The way trade buyers operate is changing, NextGear Capital learned on its recent UK wide auction tour.
In total the tour took in 20 auctions in just two weeks, covering 5289 miles. The team spoke with hundreds of trade buyers and the auction businesses that serve them, gaining insight on the marketplace.
Findings showed buyers are increasing their activity ahead of seasonal levels but in light of increasing supply, they are able to be more selective in their stock buying. They are also far more confident in buying remotely, albeit they value the camaraderie and insights to be gained by being on the auction floor first hand and continue to see this as a key part of a wider mix of activity.
NextGear Capital’s sales director Nigel Warrington (pictured) said: “What we have seen from this first hand ‘voice of the customer’ activity is that dealers are reacting to an improving market with real entrepreneurial spirit. Contrary to some perceptions, dealers are keen to leverage new technology, albeit they do value some support and the added account management. They have also embraced change in the way they buy stock. Much of this has been driven by the emergence of the well-informed consumer in the showroom.
“Dealers recognise the need to buy smarter and be more agile in their stock purchasing and inventory management to preserve margins in an increasingly commoditised marketplace. Suppliers who can help them in any of this activity are highly valued.”