Sellers who put up their surplus factory equipment or used machinery for sale online are sure to receive several inquiries from interested buyers. But in order to enjoy maximum returns, it is very important to know which buyer is worth investing your time and energy.
Follow these 4 tips to avoid wasting your time on unqualified buyers and know which opportunities are worth your consideration:
- Know the Buyer’s Budget
It is not easy to ascertain a potential buyer’s budget so get to the point with a sound proposition like this one….
Based on our discussion, high-quality second hand industrial machinery could cost you anywhere between the range of ₹ 1,80,000 and ₹ 2,25,000. How does the figure fit your budget?
This proposal should definitely elicit some insights into the buyer’s budget. Typically, the buyer will respond saying, it sounds good or that is way beyond my capacity. This will put you in a much better position to make a decision regarding making an offer or moving on to the next one.
- Assess the Buyer’s Authority
If you are investing your time and effort with anyone other than the decision maker, then you are running the risk of losing your time and effort on the wrong person. So, make sure that you are dealing directly with the decision maker who is authorized to sign your check because this is the best way to weed out time wasters and window shoppers.
- Evaluate if the Revenue is Worth Your Time
Determining your buyer’s revenue potential early on in the process will save you a lot of time and a ton of your energy. For instance, you are expecting a profit of ₹ 3,00,000 over the first year of a 5-year project however, based on your conversations with the buyer it seems like your revenue won’t exceed ₹ 2,00,000 in the first year. But if you feel that the customer lifetime value over the 5 years of project lifecycle will deliver the expected returns, then you might consider this one as a qualified buyer. On the other hand, if this is a one-time deal with no scope of generating any revenue in future, then closing this deal does not make sense. Instead, you would do well if you pursue another interested buyer.
- Determine the Buyer’s Timeframe for Making a Final Decision
After having invested hours developing a relationship with the buyer, understanding his unique business needs and getting your inventory of used machinery for sale aligned with what he wants, if you find out that the buyer is interested but does not have the budget, it can be downright frustrating. That is why it is very important to know the payment cycle early on in the sales process.
This does not necessarily mean that you ignore an interested buyer and pursue a better qualified prospect right away. At any given time, only a small segment of your target market is in the purchase mode so nurture your potential buyers and continue to close deals today and in future.
To sum it up, if you see a sales opportunity where the buyer has the adequate budget, the authority to take a final decision in a timely manner and the deal is going to generate a profit that is worth investing your time and energy then the opportunity is definitely worth pursuing.