While dealing with the used construction equipment, consigning the machinery for sale is quite common. If you do not know about the term or are new to the construction industry, then this article is for you. After reading this article, you will be able to understand what is consignment and how can it help you in selling the used construction equipment.
What is Consignment?
The term consignment, the literal meaning is “giving over of goods/objects”. Whereas it can be defined as the arrangement in which you offer your items to the other dealers for display on sale. Once the object is sold, you share the confined amount as consignee fees to that dealer. The consignee is responsible for taking care of your item and can claim ownership of that. However, until the sale of a particular item, you are the legal owner of your goods.
You must be curious; how does it work in the dealing of used construction equipment. For Example, if you’re an equipment dealer, and you put your used backhoe for sale to another dealer’s fleet. He keeps the equipment and displays for sale in his inventory. When the machine is sold then you pay the consignee fees to that dealer. In this process, you are a consignor and the other dealer acts as the consignee, whereas your equipment is a consignment that is being sold.
How Does Consignment Help You?
There are many ways a consignment process can pay you off. This is a most beneficial practice if you follow them rightly. Here are some benefits of consignment.
Less time consuming
Putting your machine to a renowned dealer for sale saves you time and effort. When you solely going to sell the equipment, you might purchase an ad place it in a newspaper, own a website, or advertise to other places. It may take time and effort as well. Further, it also requires a skillful team to help you. In contrast, your consignee dealer may already have all this expertise and you can benefit from them. All you have to do is just find a renowned dealer of equipment.
More Buyer Exposure
You might have a very limited buyer list, but when you offer your equipment as consignment then you will get an extended buyers’ exposure. Because the consignee has already a developed buyer pool that you may get benefit from. Your equipment will be in exposure and you will get buyers more quickly.
Bottom Line
A consignment is a process in which you put your equipment to the other dealer’s fleet for sale. It makes you a “consigner” and that dealer a “consignee”. You may get a lot of benefits from this process. It will save your time and money on advertising your equipment on different platforms, as you can use your consignee network and resources. Whereas, when you put your used backhoe for sale on another dealer’s fleet, you may also broaden your buyer’s exposure, as the consignee has already a developed buyer pool. At the end of the process, you have to pay the consignee fees, once the equipment is sold.
