Typically seen with pawn shops, auction houses, used equipment dealers and similar establishments, the act of consigning equipment is beneficial to all parties involved. Not only is the original owner recouping some of their initial investment, but the new buyer is scoring a great deal. The consignment agency is also taking their cut.
In addition, those who rely on this method to meet their needs are contributing to the protection of the environment, too.
Relief Across Many Different Industries
Consignment inventory and equipment is relevant to nearly every industry and sector. Although used machinery is more common in some niches than others, the reduced carbon footprint associated with pre-owned hardware is one aspect that can benefit everyone. Some examples where you might see used equipment include:
● Food Service. Restaurants and other establishments within food service have enjoyed greater sustainability by reusing large-scale appliances.
● Technology. Those in IT can use consignment services to offload old equipment or to upgrade their systems.
● Construction. Consignment services are also incredibly common in the construction industry, where heavy-duty equipment is often bought and sold in the aftermarket.
● Farming. Farmers often use consignment equipment to fill their fleet of farm implements. Especially useful among young, startup farmers and novice homesteaders, the consignment market might be a necessary step in establishing your property as a productive operation to begin with. Those who stock their farm, warehouse or property with pre-owned and consigned equipment will not only have access to the exact type of equipment needed, but they'll be able to do it for far less cost than those who want all new equipment.
Understanding the Consignment Process
Generally speaking, the consignment process is the same from one industry to the next. The original owner furnishes their equipment to a third-party, who then places it up for sale. An Equipment Consignment Agreement is tailored to each piece of equipment, which must be signed before the property can be put up for sale.
There are many advantages to using the services of a consignment agency. Not only can you receive top dollar for your used equipment, but you'll be able to utilize the reputation of the third-party seller when generating interest. Because they provide the necessary inspections and repairs, buyers can purchase equipment from the consignor with relatively little risk.
Sellers are able to put their machinery up for auction or sale with very little risk on their end, too. Because buyers are typically prescreened and prequalified by the consignor or auctioneer, you won't have to worry about deadbeat bids and buyers who go missing in action before finalizing the trade.
Marketing and Advertising Your Consigned Equipment
Although many consignment agencies take care of advertising and promotions on their end, you can draw even more attention to your goods by employing some of your own marketing tactics. Since most consignment stores and auction houses display their merchandise online, it's easy for you to share the link across social media sites and Internet-based classified ads.
You'll also have the benefit of seeing what everyone else has put up for sale at your chosen consignment shop. This can go a long way in determining pricing or consumer interest when it comes to listing and selling your own merchandise.
Despite the popularity of social media advertising and the Internet, you don't want to ignore your other marketing avenues. A large number of organizations still rely on more traditional forms, including print, television and event-based marketing. To achieve the greatest effect, try to use the tactics that are most beneficial and familiar to your company.
The consignment market also benefits the local community. Many special events are planned and organized around auctions that feature consignment equipment or merchandise, and many allocate some of the proceeds for neighborhood schools, organizations and other causes.
Finally, many consignment stores don't focus on one specific niche or another. They're bound to have goods and merchandise from any number of industries at any given time. Supporting these shops is a great way to fund their other services, which typically include textile recycling and other sustainable practices.
Making the Most of Your Consignment Options
While many view the equipment and merchandise in consignment shops as nothing more than junk, those who have taken advantage of the option are well aware of the benefits. Greater access to affordable equipment, exposure to new machinery and increased environmental sustainability are really just the beginning of the consignment market.