No matter what industry you may find yourself in, a common headache dealerships seem to share is having trouble moving used equipment. The longer a piece of equipment sits idle on your lot the more it will depreciate and end up costing you money. But if you are reading this you probably already know that. So, what can you do about it?
In order to sell used equipment you need to know who’s looking to buy it. Used equipment buyers are bit different from a typical new equipment buyer. Used buyers tend to try to stick with the same brand or model because it’s what they know. If you know that going in you can use that to your advantage with how you approach the whole process.
People Stick with What They Know
We humans are creatures of habit. We find something that works for us or that we like and we stick with it. Part of the reason you may be having trouble moving your used inventory is that you’re approaching it wrong. Just because a prospective customer is in the market to buy used doesn’t mean they’re open to any piece of used equipment.
Being able to identify if or when someone is in the market for a piece of used equipment is a great start, but beyond that you need to identify exactly what it is they’re looking for if at all possible. An equipment owner that has bought a used CAT excavator every 3 years for the past decade is more than likely going to be looking for a CAT excavator when that 3 year window comes around. That’s a great piece of information to have if you don’t currently have a used CAT excavator don’t you think?
Finding out what brands or equipment types a prospect already owns will let you know what kind of equipment they are most likely in the market for. The added layer of knowing their purchasing habits or buying cycle gives you the ability to not only target the right people, but target them at the right time.
Data Gives You the Edge to Sell Equipment
Data is the tool that can help set you apart from your competitors. Knowing when a prospect is likely to buy and what they’ll be looking to buy before the dealership down the street gives you the competitive edge to target and reach that prospect first. You may have access to some of this data with your own internal records. If you have a history of working with certain customers at regular intervals or know what their brand or model preferences are you’re already ahead of the game. But what about those potential customers you’ve never done business with? You may want to try using 3rd party data.
Supplementing your own information with 3rd party data from a database such as EDA gives you access to information on companies or equipment owners you may never have worked with or even talked to before. EDA gives you access to data you can use to find your ideal customer. From equipment brands, models, or types to buying cycles and even credit risk factors. It’s all available to enable you to cut through the noise and find those most likely to buy from you.
Be Proactive to Move Your Used Equipment
The best part about embracing a data-based approach to your used inventory is it allows you to be proactive. You know exactly what inventory you have and are trying to move. Using a database like EDA allows you to locate prospects that would be interested in what you have. It also makes it possible to figure out when you think they’ll be most interested in buying what you have. This information not only helps you be more efficient in reaching those likely to buy but it also helps you eliminate those who won’t be interested.
If you’re having trouble moving your used inventory maybe it’s time you took a different approach. Start by looking at what you have then do your best to identify prospective customers who would most likely be interested in what you have to offer. Using your data, 3rd party data, or even a combination of the two can help you identify the perfect prospect for you and move your used inventory.