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October 2 LaForge Construction retirement auction

Fri., Sep. 12, 2014 - 9 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 retirement auction for LaForge Construction in Parsons, Kan., that will close on October 2. I going to speak this morning with Kenny LaForge about this retirement auction. Good morning, Mr. LaForge, and thanks for joining me.

Auction flyer

Kenny LaForge: Good morning, thank you.

AT: We spoke in February of last year about the Interstate Electrical Construction auction we conducted for you in March of 2013. At that time, you were liquidating Interstate Electrical and going to focus on LaForge Construction. For anyone who didn’t get to hear our last conversation, tell me about LaForge Construction.

KL: LaForge Construction was started in 1990. It was kind of an off shoot of Interstate Electrical. It was founded more with an emphasis on diversification in southeast Kansas, which is a bit rural. In effort to make a living we decided to couple it up with another company and that got us started. We started real small – just a couple of people on that side and all through the next 24 years it grew. It’s still a small company but we could do a lot of different types of work and that’s what we did.

Why have you now decided to retire?

Well, it’s pretty simple. It’s kind of a long range plan, if I may. We closed the electrical business down in March of 2013. I turned 61 this year. My wife’s retired. It’s just time to do something else. I’ve been plugging along for almost 40 years in this construction business and I really thought that was long enough.

2004 Caterpillar 308C CR mini excavator

2004 Caterpillar 308C CR mini excavator

Tell me about your experience with the Interstate Electrical auction. You must of had a positive experience with Purple Wave for you to select us again to handle your retirement.

It was pretty neat. They did a good job. It’s kind of simple. I looked around initially at which way to go and didn’t have many reservations about Purple Wave but, obviously, the unknown kind of does creep in, but they did a great job top to bottom. We organized fairly well. It went well. They did a good job and when it came to decide how to do this auction it was pretty much a no-brainer for me.

Well let’s talk about the auction. I see, right now as we speak, over 200 items listed already at purplewave.com. Tell me about the different types of equipment that we’re selling in this event and give me some details on a couple of the marquee items.

Well, like I said, we did water and sewer line work – rural water, city water, a lot of sewer work, pump stations – so we had a pretty broad range of equipment and tools. We did a lot of directional drilling. We’ve got three directional drills – one being a rock machine. They’re well maintained. They’ve been barned an awful lot. They’ve been used but they’re in very good shape. Plus there’s lots of tooling that comes with those of all sizes and types, rock and dirt both, so that’s a nice couple of items. We’ve got a wide assortment of backhoes, rubber tire, plus track machines in the mini size up to 320 in the CAT version. We’ve got probably eight or ten trucks – three or four nice one-ton duallys – diesel – that are set up with compressors, welders – toolboxed up real solid – pintle hitches – just good trucks.

Tell me about the condition of the equipment. Has it all been well-maintained?

2008 Ford F350 Super Duty XL service truck

2008 Ford F350 Super Duty XL service truck

Yeah, we’ve done a pretty solid job taking care of things. We sure spent a lot of money on stuff so we must of done something right. They’re used machines, for the most part, but several of them were bought new – some bought used. We used them everyday, and they had to be running, so we took good care of them and the guys took some pride in that. They did a good job keeping things rolling and keeping things running, so that was important to me.

Tell me about the auction location. Where is everything located? Is it all in one place?

Yes, it’s all in our yard in Parsons on South 59 Highway. A lot of the tools and small items – jumping jacks, etc…are in a barn that’s lit – concrete floor on pallets. It can be viewed about anytime. We’ve got a couple open house dates I think you’ll probably mention in a minute, but yeah, it’s all in our yard sitting behind locked gates with security so we’re in good shape and ready to go.

Well the open inspections are scheduled on September 26 and September 29 from 8 to 4 on both days. In the event that that doesn’t work for somebody to come and take a look at the items you’re selling, what’s a good way to get a hold of you to schedule an inspection of some kind?

Just call our office number, 620.421.0420. Ask for Kenny or Bob and one of us will be around to show anybody about anything – run it, roll it, whatever they want to see done with it. We’re not real busy now with things kind of winding down so we’ll be happy to – if someone’s schedule needs to jump in a little quicker than the what the open house dates are that’s fine with us.

For a buyer who has made payment to Purple Wave and has invoice in hand, what’s the process for coming and picking up the purchases and will you have some kind of load out assistance available?

2008 Case 580 Super M Series 3 backhoe

2008 Case 580 Super M Series 3 backhoe

Yes, we will. We’ve got a forklift. We’ll have several items that have different fork mechanisms. We can help load up anybody with about anything we have here. We have a large loader with forks – small forks. That won’t be a problem. We have a loading dock where all the tools are, so if someone comes with a flatbed dump truck, two ton truck – some type, we can take it right into the back of a truck easily and off they go, so that will not be a problem at all.

Do you prefer buyers make contact with you before heading your direction?

It ought to be convenient for both of us probably to make sure they don’t catch us both gone for some reason. It’s not absolutely necessary, but it’s certainly preferred.

What kind of time frame are you looking at for everything to be removed?

I would think within a couple weeks is good. We also have a few things here miscellaneous types that we didn’t sell or couldn’t sell. Up to a couple three weeks we’re going to be okay, but I don’t want to string it out much past late October, which I think that will be pretty good for most folks.

Kenny, what are you looking forward to doing after retirement?

You know, that’s a good question. My wife has retired so we’ll travel like most people – get out of town a little bit. We have some spots we’d like to visit in different parts of the country, so no big agenda yet – quit answering the phone so much and do whatever I want when I want. Nothing large is waiting for me so we’ll see how things go.

Well, Kenny, is there anything else you’d like to say about this auction?

1994 Caterpillar 320L excavator

1994 Caterpillar 320L excavator

No. We’re happy to be here. We’re happy to have Purple Wave. It’s a nice union, so to speak. We’re looking forward to things wrapping up in two to three weeks and unloading things and loading people up and send them on down the road.

I’ve been speaking with Kenny LaForge about his retirement auction for LaForge Construction. Thanks again, Mr. LaForge, for joining me this morning.

Thank you. I appreciate your time.

Bidding for the LaForge Construction retirement auction is open now and will close on Thursday, October 2, beginning at 10 a.m. central. If you have questions about the assets listed, or you’re interested in taking a look at the equipment before placing a bid, attend one of the open inspection periods from 8 to 4 on September 26 or 29. To schedule an inspection outside of those days, call Kenny or Bob at the office at 620.421.0420.

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 A

Recognized among elite entrepreneurs

Fri., Aug. 22, 2014 - 1 pm | Amy Shaneyfelt

Inc. magazine ranked Purple Wave no. 3803 on Inc.5000, an exclusive ranking of the fastest-growing private companies. The company was honored for achieving 82 percent growth over the last three years. Purple Wave currently employs more than 78 people in ten central states.

Inc. 5000 companies are distinguished for providing jobs and driving the economy forward. Purple Wave is one of 36 Kansas businesses recognized in 2014. CivicPlus was the only other Manhattan, Kan., company recognized. Additional Kansas companies include Freddy’s Frozen Custard, and Sainstore.

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Post by A

August 27 Dave Pirtle retirement

Tue., Aug. 19, 2014 - 6 am | 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 portion of the August 27 ag equipment auction comprises equipment from Dave Pirtle of Leon, Kan. I’m speaking this morning with Dave about this event. Good morning, Mr. Pirtle, and thanks for joining me.

Dave Pirtle: Good morning.

AT: Tell me about your operation. When did you start farming and what do you produce?

I started in 1987. We raised milo, wheat, soybeans, run cattle and have hay.

This event is billed as your retirement auction. Why have you decided to retire?

1987 John Deere 8820 Titan II combine

1987 John Deere 8820 Titan II combine

Technology has outrun me. My oldest son, I’ve turned all of the farming over to him. I’m up to the age where I decided I’d run cattle and bale hay.

And so he is going to continue with an operation of some kind?

Yes. We did not do no-till up until about six years ago and he has went strictly no-till and all the equipment I have that I’m selling was equipment that we had that we didn’t need for a no-till system.

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

Well I’d heard good results with Purple Wave and I talked to several people around and of course I knew my area rep.

Right now I’m looking at 15 pieces listed at purplewave.com. You mentioned it was a tillage package and I see some implements there. I see a fertilizer truck and a couple other heavy trucks and a trailer. But if I were interested in the combine and the tractors, what would you tell me about those?

1990 Ford 976 Versatile Designation 6 4WD tractor

1990 Ford 976 Versatile Designation 6 4WD tractor

The combine, I’m just guessing I’ve owned it for at least 12 years. The combine is in good shape. The only thing I don’t know about it, the monitor – the grain loss monitor doesn’t work. It’s just a good used combine that you could take to the field right now. The tractors, the 976 – the hour meter broke at 7700 hours. I can’t guarantee the hours on it. I’m guessing it’s probably got between 8000 or 8100 hours on it. The 895 is the same way. The hour meter doesn’t work on it but these tractors are in good condition. There’s no – very very very very minimal oil leakage, if any, and they’ll fire right up and go to work.

Tell me just a little more if you would about the condition of the equipment and how you took care of it.

All the equipment that I have, and I’m pretty particular – all of it is going to be average to above average. There’s none of it that you can’t just take to the field and use that I know of. We run a good maintenance program on it – hadn’t been used for awhile. It’s all been shedded. It’s been in the barn, other than when I pulled it out for this lineup for the auction.

Well it sounds like if it’s not field ready it’s pretty close.

1981 Versatile 895 4WD tractor

1981 Versatile 895 4WD tractor

I would say other than an oil change – and I elected not to change the oil in them just simply if somebody wants to come and look at them they can pull the dipstick on them. They can check the color of the oil; they can do an oil sample. They can do whatever they want. There’s no issues with them that I know of at all.

I understand that everything is located near Leon, Kan. For someone unfamiliar with the area, where is Leon?

Leon, Kan., is about 35 miles east of Wichita on 400 highway. The equipment is located seven miles south of Leon. You actually get on a road – they call it Chelsey and it makes a curve and it turns into Cole Creek Road. That equipment is exactly seven miles south of Leon on the blacktop road on the east side of the blacktop.

We always recommend that a buyer takes a look at everything before placing any bids. If someone is interested in one of these pieces, what does he or she need to do to make an appointment to come and take a look at something?

All they need to do is give me a call. I’m around – my cattle and my hay operations is all within five or six miles of the farm right here. They can set a time and I can meet them about any time and just show them the equipment. They can take the keys, they can fire it up, they can drive it around, run it around, and check it out – I recommend they do that.

After the auction, once payment has been made to Purple Wave and an invoice has been created, what does a buyer need to do to come and pick up a purchase?

Case 496DH folding disk

Case 496DH folding disk

Just give me a call and I will assist. If it’s some of the pull-type equipment, I have loader tractors with my haying operation. We can pick it up and we can get it loaded for them.

How soon does everything need to be removed?

Well, because that’s where I store all my big round bales of hay, I’d like to have it out of there within 30 days. Now, if it’s something that’s motorized I can pull it over in the grassy area. I really would like to have it out in 30 days or at least a reasonable amount of time.

Well, 30 days is longer than our normal removal period so I think that already sounds pretty reasonable to me. Dave, is there anything else you want to mention about this auction?

Not that I know of, just other than if they want some good equipment, good used equipment that’s going to be reasonably priced, they ought to get in there because it’s hard to come by. I know around here there’s no local auctions around here to go to any more to find this type of equipment.

Auction flyer

I’ve been speaking with Dave Pirtle about his retirement inventory that’s a part of the August 27 ag equipment auction. Thanks again, Dave, for visiting with me this morning.

You’re welcome – have a good day.

Bidding for the ag equipment auction that includes these assets is open now and will close on Wednesday, August 27, 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 Dave Pirtle at 316.765.2310.

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

September 25 McAlister Aggregates realignment

Thu., Aug. 7, 2014 - 9 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 selling a large package of construction and aggregate equipment in Iowa for McAlister Parts and Equipment in an auction ending Thursday, September 25. This morning I’m speaking with Mike McAlister about this event. Mike is the president of McAlister Parts and Equipment. Good morning, Mr. McAlister, and thanks for joining me.

Mike McAlister: Good morning to you, Aaron. Thanks for having me.

AT: Mike, tell me about your company. How did you get started and how long have you been in business?

MM: Well we got started approximately 50 years ago when my father got into aggregates and we’ve been doing that ever since. We’ve gone out into other areas – service work, for instance – and we rebuild a lot of heavy equipment for people. We’ve been in aggregates approximately 50 years.

What were some of the different types of projects that you handled?

Finlay 390 hydrascreen 5' x 12' two-deck portable screening plant

Finlay 390 hydrascreen 5′ x 12′ two-deck portable screening plant

Well we handled, obviously, road construction projects – gravel roads for the county, hot mix asphalt or HMA for state and federal jobs. We’ve even used our materials under a lot of these big ethanol plants that have been going up in the area as well as silos and grain storage facilities.

What kind of areas did you serve?

Well, basically the areas in our county and the immediate surrounding counties – once in a while the material would go as far as Omaha or Council Bluffs, for instance our so-called P-rock or porous aggregate materials. For the most part we were fairly localized.

And tell me about that area. I mentioned that you’re in Iowa, but for anyone not familiar with your company, where specifically in Iowa are you located?

We’re in west central Iowa, approximately halfway between Des Moines and Omaha.

This event is billed as a realignment auction, which implies that you’re not going out of business or liquidating everything. What kind of changes are you making to your operation that made you decide to have such an auction?

The changes are dictated, as it were, by the fact that we’re too spread out. We’re a family run business and we have three generations working here. We’re to spread out to do everything well and so we have to choose in which direction we want to go. And we’ve gone in a lot of different directions, as I indicated earlier, one of which is service work.We are, quote unquote, realigning in the direction of service work. We have very good job skills in that regard. Much of the newer equipment out here is computerized. The younger generation is very comfortable with that but all of that equipment, whether computerized or not, requires hands-on abilities, mechanically speaking, and a willingness to get dirty. We have all of that. So we’re going to move in the direction of service work for companies with which we have in the past been competing. My favorite word now-a-days is symbiotic. I want to have a symbiotic relationship with my former competitors in the aggregate business.They’re looking for skilled, mechanical, hands-on people – people who can fabricate wash plants etcetera, we can provide that. I’m looking forward to moving in that direction for that reason.

So after this auction you will no longer be in the aggregates business. You will essentially be supporting others in that industry.

Universal 880 Super G 4300 portable jaw/roll crushing plant

Universal 880 Super G 4300 portable jaw/roll crushing plant

We’ll still be in the aggregate business in one quarry that we have south of our headquarters here in Bayard, Iowa. The larger aspect of our aggregate business will be gone. That’ll be replaced with a new focus on service work for the aggregate industry.

This sounds like it was a very deliberate course change and a big decision for you. Why was it in the end that you chose to go with Purple Wave to handle this auction?

We liked the people that we met. We liked also the fact that Purple Wave has a new approach to auction events and we liked the fact that that they can reach out via the Internet. We liked the fact that they have videos of our equipment running. We’re showing our equipment, as it were, in its work clothes. There are no DuPont overhauls, which everybody who’s buying equipment always holds suspect – and should. But with Purple Wave, potential buyers can get online, they can look at the equipment actually operating – and it is operating right now as we speak. We really liked that because the buyers in this industry are pretty savvy and they want to see the equipment running. Purple Wave can do that for us, not to mention, again, that their access to potential buyers is, I think, unequaled. Finally we went with them, to begin at the end, as it were, or to go back to the beginning of this – we went with them because we liked the people with whom we found ourselves speaking. They’re very honest, open people. There was no blue sky talk; they were very realistic in their assessment of the value of the equipment and I just found them very good in all aspects.

Well, let’s talk about the auction and the inventory. Tell me about some of the different types of equipment you’re selling.

Universal 1800P wash plant

Universal 1800P wash plant

Well we’ll be selling a fully integrated crushing and washing spread. By that I mean we have our Cedar Rapids rock crusher. We have all the conveyor systems – a Finlay screening unit that’s part of that. We also have our wash plant as well as a Trio twin screw coarse material washer and then all of the support equipment – the loaders, dozers, ripper machines, skid steers, and trucks. Again we’re selling a fully integrated and fully operational spread.

As we record this morning, we are about a month and a half away from the auction. I see currently about 50 items listed at purplewave.com. Are there more that will be listed?

I think we have just about all of them. There might be one or two that we forgot about – for instance at the shop here – but that’s about it. People who are looking at the website should be aware there might be one or two added. Basically that’s about it. They’re looking at it all now.

So it’s a pretty low piece count but high quality for every single one of these pieces.

Yes, all of these pieces are runners. They’re all doing their work. Again, they’re working today as we’re having this podcast. Yes, they’re all running.

Has it all been fairly well maintained? Is it all in good condition?

Absolutely. We can’t make a living any other way. My brothers and I, and my sons and my nephews grew up in this industry and we learned very early from our father how not to abuse equipment unless we wanted our father to educate us more strongly. How shall I put it? That’s one way to put it delicately. We’re all very good operators. This equipment isnot abused. This equipment is pulled into the shop every winter and rebuilt. This equipment might be a little bit older than some other equipment out there but it’s all running. We make sure it keeps running. We don’t hesitate on maintenance and we don’t abuse it. There’s no money in abuse we learned that a long time ago.

What would you consider to be a couple of the marquee items in the auction? You mentioned the plants. Can you give us a little detail on a couple of the nicer pieces?

1968 Caterpillar D9G dozer

1968 Caterpillar D9G dozer

Well, there’s the crushing plant, which has been fully maintained. There’s the wash plant, which is, Ibelieve, a 36 inch screw with a triple deck on it – or double or triple deck, rather, I’d have to look at it. There’s the Trio coarse material washer. Those are the three biggest items. We have some very big loaders – the 275 Michigan, the 880 CAT loader, D9 dozers and rippers – It’s all fully integrated so its hard for me to take one single piece of equipment and say, “this is it.” Whatever piece of equipment you’re looking at, it’s a runner and it’s running in it’s work clothes. Everybody can see what it is.

Tell me where everything is located. I see some of these items located at Stuart, Iowa, and some in Bayard, Iowa. Describe those locations, if you would.

Well, Stuart, Iowa, is approximately 25 miles due west, I guess, of Des Moines on Interstate 80 and our quarry is approximately eight miles north of that location on Interstate 80, so we’re eight miles north of I-80. Most of the equipment is there. There are a few stragglers that we’ve brought up to the shop for repair or because we needed it here in this area. Our shop is 55 miles west of Des Moines on Highway 141, so both locations are easily accessible if anybody is trying to get here.

AT: We always recommend that a buyer takes a look at everything before placing any bids. To that end, we’ve scheduled a couple of open inspection periods where anyone can come by and look at the equipment. Those two dates are September 13 and 24 from, I believe – is it 8 a.m. to 3 p.m. on both days?

Yes.

If someone can’t make those inspections and wants to take a look at an item before the auction, what does he or she need to do to make an appointment?

All he needs to do is call our office or call my brother Brian’s cell phone and we will make accommodations. We’re a smaller family run business. We’re easy to get along with and we know that people have conflicting schedules. We will work with them. It’s no problem for us. We understand that.

Well, along the same line, 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?

Once again call those numbers that are listed on the Purple Wave website and be at ease if you can’t make it. Obviously we would like everything out of there within a week, but we also know, again, that a lot of people have transportation issues that aren’t working out well for them. Just give us a call and we’ll work with you as best we can, we really will.

What kind of accommodations are you able to make for loading assistance? I understand that with this type of equipment that there are a lot of intricacies involved in figuring out how to transport some of these larger items but if somebody comes up with a trailer to load something, are you able to provide loading assistance of some kind?

2005 Trio twin paddle coarse washer

2005 Trio twin paddle coarse washer

Yes, in fact we’ve been moving this spread around our area for years. We know how to get it onto a trailer or how to get it hooked up. We’ll be down there to help in every way possible. These people will not be coming into our quarry alone and unassisted. We’ll be there to help them.

Great. As with anything, I think, communication probably is key. We don’t want to have somebody just get an invoice and jump in the truck with a trailer and go without talking to you first without making sure that everything can be planned and…

By all means. Communication is the key here and the people who are coming in, they just have to know at the front end we’re here to help them. We’re not going to turn our back on them. We’re going to help them get it loaded and give them all the assistance they need.

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

I think it’s going to be a good auction. I think the people who participate in it are going to be happy with what they get. They’re going to be getting very well maintained equipment that has been proven and has a lot more hours and work to do. I think we’re all going to come out of this really well.

I’ve been speaking with Mike McAlister about the McAlister Aggregates realignment auction. Thanks again, Mike, for joining me this morning.

Thank you, Aaron. Have a good one.

Bidding for the McAlister Aggregates realignment auction is open now and will close Thursday, September 25, beginning at 1 p.m. central. If you have questions about any of the assets listed, or you’d like to schedule an inspection before the auction, contact Brian McAlister at brian@mcalisterparts.com or call 641.757.2062.

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 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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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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