Online used equipment platforms come of age
Krank digital solution challenges traditional disposal routes using brokers and auction houses
WHEN Liebherr launched their own digital platform to sell used equipment directly, it opened the floodgates to a slew of major companies taking control of the disposal of their used construction equipment.
Introduced earlier this year, and powered by UK-based tech firm Krank’s marketplace platform, Liebherr’s Used Equipment Marketplace provides a secure and user-friendly way to dispose of the thousands of used machines that the German-Swiss construction equipment manufacturer acquires as part of its global operations annually.
According to Krank chief executive officer Mark Turner, whose firm developed the state-of-the-art platform for trading used equipment, no one in the industry was interested until manufacturing giant Liebherr launched their own digital used equipment marketplace, underpinned by Krank technology.
‘There’s no doubt this was a game changing moment,’ said Mr Turner. ‘I finally had a sense of validation that this was the future of used equipment sales. Liebherr taking charge of selling their own used equipment shows how digital transformation is enabling companies to go a step further than traditional sales channels.’
Krank’s digital solution challenges the traditional equipment disposal routes of using intermediaries, such as brokers and auction houses. With middlemen fees as high as 25% of sale price, sellers are starting to realize that technology can help them take control of the process – and maximize revenues from disposals. Buyers benefit too, as they get the assurance of purchasing at the best price directly from the owners of the equipment.
‘Disposing of a machine through a broker or auction house is a common and straightforward method of disposal,’ commented Mr Turner. ‘However, it can sometimes be more costly, with varying results – with the seller often losing control over their inventory and brand. If sellers put in a bit more effort and embrace technology, they can quickly increase their bottom line – and be more effective when selling their used equipment.’
But according to Mr Turner, it is more than just about protecting prices: sellers of equipment also want greater control and oversight of the sale process. A major part of this is building a network of current and potential buyers – sales information that auction houses and brokers naturally keep to themselves.
‘What we are trying to do with our platform is connect the industry,’ he explained. ‘I think that’s the real disruptive element of this technology – its ability to rapidly scale professional industry networks. The more people in your network, the bigger the opportunity to organically prime and grow your sales funnel.’
He added that there is also a sustainability element to owners selling their equipment themselves, in that it doesn’t need to be moved to a third-party sales location. The equipment only moves when it needs to go to the buyer, thereby keeping its carbon footprint to a minimum.
Whilst Liebherr’s adoption of marketplace technology may have been a watershed moment for Krank, it seems this may be a technology whose time was due anyway. With e-commerce, the Internet of Things, and a new generation of tech-friendly management coming of age, it was only a matter of time before technology made the business of selling used equipment possible by the seller.
‘Our collaboration with Liebherr, one of the world’s largest and most respected manufacturers of construction equipment, is reshaping how companies manage their equipment lifecycles. Liebherr taking charge of selling their own used equipment is a turning point for the whole industry. It shows how digital transformation is enabling companies to complement traditional sales channels,’ said Mr Turner.
