Every company would want to buy raw materials required to make finished goods at a lower price. This will help them to bring down their manufacturing cost and can make more profits in return. However, the challenge here is to know the source that can provide them the raw material at a lower price. The raw material provider does not provide the stuffs at cheap rates to everyone but there is a simultaneous market that deals with the same stuff at a lower rate. The problem is not everybody is aware of this simultaneous market. Similarly, when it comes to the construction industry, they have one such market from where they can buy heavy equipment at a lower price. There are few construction companies who are in the business of buying construction machines at a relatively lesser price and then let it out to other companies or contractors. They make good money in this transaction as well as are also able to retain the machine.
Repo heavy equipment can be bought at a lower price:-
Buyers of heavy equipment who purchases the machines by borrowing loan and if they are unable to repay the money, the machine is repossessed by the lender. Now, the lender does not want to keep it under its possession for too long. The lender is interested to get its money back and therefore it auctions the machine and sells it to the highest bidder. In this particular case, not many people are aware of such auction and therefore not many people turn up. Also, the lender wants to get the money back that it has lent to the borrower and is not looking to make more money by doing this process. This means they keep the price of the heavy equipment much lower than one can think of. Due to low footfall, the price of the machine does not increase exponentially in the auction and the highest bidder can manage to buy it at a lower price.
Shutting down the business:-
The construction sector is quite a challenging and dynamic one and not many people are able to survive the odds of the industry. This is why many people decide to shut down the business and try something else. The people who are in the process of shutting down their business would want to sell off all their belongings so that they can have some money at the end of their entrepreneurial journey. They will be releasing an ad in local newspaper or simply list the item on some website that deals with buying and selling of heavy equipment. Just in case, you manage to get to know the person, you can directly walk up to him/her and check if he/she wants to sell it off to you. You can check the condition of the machine and give him/her a deal that he can’t refuse. They will be happy to get anything reasonable that you can offer him/her and will hand over the machine to you.