{"id":1559,"date":"2016-04-27T00:31:57","date_gmt":"2016-04-27T00:31:57","guid":{"rendered":"http:\/\/minutes.machine.market\/?p=1559"},"modified":"2016-04-27T00:31:57","modified_gmt":"2016-04-27T00:31:57","slug":"everything-sells-the-ritchie-bros-auction-begins","status":"publish","type":"post","link":"https:\/\/machine.market\/blog\/everything-sells-the-ritchie-bros-auction-begins\/","title":{"rendered":"Everything Sells — The Ritchie Bros. auction began today"},"content":{"rendered":"

By John G. Smith<\/a>, Posted: Apr 26, 2016 6:20 PM | Last Updated: Apr 26, 2016 6:20 PM<\/h2>\n
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EDMONTON, AB \u2013 Everything sells. It\u2019s a firm rule at Ritchie Bros. Auctioneers<\/a>, and there is plenty on hand for the highest bidder. About 10,600 pieces of equipment will move through the company\u2019s sprawling Edmonton complex this week, easily setting a sales record and eclipsing last April\u2019s numbers by about 35%.<\/p>\n

Trucks dominated most of the sales on Tuesday, when close to 10,000 bidders had already registered for a piece of the action. Equipment such as cranes, rock catchers, and trailers will follow.<\/p>\n

\"TrucksThe April auction, which runs until this Saturday, is always the biggest one of the year because it aligns with the time when many resource businesses are waiting out the spring thaw and retooling for summer. Last month, however, it became obvious that records were going to fall. This sale is approaching numbers normally seen during an annual Ritchie Bros. event in Orlando, Florida. Single-event numbers are still higher there, but Edmonton has six sales a year.<\/p>\n

Once sold, much of this equipment will also leave Canada\u2019s famed oil patch in the rearview mirror, as the price of crude oil remains stubbornly low. About 80% of equipment sold through the Edmonton auction remained in the province three years ago. Now Alberta buyers will take home half of it.<\/p>\n

\u201cWhat we\u2019ve seen is a lot of redistribution of assets,\u201d says Randy Wall, president of Ritchie Bros.\u2019 Canadian business. Trucks originally used in energy-related applications are being repurposed to haul logs, agricultural goods, and other freight. Companies in B.C., Ontario and Quebec have been some of the hungriest buyers. And close to 15% of the sales will be completed by U.S. customers who are leveraging the value of a strong dollar. \u201cIt\u2019s by no means a flood like many people presume it is,\u201d he says of the latter market.<\/p><\/blockquote>\n

Wall also stresses that most of the sales have nothing to do with outright bankruptcies. Many of the sellers are just divesting assets to support other activities. Over the last 18 months, he has seen sellers making \u201crational decisions\u201d based on the assets on hand and the projected business to come. The fleets are still there. Just smaller. \u201cSome people use these market changes as reasons to trigger a personal decision: \u2018I\u2019ve had enough. I\u2019m tired. I\u2019ve made a lot of money in my last 10 years. It\u2019s a good time to retire,\u2019\u201d he adds.<\/p>\n

It all contributes to one of the biggest spectacles in equipment sales \u2013 one that even supported a two-season reality TV show.<\/p>\n

\"Buyers<\/strong><\/p>\n

A BIG ORANGE SPECTACLE<\/strong><\/p>\n

The speed of the transactions is shocking when you consider the money changing hands.<\/p>\n

A truck rolls up the ramp as the auctioneer describes what\u2019s on display. The bidders, resting in their orange stadium-style seats, review notes in the massive coil-bound books filled with information on every item. Others watch the action online, knowing their bids are just a click away.<\/p>\n

Then it begins. \u201cBoys, let\u2019s go now,\u201d the auctioneer says. \u201cWho\u2019ll give me 50?\u201d His numbers then intermingle with the filler. \u201cFifty-one-ah-one-ah-one…\u201d Orange-clad bid catchers standing in front of the bay doors, between the trucks and the crowd, watch the crowd for the hand gestures.<\/p>\n

\u201cYee-ah!\u201d one of the catchers yells.<\/p>\n

The bid climbs higher. \u201cDon\u2019t quit now,\u201d the auctioneer says, egging on a bidder who begins to hesitate. The price on a screen overhead inches $1,000 higher in response. The hope is the bid will be high enough, but not too high.<\/p>\n

It typically takes less than two minutes for the bids to finish, depending on the prices. A 2013 tri-drive International Paystar sells for $60,000. Its counterpart, with about 6,000 extra kilometers on the odometer, goes for $57,000.<\/p>\n

Ultimately, the market prices usually prevail.<\/p>\n

\u201cIt speaks to the psychology. Because when you\u2019re buying something, what do you want to do as a buyer? You always want to buy cheap and negotiate your best deal. And as a seller, you always want to sell for the highest price,\u201d Wall says. The buyers\u2019 psychology takes center stage on auction day. \u201cYou want to get the maximum number of people in your facility, competing head to head with each other \u2026 You bring them in with the allure of a potential bargain.\u201d Bargain-basement prices are admittedly few and far between, but they do happen, Wall says. \u201cThat\u2019s what keeps people coming back.\u201d<\/p>\n

Kevin Bochurka, with Eddy\u2019s Gravel Supply in Winnipeg Beach, Manitoba, has been attending the auctions since the 1970s. This time he is in the market for pavers, rollers and service trucks, and he\u2019s hoping for a deal. \u201cSometimes the auction brings higher prices, depending on what the economy\u2019s like,\u201d Bochurka says. Maybe a struggling oil sector will keep some competing bidders at home.<\/p>\n

Rob Luoma from Rocky Mountain House, Alberta, is using the auction to prepare for the future. He and his partners left the forest products industry, but plan to shift to trucking in the next two or three years. That\u2019s when he expects the economy to recover. \u201cWe think the pricing will be good today, and there\u2019s lots of good equipment available,\u201d he says. \u201cMe, my dad and my brother used to come to these all the time.\u201d<\/p>\n

Maybe it\u2019s just the spectacle of the thing that attracts some buyers. \u201cIt\u2019s the biggest auction in Alberta history. Canadian history,\u201d says Tim Olson of Manitoba\u2019s St. Martin Fish, referring to why he came. What does he think about the event\u2019s scale? \u201cTerrifying,\u201d he says with a laugh. He covers his eyes, because he knows the right deal will send him home a little cash poorer and a dump truck richer.<\/p>\n

But some of the equipment will roll right back into the oil patch where it began. Chris Loeppky, an owner-operator from Edson, Alberta, is still hauling fluids, even if business continues to slump. For the right price, he is still willing to upgrade his truck or even add another.<\/p>\n

The business will return, he says. Maybe by June. \u201cHopefully.\u201d<\/p>\n

For now the auction continues.<\/p>\n

Because everything sells.<\/p>\n

Source:<\/strong> Today’s Trucking<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By John G. Smith, Posted: Apr 26, 2016 6:20 PM | Last Updated: Apr 26, 2016 6:20 PM EDMONTON, AB \u2013 Everything sells. It\u2019s a firm rule at Ritchie Bros. Auctioneers, and there is plenty on hand for the highest bidder. About 10,600 pieces of equipment will move through the company\u2019s sprawling Edmonton complex this […]<\/p>\n","protected":false},"author":1,"featured_media":1564,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":""},"categories":[2,13],"tags":[134,1275],"yoast_head":"\nEverything Sells - The Ritchie Bros. auction began today - MachineMarket Blog<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cranemarket.com\/blog\/everything-sells-the-ritchie-bros-auction-begins\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Everything Sells - The Ritchie Bros. auction began today - MachineMarket Blog\" \/>\n<meta property=\"og:description\" content=\"By John G. Smith, Posted: Apr 26, 2016 6:20 PM | Last Updated: Apr 26, 2016 6:20 PM EDMONTON, AB \u2013 Everything sells. It\u2019s a firm rule at Ritchie Bros. Auctioneers, and there is plenty on hand for the highest bidder. 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