Real resale transactions: what worked, what failed
The anatomy of a failed deal
Market analysis reveals that nearly 40% of initiated industrial resale transactions fail to close. The most common cause is not price but misaligned expectations regarding condition.
In one documented case, a seller listed a generator as Good Condition. The buyer traveled 2,000km to inspect it only to find the control panel had been cannibalized for parts. The deal collapsed immediately and the buyer blacklisted the seller. The lesson is clear that honesty regarding defects builds trust while concealment destroys it. A listing that explicitly states “Control panel missing, engine runs perfectly” would have attracted a different buyer and likely closed successfully.
Pricing mistakes and lessons learned
The Sunk Cost fallacy
Sellers frequently fall victim to the sunk cost fallacy. A procurement manager might refuse a market offer of $20,000 for a surplus compressor because the book value is still $40,000. They choose to hold the asset instead.
Two years later, after storage fees and deterioration, the asset is sold for scrap for $2,000. The refusal to accept a market driven loss early resulted in a much larger total loss later. Efficient sellers treat the original purchase price as irrelevant. The only relevant number is the current market clearing price.
Buyer-seller trust breakdowns
The Lemon fear
The industrial market suffers from the Market for Lemons problem as defined by economist George Akerlof. Buyers assume used cars and used turbines are defective until proven otherwise.
Successful transactions rely on trust bridging. This is often achieved through escrow inspections. The buyer puts the funds in a third party account. A neutral inspector verifies the asset matches the description. Only then are funds released. This mechanism removes the fear of non payment for the seller and the fear of non delivery for the buyer.
Operational surprises from the field
The logistics of loading
A deal is often signed but then fails at the loading dock. A buyer sends a standard flatbed truck to pick up a 20 ton transformer but the site has no crane capable of lifting it. Or the site requires the truck driver to have specific safety certifications which they lack.
These operational details are often overlooked during the price negotiation. Experienced asset recovery teams create a Lift Plan before the item is even listed. Knowing exactly how the asset will leave the facility and who pays for the crane is as important as the sale price itself.
The payment term friction
Large corporations often have rigid payment terms such as Net 60 days. Small buyers often operate on cash. A small rebuilder cannot wait 60 days to get paid nor can they wait 60 days for a corporation to process their payment before releasing the goods.
Marketplaces solve this by acting as the merchant of record. They pay the seller according to corporate terms and collect payment from the buyer according to market terms. This smooths the friction that otherwise prevents these two parties from trading.