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Internet Auctions Grow in Popularity for Farm and Construction Equipment as Purple Wave Attracts Bidders by the Thousands

Internet auctions are gaining broad acceptance as a way to sell heavy construction and farm equipment, trucks and other major business assets.

That trend was reflected in the 2011 results of Purple Wave, the Kansas-based company that specializes in Internet auctions of heavy equipment. During the year, the company sold more than 20,000 items, according to Jerrod Westfahl, president and CEO.

The company's auctions engaged over 17,000 registered bidders, and 7,465 different buyers made purchases during the year.

"People focus on the fact that our auctions are online, but that's only part of the reason for our success. You don't attract 150,000 potential bidders a month just by having a great website. We also put a lot of work into a straightforward, simple way of doing business that appeals to sellers and buyers alike," said Westfahl.

Part of Purple Wave's formula is efficiency -- especially its practice of selling equipment where it is, without moving it to a single location.

"If we're selling for a dealer, it'll be at the dealership. If we're selling for a road builder, it'll be at the job site or contractor's yard. It doesn't have to be moved to a far-away auction site, and that saves both time and money, resulting in more cash for the seller," said Westfahl.

It also ensures a steady stream of items offered. "We don't have to wait for weeks or months to get everything gathered in one place for a giant sale. If somebody in Oklahoma is looking for a tractor, they can see what's available at purplewave.com, go inspect the machine, then return home and put in their bid," he said.

Transparency is a major factor in the company's growth, he said. "Everything's out in the open. The items are available for inspection. The entire bid history is available throughout the auction. This gives people confidence in the process, and that makes them more willing to bid," he said.

Most importantly, it's working, he said. For the year, Purple Wave's web site attracted an average of 73 potential bidders for each asset sold. And, on average eight people bid a total of 16 times on each asset.

"That's important, because high participation means you'll get fair market prices for what you sell. And we're consistently delivering those prices, which is one reason sellers hire us again and again," he said.