Tips for Navigating the Used Equipment Market of Outdoor Power Equipment
In this Dealer’s Edge session, our community of OPE dealers discussed the opportunities and challenges of selling pre-owned outdoor power equipment. Led by the experienced Clint Sanders and Tim Berman, the session was packed with insights and strategies that can help you make the most of the pre-owned market.
Key Takeaways:
- Stay Informed: Keep up with market trends and seasonal demands to optimize your buying and selling strategies.
- Be Transparent: Maintain transparency with customers about the condition of used equipment to build trust and loyalty.
- Explore Financing: Seek out financing options that can support your used equipment inventory and make it accessible to a broader range of customers.
What to Look for When Buying Used Equipment
When evaluating used equipment, start with a thorough condition assessment. Check for common issues like worn spindles, engine problems, and overall wear and tear. Ensure the equipment is operational and assess the cost of necessary repairs.
Tim also emphasized that understanding market demand is critical. Identify high-demand items in your region, such as subcompact tractors, which are frequently traded in and have a robust market. Utilize multiple sources for acquiring used equipment, including auctions, Facebook Marketplace, Craigslist, and direct trade-ins from customers.
Pro Tip: Look for low-hour units with remaining warranty. These can be a goldmine.
Seasonal Strategies for Buying and Selling
- Winter Buys: Winter is a great time to purchase used equipment. Prices tend to be lower, and you can prepare your inventory for the busy spring season.
- Off-Peak Sales: Offer trade-in specials during the fall and winter months. This can help boost sales during slower periods and keep your cash flow steady.
- Busy Season Sales: Spring and summer are peak seasons for selling used mowers and tractors. Ensure your inventory is ready to meet the demand.
Financing and Reconditioning: Navigating the Challenges
Financing options for used equipment can be limited. While some floor plan companies may not specialize in used equipment, lenders like Wells Fargo and DLL offer limited financing for pre-owned products. Retail financing can be more accessible through regional banks and credit unions.
When it comes to reconditioning, it’s essential to balance the cost against the potential sale price. Assess whether the cost of reconditioning will allow for a profitable sale. Focus on high-demand items that can be refurbished at a reasonable cost. Utilize aftermarket parts to reduce costs. For brands you don’t represent, aftermarket solutions can be a cost-effective way to recondition equipment.
Final Thoughts
As we wrapped up the session, the benefits and potential of the used equipment market became clear. While it presents unique challenges, the opportunities for profit and customer retention are significant. Dealers were encouraged to consider diversifying their inventory and exploring the used market as a viable revenue stream.
Thank you to all who participated in this Dealer’s Edge session. We meet every other week on Fridays at 11 am EST! Stay busy, stay profitable, and see you next time!
