(Courtesy of Guest Blogger Adam DeAnseris, regional buyer, HGR Industrial Surplus)
I started in a territory where there was only one buyer for 18 years and have been the New England buyer for three years now. The market was saturated due to the prior buyer’s hard work; so, I picked up where he left off and started to create my own relationships, too. We have had only two buyers serving the same customers who have been loyal for 18 years. When they call me, I almost know for sure we will buy their surplus.
People want to buy from or sell to people they like. It’s a reciprocal relationship. I make sure to describe the process to them, schedule a meeting, take a few pictures, and get an offer back quickly. Our competitive advantage is that we can be a big resource to small, medium and large companies. We get everything out in one fell swoop and don’t pick and choose what to buy!
I work with facilities managers and operations managers. They know that we do what we say, while many companies don’t. For example, the call center cold called a potential customer that had equipment to sell. I went to bid on a lot and saw some other stuff that I wanted to make an offer on. The manager said another company was under contract to buy it, but it was supposed to be moved the prior week.
I purchased the equipment that I came to see (half a semi load) and left the other lot for the surplus buyer who was under contract. About four months later, our call center followed up with the customer to see if it had additional surplus for sale. That original lot was still sitting in their plant. They tore up the bid contract with that buyer for failing to follow through on the contract due to lack of financial resources, and we took it (a packed semi load). We picked it up on time and payed immediately. The equipment was already loaded into a trailer but the prior buyer did not have the assets to pay for it. We have 12 buyers in the country who can buy as much surplus as they want and average $55,000 per month per person. That’s $660,000 per month or almost $8 million per year.
It’s all about customer service. We sell a service, because the manufacturer can sell equipment to anyone. But they get burned by people who don’t do what they say they’re going to do. They’ve invested in new equipment and need the old to go because the new is coming in. It costs time and money if what they sold is not out of there on time. With our customer service and financial backing, we pick up within 24 hours or less in order to meet our customers’ needs.
