• News
• Online used equipment platforms come of age - Liebherr’s own digital platform

Online used equipment platforms come of age - Liebherr’s own digital platform

• News
• September 2024

Liebherr’s launch of its own digital platform to sell used equipment directly has opened the floodgates to a slew of major companies taking control of the disposal of their used equipment.

‘Everything is hard before it is easy’ opined 18th century German man-of-letters Von Goethe. Mark Turner, CEO of very much 21st century tech firm Krank, knows exactly what he meant. Over the course of the last eight years, his firm has developed a state-of-the-art platform for trading used equipment.

Trouble is, no one was interested.

Or rather, no one was until one of the world’s largest construction equipment manufacturers, Liebherr, launched its own digital Used Equipment Marketplace, underpinned by Krank technology. Since then, Mark’s phone has not stopped ringing and doors that were once firmly shut are now wide open. Major brands, such as the US’s Maxim Cranes, have also adopted the white labelled Krank platform to support the disposal of their used equipment.

“This is the smallest biggest industry in the world,” smiles Turner, somewhat ruefully. “Everyone knows what each other is doing and it is very, very hard, for new ideas to gain traction. But when they do break through – news gets round fast.”

Game changing moment

After months of touting his platform around the industry, without much success, he sat down with the German-Swiss manufacturing giant Liebherr – and suddenly it was game on. Launched earlier this year, and powered by Krank’s marketplace platform, Liebherr’s Used Equipment Marketplace provides a secure and user-friendly method to dispose of the thousands of used machines that Liebherr acquires as part of global operations annually.

“There’s no doubt it was a game changing moment,” says Turner, “because they saw exactly what we saw in the technology. After a lot of knock-backs, I finally had a sense of validation that this was the future of used equipment sales. Liebherr taking charge of selling its own used equipment shows how digital transformation is enabling companies to go a step further than traditional sales channels.

Krank’s digital solution challenges the traditional equipment disposal routes of using intermediaries, such as brokers and auction houses. With middlemen fees as high as 25% of sale price, sellers are starting to realise that technology can help them take control of the process – and maximise revenues from disposals. Buyers benefit too: they get the assurance of purchasing at the best price directly from the owners of the equipment.

Best of both worlds

"Disposing of a machine through a broker or auction house is a common and straightforward method of disposal,” says Turner. “However, it can sometimes be more costly, with varying results – with the seller often losing control over their inventory and brand. If sellers put in a bit more effort and embrace technology then they can quickly increase their bottom line – and be more effective when selling their used equipment.”

It’s more than just protecting prices: sellers of equipment also want greater control and oversight of the sale process. A major part of this is building a formidable network of current and potential buyers – sales information that auction houses and brokers naturally keep to themselves.

“What we are trying to do with our platform is connect the industry,” says Turner. “I think that’s the real disruptive element of this technology – its ability to rapidly scale professional industry networks. The more people in your network, the bigger the opportunity to organically prime and grow your sales funnel.”

There is also a sustainability element to owners selling their equipment themselves. And that is it doesn’t need to be moved to a third-party sales location. In fact, it only moves when it needs to go to the buyer, thereby keeping its carbon footprint at a minimum.

Perfect ‘halo’ early adopter

Liebherr’s adoption of marketplace technology may have been a watershed moment for Krank, but it seems like a technology whose time was due anyway. With a new generation of tech-friendly management coming of age, and e-commerce and the Internet of Things allowing us to take control of so many aspects of our lives, it was only a matter of time before technology made the business of selling used equipment possible by the seller. And not just for a company like Liebherr, the platform is scalable and just as accessible to ‘mom-and-pop’ yards. But Liebherr was the partner who first recognized the platform's potential for the construction machinery industry."Our collaboration with Liebherr, one of the world’s largest and most respected manufacturers of construction equipment, is reshaping how companies manage their equipment lifecycles," concludes a finally vindicated Mark Turner. "Liebherr taking charge of selling its own used equipment is a turning point for the whole industry. It shows how digital transformation is enabling companies to complement traditional sales channels."