Significant market changes over the last few years have transformed the landscape for farmers, with shortages in the labor market, supply chain challenges for parts and new equipment, and a rise in hobby farmers reshaping the dynamics of the used farm equipment market. Amidst these shifts, one critical question arises: Has your used equipment pricing strategy adapted to these changes, or is it lagging behind?
From unpredictable weather patterns to global economic fluctuations, farmers and industry professionals are constantly navigating a sea of uncertainties. However, amidst these challenges lie opportunities for those equipped with the right tools and strategies.
For dealers and lenders, navigating the complexities of pricing in this ever-evolving market requires more than just what’s worked in the past. It demands precision, insight, and adaptability. Gone are the days when you could rely on older tried and true pricing strategies: surveying other dealer prices, looking at average auction prices, or even adjusting your pricing to account for historical depreciation.
Let’s look at how each of these could leave your pricing strategy wanting for more. Using a simple retail sales example, relying on the average price of a piece of equipment cannot capture the tremendous variation in options. Some equipment models have at least 20 or more options, with a possible combination of 34 million different equipment configurations. The number of configurations explains how pricing strategies based on averages or historical depreciation alone can miss the mark significantly.
And how about using auction data to evaluate your pricing strategy? Dealers and lenders should be cautious when using auction data to value equipment because while auction data has value, it is only one data source. The best valuation source for your pricing strategy should come from dealer sold reports.They represent a price determined at arm’s length between a willing buyer and a willing seller.
Enter
IronGuides®, your trusted companion in the quest for optimal pricing strategies. With our proprietary model fueled by actual dealer sales transaction in addition to auction and advertised data, you can harness the power of precise valuations tailored to your specific market conditions.
Iron Solutions, which has a long history in the valuation of agricultural equipment, holds the largest agricultural equipment database of dealer sold and auction transactions in the North American market. Records span 30 years with more than 16,000 models of equipment, totaling more than $80 billion in dealer-reported retail sold reports. With these guides, you can obtain region-specific valuations and adjust for options, including historical values.
For lenders armed with Iron Solutions’ robust valuation forecasts and portfolio management tools, you can assess risk on loans and leases with confidence. Our data-driven approach provides you with the insights you need to make informed decisions that maximize rewards while minimizing risk. We also understand the importance of seamless integration into your existing systems. That’s why our API products are designed to work directly with your current applications, ensuring a smooth transition and hassle-free experience.
The pricing game of equipment sales and financing is changing, and those who embrace data-driven pricing strategies will come out on top. With Iron Solutions as your trusted partner, you can unlock the power of data to drive growth, profitability, and success. Are you ready to take your pricing game to the next level?
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