Three Questions, Three Answers With BigIron
Three Questions, Three Answers With Cofounder of BigIron Auction
Mark Stock and his brother, Ron, cofounded what became BigIron Auction in 1984. Progressive Farmer talked with Mark Stock at this year's Farm Progress Show.
PF: In this time of COVID, how's business?
Stock: We'll have 40,000 people, 40,000 different IP addresses, watching on our sales days in the summer. That will climb up to 80,000 in the winter months. Our machine sales numbers are up 29% year-over-year. There's just no supply out there from [original equipment manufacturers].
I just walked across from here to the Goodyear Tires guys, asked how long it would take to get these tires. They said probably not until March or April of next year if you order them today. That's no different than any of the machines out here.
PF: Why are tires such an issue?
Stock: It's the resin. Everyone is short of resin. I mean, we ordered a whole bunch of buckets to give away at the farm shows, and they sent us less than a fourth of what we ordered because they don't have enough resin to make the plastic, the same resin that is in tires. So far, no pushing or biting to get our buckets, but it's been doggone close. Buckets are hot. Everybody wants a bucket. But, the commodity to make them is hard to find.
PF: What's the differentiation between new- and used-equipment prices?
Stock: The differentiation always flirted around 20 to 25% used prices under new. This year, it is a lot narrower; in some cases, it's 95 to 105% of new compared to buying something a little older. Anything that's well cared for is selling for a premium.
We sold a 2012 Timpte grain trailer last week. It brought $38,000. The guy bought it new for $34,000. Now, it was meticulously clean. It looked like a brand-new trailer. But, still, get $38,000 out of a 9-year-old grain trailer?
You call any one of these trailer manufacturers and you want a new one, you're not going to get it until February or March of next year if you're lucky. Guys will travel to get this stuff, too. The average distance of an item being freighted right now is a little over 300 miles.
PF: (Bonus Question): So, what are the top sellers?
Stock: Grain trailers are hot. Low-hour combines are superhot. We just sold an 800-hour [on the separator] 2016 John Deere. It brought $197,000 ... super, superhot. You can find a good bargain on a higher-hour combine, but you're gonna have to fix it. So, if you'd like a winter project, and you can roll it into the shed and fix it, buy a higher-hour machine. Low-hour tractors also top the market.
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