World’s First Heavy Construction Equipment Social Auction Site
First published in the March 2015 issue of Quarry Management as Start the Bidding
Indoogoo set to launch the world’s first social auction site for heavy construction plant and equipment
This year will see the launch of the world’s first social online auction service from Indoogoo – the social trading network for heavy plant and equipment – in a move that will allow users to take full control of the auction process.
Online social selling has revolutionized the trading process around the world, and Indoogoo say they are set to further transform the US$200 billion global used-equipment market with their unique social auction service. With Indoogoo Auctions, users will have the ability to list any piece of equipment, no matter how large or small, and, as auctioneers, will control the timing and layout of their own auction. The service is designed to give users the ease and scope of an online auction with the networking and trading potential of a physical auction house, all contained within the framework of a social trading network.
‘With Indoogoo Auctions, everybody is an auctioneer,’ said Mark Turner, chief executive officer of Indoogoo. ‘Our motivation behind its development is that we wanted to give Indoogoo users the power to control their own equipment auctions. This is also the first time the social network structure has been incorporated into an online auction service, and we feel it has the potential to dramatically change the way second-hand construction equipment is traded around the world. The Auctions function is available to anybody with an Indoogoo account, from individual traders to large equipment manufacturers and rental companies.’
Indoogoo Auctions works differently to existing auction websites. Unlike most other auction facilities, Indoogoo do not retain bidder information for their own use at a later date. Instead, this information is given directly to the auctioneer at the time of the auction. This means that auctioneers can contact unsuccessful bidders directly offering them other items that might be of interest and ensuring their equipment is always available to the right buyer. ‘In short, this means there is no brokerage conflict within the Indoogoo Auctions business model,’ explained Indoogoo’s chief information officer, Hanoof Nass.
Indoogoo Auctions also allows users to build their networks and guarantee that no trading opportunities are missed, as once an auction is complete all bidders can contact each other through the platform. However, in line with the site’s strict privacy policy, users can always choose not to be contacted by simply denying the contact request received.
Indoogoo acts as a trading platform, putting the auction process itself directly in the hands of its users. The service caters for a range of industry professionals, from large manufacturers with a stock of used trade-in equipment to individual traders who wish to organize a one-off auction. Moreover, by connecting through the trading network, users are always aware of the best market for their equipment and are able to completely control the asset disposal process.
Equipment from a range of industry sectors will feature in Indoogoo Auctions, including construction, mining, marine, oil and gas, and other heavy industries. There are no strict limits on what can be listed, although the service is clearly targeted at construction equipment buyers and sellers.
As auctioneers, users control every aspect of the auction process. This includes the design of their own ‘auction hall’, which can be adapted according to the seller’s own brand. Once their auction hall has been created, users can choose from three types of auction: a timed 30-day auction with a ‘buy now’ price; a day auction with reserve; and a day auction without reserve. They then set the time, date and reserve price (if necessary). To take part in an auction, all users must include proven trade references in their Indoogoo profile.
Users can choose whether to sell an item that they have already listed for sale on the site, or to create a new listing specifically for auction. Bidders send a bid request to the auctioneer, which works in the same way as a contact request. Once this request has been accepted, the bidder becomes part of the auctioneer’s Indoogoo contacts. Each bidder can organize an inspection of the equipment directly with the seller. After this, once the bidder is satisfied that they would like to attend the auction, they pay their bid deposit into an independent third-party escrow account. The bidding process then proceeds much like existing online auction models.
Fellow bidders remain anonymous to each other until the auction is closed, and only the auctioneer can see everyone participating in the auction during the process. Once a sale is finalized, the successful bidder organizes payment directly with the auctioneer through the independent third-party escrow service.
As part of the Indoogoo Auctions set-up, the platform also offers a tool for creating email flyers, so users can inform their existing network of their upcoming auctions without having to upload client databases directly to the platform. Indoogoo recommend that sellers list their equipment three weeks in advance of day auctions, allowing time to market the auction effectively. Auctioneers pay a listing deposit which is fully refundable once a sale is completed, and a sales commission is set at a fixed percentage across all sales with a capped maximum amount. Buyers pay no premiums whatsoever on the final sale.
Although the Indoogoo Auctions service will not be formally launched until the second quarter of 2015, the company will be happy to provide support and guidance for those wishing to plan online auction events once the service is up and running.
Case choose social trading in North America
Global equipment manufacturers Case Construction have become the first OEM to team up with Indoogoo, to offer their North American dealer network a trial social media platform to list and sell the company’s complete line of equipment – from large excavators and backhoe loaders to rough-terrain fork-lifts and dozers. All sales will continue to be made through the dealer network, but Indoogoo’s extensive social networking capacity will strengthen the key connection between dealer and manufacturer, protecting the integrity of the network while ensuring maximum exposure for Case’s products.
Potential buyers will be able to contact one of Case’s North American dealerships through the site, and Case will be able to use this social network to ensure buyers are always connected to the right dealer for their needs. The online tool will allow the Case dealers to upload an unlimited number of listings, which can each include up to 10 photos and four videos. These fully searchable listings will appear on users’ homepages – ensuring they are always visible to buyers.
Athena Campos, senior director, marketing at Case, explained how Indoogoo aligns with Case’s mission to offer customers intuitive solutions that simplify finding and acquiring the right equipment. ‘Indoogoo is fulfilling an unmet need in the marketplace,’ she commented. ‘This site is unique in that it’s dedicated to the social aspect of connecting people in the heavy equipment industry while also allowing Case and their North American dealers to showcase the entire range of their equipment to industry professionals.
‘The site is very intuitive and supports our mission to make buying and owning Case equipment simple. From setting up a profile to loading the equipment categories and descriptions, the process is easy. We see a lot of potential in the innovative functionality the site has to offer our dealers and customers.’
Indoogoo’s Mark Turner said: ‘We are thrilled that Case are now using Indoogoo in North America. The site was built with OEMs and dealers in mind – its unlimited listing capacity in combination with its social networking functions creates the perfect environment for trading equipment.’
More about Indoogoo
Founded in 2012, Indoogoo aims to combine the networking benefits of websites such as LinkedIn and Facebook with the capacity to rent, hire, buy and sell heavy equipment. Users can create unlimited listings and request quotations.
Like other social networks, Indoogoo allows users to find new customers and suppliers, and to stay in touch with colleagues around the globe. But unlike Facebook and others, Indoogoo is based on the principles of trading in the heavy industry segment – with the site’s strict privacy policy preventing connections and contacts becoming public. This gives users the benefits of a social network with the security of their own personal, private, trading network.
The idea behind the site came as a result of chief executive officer Mark Turner’s experience in heavy equipment trading. After more than 15 years in the crane brokerage and trading business, he recognized an opportunity to use the increasing acceptance of the social network structure to benefit the industry.
The site has been optimized for heavy industry by listening to those with experience of the business, and the intuitive, image-led layout is based entirely on user input. The site is targeted at all industry professionals, from single traders to large OEMs, bringing them together in one place to discuss, trade and network. For more information visit: www.indoogoo.com
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