In every business, especially retail and auction companies, pricing is everything. The price you put for your products plays a huge role in how much profit you will end up making. There are a number of ways and processes in which you can come to a final pricing valuation for all of your products.
For equipment auctions, finding the right value of the equipment you’re selling is crucial. Pricing auction equipment is different from pricing retail products. However, the process of finding the right starting price is similar across all industries.
At InnovA Technologies, our auction management software allows auction companies to easily come up with effective price valuations. We understand the importance of heavy equipment valuation for auction companies, and we want to share some of this information to you, as well as add some tips on how to come to correct vaulations!
Why is pricing important?
In the auction industry, setting the right starting price is important to keep yourself competitive with other auction companies. However, the tricky part with auction companies is after the starting price, it’s ultimately not up to you. This is why choosing the right pricing strategy, as well as making the right price valuations is essential in maximizing your profits.
Tips on setting the right price
Valuation is key
Setting the right price solely depends on making the right valuation for your products. To do so, it’s important that you follow a value pricing approach! When doing this, make sure you are factoring in what your company offers on top of the product. Do you offer a warranty? Do you offer payment options? There are a number of in-house things that can increase the value of your starting price, and making sure to look at those things as well as the market value for your auction equipment, will help you choose a correct heavy equipment valuation.
Calculate monetary benefits
Another thing to consider when deciding on a starting price at your equipment auction is what the customer’s willingness to pay is. This is when you should think about what benefits each equipment type offers. Does your excavator come with new technology? Does your skid steer have air conditioning? These are a few examples of features that customers will pay extra to have. So when evaluating your equipment, it’s important to think about certain features or other factors in which customers will pay more to have.
Have a valuation system in place
Lasty, all auction companies need to have a valuation process in place that they use for all of their equipment and other items. With InnovA’s new cloud-based software, this is easy! Our software allows you to easily evaluate your entire inventory and price your inventory accordingly. With everything in one place where everyone who needs to can access it, your company will start to create more time and money!
Especially for auction companies, setting a starting price solely depends on the value of your items. Use these tips to make valuations and pricing much easier in the future!
With InnovA’s auction management software, you will save time and money! We are here to help streamline your company and increase your profits! To learn more about us, or to request a free demo, visit our website today!