Can the buyer decide the equipment price? I must go to the next unreserved auction held by Ritchie Bros. Auctioneers!
Zhang Rongzhong, Wang Tongdi and Lv Hongxing are known simply as the "Three Brothers" in Wudi County, Binzhou City, Shandong. Thanks to their abundant experience and amount of equipment they own, they are considered to be highly influential in the local construction machinery industry.
The Three Brothers entered the construction machinery industry 20 years ago, and gradually transformed from small businesses with few pieces of equipment to the current big business involved in construction machinery in that area. Huitai Building Engineering Co., Ltd. under the control of Zhang Rongzhong owns 40 - 50 excavators and various types of equipment including concrete machinery and cranes. At present, the equipment mainly applies to saltern (in Wudi County) and Binzhou Port construction and other projects that provide sufficient engineering quantities.
Zhang Rongzhong said: "We purchase new equipment nearly every year to replace the old ones, resulting in relatively frequent equipment transactions." Zhang Rongzhong was invited by Ritchie Bros. Auctioneers to its first auction in China. He had no knowledge of Ritchie Bros.' auction model, and only accepted the invitation in the hope of travelling to Beijing.
Beyond his expectation, Zhang Rongzhong met a new world of used equipment during his tour in Beijing.
Ritchie Bros. held its first unreserved auction in China on April 18, 2013 in Beijing. Zhang Rongzhong tried almost every excavator at the crowded auction site. He described the experience like this: "I knew nothing about unreserved auctions at that time. I just thought the auction site of Ritchie Bros. Auctioneers showed a great deal of equipment, just like a construction machinery and equipment supermarket. I felt relieved as it was unreserved and the price was set by the buyer. What's more interesting was that such equipment purchasing mode could bring passion or even unexpected surprises."
Even though it was his first unreserved auction, Zhang Rongzhong felt excited at the busy auction site. At the sight of the equipment he wanted, Zhang Rongzhong was ready to bid but his friend urged him to "wait for a while". While he waited, the equipment he wanted was bought by another buyer.
Later in the auction, Zhang Rongzhong bought a CX210 excavator he wanted at a good price.
Zhang Rongzhong was so excited that he called Wang Tongdi and Lv Hongxing immediately. Zhang Rongzhong's description aroused Wang Tongdi's and Lv Hongxing's eagerness to visit the auction site. Wang Tongdi can still recall his feelings from that day: "Can the buyer decide the equipment price? I must go to the next unreserved auction held by Ritchie Bros. Auctioneers!"
On November 21, 2013, Ritchie Bros. held its second unreserved auction in China, for which the "Three Brothers" had waited a long time.
The "Three Brothers" made easy progress in the second unreserved auction held by Ritchie Bros. Auctioneers because they had gained experiences from Zhang Rongzhong's first auction activity. They arrived at the auction site early, registered in advance, and personally inspected the condition of the equipment they wanted to buy. Subsequently, they selected their favorite equipment and assessed the price they wanted to pay based on respective capital budget and construction demands.
The auction started on time. The site was in a warm atmosphere and the "Three Brothers" were very excited due to the unique bidding mode of Ritchie Bros. Auctioneers. The "Three Brothers", with good mentality and sufficient preparations, had no restraint and tension that Zhang Rongzhong experienced in the first auction, so they decisively bid on the equipment they wanted. Upon completion of the auction, Zhang Rongzhong obtained four excavators and loaders, Lv Hongxing obtained two imported Doosan excavators, and Wang Tongdi obtained over forty sets of equipment, e.g. loader, diesel generator, angle grinder and polisher.
The "Three Brothers" gained insight into the unreserved auction from their experiences obtained in two unreserved auctions held by Ritchie Bros. Auctioneers.
Zhang Rongzhong says he feels confidence when purchasing used equipment from the auctions held by Ritchie Bros. Auctioneers. "Arrangement and auction flow are orderly and professional at the auction site of Ritchie Bros. Auctioneers. Throughout the auction, the buyers can check and bid on the equipment. It absolutely requires the buyers to be familiar with the equipment and market values."
Wang Tongdi said: "Though the unreserved auction is new to us, we accept such auction mode. In each unreserved auction, the equipment is sold to the highest bidder on the day in whatever price, for which no minimum bidding price or reserve price is set. People's eyes are discerning, so they know the exact price of a set of equipment."
Lv Hongxing who obtained two imported Doosan excavators is satisfied with purchasing imported equipment in the auction held by Ritchie Bros. Auctioneers. Lv Hongxing said: "Compared with some other imported equipment purchasing ways, the practices of Ritchie Bros. Auctioneers are conducted in an open way. Ritchie Bros. Auctioneers also provides coordinated importing services with other import and export service providers, which makes the import and export process simpler. Ritchie Bros. Auctioneers, so to speak, provides a platform for Chinese buyers to purchase not only domestic equipment but also imported equipment."
After several contacts with Ritchie Bros. Auctioneers, the "Three Brothers" expressed their wills to participate in any auction held by Ritchie Bros. Auctioneers. They will also consider selling their used equipment with Ritchie Bros. Auctioneers in the future. Their transformation in thought and attitude from buyer to seller reflects their confidence in Ritchie Bros. Auctioneers!
In their views, the sellers can dispose their equipment more effectively and the buyers are more confident to auction equipment in the unreserved auctions held by Ritchie Bros. Auctioneers, which satisfies the demands of both parties.
Written and published: 2014