Transcript for Current Climate of Asset Liquidation
Chris Schwartz: As we are in this unique financial situation with inflation and where things are at in the world, can you speak to the current climate of what you’re seeing in asset liquidation for prices and what you’re seeing out there right now?
Mike Hopper: If you have the ability to sell equipment, I have never seen prices higher. Because of the log jam of trying to get new equipment, people are buying used equipment at higher prices than they have in a very long time. I’ve been in this world for about nine years. I don’t know that we’re in… I can look at individual items and basically say, I’ve never seen one go for that much. And that’s happened to me over the last three to six months on almost every auction that we’ve had.
So from a pricing standpoint, we’re getting as good a pricing on stuff as we ever have, which is great. Obviously the challenge is, part of the reason we’re getting all that great pricing is because people can’t get what they want from the new equipment that they have, or the stuff is on order and it’s going to take however long. And so it’s the double edge sword for sure.
Chris Schwartz: Yeah.
Mike Hopper: But if they have the ability to sell, now is absolutely the time to sell with where things are… What we’re getting for pricing as far as the website goes. You see more of it than I do, probably. I don’t know if there’s anything you can add to that, but…
Chris Schwartz: Well, when we’re talking about eight, 9% inflation and prices soaring for everything from lumber to gas and everything else, I think auctions are uniquely positioned to leverage that because what this was worth last week could change next week.
Mike Hopper: Yes.
Chris Schwartz: So as far as an auction, we are in the moment, what is it worth right now? So I think, partially, we are shielded from the impacts of inflation because the market’s going to determine what it’s worth today. Not next week, but today.
Mike Hopper: Yeah.
Chris Schwartz: And that is important. And it allows us to find true value and find true value today. And in conjunction with the marketing that we do to bring all those buyers in-
Mike Hopper: Yep.
Chris Schwartz: That has been a recipe for success for us.
Mike Hopper: For sure. Yeah. It’s amazing to me to watch auctions close nowadays with the number of items that are impacting the pricing like I’ve not seen for quite a long time.
Chris Schwartz: Yeah.
Mike Hopper: For sure.