What do you think – will the offer for re-marketing the “Abkant”, offered in the add above for BGN 58.500, next to “Running shoes promotion” and the “Sale of mobile phones” be successful?
- The manager of the company – although managers are supposedly good in everything /at least such is the public expectation/, it is seldom that they are experts in re-marketing of used machines and equipment.
Even if they are, while the manager is entertaining the re-marketing process, all of his other tasks will fall behind.
- To a Bulgarian site for re-marketing of machines and equipment. A few such internet platforms exist, which are specialized in re-marketing of machines and equipment:
Unfortunately none of them is popular outside the borders of Bulgaria. Some of them even do not translate their content in a foreign language. This may not be an obstacle when re-marketing a relatively cheap and sought after machine – a small tractor, small office machines, etc. For the re-marketing of expensive machines and equipment it will be wise to seek ways to popularize our offers internationally. This is the only way in which the offer for re-marketing can reach more potential clients. The limitation of the re-marketing efforts to the Bulgarian market would be a mistake.
We wish success in re-marketing the unnecessary machines and equipment of our readers. You will increase your chances for success if you do not make the above common mistakes. In our next articles we will give some useful advice for efficiency in re-marketing and ways to reach the highest possible market price.
This article has reached you free of charge due to the efforts and knowledge of the “Virtual Experts” in “Re-marketing” of AVS Bulgaria. If this article was of use to you, you may subscribe to our blog “Effective Office” as well as comment on the above article.
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