If You Don't List Exclusively, You Might Be Losing Money

Posted on: Apr 15, 2016 - 08:00 AM | Market Trends
Author: Darrin Martin
Much like with a real estate agent listing a home, some heavy equipment brokers may ask that you list your product with them exclusively for a period of time. While it may seem like a better idea to list your equipment in a variety of places, this is most often not the case. Why?

Exclusive Listings-How Not Listing Exclusively Can Cost You Money, decreasing prices


Broker competition reduces your equipment’s price

Brokers who take exclusive listings take accountability. They are motivated to work harder to sell your equipment quickly because they have a greater opportunity to receive a commission for doing so.


In addition, listing your machine in more than one place can actually negatively affect the price you get for your equipment. This is because one site may have it listed for a particular price, another site could list it at a different price, and another site could have it at yet another price.

This price discrepancy can result in the value of your machine being reduced because each site will be competing to list the machine at the lowest price in order to attract a buyer to work with them. And, unfortunately, your equipment’s price can suffer a significant reduction before any potential buyers have even picked up the phone.


Exclusive Listings-How Not Listing Exclusively Can Cost You Money


Scarcity brings value

Having your machine listed in various places and at various prices can lead potential buyers to think that they are looking at several different pieces of equipment instead of the same piece of equipment listed over and over again at various prices. If a potential buyer is under the impression that the market is flooded, the perceived value of your machine decreases in their mind. Conversely, if perceived supply is reduced, value is increased.


Multiple listings of the same machine causes confusion

As mentioned in the previous paragraph, multiple listings can be confusing to both buyers and sellers. For example, one buyer received two inquiries about his equipment from the same potential buyer but from two different sources. Mistakenly thinking that he now had competition for his equipment, the seller increased the price, scared the one potential buyer off and lost out on the sale altogether.


Exclusive LIstings-How Not Listing Exclusively Can Cost You Money, Confusion

Image courtesy of Stuart Miles / FreeDigitalPhotos.net


The example above was obviously a mistake on the part of the seller, but mishaps like that and others related to multiple listings of your heavy equipment can be avoided by streamlining the listing process and allowing one dedicated broker to exclusively and effectively market your machine to the best of their ability.

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