Thanks to a new revenue sharing business model recently created by EHE Auctions, heavy equipment dealers, rental companies, contractors and marketers will share in the net profits captured through asset disposition.
“We’re creating a revenue-sharing initiative for equipment sellers, retailers, dealers, rental companies and marketers,” said Milissa Wise, Director of Operations for Expert Heavy Equipment, the parent company of EHE Auctions, which is co-owned and operated by Wise who is a United States Marine veteran.
Wise explained that its revenue sharing initiative is specifically designed for heavy equipment dealers, rental companies and contractors, who are reluctant to submit machines to smaller auction houses.
“Most dealers and rental companies have existing relationships with larger auction houses, which make guarantees based on auction history. However, we feel confident that our revenue sharing initiative in addition to no seller’s fees, and allowing them to set a realistic reserve will appeal to their bottom-line,” Wise said.
EHE Auctions offers turn-key, stress-free online marketplace for buying and selling used heavy construction, farm and industrial equipment along with commercial vehicles.
Unlike most auction companies, EHE Auctions does not collect any fees or commissions from sellers, only buyers.
“EHE Auction currently has an agreement with Proxibid to utilize their auction platform and in return, we have agreed to a percent of sales,” Wise noted.
Once Proxibid is paid, Wise said, we are willing to share the net profit with the seller.
“So not only is it risk-free because they can set a realistic reserve, there are no seller’s fees and the seller can share the net profits accumulated from the buyer’s fees,” Wise stressed.
Here’s how it works: ABC rental company auctions $20M annually in equipment and vehicles. They agree to enter a risk free contract with EHE Auctions. They get to keep the $1.2M – $1.8M they would normally pay to the large auction house and they get to share in the profits from EHE.
“Based on this scenario, the seller can expect a minimum of $200,000 back into their pocket,” Wise said.