In an article a couple of months back, TruckInfo noted that over 15.5 million trucks are available in the country, although there is one major shortcoming: only about 3.5 million drivers are currently in employment and eligible to operate the trucks, and that one in nine work independently.
In other words, the country has a superfluous number of trucks just lying idle in company yards, chewing up funds in the name of recurrent maintenance - not to mention taxes and fees.
In a bid to leverage their businesses, what these companies are doing is getting rid of this excess inventory to add to the bottomline. It is a source of revenue that provides needed funds to upgrade fleets with more technologically advanced or sustainable models.
If your aim is to cut down on costs or make more room in your yard for newer, greener vehicles, here are three ways that can help you maximize recovery when it gets down to asset disposition of your truck fleet.
1. Get a Grasp of the Secondary Market
When businesses need to buy or dispose overstock, unused or nonessential assets, one of the places they turn to is the secondary market: a complete sector that is always open regardless of the industry you're in.
For those in the trucking industry which can be thought of as high-end consignment, understanding this sector is critical.
Trucking organizations witness an annual turn over of about 20 percent of their fleet. For the big boys out there, this could even mean close to 1,500 trucks, no doubt a colossal sum. Now, if the vehicles are properly maintained, this means that it's possible to recoup a very nice investment from secondary market buyers.
2. Never Forget Remarketing Best Practices
When you come to terms with the competitive nature of the secondary market, you need to have the necessary skills to capitalize on it. That said, it is wise to enlist the services of a valuation partner because let's face it, these are assets you can't afford to inaccurately appraise, let alone when you're expected to keep expectations reasonable and clients happy.
Next, the recovery firm has to determine which sales channel best fits potential buyers. Following the identification of the most appropriate sales channel, an organization needs to tailor their marketing strategies so as to target the right buyer. Including elaborate pictures and penning accurate descriptions comes in handy too because then potential buyers have an exact idea of what they are dealing with.
Make no mistake about it, experienced asset liquidation firms will ensure success through every phase, and you don't have the lingering thought that you're undercutting your assets.
3. Navigate the Auction Process
After the plan to dispose is drafted, it is high time to put the trucks on the market. A partnership that can help with the following is advisable:
- Truck appraisal based on prevailing market conditions
- Provision of convenient lots to keep the trucks therefore leaving you with more room
- Provision of marketing and sales support
- Truck inspection (and maintenance if required) to boost the value
- Expertly handling every aspect of the process, from payment processing down to buyer vetting
Why an Experienced Provider is Recommended
Usually, truck companies will find it a herculean task to cope in the secondary market alone while still dedicating time and energy to their core business.
And rather than have incompetent entities handle the deal for you, or competent entities out to milk you, the best option to turn to is to partner with an established, reputable asset recovery firm.
Such a company will ensure you maximize returns from your trucks, while all the while freeing up your internal resources.