S.W.A.T.
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Different options out there
Ritchie Bros sale
- Thread starter deaner
- Start date
Different options out there
007sevens
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You asking or telling?
I don't need a auction company right now, and your right many options out there.
S.W.A.T.
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Stompin Tom
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based on experience with Ritchies you will be around 11% if you try to negotiate a bit, for 160k worth of equipment you will not get a guarantee. One thing Ritchies is very good at is getting buyer and eyes on your stuff. There are allot of companies who simply follow Ritchies to set market prices.
You have to do your research to protect yourself. They have a great history search on their website. Check which time of year your item sells best, check which area gets best prices for what you are selling. If you live near Edmonton you dont have to use the Edmonton sale, your equipment may get a better dollar in Grande Prairie, Saskatoon, Prince George, Chilliwack. Its a gamble but it is also guaranteed money, your item will sell, you just gamble on what you will get.
Stompin Tom
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well for one thing you usually get 30000 to 40000 buyers eyes on your stuff at Ritchies Edmonton online only, not counting whats on site. You also get qualified buyers, money guaranteed. IF you have months and months to wait, play the advertising game and hope for the best. If you have a business and you simply need to move equipment in a timely matter, there is no better way. If you need to liquidate go Ritchies.
They must be doing something right, Canadian Western Bank uses their sales averages to determine the value of used equipment in loans.
Yes they have gotten huge, and yes there are always other options, but if you want to move your equipment now, there is no better option. You know the day your item is sold, you know the day your getting a check and you know your going to reach a huge amount of qualified buyers.
Stompin Tom
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you going to become a site sponsor with your promotion of the company you work for?
Well I purchased everything at RB and I watch their prices quite closely. That is one thing I like about them, so many buyers that prices are pretty steady, you know you aren't going to send an item there and it go for nothing, in many cases it's the opposite and items going higher then kijiji etc. I'm selling a tractor, step deck, end dump, and track hoe so while it's not the ideal time of year, except for end dump purchased in april of this year, I bought everything last october so I am quite confident selling prices will be a bit higher on everything then what I paid, likely not enough to cover commission though.
The auction is appealing because i'd like everything to be gone within a month, with insurance fees, extra yard space, and interest on loan holding costs are like $1300/month, plus tying up my equity. I couldn't be bothered to hold onto everything for a few months to maybe see a few extra grand return. I could handle 11% commission. I'm hoping to talk to a few people I know there and see if I can get them to do something better for me. I know i'm nothing to them, but I have spent about $250k there in the last 2 years and financed multiple items through them, and the financing department does owe me a favor, won't be holding my breath for anything, but it's worth a shot.
I think i'd prefer to keep everything in Edmonton, it would take quite a bit higher prices to justify moving everything many hours away. Plus if there is no guarantee offered, in case the first item or two did sell for nothing, I would want the option of items being close to pull from sale to not let everything go for nothing, not too worried about it happening but it's a thought.
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Stompin Tom
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Ritchies is unreserved and once you sign the papers there is no going back, no pulling an item. Does not happen.
S.W.A.T.
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Pulling items does happen.. RB has started the gaurentee price thing, which ends up to be usually black book value. Since RB then technically owns that item they will work it and work it and if it doesn't fall within a certain % then yes they do pull it. I watched the same gravel truck go through 7 different auctions.
Stompin Tom
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The only way you get a guarantee with Ritchies is if your doing a big dollar liquidation. If your listing under a million, you dont have a hope in hell. I shall supply you with the name and number of a local rep if you like to confirm this. Same gravel truck through 7 different auctions, how about proving that. Ritchies has an extensive auction history, you can pull lot numbers from sales to check.
"In 2016, US$4.33 billion of heavy equipment was bought and sold at Ritchie Bros.[SUP]TM[/SUP] unreserved public auctions." The key word, UNRESERVED. That is a legally binding claim. Im not talking out my ass, one of my best friends is a Ritchies territory manager and I will be happy to supply you with his name and contract info via private message.
https://www.rbauction.com/home/auth
S.W.A.T.
Active VIP Member
Trust me I'm very familiar as to how RB works and I am also aware of who the local rep is.
sledneck__11
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Our 2014 s690 sold 60 under our guarantee price and they still
sold it along with a bunch of our other items last fall that sold way under guarantee we still got our money but they left alot on the table it just eats into there 16 percent commision they still dont loose, they will do guarantees on alot lower sales then 1 million dont no where you got that info from
sold it along with a bunch of our other items last fall that sold way under guarantee we still got our money but they left alot on the table it just eats into there 16 percent commision they still dont loose, they will do guarantees on alot lower sales then 1 million dont no where you got that info from
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Stompin Tom
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Asked Steve, his exact words were "if its not in the range of 1,000,000 dont bother asking", he also said it can vary from region to region and if they need product for a certain sale. I can only assume he meant that amount in our region right now.
Mind if I ask how much your total package was guaranteed for? Considering the recent 2014 s690's have sole for between $290000 and 370,000 , if you sold it with "a bunch of other items" the total guarantee dollar value had to be pretty high. The two that sold last fall were for $305000 and $360000 so your package must have been pretty sizeable.
The point I was trying to make with SWAT is they sell what comes across the block, they do not pull something if it doesn't meet a certain price. His claim that he saw the same dump truck is 7 different auctions is pretty far fetched.
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S.W.A.T.
Active VIP Member
Same red Kenworth went through 7 auctions. I've also had a wrist o twist bucket I was bidding on get pulled
Cat401
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I think you may be using the wrong terminology....if an item is not selling to an auctioneers liking (or guarantee), they cannot "pull" it from the auction (unless there are zero bidders)...they must announce it as sold...but to who?, we don't know....internet bid, phone bid, proxy, etc.....then it shows up at another auction.
I think its all in their numbers of the sale....they may take a "loss" on a couple items but overall, RB Auctions make a huge profit ....almost criminal. If you have no guarantee (and most items don't) and you take a ****kicking.....RB still gets their 16% plus....
S.W.A.T.
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Yes you are correct, sorry my terminology was wrong but same idea.
From what I understand because of the guarantee system it has had it's effect on the bottom line. From my experience with RB 12-15% commission seems to be average. Plus service fees, wash fee, paint and on and on. Ever wonder why one item seems to sit on the block for ever and other items are in and out in no time? A single ring can produce any given number of the same item, if your 300 size excavator is one among 20 others on auction day what are the odds your going to get possible money for your machine........
Now think from the buyer point of view, spend 200-300,00k on a machine without pulling a oil sample or giving it a test? Risky business.
Thanks for the insight everyone. I do trust RB more then any of the other auction companies. IME they know the rough value of an item and they auction stuff of a lot more efficiently then others, while still getting as good if not better price. It's always in their best interest to get the highest dollar for the equipment as possible, because no matter what it's more money in their pocket through fees. I have not noticed them selling something super quick compared to dragging things out for a long time as if they are biased, it seems more they wait longer as value goes up which makes sense. My concern with sending $160k worth of equipment there with no guarantee on dollars isn't getting screwed by RB, it's just being a fluke and going low that would suck, and having someone watch the items for a possible buyback isn't worth it as you'd still be out like 15% with commission and fees (I know they don't allow it, but don't tell me many people aren't watching their items and prepared to do it just in case), and if I truly couldn't pull anything after contract is signed. I know I have seen items pulled, no idea on why though. Also have seen some items at 2 or more auctions in a row or moved around, but who knows why. I did ask about one as I was interested, but shied away as I was worried maybe it was bought and put back through because they found a huge issue with it. I believe it got $1k more then previous sale, I highly doubt RB could be bothered buying items back and selling again to make a few more pennies on it.
It was about 4 years ago but did sell old dump truck at RB, but knew it was going to sell under $5k so it wasn't exactly a big concern. But IIRC commission was only like 15%, so I thought surely at $160k commission would only be a fraction. I do remember getting gouged like crazy for washing, etc fees. I will not make that mistake again, if it goes to RB everything will be washed and ready prior to heading there.
I've decided i'm selling 100% for sure, and the sooner the better. Last job this week where I need everything and not taking anymore work with it. I just don't like the idea of listing forever hoping it will sell, and dealing with people is a frigging nightmare trying to sell chit.
It was about 4 years ago but did sell old dump truck at RB, but knew it was going to sell under $5k so it wasn't exactly a big concern. But IIRC commission was only like 15%, so I thought surely at $160k commission would only be a fraction. I do remember getting gouged like crazy for washing, etc fees. I will not make that mistake again, if it goes to RB everything will be washed and ready prior to heading there.
I've decided i'm selling 100% for sure, and the sooner the better. Last job this week where I need everything and not taking anymore work with it. I just don't like the idea of listing forever hoping it will sell, and dealing with people is a frigging nightmare trying to sell chit.
Stompin Tom
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The main reasons I have seen items pulled from a Ritchies sale is first not being able to clear a lien check. Once you list your items a lien check is done, and if one is found you have up to a few days before sale to either get it cleared, if not item is pulled.
As for seeing items at a couple of sales you have to remember that there are many dealers who prowl the sales, they will do a quick touchup on a few items, try to sell them private, then if that fails throw them back in for a quick sale. Although I am not a dealer I have bought items at one sale and sold them at the next just to get parts. Once of my favorite tricks is if a trailer has a really good set of tires or logging bunks I need, if the trailer is going fairly cheap, buy it, take the parts off I like, replace them with parts that I have but dont like as much, clean it up and relist at the next sale. Its luck of the draw, I have sold the item the 2nd time for more money than I paid the first, covering listing costs and still get the parts I want, other times I have gotten less but still have the value of the parts I wanted. I have also bought trucks in other sales, got an MVI on them, cleaned them up and took them to Edmonton where trucks always get the best prices.
The next sale in Edmonton has a bunch of trucks in it that are previous Ritchies trucks, a dealer out of Maple Ridge, Internation Machinery buys allot at Richies, takes the trucks to their shop, gives them a good cleanup and shine, does an MVI then tries to resale. Once trucks have sat to long they bring them to Richies in Edmonton.
Biggest mistake I see guys make is buying in busy season, selling in slow season. If you have a snow plow it sells great in October but really sucks in May.
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S.W.A.T.
Active VIP Member
Not exactly true about the liens....
If your item has a lien and sells for less then what you owe, RB has guys on site to help you finance the difference. Or I think there is a grace period to clear up the lein
Stompin Tom
Active VIP Member
Ritchies will not allow any item to cross the pad with an existing lien unless prior arrangements have been made. IF an item sells with a Lien not previously cleared, there is no way they can sell it to you with a clear title which they GUARANTEE! They have a complete department in Richmond BC which deals strictly with the lien side of the sales for all of Canada.
You can prove you have cleared your lien with a letter from the lien holder, or you can use Ritchies finance to cover the lien, or you can have the lien holder supply Ritchies with a letter saying they will release the item with funds from Ritchies, but no matter what a lien must be looked after BEFORE reaching the block.
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