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Post by D

Lending and auction – the basics

Thu., May. 29, 2014 - 4 pm | Dave Sommers, AARE, PRI

While visiting with a business owner recently, I learned that he was updating his equipment inventory. As the new equipment was coming in, he realized a need to liquidate some used trucks, tractors and sprayers. He had heard good things about Purple Wave, and said he would like to hire us, but didn’t have a large enough grouping for a complete auction. I was stunned, and a bit embarrassed, to learn that he thought he had to fill an entire auction to sell with us.

The business owner was pleased to learn that most of our customers sell just a few pieces at a time, and now plans to sell with Purple Wave. This conversation reminded me that it’s a good idea to periodically review the basics of our auction method of marketing. The following information may be illuminating to anyone new to purplewave.com, and a good review for the old dogs.

  • purplewave.com is an Internet-only, auction website.
  • We remarket agricultural, construction and transportation equipment.
  • Assets don’t need to be transported to sell; we go to them to gather information.
  • We conduct regularly scheduled auctions.
  • Sellers may sell one or many assets within these auctions.
  • We also conduct single-seller auctions for large asset groupings.
  • We use a seller encumbrance disclosure and pull UCC filings for sellers.
  • We request consent and payout guidance from secured creditors.
  • Assets are typically listed on purplewave.com and open for bidding within 14 to 30 days.
  • Traditional, electronic and telephone marketing is aimed at targeted bidders.
  • Bidders review listed assets and are encouraged to physically inspect them.
  • Transparency allows bidders to call sellers with questions and schedule inspections.
  • Assets sell and buyers pay Purple Wave in verified funds.
  • Invoices are emailed to both parties; asset removal is the buyer’s responsibility.
  • Purple Wave transfers titles to the new owners.
  • Auction proceeds are sent with a detailed settlement statement.

We have a high percentage of repeat sellers. They come back to us due to recovery prices, transaction-ease, marketing excellence and because we save depreciation, opportunity, time, carrying and transportation costs. Many lenders use our auction results for free comparable documentation, and review our listings often for their customers seeking specific assets.

Thanks for reading; now go poke around purplewave.com.

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Post by A

June 12 Annett Construction

Wed., May. 14, 2014 - 4 pm | Aaron Traffas, CAI, ATS, CES

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Aaron Traffas: Hello and welcome to Purple Wave’s Auction Podcast. My name is Aaron Traffas. A large portion of the June 12 construction equipment auction comprises assets from Annett Construction of Milbank, S.D. I’m speaking this morning with Richard Annett about this event. Good morning, Mr. Annett, and thanks for joining me.

Richard Annett: Good morning.

1994 Komatsu PC200LC-6L excavator

1994 Komatsu PC200LC-6L excavator

AT: Tell me about Annett Construction. How did you get started and how long have you been in business?

RA: Well, I graduated from high school in ’62 and my dad was in the road construction dirt work at that time. He figured I’d been goofing off long enough and he put me on a bulldozer and from there I kind of did soil conservation and worked for farmers and townships within a 50 mile radius of Melbank.

Tell me more about some of the different types of projects that you handled.

We worked for soil conservation jobs; we did grass waterways and dugouts for them. We did some different things for game, fish and parks as far as built boat ramps and parking lots for them. We also had a contract with Otter Tail Power, a power plant out there, where we got rid of the fly ash and cinders for 20 years with Otter Tail Power. In the winter months or winter time, we did snow removal work for different businesses and the school lots in the city of Melbank.

Why are you now retiring from the construction business?

Well, I have been fighting some cancer myself and that’s why I’m just going to slow down and try to take it easy and recover from this cancer that I’m fighting a little bit.

Well, I’m sure this was a very big decision for you. Why was it that you chose Purple Wave to handle this event?

Well, they approached me and heard that I was thinking that I would possibly be retiring and selling out my equipment and stuff. They kind of contacted me and I met with Ross and we talked about this auction – online type of construction auction.

Tell me about some of the different types of equipment we’ll be selling for you on June 12.

1966 Terex TS14 scraper

1966 Terex TS14 scraper

Well, over the years we had TS14 Terex Euclid scrapers and Komatsu bulldozers. I’ve got a Komatsu bulldozer and I’ve got a Komatsu excavator – PC200. Like I said, when I did some township regrading of roads and stuff for the townships, we had Champion and Galion motor graders. I’ve got two Champion motor graders still for sale on the sale, so – besides other equipment that goes along with construction business and stuff – chains and other equipment that you always need at the shop.

Richard, tell me about the condition of this equipment Has it all been well maintained?

Well, yeah. Whenever we had any problems with any construction equipment we basically kept it fixed so that if and when we needed the equipment it was ready to go to work. I’ve had a good amount of crew that did a good job of maintaining it – and JD Evans overhauled transmission or other equipment when, and if, I needed it.

Richard, is there anything else you want to say about this auction?

Like I said, we tried to keep our equipment in running condition at all times so that if and when we needed a machine or something – winter time we overhauled and fixed on whatever needed to have some attention – we did that at that time.

I’ve been speaking with Richard Annett about the Annett Construction retirement auction. Thanks again, Richard, for visiting with me this morning.

Thank you for calling.

1984 Champion 740B motor grader

1984 Champion 740B motor grader

I’m going to go now to Ross Schochenmaier, Purple Wave’s territory manager who has been working with Richard on getting everything ready and listed for this auction. Good morning, Ross, and thanks for joining me.

Ross Schochenmaier: Thanks Aaron.

This equipment is listed in our June 12 construction equipment event, and as we record this, we are just under a month away. I see about 60 items listed at purplewave.com. Are there more items yet to be listed?

RS: Correct, Aaron. We have roughly another 50 lots that will be hitting the website within the next two to three days. My goal is to have everything finalized by this coming weekend, with all of the final lots up early next week. The sale should be 100 percent complete by the mid part of next week.

Great. What would you consider to be some of the marquee items in the auction?

If I was in the construction industry and I was shopping, the Eager Beaver lowboy is a very nice unit. The PC200 is a great unit for the age with the hours. The TS14s are very marketable, very good machines. They’ve got good life left in them. Also, if you’re looking for a good, good loader, the Hough and the Fiat are – we’ve been using them getting set up for the auction and they run nice. The equipment is in good shape. It has sat for a while, but we’ve been working hard with the mechanic to make sure everything’s operational.

2000 Eager Beaver 50GSL triple axle detachable lowboy trailer

2000 Eager Beaver 50GSL triple axle detachable lowboy trailer

I understand that everything is located at one location there near Milbank, S.D., is that right?

That is correct. It’s at Richard’s shop off of 12th Street in Milbank. The address is on the website. If you’re not familiar, just head south on 15 and you’ll see the scraper sitting on the highway and then you can just head east from there.

We always recommend that a buyer takes a look at everything before placing any bids. To that end, we have an open inspection scheduled for Saturday, June 7, from 9 a.m. to 3 p.m., during which time anybody can swing by and take a look at everything. If that day and time doesn’t work for somebody, what does he or she need to do to make an appointment to look at something?

They can get ahold of either Richard of myself. Both of our numbers are listed on the sale website. We can make our schedules work. Units can be started up and operated, but with Richard’s health issues if you can’t reach Richard, do not hesitate to reach out to myself. I will be more than happy to help you out.

Tell me about pickup arrangements. After the auction, once payment has been made to Purple Wave and the buyer has invoice in hand, what does he need to do to come and arrange pickup?

1979 Hough-International H90E wheel loader

1979 Hough-International H90E wheel loader

We’ll be ready to begin load out as soon as the sale is done and as soon as the items are paid for. We will have the necessary equipment there to facilitate load out. We put most of the lots on pallets so we’ll have a skid loader there that we can easily load up your truck or your trailer. Bring in your copy of your paid invoice. You can contact myself at that point and we will have a couple of other – of Richard’s former employees that will be working with us throughout load out, but I will be the key point of contact at that point.

How soon does everything need to be removed?

We have 14 days as the typical load out. We do have some flexibility on there. You will notice on a few items – he has Euclid 34LDT scrapers, which are big, old scrapers that actually were used to build the dam on the Missouri River in South Dakota, here. They’re non-operational. They’re very heavy units. We are going to allow for up to 180 days to have those units removed because they are – the story, I’ve been told, is that it takes three dozers to push them, so they’re a big unit.

Ross, is there anything else you want to mention about this event?

Ross Schochenmaier

Ross Schochenmaier

I appreciate all the support that we’ve seen already. Richard is very eager to get this sale moving and we’re going to get everything finalized within the next couple of days. The biggest thing is that if you have any questions about any of the items or if something doesn’t make sense, please don’t hesitate to let me know.

I’ve been speaking with Ross Schochenmaier, Purple Wave’s territory manager for southwestern Minnesota and eastern South Dakota. He’s been working with Richard Annett for the construction package in the June 12 construction equipment auction. Thanks again, Ross, for joining me this morning.

Bidding for the construction equipment auction that includes assets from Annett Construction is open now and will close on Thursday, June 12, beginning at 10 a.m. central. If you have questions about any of the assets listed, or you’d like to schedule an inspection before the auction, contact Richard Annett at 605.291.9872 or Ross Schochenmaier, Purple Wave’s territory manager who’s been working on this event, at 612.834.9836.

Like all Purple Wave auctions, there are no reserves or minimum bids. Items receiving bids in the last few minutes will be automatically extended to give everyone a fair chance to bid. There’s no advantage in waiting, so view the complete inventory listing – and place your bids now – at purplewave.com.

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Post by A

Michael Spradlin new territory manager for Tulsa, southeastern Oklahoma

Mon., May. 12, 2014 - 3 pm | Aaron Traffas, CAI, ATS, CES

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Aaron Traffas: Hello and welcome to Purple Wave’s Auction Podcast, my name is Aaron Traffas. This episode is another in our series of territory manager interviews, and today I’m speaking with Michael Spradlin from Berryhill, Okla. Michael is Purple Wave’s new territory manager for the Tulsa and southeastern Oklahoma areas. Good morning, Michael, and thanks for joining me this morning.

Michael Spradlin: Good morning, Aaron. Thank you for having me.

AT: Tell me about yourself. Where did you grow up?

Michael Spradlin

Michael Spradlin

MS: You know, it’s kind of a neat, little story, Aaron. I actually grew up all over the country. I was born here in Tulsa, Okla. When I was about a year-and-a-half old, we went to a little town outside of Tallahassee, Fla., and stayed there for about a year. We came back to Okla. for about a year and then moved outside of Seattle, Wash., in little towns called Tacoma and Kent. We lived there for a year or two and then down to California. We lived outside of LA and Anaheim and Bellflower for about five or six years, you know, three or four different places there. Then, when I was about 14 years old we moved back here to Tulsa, Okla., and I’ve been here off and on for about the last 20 years or so now.

It sounds like a pretty varied and diverse childhood. Tell me about your business background.

You know, I started at a small appliance parts dealership here in town, called Greer Appliance Parts, when I was about 16 or 17 years old, just working in the back. I worked my way up to the parts counter there and one of my customers one day came in. He owned an appliance store here in town called Hahn Appliance Center. He asked me to come over and working in his parts and service department. As with a lot of businesses in the early 90s, the business continued to grow. We’d never done a million dollars, and then we’d never done two, and each year the business just kept growing so there was an opportunity for people that wanted to kind of just do anything that the business threw at us. We kind of continued to grow. I was there about eight years and Maytag Appliances came calling and asked me to take over the Oklahoma, Arkansas and part of Missouri territory for them – for their builders division. So I did that for a few years, then I came back to Tulsa and worked at a company called Metro Builders Supply, which is another appliance dealer. They did commercial sales, so I started working in the commercial market. I was there for about six or seven years and then had some changes in our personal life and decided to make a change in my life and went to work at – my dad has a church and an international feeding ministry in a little town outside of Tulsa here. I spent a couple years going to Haiti and Panama and just feeding locally. From there, we had – a concrete company started giving us concrete at our church for free as long as we would do the place and finish on it. Doing that, I met people in the redi-mix business and an opportunity with Dolese Brothers came up and that’s kind of how I ended up in the redi-mix business.

You were in the redi-mix business immediately prior to joining Purple Wave. What were your responsibilities there?

I was a – kind of a similar thing – a territory manager. I did the day-to-day sales, managing delivery, managing quality control for my customers, cold calling with my customers and just – my favorite part of this job that I’ve always had that’s kind of transcended all the different positions that I’ve had – just building strong relationships. That’s the favorite part of my job with any sales position I’ve had.

Well, it sounds like your work history has been as diverse and varied as your childhood. How did you hear about Purple Wave?

You know, to be honest, I found it on the Internet on one of the job sites. I’d left Dolese earlier this year and been helping my dad again at his feeding ministry and then traveled all over Central America and been looking for the right opportunity. I saw it on the Internet and was a little leery at first. I’d never been around an Internet auction company, or really auction companies, a whole lot, so I was hesitant. I went ahead and sent the resume in and Jason called and we talked a little bit and the more I talked to Jason and John and the different people involved – and Purple Wave and the philosophy behind Purple Wave just got me excited about the opportunity.

Tell me about your responsibilities now with Purple Wave. What’s going to be an average day for you going forward?

You know, to be honest, I’ve been working on that one all morning, trying to figure it out. Actually, Purple Wave, as you know working with the company – it’s a completely different environment than I’ve ever worked in. I’ve had some great bosses. I’ve worked for some great companies. They’ve always been extremely supportive. The team we have behind the scenes at Purple Wave is just absolutely amazing. So, to be honest, right now I’m going to lean on them a whole lot. Right now I’m kind of working with my customers that I’ve had in the past, reigniting those relationships that I had, calling on customers that I haven’t dealt with before and just trying to build those relationships and explain to them what Purple Wave can do and helping them with the asset management needs that they have.

You started a week ago today, if I understand the timeline correctly, on May 5. Was that your first day at headquarters there?

That was my first day at headquarters.

Now that you have a week under your belt, is the job what you thought it would be? What do you think so far?

You know – kind of what I went into on that last question. I am absolutely amazed. I was telling a customer I was talking to a minute ago – about an hour ago. There’s a Hertz commercial that used to be on when I was a kid. The guy would walk in the front door – the office door – for these people. He would walk through the door and then all of a sudden all these people in these yellow jackets would start squeezing in the door behind him. They were using that as an example of the team that’s behind him as he walks in the door. That is amazing to me. It almost has me in awe and a little bit of fear. To have that many people behind you as a salesman in the field telling you – the meetings that I was in last week and every single one of them said, “Don’t hesitate to call me for any little thing. I’m here to do whatever you need me to do.” To have that philosophy as the backbone of our company is absolutely amazing to me.

You are the new territory manager, as I mentioned in the intro, for Tulsa and southeastern Oklahoma. Can you kind of describe the area that you’re going to be covering?

Michael Spradlin's territory

Michael Spradlin’s territory

You know, right now for the majority of my time, I’ll be covering Tulsa proper. Like I said a second ago, reigniting those relationships, building those relationships. Then I kind of go over west a little bit to Stillwater and down south all the way to the Red River. So we’ve got some rural farming communities, we’ve got a couple of small metropolitan areas – the big benefit for me is just the sheer amount of construction and ag business that we have in this area is pretty exciting.

Tell me some of your personal interests. What do you like to do in your spare time?

You know, I have three kids. I have one in college; he’s an 18-year-old right now. I have a 16-year-old daughter who goes to a school called Victory Christian School here in town. She’s involved in club volleyball, so that takes up a lot of my time there. Then, I have an 11-year-old son who wrestles, plays football and plays baseball. So I spend a lot of my time with them doing that with my wife and obviously the things that our kids do. I spend a lot of time at the Joseph House, which is our feeding program that I’ve talked about a lot. In this last few months, we’ve fed about nine million kids in the last eight months, all over Central and South America. We feed about 1200 families in the rural communities that surround Tulsa – farming communities, elderly people that are retired. We feed about 1200 families and about 6000-7000 people each month. I spend a lot of my time when I have spare time doing that.

I’ve been speaking with Michael Spradlin, Purple Wave’s territory manager for Tulsa and southeastern Oklahoma. Thanks again, Michael, for joining me today.

Find Michael on the web at purplewave.com/michaelspradlin or contact him at michael.spradlin@purplewave.com or call 918.264.9627.

Don’t forget to find us on Facebook at facebook.com/purplewaveinc or follow us on Twitter at twitter.com/purplewave. Subscribe to Purple Wave’s Auction Podcast on iTunes. Search iTunes for “Purple Wave” or use the link on the podcast page on our website at purplewave.com/podcast.

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Post by A

Kemp and Son complete realignment auction

Fri., May. 2, 2014 - 4 pm | Aaron Traffas, CAI, ATS, CES

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Aaron Traffas: Hello and welcome to Purple Wave’s Auction Podcast. My name is Aaron Traffas. We’re conducting a realignment auction of construction equipment in Iowa for Kemp and Son that will close on May 29. I’m speaking today with Jay Kemp about this event. Good afternoon, Mr. Kemp, and thanks for joining me.

Jay Kemp: Good afternoon.

Auction flyer

Auction flyer

AT: Tell me about the company Kemp and Son. How did you get started and how long has it been in operation?

JK: Well, my dad started it – my dad and my grandpa, I should say – and I know in the phone book it says, “for over 50 years.” To tell you how long we’ve been going, I don’t honestly know, but I know it’s over 50. It’s just a dirt contractor and we do a lot of farm work, Core of Engineers, DNR – basically, a lot of government work. We’ve got track hoes, a tile machine, bulldozers, scrapers, side-dump semis, end-dump semi – we do just about all kinds of dirt work.

What kind of areas do you serve?

In government work, we’ve been to Illinois, Wisconsin – working for the farmers, basically, I’m going to say about a hundred-mile radius. When you get too much further than that, they got to be a pretty good sized job just to go very far.

This event is billed as a realignment auction.

Correct.

1998 Caterpillar D6R XL dozer

1998 Caterpillar D6R XL dozer

What does that mean and why are you having an auction?

Well, my dad passed away about 18 years ago. My mom and I and my wife own the business together and right now it’s just becoming more and more apparent that my wife and I need to kind of pull away from this and start up on our own. I’ve got three boys of my own and two of them want to go into this kind of business. We’re just looking to kind of restart something else as our own business and get out of the family thing and get in to our own family.

You’re kind of reshaping your enterprise, it sounds like.

That’s correct.

This has to be a big decision. Why, in the end, was Purple Wave selected to conduct the event for you?

I contacted quite a few other places and my bank talked to me about Purple Wave. Then, quite honestly, I hadn’t heard of you right at that particular time. Then, when I did contact you guys, I got a long time friend that works there, Mike Saxton. I got ahold of Mike and he came out and talked to me and I liked what he was saying and, like I said, I talked to other auctioneers and other Internet places and I was just talking with Mike and then also talking with a couple of people that I do business with. They didn’t even know I was going to do anything with Purple Wave. Your name came up with them and he was telling me how much he liked basically doing business with you guys and a few things which you did. Then, when I did get the meeting with Mike, he told me everything that my other guy that I was talking with told me and I just think you guys are going to do a good job at it and I liked what I heard from both Mike and my other person I talked with. And, also, like I said, the banker told me that he has some other people in business that use you guys, too, and I just thought you guys presented yourselves really well. I liked the way it went, so that’s why I went that way.

1998 Caterpillar D6R XL dozer

1998 Caterpillar D6R XL dozer

Well, it sounds like you had several different reasons in several different areas all pointing to the same solution.

Yep, you’re right.

Well, I see right now on the website there are 74 items currently listed for this auction. Are all of the pieces listed that we’re going to have in this event?

Yeah, I think there’s going to be a few more pieces. We’re still trying to get things bundled up and cleaned up and find everything and get them all on the auction. I think there’s still going to be a few more.

Let’s talk about the items. What types of equipment are we going to be selling?

2003 Caterpillar 325CL Long Reach excavator

2003 Caterpillar 325CL Long Reach excavator

We’ll, we’ve got a couple D6R Cat dozers that are on there. They are a couple nice dozers. We’ve used them. Like I said, everything for sale right now I wouldn’t be selling if I didn’t have the issues we’ve got. We’d be working – which we are – we’re still working a couple of them yet today. We’d be working them all the time, but, like I said, we’ve got the issues of the family stuff and we’re going on our own way, so we’re selling everything. We’ve got, like I said, the two dozers, two D6Rs. We’ve got a D5M LGP, that’s the one for sale. We’ve got a D8H dozer. We’ve got three trackhoes, a 210 Link Belt, a 240 Link Belt and a 325 long reach Cat trackhoe. We’ve got a tile machine – a Speicher tile machine. We’ve got a 575E rubber-tire backhoe. We’ve got pull-type scrapers. We’ve got a four-wheel drive farm tractor; it’s a John Deere. We’ve got semis. We’ve got an end-dump semi; we’ve got two side-dump semis – trailers, that is. We’ve got also a white Freightliner tractor-trailer. We’ve got two Mack tractors. We’ve got two non-ground-bearing triple axle trailers – detach. We’ve got one really nice one, an ’05, and the other one’s a later model. I don’t remember what year but we just updated and haven’t gotten rid of the other trailer so we’re going to sell it in the auction, too. We’ve got quite a few other things such as shop equipment, tools, an air compressor, a MIG welder – we’ve got quite a few shop equipment in there. We’ve got a laser for our tile machine and, basically, all support equipment that goes along with all that stuff – shovels and rakes and spades and, I’d say, wrenches and everything else.

2005 Load King 553SS triple axle lowboy trailer

2005 Load King 553SS triple axle lowboy trailer

Well I’ve been looking at some of the inventory and it looks like Mike has done a great job of getting a bunch of really good pictures and video on some of the more marquee items – video that can be viewed on purplewave.com or on our YouTube channel. Tell me, Jay, about the condition of the equipment. Has it been well taken care of?

Yes, it’s been real well taken care of. Is everything fixed up to the perfect thing? Well, no, there’s a little thing we could have done here and there, but I didn’t know I was going to do this until kind of the spur of the moment and basically had to get it done right away. We’re using this stuff right now and we were ready to go this spring with everything. Like I said, we’ve changed the rails and rollers and sprockets and the idlers on all the two D6s and the D5. The two Link Belt trackhoes, they’ve had everything changed on them such as the rails and rollers and sprockets. We were ready to go to work and then this came around.

Is everything located there in one place?

It will be. Not all of it is there right now, but it will be.

Tell me about Letts, Iowa, where this particular location is. How would I get there? As somebody not intimately familiar with the state of Iowa, where is this auction location?

We’re not too far away from the Mississippi river. We’re about 15 miles south of Muscatine. It’s not too hard to find. We’re about three-and-a-half miles north of the intersection of Highway 92 and 61. We’re on the east side of 61, the long, dead-end road. We’ve got signs that say PURPLE WAVE AUCTION right at the end of the road and it’s not hard to find.

We have a couple of scheduled open inspections from 8 a.m. to 5 p.m. on Saturday, May 24, and Wednesday, May 28. During those times, anybody can stop by and ask questions or take a look at the equipment. In the event that those times don’t work for somebody, what would he need to do to come and take a look at the inventory outside of those times?

My number is on the auction page there and all they need to do is give me a call and I can tell them either right where that machine’s at or we can come look at the stuff any time they want to as long as they give me a call. That way I can tell them right where it’s at and how to get there.

1999 Caterpillar D5M LGP dozer

1999 Caterpillar D5M LGP dozer

What can a winning buyer expect after the auction as far as payment and will there be any loading assistance available?

Yeah. Now, the payment is to Purple Wave and basically they take care of it on that end of it. The load out is basically – I will have a trackhoe will be left there until load out is done. I’ll have either a skid steer or a fork truck there to help load up some of the palleted stuff and some of the pipe and stuff. We’re going to give them 14 days to come get their stuff out of there and, like I said, I will have some support equipment that will have to be left there until the end of that 14 days.

As we mentioned earlier, Jay, you are not going out of the business yourself. You are essentially reshaping the way that your companies will operate, and so you will continue to operate as Kemp and Sons. Will you be continuing the same kind and type of operations or will the services that you offer change?

Right now, we’re looking into trying to do the same kind of a business as what we had been doing. Like I said, I’ve got three boys and two of them are wanting to go in to the same type of work that we’re doing. My wife and I are trying to figure out what all we are going to be needing and what we’re going to be doing and, basically, we’re going to start trying to get some of our own machines. We’ve got jobs going on right now that we’re going to have to start renting and, or, start owning some of the stuff that we need. So we’re going to be getting some of our own machines pretty quick here, and we’re just going to be trying to downsize and get what we need to do what we’re going to do. That’s basically what we’re going to try to do is what we’re doing already.

2005 Link Belt 210LX excavator

2005 Link Belt 210LX excavator

Jay, is there anything else you want to say about the auction?

Well, I just hope everybody can see everything that’s there and is happy with it. I hope they call me up with any questions. I’ll be happy to talk to them and tell them all that I know about it. I hope everybody’s pleased with everything and we can have a good sale.

I’ve been speaking with Jay Kemp about the Kemp and Son complete realignment auction. Thanks again, Jay, for visiting with me.

Thank you. I sure hope everybody gets out there and bids.

Bidding for the Kemp and Son complete realignment auction is open now and will close on Thursday, May 29, beginning at 1 p.m. central. If you have questions about any of the assets listed, or you’d like to take a look at an item before placing a bid, stop by during one of the open inspection periods on Saturday, May 24, or Wednesday, May 28, from 8 a.m. to 5 p.m.

Like all Purple Wave auctions, there are no reserves or minimum bids. Items receiving bids in the last few minutes will be automatically extended to give everyone a fair chance to bid. There’s no advantage in waiting, so view the complete inventory listing – and place your bids now – at purplewave.com.

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Post by A

The economics of selling unreserved

Mon., Apr. 14, 2014 - 1 pm | Andy Artley

Sellers who don’t yet have experience selling assets in unreserved auctions frequently have questions about what to expect. That’s understandable, as a common misconception is that there is greater risk involved in selling on an open marketplace than selling subject to minimums or reserves.

Actually, the opposite is true. If you put a reserve on an asset, you are guaranteeing a chance that it will not sell, which defeats the purpose of having an auction. Also, you will limit your potential bidder quality as many good auction bidders don’t wish to participate in a manipulated marketplace. And, even more to the point, you will have very few dealers and wholesalers coming to your auction which is antithetical to having a great sale. It’s the dealers and wholesalers who are the market makers and understand the base value of the underlying assets so they can, in turn, sell to end users. It’s also the dealers and wholesalers who, just because they are there, naturally attract more end users to show up at an event. But if you sell reserved, the market makers don’t like to bid.

If your assets are commercially reasonable assets that have a perceived value in the marketplace, they will generally bring a fair price somewhere between wholesale and retail on any given day, so long as they are advertised properly. So, with that perspective in mind, let’s examine some possible price expectations for selling at unreserved auction.

Less than wholesale price
It’s very unlikely that your prices will be below wholesale because your buyers won’t allow it to be. Think what would happen to the buying brokers’ or dealers’ livelihoods and all of the inventories they have back in their warehouses if they let your assets sell too cheaply. Not only does it ruin your transaction, but it ruins their business model and their future transactions because they just devalued the marketplace. However, some items may sell for less than what the sellers expect due to lack of understanding of what the market value is of the underlying assets.

Wholesale price
It’s possible that prices will be at the wholesale level, but it is unlikely if there are enough bidders competing against the market makers – dealers and brokers. The end users will always give more than the wholesale price but hope to pay less than retail. By giving your asset enough time to be advertised properly and choosing an auction provider who understands marketing and sales, you will attract more end users.

Retail price
Your assets could sell at retail prices, but you will need several end users who all want it very badly and the assets have to be in high demand in the market place.

Higher than retail price
Aha! Sometimes, though rarely, prices can exceed retail values. That’s the beauty of unreserved auctions. Not only do they not set a bottom reserve price, but they also don’t set a top reserve price. This is the only sales venue in which I have seen items sell for a greater value than the seller placed on it to begin with. But this result only happens if you sell unreserved with a reputable auction company.

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Post by A

Tractor Central inventory reduction auction

Fri., Mar. 7, 2014 - 2 pm | Aaron Traffas, CAI, ATS, CES

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Aaron Traffas: Hello and welcome to Purple Wave’s Auction Podcast. My name is Aaron Traffas. We’re conducting an inventory reduction auction of ag equipment in Wisconsin for Tractor Central that will close on March 24. I’m speaking today with Randy Robinson about this event. Randy is Tractor Central’s General Sales Manager. Good afternoon, Mr. Robinson, and thanks for joining me.

Tractor Central auction flyer

Tractor Central auction flyer

Randy Robinson: Good afternoon.

AT: Let’s say I’m a bidder from outside your geography who has not yet heard of Tractor Central. Tell me about the company.

RR: We’re a ten-store operation. John Deere is our branded name. We encompass probably the northern third of the state of Wisconsin. It’s a large area and sparsely populated on the north, but we have a very diverse farm base – anywhere from row crop, dairy, cranberries, horseradish – just about any kind of crop that you can imagine. So we have a very wide and diverse customer base which leads to the very wide and diverse equipment that we have.

This event is an inventory reduction auction, and it’s quite a bit of inventory. Tell me why you’ve decided to sell this equipment now and why you’ve decided to do it by auction.

Well I think it’s no surprise that the ag economy’s been very strong in the last few years and we’ve kind of built up some excess inventory. A lot of the equipment that we’re putting on the auction is – we have doubles for it or multiples for those units. It’s just a matter of more used equipment that we have on our lots than we have need for our customers, so we’re just going to reduce up inventory. It’s good inventory and it was available for retail a few days ago.

2010 John Deere 9530T tractor

2010 John Deere 9530T tractor

You must have investigated several different options. Why, in the end, was Purple Wave selected to conduct the event?

Well, to be honest we had not thought about strictly online and they came in and told us the market research they’re doing and quite a bit of the demographics where our equipment’s going to be sold. We felt they brought a lot to the table. I really like – I think the customers are going to like, too, what they see on the website for the amount of data that they’ve collected and the videos with all the large pieces of equipment. I really like what they’ve put together for displaying the equipment and have been a very professional company. They’ve got a lot of good research on the front end, so we’re excited about going with them.

Let’s talk about the equipment. What types of equipment are we going to be selling and how much is there?

2012 John Deere 9460R 4WD tractor

2012 John Deere 9460R 4WD tractor

Well, we’ve got – I believe there’s 65 items there, and it’s very wide and diverse. We thought we should have something that would appeal to just about anybody. We’ve got a late model 9460R wheel tractor – it was a 2012 – all the way down to a John Deere 2010 tractor from the 1960s. There’s a 7810 tractor in the middle there – all different types of price points for a wide variety of customers, and not only in tractors but in just about all the equipment.

This inventory is located at several different Tractor Central locations, and each item has the location listed in the description. We have a couple of scheduled open inspections at the locations that have assets in the auction. Those scheduled inspections are Friday, March 21, from 8 a.m. to 5 p.m. and Saturday, March 22, from 8 a.m. to 2 p.m. During those times, anyone can swing by and ask questions or take a look at the items. In the event that these times don’t work for somebody, what does he or she need to do to take a look at something or ask questions outside of those specified times?

I think we’ve done something rather unique. What we’ve done there is we’ve posted the actual salesman that traded that piece of equipment in. So that phone number and that individual that is posted with each item there is actually the salesman that traded it. Nobody more so than them are going to know about that equipment. They’ve been instructed to be very helpful and get you the information that you need and tell you what they know about that equipment. That’s the actual salesman that traded it in and his cell phone number.

Tell me about the after auction experience. What can a buyer expect after the auction regarding payment and loading assistance? How long before the purchases have to be removed?

1963 John Deere 2010 tractor

1963 John Deere 2010 tractor

Payment is arranged through the Purple Wave auction, and when we are notified that the unit is paid for, we will release that unit. As soon as we’re notified – I guess we’re notified via email – we’ll be happy to load during our normal business hours which is 7:30 a.m. to 5:30 p.m. weekdays and from 8 o’clock until 1 o’clock on Saturdays. We’re not going to charge for the loading, but if there’s any disassembly required, that’ll be at regular shop time. It needs to be prearranged, and there’s flat rate charges for removal of duals which will be posted on the auction items. We would expect that all items be removed in about two weeks, but we’ll work with the customers. We understand that there’s maybe somebody in Texas or far away that maybe has some trucking schedules. We’re not going to slap a storage fee on there, but if it gets to be out there a little ways we’ll probably have a discussion with those customers. We’ll be very accommodating.

I would guess, as with most things, communication is probably key in those situations.

Correct. Yeah, you know, if there’s a loading issue or a trucking issue if we’re kept informed – as long as the equipment is paid for – we’re not real excited, but obviously we’re going to have some space issues, you know, as we get into spring planting season.

As we’ve mentioned, you’re not going out of business, this is simply an excess inventory reduction. Will you be offering any kind of financing or other incentives for prospective bidders?

2009 John Deere 7750 forage harvester 1,534 engine hours on meter 1,113 cutter head hours meter John... 2009 John Deere 7750 forage harvester

2009 John Deere 7750 forage harvester 1,534 engine hours on meter 1,113 cutter head hours meter John… 2009 John Deere 7750 forage harvester

Yes, on select items – and they will be identified on the items – we will be offering John Deere Finance to qualified buyers. It must be pre-approved 48 hours prior to the closing of the auction. The problem there is because it closes on a Monday and it closes on that weekend, so we need to have those pre-approved by Friday so you can bid in confidence that you know that you’ve been approved to bid at your desired level. Mostly it’s going to be on the larger items, the larger tractors, and we’ll identify those on the select items there.

What kind of process is that in order to get approved? In other words, if I wanted to explore that as an avenue to help me with a purchase – first of all, I assume that waiting until that Friday before the auction is probably a bad idea to start that process, but what kind of time frame are we looking at and what kind of information would you need from me to get that pre-approval?

Basic financial information – we’re going to need at least a couple days. Most applications are approved within a matter of a few hours, but a guy should have a little bit of extra time there to communicate back and forth what you’d like to see, but your basic financial information is what you’re going to need. To do the process, contact the individual that’s phone number is posted on that individual item, that salesman, and he will be happy to help you complete that.

Randy, is there any kind of warranty offered on any of these purchases?

There are some units that qualify for the original factory warranty. Those can be identified by calling that particular salesman that – his phone number is posted there, he can research that and tell you if there’s any original factory warranty time still remaining on that.

Randy, is there anything else you want to say about the auction?

2012 John Deere 8310R MFWD tractor

2012 John Deere 8310R MFWD tractor

The equipment that we’re selling isn’t something we cleaned out of the back rows and said this stuff is just in dire need of repair and let’s just clean it out. This is equipment we’ve had for sale to retail customers. I would say the greatest majority of it has been through the shops and been reconditioned and cleaned and ready for retail sale. This is an inventory reduction, it’s not a disposal of bad equipment. I would encourage people to call the salesman whose number is listed and get a good description of it and feel confident about what they’re buying.

And you mentioned it earlier, but I want to underscore the fact that the majority of these assets have video posted with them and that’s going to be a very powerful tool to get on and watch that machine run and learn more about that machine right there on the Internet before picking up the phone and making that phone call.

Yeah, correct. That’s a great feature to actually see that it, you know, starts and runs and moves and just see the functionality of it other than just a still photo. That’s a great feature.

I’ve been speaking with Randy Robinson about the Tractor Central inventory reduction auction. Thanks again, Randy, for visiting with me this afternoon.

Alright, thank you.

Bidding for the Tractor Central inventory reduction auction is open now and will close on Monday, March 24, beginning at noon central. If you have questions about any of the assets listed, or you’d like to take a look at an item before placing a bid, stop by during one of the open inspection periods on Friday, March 21, from 8 a.m. to 5 p.m. or Saturday, March 22, from 8 a.m. to 2 p.m. Contact information for the salesperson representing each item can also be found in the items’ descriptions on purplewave.com.

Like all Purple Wave auctions, there are no reserves or minimum bids. Items receiving bids in the last few minutes will be automatically extended to give everyone a fair chance to bid. There’s no advantage to waiting, so view the complete inventory listing – and place your bids now – at purplewave.com.

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Post by J

Purple Wave sponsors event at National LICA convention

Fri., Feb. 28, 2014 - 4 pm | Jordan Sterling

nlicaThe National Land Improvement Contractors of America is an organization of conservation-minded earth moving contractors with members and state chapters from coast to coast. The members of the LICA offer services comprising grading, excavating, drainage, landscaping, paving, wetland development, site preparation and more. Construction equipment is crucial to these operations, and Purple Wave’s services are well suited to help LICA members manage their equipment needs.

A member of 5 of the 19 state chapters, Purple Wave enjoys a positive relationship with LICA contractors in all states, including conducting a live benefit auction for the Kansas chapter.

This coming weekend, I’ll be traveling to Las Vegas, Nev., for the 2014 National LICA Winter Convention. It will be held at the Riviera Hotel and Casino tomorrow, March 1, through Monday, March 3.

On Sunday, we’ll be sponsoring the Associates’ Night event from 7 to 10 p.m. If you’re going to be at the show, stop by and catch up with me then or visit our booth any time during the show.

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Post by A

Trade shows for March 2014

Thu., Feb. 27, 2014 - 1 pm | Aaron Traffas, CAI, ATS, CES

We’ll be attending six conventions in March. If you find yourself at one of them, be sure to stop by our booth or seek out our crew to visit about the ways Purple Wave can help you buy and sell equipment.

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press release

Purple Wave featured in I-NEDA magazine

Thu., Feb. 20, 2014 - 10 am | press release

This article was featured in the Suppliers Spotlight section of the January/February issue of The RETAILER magazine from the I-NEDA. We thank them for the permission to reprint.

Purple Wave, one of the fastest-growing auction companies in the country, is transforming the way sellers reach buyers to turn assets into cash. The company specializes in liquidating equipment and vehicles through no-reserve public Internet auctions – providing an easy, straightforward way to sell used equipment quickly and efficiently.

“At Purple Wave, we operate a very simple, straightforward system,” said Andy Artley, auction director at Purple Wave. “Quite simply, we bring a very large marketplace to our clients in a very transparent manner so people can bid in confidence.”

The Manhattan, Kansas-based company has grown quickly since its humble beginnings in 2000. Last year, Purple Wave conducted 179 auctions, sold more than 30,000 assets, and had nearly 2.6 million potential bidders, with an average of 16,600 visitors daily.

The full service auction company conducts regularly scheduled no-reserve auctions and provides turnkey service for sellers from start to finish. “All you have to do is hire us and we’ll get the job done for you,” explained Artley. “We handle all of the marketing and details of the transaction, from the title, to asset transactions and collections.”

The auction company works to make things as easy as possible for the seller, and this includes leaving the equipment in their possession. “We have discovered that if we do a good job figuring out where the market is at and leave the asset with the owner, it translates to some extra recovery dollars for the seller,” said Artley.

A Purple Wave team member goes out and inspects the equipment, collects data, takes photos and a video, and posts the information on their website. “Our goal is to tell a story about the piece of equipment,” said Artley. “Ultimately, we want the listing to cause potential buyers to pick up the phone and call us. We want them to ask questions and discover as much as possible about the equipment before they bid on it. We want them to visualize the piece of equipment in their fleet.” Listings are typically posted from 21 to 30 days.

A lot of factors are considered when scheduling an auction. “Instead of blindly saying we’re having an auction, we evaluate what the asset is, determine the underlying marketplace, target buyers and potential new users, and work to attract them to come to the marketplace specifically for this item,” added Artley. “The end result translates to a good commercial transaction with a happy seller and buyer.”

Purple Wave employs a staff of 76, with 40 people in the field. “A lot of our employees have experience in the construction and agricultural industry, so we are knowledgeable about the equipment being listed,” added Artley.

He concluded, “As an auction company, we understand how to market equipment. Part of this understanding is researching and understanding the assets and people you’re marketing to in a simple, straightforward manner. That’s how we get the job done at Purple Wave.”

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Post by A

Clarence Collister, territory manager for southwestern Missouri

Tue., Feb. 11, 2014 - 3 pm | Aaron Traffas, CAI, ATS, CES

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Aaron Traffas: Hello and welcome to Purple Wave’s Auction Podcast, my name is Aaron Traffas. This episode is another in our series of territory manager interviews, and today I’m speaking with Clarence Collister of Lake Ozark, Mo. Clarence is Purple Wave’s territory manager for south central and southwestern Missouri. Good morning, Clarence, and thanks for joining me this morning.

Clarence Collister: Good morning, Aaron. Thanks for having me.

AT: Clarence, tell me about yourself. Where did you grow up?

Clarence Collister

Clarence Collister

CC: Well, I was born and raised in Callaway County in the town of Fulton, which is the seat there for Callaway County. That’s where I grew up and went to high school and spent my childhood and my young adulthood.

What happened after hight school?

After high school, I tried my hand at college. I didn’t do really well and ended up spending four years in the Navy.

What did you do while you were there?

I was an aviation boatswain’s mate handler. We handled the firefighting duties on base stations and then also did the plane directing aboard the aircraft carriers.

After you left the Navy you entered the business sector. Tell me about those previous careers.

Well, after I got out of the Navy, I tried my hand at a couple of different sales jobs, those being selling radio advertising and insurance sales. I operated a small hog production farm. Then, I got into the equipment business with Case – a local dealer – and worked for them for about seven years. Then, after being with Case, I was with a Caterpillar dealership out of Kansas City for ten. It got bought out and another Caterpillar dealer bought them and I was with them for a year. I just really wasn’t quite a fit for the management of the new dealership. I didn’t fit in with them and they didn’t fit in with me and I decided to do something different and that’s how I came about to be with Purple Wave.

How did you first hear about us and how did you get the job?

Well, for being in the construction business for about 19 years, I guess, prior to joining Purple Wave, I had used and been on the website quite a bit looking for equipment values and seeing what was out there and who was buying and selling equipment. Purple Wave was a great resource for that. Then, I’m going to say probably about three years ago, I had the opportunity and the pleasure to meet Aaron McKee, one of the founders for Purple Wave, at a commissioners convention. I was very much impressed with his demeanor and character. When I started looking for work, I gave Aaron a call and he said submit a resume and they had an opening that came up about four months later and I interviewed and here I am.

Clarence

Clarence serves southwestern Missouri

And there you are in Missouri. Describe the territory that you cover.

Well, I handle the southwest corner of Missouri, which is about 21 counties, basically running from Lake of the Ozarks down to the Arkansas line, which keeps me pretty busy.

Tell me what that means, exactly – keeping busy. What have you found your roles and responsibilities to be and what’s an average day look like for you?

Well, being a territory manager, my responsibilities are everything from actually getting in contact with the seller, making sure the pictures and the asset descriptions are complete and adequate, and then actually following that right through the sale. As a territory manager for Purple Wave, not only am I just interested in selling your equipment, but I’m also interested in making sure you get a good return for your equipment. That involves, a lot of times, calling bidders and reaching out to people that may be interested in your asset and getting them registered and getting them to bid on your item. The other thing that’s one of the nice things about working with Purple Wave is no day is exactly the same. Some days involve the data capture – taking the pictures and, like I said, listing and making sure the descriptions are accurate – and then the next day is kind of follow up after somebody sells with us, making sure that their load out goes smoothly and making sure that they’re happy with their auction results.

Well, we’re always after happy customers. Tell me about the response you’re seeing in your territory from your sellers and your bidders and your buyers.

The response to Purple Wave has been outstanding. The results we get are also outstanding. Purple Wave, in the auction industry, really has the reputation for hitting that market value. I think Purple Wave does that better than anybody else and the number of repeat customers that we get is really a testament to that fact.

Well, Clarence, you started with us last June, so you’ve got not quite a year with us. How are you liking it so far?

I love it. To be honest, they’ll have to run me off with a stick. I find the job very challenging and very rewarding.

Tell me about some of your personal interests when you’re not working. What kind of things do you like to do in your spare time?

Spare time? I don’t have a lot of it, but one of the things that I enjoy doing is I have a Harley-Davidson. I enjoy motorcycle riding. I started out on a Triumph when I was a young man. I actually bought it when I was in the Navy down in Florida and rode it back to Missouri. I enjoy getting out on my Harley and getting the wind in my face. I enjoy that. The other thing that – when I was a younger man, I hunted a lot. As I moved from Callaway County down to the Lake of the Ozarks I kind of got out of the hunting. Just about two years ago, my oldest daughter decided she wanted to take up deer hunting, so she and I have been deer hunting together the last two years. The first year we went, we weren’t able to harvest anything, but the last year we both harvested deer. It was pretty enjoyable.

I’ve been speaking with Clarence Collister, Purple Wave’s territory manager for southwestern Missouri. Thanks again, Clarence, for joining me today.

Well, Aaron, I appreciate you having me on. Thank you for your time.

Find Clarence on the web at purplewave.com/clarencecollister. Contact him at clarence.collister@purplewave.com or call 573.434.0019.

Don’t forget to find us on Facebook at facebook.com/purplewaveinc or follow us on Twitter at twitter.com/purplewave. Subscribe to Purple Wave’s Auction Podcast on iTunes. Search iTunes for “Purple Wave” or use the link on the podcast page on our website at purplewave.com/podcast.

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