Industry professionals have long viewed machinery auctioneers as a vital source of affordable equipment. Has this changed in a world plagued by COVID-19?
Few industries can emerge unscathed from a global pandemic. As we’ve seen with the effects of COVID-19 on machinery auctioneers, this includes industries that traditionally benefit from shuttered businesses. Even with an influx of equipment to put up for sale, these professionals now have a situation where large gatherings, like in-person auctions, simply aren’t safe.
Fortunately, this doesn’t mean the end of equipment auctioneering. As with every other industry, adjustments were necessary because of COVID-19. When looking at the overall effect of these changes, the adjustments have in fact proved beneficial for anyone seeking to buy or sell equipment.
A Move Towards Digital Machine Auctions
Professionals from many industries have dealt directly with machinery auctioneers. They often did this at live auction sites where bidders and sellers came together to strike a great deal. Once coronavirus lockdowns shuttered in-person events, significant changes occurred within the machinery auction industry. Suddenly, traditional auctions were no longer an option.
This new reality seemed like the perfect storm of bad luck. Businesses across the country went from temporary to permanent closures due to the economic impact of the pandemic. While machinery auctioneers traditionally provided a valuable financial resource for business owners closing up shop, their live events were no longer safe and were sometimes illegal.
Fortunately, the framework to continue the machinery auction business had been in place for years. Online machinery auctions are nothing new. Many companies had put this technology on the back burner in favor of in-person events. Once the industry shifted its focus to a digital world, the increase in bids, sales, and even prices compared to in-person auctions surprised everyone.
Soaring Prices for Sellers
It’s easy to envision a situation where the effects of COVID-19 on machinery auctioneers and their clients would be devastating. One might think that buyers would be less willing to bid if they weren’t onsite to inspect the equipment. Fortunately, this potentially disastrous outcome never occurred. In fact, online equipment auction sales saw enormous increases.
This was particularly beneficial for sellers of equipment. Many of these individuals were closing down businesses and were hoping to get as much capital as possible from selling used machinery. Soaring auction prices suddenly gave these former business owners a financial cushion to rely on after closing their company’s doors.
Machinery auctioneers faced significant hurdles thanks to COVID-19, but they adapted to the situation. In so doing, they brought in droves of new buyers and increased the eventual sale prices for assets ranging from heavy equipment to real estate. They simultaneously helped the owners of shuttered businesses and those who were just starting out.
What Does the Future Hold for Machine Auctions?
Even though the effect of coronavirus on machinery auctioneers wasn’t detrimental, there’s no doubt that the industry changed. With the COVID-19 vaccine rolling out and expected to be available to most folks by summer of 2021, the question of “what happens next?” is on everyone’s mind.
Like most innovations that come from necessity, online equipment auctions are probably here to stay. Many will undoubtedly jump at the chance to attend in-person auctions, but new and long-time buyers alike will continue to take advantage of the simplicity provided by digital platforms. One thing that could change is the increase in final bid prices.
While many companies were shutting down because of the pandemic, many others were opening their doors for the first time. This was no doubt partially driven by the mass availability of affordable equipment from machinery auctioneers. Once things get back to normal, it’s possible that the influx of high-value final bid prices will diminish. As with all things related to COVID-19, however, only time will tell.
Don’t Take a Hit When Selling Equipment
While machinery auctioneers received a significant blow because of COVID-19, it’s other business owners that took the brunt. On top of having to close up shop because of the pandemic, many had difficulty finding in-person equipment auctions that could mitigate the damage to their financial well-being. Fortunately, auction companies overcame the potential for disaster.
Speak with Our Industrial Auctioneers Today
If you’re looking to sell equipment, machinery, assets, or even real estate, visit IRS Auction today. Auction prices have increased significantly during this time, so make sure you strike while the iron is hot. Our machinery auctioneers and industrial auctioneers can help ensure you get a fair price for your properties. Contact us today to get started!
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