Like
the heavy equipment auctions, mining auctions is both beneficial to sellers and
to the buyers. For the buyers, the main attraction to mining auctions is the reduced
costs of the equipments being auctioned.
For
the sellers, the advantage they have is the fast disposal of their goods
(equipments) right after use. (Some projects could be a one or two-deals, with
the next one not in the horizon as yet.)
As a
businessman who does want his money stuck on equipments on unproductive
equipments, the best solution is to sell them at auctions. The investments on
the machines are not liquid but the businessman might have a use of the cash.
Equipments
used in mining (or in most other industries that used heavy machineries) that
are kept in inventory when there is no foreseeable project in the offing is
keeping capital in forms that cannot be used. When projects come in, it is not
really hard to buy (through an auction) the types of machineries to be used.
Equipments
Like
the other machineries that are classified as belong to the heavy industries.
Mining equipments are also expensive when bought as new models from fist-hand
dealers and sellers. Like the good businessmen that they are, discounts can be
found at auctions.
The
vendors and seller also benefit because these are the deals that are carried
out in cash and unconditional bases. Buyers on the other hand are able to
stretch out their budgets to the utmost. One happy consequence is getting what
they wanted without the depreciation costs.
Prices
The things
to consider in an auction for mining machineries are the age and the condition
of your merchandise. These factors will definitely affect the pricing of the
equipment.
If
the equipment’s present condition is still good, even comparable to the new
models, it will negate the depreciation brought on the actual age factor of the
machine. Needless to say, t he prices is still to be determined by how much the
bidders think of the machine’s actual cost.
Here
are some issues with regards to the equipment’s final bid.
Late models
It is
only natural that the latest models are always on demand. With mining
equipments, model changes take years in the making. These are heavy duty
machines and they are not that easy to improve on unless there is a real
innovative feature to push.
With
regards to the features, most of these are actually dependent on the needs of
the industry which are governed loosely on the current scientific discoveries
and new technologies (say, a new way to extract oil) or some minerals.
Age
If
these characteristics (features and age) are on older models, they may appeal
to one buyer (or suits his mining needs) and attractive to the other buyers as
well.
Standard
models, as a rule, are easier to sell than specialized pieces of equipments. In
mining for instance, the specialized equipments need to be offered to the
biggest audience as much as possible. The
features and the attachments can have a significant effect on the equipments
selling price.
Mining auctions can be a barometer to prevailing price conditions.
