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2 Major Things to Keep in Mind When Disposing of Used Industrial Equipment
2 Major Things to Keep in Mind When Disposing of Used Industrial Equipment
October 21, 2020

If you are wondering how to dispose of your business’ used industrial equipment, there are two major things to keep in mind: appraisals and auctions. Appraising the pieces of machinery or equipment before auctioning them is crucial. There are plenty of useful valuation approaches that are worth considering when it comes to appraising assets. One is the sales comparison method but it works only if the market for your equipment is steady and huge enough with reliable sales data to base the appraisal. Another alternative method is the cost approach and the income approach. 

 

How do these different methods work?

 

The cost approach is based on the cost or price of the equipment when you purchase it. It works perfectly for valuing installed machinery with a substantial amount of costs related to design, fabrication or assembly, shipment, installation, and so on. On the other hand, the income approach takes the income stream that certain machinery creates to determine its value. In other words, the appraiser needs to know which amount or percentage of income must be allocated to your used industrial equipment. It sounds very difficult to do so, which is indeed the case however, it can still be used if the appraiser sees it as the best option. 

 

After the appraisal approach for your used industrial equipment has been established, you can now explore the other interesting world of auction. You can set the appraised value of your equipment as the starting price from which the bidder can compete until you get the best or highest bid price. However, when looking for the right auction company, you have to do your homework of researching first or asking around for potential recommendations. But if you wanted to find both great appraisal and auction options for your used equipment, then look no further than Infinity Assets. We can give you both of these things and help you find the best buyer. Call us now to learn more!

 

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