Ultimate Asset Lifecycle Management - Owning the Auction!
By Stephen Slade on Apr 05, 2013
To better control the cradle-to-grave ownership of its heavy duty construction equipment, Caterpillar recently bought partial ownership of CAT Auction Services. They are using the auction format to expand their sales of replacement parts and service, warranty insurance and customer financing which as reported in the Wall Street Journal can be more profitable than selling the original equipment. (Friday Apr5'13 pg B5)
Auctions have taken on new life forms - picture the old drive-in movies. At a recent event near Orlando FL, a 20x14ft widescreen, known as the 'Leaderboard' displays videos of the exact unit for sale in action, so that the heavy equipment doesn't have to move around the yard. This image can be seen online as bidders sit on the internet in the comfort of their homes and offices miles away.
"The used-equipment market has become increasingly competitive as the sharp decline in production of new equipment during the last recession squeezed the supply of late-model used machinery now available' according to the Journal article.
How are you expanding your business and profiting from the aftermarket?