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Is your program performing its best? Image: Getty Images<\/i><\/p>\n Put simply, the ultimate goal of any remarketing program \u2014 whether vehicles are sold at a local auction or an online one \u2014 is to sell vehicles you no longer need for the highest possible price. While the two types of programs share the same goal, managing them is often very different. Here\u2019s how to give your online program a boost and make sure you\u2019re getting a healthy revenue stream from the used vehicles you remarket on the web.<\/p>\n One of the clear differences between selling vehicles at a local auction and remarketing them online is the opportunity to reach a much larger audience of buyers \u2014 so be sure your online platform is truly extending beyond your local territory.<\/p>\n \u201cThe single biggest mistake fleet managers make in remarketing vehicles online is to assume that they can use a local auction company that has also added on some online bidding features,\u201d said Joe Lane, national director, state & local government, GovPlanet\/Ritchie Bros. \u201cA local company adding the ability to place a bid online doesn\u2019t ever produce the sustained high number of auction bidders that are achieved by larger, international auction companies that have invested millions in search engine optimization, key word purchases, bidder enrollment, pre- and post-sale marketing support staff, and publicity.\u201d<\/p>\n What to do:<\/strong> Work with an auction company that attracts a global market<\/a>. But before you bring them on board, investigate potential vendors\u2019 web traffic stats to ensure they\u2019re really expanding your buyer base.<\/p>\n Oftentimes, fleets will hold monthly auctions, waiting to open the next until last month\u2019s has closed. But think of it this way: If a used car dealership only released inventory once per month, might they miss out on sales? The same can be true for monthly online auctions. Holding auctions on a more frequent basis (if allowed) can open up more opportunities for sales \u2014 and Lane said the speed with which fleets move assets can have an impact on price. \u201cEvery day of delay in remarketing, the asset drops further in value,\u201d he said.<\/p>\n John Littler, western U.S. business development manager for GovDeals, also suggested adopting a \u201csell now\u201d mentality. \u201cIn order to avoid assets losing value, sell them as soon as they are declared surplus,\u201d he said. \u201cThis will allow for a constant flow of revenue as well as space out any workload involved in the auction process.\u201d<\/p>\n Another option is to offer a \u201cbuy now\u201d feature. Just like eBay, a buyer doesn\u2019t have to wait for an auction to close \u2014 and you don\u2019t have to risk losing that customer while he or she waits. \u201cA dealer\u2019s needs fluctuate. A percentage of their needs come from customers asking for certain inventory,\u201d said Chad Shoemaker, CEO, Flexco Fleet Services. \u201cIf dealers have the option to \u2018buy now\u2019 or have online inventory that changes on an ongoing basis, they can increase their sales and not have to wait for the next sale and potentially lose their customer because of the time lag.\u201d<\/p>\n What to do:<\/strong> Test a continuous sale and\/or a \u201cbuy now\u201d option. Add inventory as it becomes available and have a consistent flow of inventory available to buyers.<\/p>\n Sometimes the frequency of the sale should depend on the vehicle type. For instance, Lane said a weekly, standard online auction may be perfectly appropriate for \u201crun of the mill\u201d assets like used sedans, but highly specialized fleet equipment may need to be featured in highly specialized, specifically marketed auctions to attract a narrow band of buyers. Still other assets may require a timed auction where buyers are given both a bid now or buy now opportunity. Why does the platform matter? It helps you optimize the selling price of your fleet assets.<\/p>\n \u201cThe fleet manager who smartly works with a company that can offer a complete suite of solutions based on which auction modality would yield the highest resale returns and will save a lot of duplication of effort and wasted processing time,\u201d Lane said.<\/p>\n What to do:<\/strong> Recognize there is no one-size-fits-all platform<\/a>. Ensure your vehicle remarketing vendor has multiple auction platforms in place so you can match the appropriate platform to the asset type.<\/p>\n One downside of online auctions is buyers don\u2019t have the opportunity to literally \u201ckick the tires\u201d on your equipment. So, do it for them. \u201cProvide as much information as possible to your buying network, to maximize total disclosure and minimize buying heartache with your online remarketing,\u201d Shoemaker recommended. \u201cMake sure your buying network has the most information available, in order to make intelligent buying decisions.\u201d<\/p>\n For Littler, that means being transparent about both the attractive features and the drawbacks of your vehicles. \u201cIn order to get the most return and to avoid potential buyer complications, market your assets as accurately as possible,\u201d he said. \u201cTo best achieve this, attach service history reports, note the current condition of the asset, and include photos of any known problems and\/or added valuable aspects of the asset.\u201d<\/p>\n To give buyers the information they need, Greg Berry, founder & CEO, Municibid, said it can be easy for fleets to put their best foot forward online. \u201cThere are some simple low-hanging fruit items that can add significant value to their fleet<\/a>. Properly inflate tires, install a new battery, and wash the car before photos are taken … all of which could add thousands of dollars to the sale price,\u201d he said.<\/p>\n What to do:<\/strong> Give each asset a mini makeover. Then, post high-quality photos of the vehicle from every angle, inside and out, along with a video walk-around and a video of the vehicle starting and running. Be thorough with the information you provide and be honest about the vehicle\u2019s condition.<\/p>\n In addition to giving the buyer all of the information needed to make an informed decision, Shoemaker said an arbitration program can also boost buyer confidence. \u201cA well-defined arbitration program protects the buyer and gives them peace of mind that if something major was missed on the posted condition report, then they can work through the issue with the seller,\u201d he said.<\/p>\n What to do<\/strong>: Offer a strong arbitration policy and honor it for your buyers.<\/p>\n by Shelley Ernst<\/a><\/p>\n5 Ways to Improve Your Online Remarketing Program<\/span><\/h3>\n
1. Expand Your Buyer Base<\/h4>\n
2. Increase Your Sales Frequency<\/h4>\n
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3. Match the Platform to the Vehicle Type<\/h4>\n
4. Boost Buyer Confidence<\/h4>\n
5. Offer Buyer Protection<\/h4>\n
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