Online Used Equipment Platforms herald a new era of Direct Sales and Control
The rise of online used equipment platforms is transforming the construction industry, allowing companies to take direct control of their asset disposal processes.
This shift gained significant momentum when Liebherr, one of the world’s largest construction equipment manufacturers, launched its own digital platform to sell used machinery. Powered by Krank technology, Liebherr’s Used Equipment Marketplace has sparked a wave of interest among industry giants eager to manage their own used equipment sales, bypassing traditional intermediaries and maximising their profits.
A Turning Point for the Industry
The idea of selling used equipment directly to buyers is not new, but it has only recently started gaining real traction. Mark Turner, CEO of Krank, understands the challenges of introducing new ideas in an industry that often relies on established methods. “This is the smallest biggest industry in the world,” Turner notes. “Everyone knows what each other is doing, and it is very, very hard for new ideas to gain traction. But when they do break through—news gets round fast.”
Turner’s journey with Krank began over eight years ago when he set out to develop a state-of-the-art platform for trading used equipment. Despite the initial struggle to gain market acceptance, the breakthrough came when Liebherr launched its digital Used Equipment Marketplace earlier this year, leveraging Krank’s technology.
“There’s no doubt it was a game-changing moment,” Turner says. “Liebherr saw exactly what we saw in the technology. After a lot of knock-backs, I finally had a sense of validation that this was the future of used equipment sales.”
Challenging Traditional Disposal Routes
Liebherr’s platform, supported by Krank’s marketplace technology, provides a secure, user-friendly way for the company to manage the disposal of thousands of used machines it acquires globally each year. This approach allows Liebherr to retain control over the sales process, avoid hefty intermediary fees, and connect directly with buyers. Traditionally, companies have relied on brokers and auction houses to handle used equipment sales, often at a significant cost. Middlemen fees can be as high as 25% of the sale price, which eats into the profits that equipment owners could otherwise retain.
“Disposing of a machine through a broker or auction house is a common and straightforward method of disposal,” Turner explains. “However, it can sometimes be more costly, with varying results—with the seller often losing control over their inventory and brand. If sellers put in a bit more effort and embrace technology, they can quickly increase their bottom line—and be more effective when selling their used equipment.”
By adopting digital platforms like Krank, sellers can protect their pricing, maintain oversight of the sale process, and build a powerful network of buyers. This network effect is a major advantage that auction houses and brokers typically keep to themselves, leaving equipment owners disconnected from their potential market.
Direct Sales: Control, Sustainability, and Brand Integrity
One of the most significant benefits of digital platforms is the enhanced control they provide sellers over the entire sales process. Sellers can set their terms, manage pricing, and directly communicate with buyers, creating a transparent and efficient marketplace. This approach also supports sustainability by reducing the need to transport equipment to third-party sales locations. The machine moves only when purchased, minimising its carbon footprint—a small but meaningful contribution to greener business practices.
Turner sees the ability to connect the industry as the real disruptive power of Krank’s platform: “What we are trying to do with our platform is connect the industry. I think that’s the real disruptive element of this technology—its ability to rapidly scale professional industry networks. The more people in your network, the bigger the opportunity to organically prime and grow your sales funnel.”
A Perfect Match: Liebherr’s Adoption of Digital Sales
Liebherr’s move to adopt Krank’s marketplace technology was not just a significant moment for Krank but also a signal to the industry that digital transformation in equipment sales is not just a possibility—it’s the future. With e-commerce and digital solutions becoming integral to many aspects of business, the adoption of direct sales platforms for used equipment was inevitable.
Liebherr, one of the most respected names in construction machinery, recognised the potential of taking control of its used equipment lifecycle. By selling directly, Liebherr not only boosts revenue but also strengthens its brand by maintaining direct relationships with customers. For Krank, partnering with a global leader like Liebherr was the perfect “halo” moment that demonstrated the scalability and potential of their platform.
“Our collaboration with Liebherr, one of the world’s largest and most respected manufacturers of construction equipment, is reshaping how companies manage their equipment lifecycles,” Turner reflects. “Liebherr taking charge of selling its own used equipment is a turning point for the whole industry. It shows how digital transformation is enabling companies to complement traditional sales channels.”
Bringing Digital Sales to the Wider Industry
While Liebherr’s adoption of the platform was a breakthrough, Krank’s technology is not limited to industry giants. The platform’s scalability makes it just as accessible to smaller operations and independent yards, offering them the same benefits of direct sales, brand control, and enhanced profitability. The rise of tech-friendly management teams and the increasing role of digital solutions in everyday business mean that more companies are now poised to explore these opportunities.
Platforms like Krank are levelling the playing field, giving companies of all sizes the tools they need to sell used equipment more effectively. This shift reflects a broader trend of empowerment through technology, where businesses can take direct control of their sales, build their networks, and maximise their assets’ value.
A Bright Future for Digital Equipment Sales
The evolution of online used equipment platforms is just beginning, and the potential for growth is enormous. As more companies recognise the benefits of digital transformation, direct sales will likely become the standard for equipment disposal. By cutting out intermediaries, reducing costs, and building direct relationships with buyers, companies can optimise their operations and enhance their bottom line.
Mark Turner’s journey with Krank, from pitching the platform to sceptical industry leaders to partnering with one of the world’s largest equipment manufacturers, demonstrates the transformative power of technology. It’s a sign that the construction industry, while steeped in tradition, is ready to embrace change. For those willing to adapt, the opportunities are vast, and the rewards are within reach.
