Partnered for Success: Loeb Works with Auctioneers to Add Value
By Howard M. Newman, President of Loeb
As published in The Podium (IAA), Fall 2009
"You cannot downplay the significant role a dealer can play as a partner with an auctioneer. Whether the project is a purchase, a guarantee or a commission sale, the dealer brings their industry expertise and an established customer base."
Larry Kadis – President, Federal Equipment Company
"We help change the risk profile on the deal in your favor."
Alan Cohen – Vice President, Aaron Equipment Company
From proper identification and grouping of machinery to leveraging the deep relationships with customers in a given industry, there are many benefits to partnering with an equipment dealer to enhance the outcome of your auction sale.
Loeb partnered on its first auction in 1963 and has since partnered in over 300 auction sales. Working with several top auctioneers, Loeb brings its expertise in equipment valuation and targeted marketing efforts through nearly 130 years of buying, selling, renting, leasing and appraising machinery within the processing and packaging industries.
We provide second-to-none insight to equipment valuation, and our marketing efforts are extensive with a current customer database over six figures deep and with over 40,000 active e-mails. Our data provides the ability to pin point and target market segments specific to industry, end-product, and previous attendance at other auctions and liquidations in addition to tracking a customer's complete lifecycle on all machinery quoted, purchased from, or sold to Loeb.
Even in an on-commission only situation, the value of partnering with a dealer such as Loeb is clear. In recent experience at an auction we were not partners in, we purchased equipment where the descriptions were minimal and the values were not in line with market rate. As that equipment sold from Loeb's inventory, the difference in value was over 1,700%! If this was a 10% commission deal, the commissions generated with Loeb as a partner would be almost $7,000 more on just these items!
Though Loeb started the auction and liquidation arm of the business 11 years before I was born, I was lucky enough to have Steve Winternitz as my first mentor in the used industrial asset world. At the age of only 16, my career and knowledge of the auction world was already kicked off and since then I've seen first-hand the success the right partner can bring to a sale.
The next time you're looking for an auction partner, keep in mind:
- On average, Loeb participates in 16 auction sales every year with an average hammer price of $1,050,000. To date, the largest sale we have participated in was $4,650,000.
- Since starting to track our estimations against actual hammer totals on the auctions we partner in, we have averaged 112% of the estimated value.
- Since 2005, Loeb has been partners on auction deals that have made a profit of over $10,000,000.
- Over 53% of the auctions we are involved with, an Auctioneer calls Loeb. On the other occasions, we are reciprocating deals to the auctioneers that we have previously been involved with.
- Response from Loeb's pre-event marketing averages 83.48% of the total registered at the auction and 90.6% of registered buyers outside of the United States.
For five generations since 1880, Loeb has been a trusted provider of reliable equipment and related services that help manufacturing and financial companies grow their business. Headquartered in Chicago with a 150,000 square foot facility, Loeb provides equipment, appraisal and financial services to global banking organizations and manufacturing companies specializing in the food, pharmaceutical, cosmetics and chemical industries. Loeb services include: equipment sales and purchases, certified market appraisals, liquidation and auction coordination, and purchase lease back financing. For more information on Loeb and their auction and liquidation services, please visit www.LoebEquipment.com or contact Howard Newman at (773) 548-4131.
I encourage everyone to visit the websites of additional dealer/brokers and IAA sponsors, Aaron Equipment www.aaronequipment.com and Federal Equipment www.fedequip.com to understand how they too can change your risk profile and bring their industry expertise and an established customer base to your next auction sale.