Going, going, gone — all your excess stuff

Identification of superfluous or redundant assets for disposal is a key aspect of management

WANTED: PVA’s CEO Roy Lazarus says auctions meet a real need THE economic challenges facing South Africa emphasise the need for business decision-makers to reduce costs, increase turnover and optimise efficient application of resources, says Park Village Auctions.

The identification of superfluous or redundant assets for disposal by auction is an appropriate step in this direction as it curtails holding costs, wear and tear, shrinkage, and above all, generates capital.

“Indeed, the unlocking of cash value is a generally accepted business principle that improves the overall performance of business. The conversion of assets into cash is one way to accomplish this,” says Park Village Auctions CEO Roy Lazarus.

“In this context, a public auction or online auction sale is an effective outsourcing model that enables a business to focus on its core activities. Auctions also appeal as they dispense with selling price negotiations while facilitating the realisation of assets at the most market-related values.

“What’s more, the lead time between the sale and the final settlement to the seller is fairly short as payment is not hampered by the suspensive conditions that typically arise in a normal sales transaction.

“Auctions, therefore, meet a real need right now.”

Park Village Auctions says it achieved good prices for most of its major fixed and movable asset auctions last year, illustrating that despite tough business conditions auctions are more relevant than ever in sectors that range from transport to agriculture, civil engineering and beyond.

“The coming year is expected to deliver more of the same as businesses of all kinds seek to contain costs while at the same time trying to stay competitive with more cost-efficient equipment and to build market share.”

This they will do “through greater capacity that demands more investment in fleets and other capital assets”, says Park Village Auctions.

For all auction related information, contact Park Village Auctions on 011 789 4375 or go to parkvillageauctions.co.za.