What is the extent to which the operating profit of the second-hand excavator market is not as good as before

It is widely believed among operators in the domestic second-hand excavator market that the current market environment has led to a decline in profits, causing the entire industry to fall into a slump. As investors in the operation of second-hand excavators, it often requires a large amount of manpower, material resources, and financial investment of millions of dollars. Although the sales volume has not decreased, the comprehensive equipment profit has been declining year by year, especially in the complex equipment operating environment where information is complex and equipment models are constantly changing, making it difficult to meet the needs of all buyers. The customer groups faced by different positioning are also different. Although the sales volume has increased, why cannot the fundamental profit be guaranteed? The issues involved are multifaceted. Nowadays, competition and systematic information sharing provide customers with more choices, causing small businesses to take risks and operate low-end old equipment, making the situation even worse for enterprises.

The domestic market environment is complex and there are multiple business models, and when choosing customers, they consider distance and price more.

　　Used excavatorAs a construction machinery equipment, the annual equipment transaction volume is huge, and the division of the cake has shifted from private to formal business models. However, the risk of increased costs has surged, and businesses have to bear the risks of equipment failure, insufficient performance, and maintenance, especially from purchasing equipment to testing and maintenance. Selling it requires customers to compare the equipment and consider the price, which affects the market quality of the merchant's equipment. Often, the longer some machinery is placed, the more prominent the losses it needs to bear.

Sales growth and profit decline, while competitive pricing remains the most important.

The risk caused by equipment backlog can only be achieved through reducing profits or selling at a loss. The operational risk of second-hand excavators exceeds many people's imagination. Although there are no mandatory procedures for operating equipment in China, it is important to gather information from multiple parties to understand the equipment prices in trading equipment.In 2019, the year-on-year sales volume of Huacheng's second-hand excavator market increased by 37%, and the profit decreased by 28.9% compared to the previous period. As an investment shareholder, the equipment risk borne by the market will face a quite difficult transformation stage in the next three years that needs to be overcome.