2011-11-03
When it comes to auctions, the most common thing people encounter or see on a daily basis is the public auction of various craft collectibles. However, there are not many auctions for various production materials such as construction machinery, especially in the current Chinese construction machinery market, where equipment sales through auction items are almost non-existent. Compared to the domestic market's mobile phone auction environment, the foreign construction machinery market has a different scene. Auctions led by the Li brothers have almost occupied the main share of the global construction machinery auction market. Their long-standing advocacy of "no bottom price auctions" has been popular abroad, and the Chinese market has also been a concern for the Li brothers.
Who dares to hold an excavator auction during the sluggish sales period in the Chinese construction machinery market? How can companies adopt innovative sales methods during the off-season to achieve ideal performance? On October 26, 2011, a "second-hand excavator auction" was held at the headquarters of Hefei Jinyongyuan Construction Machinery Trading Co., Ltd. (referred to as Hefei Jinyongyuan) in Hefei, Anhui Province. The auction was hosted by Anhui Xinqiao Auction Company (an A-level qualified enterprise in the auction industry), and more than 300 users attended the auction. The auction was successfully held on the same dayUsed excavatorWith nearly 40 units and receiving high attention and fair evaluations from numerous construction machinery agents, this excavator auction has become a new product marketing method in the domestic construction machinery industry.
Hefei Xiangyuan pioneers excavator auction
Since April this year, the domestic construction machinery industry, especially the excavator market, has continuously entered a low point. Many large-scale infrastructure projects such as high-speed rail construction have been suspended or approved, and major banks have continuously strengthened their supervision of working capital. Some small and medium-sized enterprises and end users are increasingly facing a shortage of funds, and the market supply and demand imbalance is serious. Therefore, finding more effective sales models for construction machinery products, finding ways to reduce user purchase costs, and providing users with more timely and effective services, and more importantly, how to convert the accumulated inventory of second-hand excavators into cash flow and improve the speed of capital recovery, has become a problem faced by many agents at present.
Hefei Jinyongyuan Engineering Machinery Trading Co., Ltd. is a subsidiary of Hefei Xiangyuan Group, which also includes Hefei Xiangyuan Engineering Machinery Co., Ltd. (referred to as Hefei Xiangyuan) and Zhengzhou Xiangyuan Sany Engineering Machinery Co., Ltd., both of which are provincial agents of Sany heavy machinery excavators. Both companies have high customer recognition in their respective regions. At the same time as this auction is held, it is also the day of the establishment of Jinyongyuan in Hefei. At the same time, the auction is also held at the 6S store in Xiangyuan, Hefei, which is about to be completed. With an investment of 75 million yuan and a site area of 100 acres, it greatly meets the hardware conditions of this auction venue.
This auction carefully selected 86 excavators for auction, including more than 60 Sany excavators and about 20 other brands of excavators, among which SY215C-8 medium-sized excavators are the main ones, and SY65C and SY75C small excavator models are also not few. This batch of excavators mainly comes from legal machines, refurbished and remanufactured machines, purchasing machines, etc. Most of them are equipment manufactured around 2008, 2009, and 2010, and most of them have exceeded the warranty period. All users who come to the site can conduct on-site operation tests for all models, personally understand the actual performance status of each machine, in order to make early predictions for the auction objects on site. In response to the auction of the model and the condition of the equipment itself, Hefei Jinyongyuan has extended the warranty service period for Sany excavators and extended the working hours of the equipment.
Provide customers with maximum discounts on business conditions
From the business conditions of auctioning excavator products, Hefei Jinyongyuan offers customers a considerable degree of discount:
Bid security deposit: Usually, the bid security deposit for auction items is not less than 20% of the low price of the auction item. For the convenience of excavator customers, Hefei Jinyongyuan has collected bid security deposits of 10000 yuan/unit for small excavation, 20000 yuan/unit for medium excavation, and 30000 yuan/unit for large excavation in this auction (if the auction is unsuccessful, the bid security deposit will be unconditionally refunded to the user).
Auction commission: According to auction laws and international practices, excavator bidders are required to pay a 5% commission to the auction company based on the auction price. Hefei Jinyongyuan has borne the relevant fees for the auction commission and will not charge any commission for the customer's excavator transaction.
Auction transaction price and payment terms for purchase price: If installment payment is required, the down payment standards are 30%, 40%, 50% and above respectively. On the basis of the auction transaction price, small excavation, medium excavation, and large excavation will be subject to different price increases of 5000-20000 yuan (if construction outside the province or customers outside the province purchase the machine, installment payment is not required). The remaining monthly interest will be calculated at 1 cent; In addition, a few machines can be mortgaged for payment, with a down payment of 20%, and a small amount of markup will be applied for different models. The mortgage fee will be executed according to the specific requirements of the client's bank. It is reported that Hefei Jinyongyuan has also launched some cost-effective special models to meet the actual needs of customers.
After sales service for auction machines: The biggest concern for second-hand mobile phone customers is that they are not confident about the purchased machines and are afraid of lack of guarantee. Hefei Jinyongyuan has made the following commitment regarding the warranty period for the machines that were sold at the Sany excavator auction and constructed in Anhui: different models manufactured between 2008 and 2011 have different warranty services for the engine, hydraulic pump, rotary walking mechanism, and even the whole machine. However, for excavators used for installing crushers, the warranty period is halved. All models in this auction are not covered by warranty if they experience minor oil leaks or black smoke emissions.
Professional auction institutions ensure professional and authoritative processes
Anhui Xinqiao Auction Company (referred to as Xinqiao Auction) is a comprehensive auction company established with the approval of the Anhui Provincial Department of Commerce. It is currently a member unit of the China Auction Industry Association and an A-level qualified enterprise in the Chinese auction industry. Its staff have worked in auction enterprises for many years and have all obtained national auction personnel professional certificates, with rich experience in auction practice. After the auction agreement with Hefei Jinyongyuan in the early stage, Xinqiao Auction is fully responsible for the entire process of this auction.
It is reported that this auction is a silent auction in the form of an increase in price. The auctioneer first quotes the starting price and the increase in price, and then the bidders bid. The bidders only hold up their license plates and do not bid, indicating that they will increase the price according to one increase in price. Bidders can also jump and bid beyond one increase in price. If two bidders bid simultaneously, the auctioneer's order number shall prevail. Auctioneers may temporarily adjust the price increase based on the situation on site.
Unlike foreign auctions without a reserve price, the current auction of Jinyongyuan in Hefei is a reserve price auction. If the bidder's bid does not reach the reserve price, the auctioneer can declare a non sale. For the highest bid that reaches or exceeds the reserve price, the auctioneer shall call three times in a row. If no one raises the price again, the auctioneer shall strike the plate with a hammer to indicate the transaction, and the last bidder shall be the buyer. After the auction is completed, the buyer must sign a "Confirmation of Transaction" with Anhui Xinqiao Auction Company on the spot, and within three days after the auction is completed, sign a "Excavator Transfer Agreement" with the principal.
After the auction is completed, if the full payment must be made in one lump sum, the buyer shall pay the full transaction price to the principal within 3 working days after the transaction. The bid security deposit originally paid can be used to offset the price. If it cannot be paid in full on time or reneges, the security deposit will not be refunded. After the buyer breaches the contract, if Anhui Xinqiao Auction Company auctions the equipment again, the original buyer shall bear the liability for breach of contract in accordance with Article 39 of Section 4 of Chapter 3 of the Auction Law of the People's Republic of China.
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