Auctions

RITCHIE BROS. RAMPING UP AT NEW MALTBY SITE

BY PETER HADDOCK

Ritchie Bros. has held its final auction of the year at its new facility at the old Maltby Colliery near Rotherham. It was the first time the business will get back to doing its famous ramping of equipment on the site itself, which previously used to be home to hundreds of coal miners.

Over the coming months and years, the 26-hectare site will be transformed into a state-of-the-art live auction and equipment care facility. To see the full scale of the site and learn how it’s already transforming the services Ritchie Bros. is able to offer buyers and sellers alike, Peter Haddock went to site to take a tour and meet with Ritchie Bros. Sales Director, Rupert Craven. Driving into the new site it’s not apparent just how big its footprint is. What I first thought was the yard itself, I later discovered that in the plans, this space will actually become a very big customer carpark. It was only when I was taken up onto the huge spoil pile neighbouring the site, that I could understand how its planned transformation will take Ritchie Bros. and its customers to the next level, as Rupert explained. “Ever since we first started our auctions in the UK, in 1987 we had the vision to grow the business and acquire our own facility. Having outgrown our previous home in Donington Park, we actively started looking for our own premises a few years ago. In Maltby, we have found a site that will accommodate all of our plans, a partner in Hargreaves Land that shares our vision and a community that is equally as excited as we are to breathe a new life into what was the employment hub of the town. “This transformation includes clearing the site, by knocking down the main colliery building, whilst renovating other structures to create a huge space, where we will be able to store equipment all year round. We also have plans to develop additional services for customers that are looking to invest in their equipment, to achieve higher potential values at the auction.” Like most people, before meeting Rupert, I made the assumption that Ritchie Bros. focused purely on unreserved auctions. But on visiting its rbauction.co.uk website before my visit, I discovered there was more to Ritchie Bros than meets the eye. So I was keen to find out more from Rupert about the other services it now offers.

Other Services

“We are well known for our live auctions, but what people don’t realise is that we can help them release the value of their used equipment and assets in numerous ways, especially as we now have a site that can store them all year round. “For example, one of the things that people really don’t know about, is that we can actually come to their yard or any specific location to assess and purchase their equipment directly from them. This goes for single units or entire fleets, so we will simply make an offer, pick up the equipment and the customer can invoice us for immediate payment. It’s very similar to services like we buy any car. And just like people

using these services, we are finding more plant owners using this as an alternative to dealer trade-ins, or a simple and quick way to realise asset value with minimal hassle. “We have also noticed that the main reason for the increase in customer enquiries for these types of valuations is being driven by the fact that trade-ins are now becoming more difficult. This is particularly the case for scenarios where dealers of one brand of equipment are increasingly reluctant to take another brand in part exchange. When we do purchase equipment like this, we simply put it into one of our live or online auctions, where it is joined by equipment from other UK sellers.” Talking to Rupert, what I didn’t realise was that different equipment types are more popular in different parts of the world. For example, Ritchie Bros will often advise customers to ship products like those made by Liebherr to its auction at the Port of Moerdijk in the Netherlands. “If customers have a specific item to sell, we will also look at the markets in Europe and the USA, in particular, to see where they could have the biggest profit potential. Again, it’s a simple process, as we can work out all of the logistics, building this into an overall package.” Having only previously experienced an auction when I covered a Caterpillar specific event with IronPlanet, I was also keen to find out whether Ritchie Bros. will be bringing the brand back to the UK after its acquisition in May 2017. “In the UK we are well known as Ritchie Bros. so what we have done is integrated the comprehensive ‘Ironclad’ inspection process developed by IronPlanet into an online Ritchie Bros. offering, which significantly differentiates us in the market, by increasing confidence for both buyers and sellers. “Here our approach is slightly different. Firstly for online monthly auctions we work with customers to put a reserve on every unit in the auction. This gives individuals and businesses a guarantee that the equipment will not be sold for anything less. Of course, the success of a reserved auction lot is all about getting the reserve right, so the people in the market will bid for the unit. This is where our expertise in equipment valuation comes into play, to support customers, who now also have an additional selling choice with our online Marketplace E platform. “This is a bit like an eBay platform for plant sales, where we actually offer the buyer the opportunity to bid for the unit or make an offer. Behind the scenes, this site is managed by the same team that manages the Ritchie Bros unreserved and online auctions. They work with both sellers and buyers to negotiate a sale.” Having already witnessed how the IronPlanet inspection process works, the

WE ALSO HAVE PLANS TO DEVELOP ADDITIONAL SERVICES FOR CUSTOMERS THAT ARE LOOKING TO INVEST IN THEIR EQUIPMENT, TO ACHIEVE HIGHER POTENTIAL VALUES AT THE AUCTION

clear difference for buyers and sellers is the level of detail that a qualified inspector goes through. Each piece of equipment is tested, and its operational state documented with engine and hydraulics covered. Videos are also produced with the full history of the machine available to download online. In addition, fluid samples are taken and analysed so that buyers can identify the inner health of the machine. “Because we guarantee the inspection, buyers know that it is our responsibility to ensure the equipment they receive is in the exact working order detailed in our report. This gives them the confidence to purchase and the seller the confidence that we are representing them in the best possible way,” says Rupert With another successful auction complete, it is clear to me that the move to Maltby has ramped up the services Ritchie Bros. is able to offer in the UK, opening up a great deal more for both buyers and sellers.