Auction action.

How much less is a 1997 model worth, compared to a 1999 model? How about compared to a 2000 or 2001 model? How does it compare to similar models produced by other manufacturers? What was it worth last year? What might it be worth next year or five years from now? Is it worth more or less in a neighboring state?

Ah, the essence of the used equipment market.

It sure can be frustrating--the never ending work involved in trying to stay on top of the used equipment market. But what's the alternative? Quit paying attention? Hope that you're sales team is right and didn't put too much money into that corn head or tractor you're taking in on trade?

Nope, can't do that.

Yes, you and your team need to focus on pushing new equipment out the door, got to keep the manufacturers happy. Just don't forget to pay the necessary attention to your used inventory, too--used inventory levels and, just as important, up-to-date used inventory valuations.

Try and look at the used equipment as an opportunity. If you and your sales team are more "on the ball" with current used values than your competitors, you'll come out ahead in the long run.

Making more deals is great, but knowing which bad deals to pass on is just as important.

Greg Peterson has compiled and analyzed auction sale prices for machinery since 1989. His online website includes databases of auction sale prices on 75 categories of equipment, equipment models on upcoming auctions, and dealer equipment with advertised prices. A one-year subscription to this database website is $69.95, available online (www.machinerypete.com) or by phone [phone]).

Auction Sale Prices on Corn Heads

                                      Sale    Date    Area     # of
Make          Model   Year   Cond.   Price    Sold    Sold *   Rows

CaseIH         1063   1997   Good     8,950    2/05   NWOH       6
CaseIH         1063   1999   Good    12,500    3/06   NWIL       6
CaseIH         1063   1999   Good    13,500    8/06   SEMN       6
CaseIH         1063   2000   Good    20,750    3/05   NCIA       6
CaseIH         2206      -   Exc.    21,000    7/06   ECIL       6
CaseIH         2206   2001   Exc.    21,000    1/06   WCIL       6
CaselH         2206   2003   Good    18,500    3/06   NEMI       6
CaselH         2206   2002   Exc.    19,250    3/05   ECMI       6
CaselH         2006   2003   Exc.    25,000    1/05   NEMO       6
CaseIH         2208      -   Exc.    26,000   12/05   NCIA       8
CaselH         2208   2000   Exc.    22,000   11/05   NWOH       8
CaseIH         2208   2001   Good    27,000    4/05   WCMN       8
CaseIH         2208   2004   Exc.    27,000    3/06   ECMI       8
CaseIH         2208   2004   Exc.    32,000    2/05   SCMN       8
CaseIH         2212   2004   Exc.    45,500   12/05   NCIA      12
CaseIH         2212   2005   Exc.    39,250    3/06   ECNE      12
Caterpillar    1230   1999   Good    13,000    4/05   SEMN      12
Caterpillar    1230   2000   Good    20,000    8/06   NECO      12
Caterpillar    1230   2001   Good    21,000    9/05   NWKS      12
Caterpillar    1230   2003   Good    20,000    4/05   ECND      12
Cressoni          -   2004   Good    49,000    4/05   WCMN      12
Geringhoff        -   2004   Exc.    46,500    3/06   NWMN       8
Geringhoff        -   2003   Good    48,000    4/05   WCMN      12
Geringhoff        -      -   Good    67,500   12/05   WCMN      12
Gleaner         630      -   Exc.     9,500   12/05   ECMI       6
Gleaner         630      -   Good    10,600    8/05   SEMN       6
Gleaner        R630   1998   Exc.    12,000    8/06   ECIL       6
Gleaner        R630      -   Good    14,900   12/05   NCOH       6
JD             1293      -   Good    31,000    3/06   SEMN      12
JD             1293   1997   Good    22,500    1/06   SESD      12
JD             1293   2000   Good    37,000    3/06   ECND      12
JD             1293   2003   Exc.    35,000    1/06   NECO      12

Location sold: NWOH = northwest Ohio, etc. Data compiled by
www.machinerypete.com. Copyright 2006.