Networking platform Krank‘s new auction feature, now in beta testing in the U.S., allows companies to host their own auctions and sell equipment online. Users create their own secure private marketplaces, choose who can participate in the auction and determine the auction terms — all without buyer or seller commissions or fees, Krank says.
The B2B marketplace “puts the seller in control of the sale and provides transparency, security and unfettered access between buyer and seller, with no intermediary (like an auction house) capturing the sales data,” Krank says.
No commissions, fees
Krank, based in the United Kingdom, says it does not get involved in the deal flow and payments do not flow through the platform. Before being able to participate in an auction, bidders must first request to connect with the seller’s network (which Krank says is similar to a connection request in LinkedIn) and be accepted by the seller. This gives sellers control over who knows about the sale.
To host an auction, users upgrade from the basic free account on the Krank networking platform (by desktop or via the app) and create a 30-day sale or rent listing for the item for sale. The system guides you in determining whether to select a reserve or no reserve auction, determining the opening bid price and start date and time.
Krank provides the necessary seller declaration and purchase contract templates. These can be edited to suit individual company requirements and establish the sellers’ authority to sell and the terms on which the sale is being made. Both documents are electronically signed by the seller and by each bidder before they can place a bid.
Private disposal networks
With Krank, the seller captures all details from all bidders. In the process, Krank says the seller is creating new private, company-to-company networks of interested potential customers for future machine disposals. These private networks are at the heart of the company’s overall market approach.
Within Krank’s networking platform users develop their own selling and buying networks. In other words, the world doesn’t come to you; you develop your own piece of the world. You send the invites, you put up the listings and you control how often those listings appear in your network newsfeed. Each user also determines who will be in his or her individual networks. Network creators can organize their networks however they want.
“The new B2B Auction feature puts the seller in complete control of the auction process,” says Emma Willis, Krank’s COO. “Perhaps the biggest benefit is not the lack of commissions but rather the future lead generation aspect of knowing all the bidders. This helps solve one of the biggest headaches in equipment disposals – ‘Where is my next lead coming from?’”
Krank is initially targeting this auction service to the crane, earthmoving construction and aerial work platform sectors; beta trials are taking place in both North America and the United Kingdom. A global roll out of the auction service will occur later this year.