Each year as much as 30% of equipment buyers are first time buyers and fall under two categories: Start-ups refer to those financing their first piece of equipment; and Established, those who have traditionally paid cash for their equipment.
Start-up buyers are more than likely inexperienced buyers. They may only recognize a few equipment brands, and their perceptions of those brands may not reflect reality. The only buyers who know the realities of your brand's performance are those who have purchased your equipment. Therefore, those who have purchased from your competitors certainly require additional attention. For these buyers, you have a unique chance to educate them on your brand and combat the commodity nature of the equipment business
Start-ups are also more accepting of new information as they continue on their journey to learn about equipment. This includes information about how to become more profitable and productive using equipment, services, and peripherals your company offers.
Established businesses also represent a fantastic opportunity. The fact that they have just started to finance equipment (versus paying cash) may suggest they have little debt and are ready to capitalize on new technology to make them more competitive. It’s also possible the current UCC activity indicates they are refinancing equipment and may have cash on hand.
In my experience, first-time buyer targeting has been among the most successful applications of UCC data. If you're an EDA subscriber, you'll comb new records as they become available in Catapult and ensure the equipment buyers are present in your prospecting database. If you weren't working the new buyer on their first sale, you will soon. Without UCC-1 filings, you'd need to wait for those new buyers to appear on a traditional list source or see you at a trade show.
Best of all, new buyers can make for exciting calls for your sales staff because they're the new kids on the block, and your company is in a great position to help them achieve their sales and profitability goals.
David Austin is the Machine Tool Product Manager for EDA
email@example.com | 704-845-2971
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The EDA IndustryInsight trend charts provide broad-based, monthly statistical data on UCC financing activity in the U.S. for sales and lease transactions of equipment.
See the top capital equipment buyers each month - with EDA’s UCC Monthly! Each month EDA's UCC Monthly include a list of the top five buyers across nine industries. Find out who the big players are, what brands they’re buying, and in what quantity.