Related Links: Ten Minutes With Michael Kneeland, CEO of United Rentals Caterpillar Crawls Into Auction Territory Construction equipment dealers are increasingly bypassing third-party auctioneers to dispose of used machines themselves. The do-it-yourself auction strategy can both maintain valued customers and groom future buyers. It additionally enables dealers to forgo commission fees, which can run 12% to 15% of the final auction price although costs climb higher for smaller machinery and first-time clients, say industry experts. Equipment requiring pre-auction preparation and repair can increase total fees, too."Everyone wants to be in the auction business," says James J. Jeter, president IronPlanet Inc.,
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.