Whether you are buying or selling heavy equipment, getting reasonable numbers for your items is very important and you do not want to get ripped off. Many companies get stuck in situations that are difficult to get out of. The first situation is one where a business does not have the need for a piece of heavy equipment, they are wanting to sell it, but do not know its absolute value. In the second situation, a company wants to purchase a piece of equipment and not need to pay more than they should have to.

There is 3 main methods you want to start off with with getting your value:

Sales Comparison- To start off you may want to check websites like ebay, lsn, and craigslist to get an idea for the prices time similar to yours are going for. Determining prices of used equipment value is not as easy as what you may think. You will not be able to determine how long it will take to sell, but you will know if the price you have been offered is reasonable.

Cost Methods- Many times your only way of finding out the value is to contact a used machinery dealer that is actively selling equipment. The dealer will be able to tell you the best value of your product that will help you easily sell your farming tools today instead of just accepting someone’s ridiculous asking price online. They will consider market conditions, products that are similar equipment pieces, previous auction sales and many other factors when giving you a solid value or offer on your machinery.

Income Methods- This method will be based off of a value for equipment based on how much income it will make. It may be based on more things when the situation is specifically attached to a certain income flow.

Another factor to consider is that businesses need to know the values during insurance claims or to be sure that they have proper insurance covers.

The widely known things that are used for insurance purposes are cash value, new replacement costs, and reproduce new costs. No matter how big or small your business or projects are, MidSouth can assist you to get the correct equipment to get you started, or help you with the correct value

Equipment can legitimately have at least half a dozen different types of values that apply in appropriate circumstances. There is a hierarchy of different value types ranging from very high to very low that are all market based and completely separate from the ‘book’ equipment values that entrepreneurs see on their annual financial statements.