When considering the value of your equipment, you likely look at age, its condition, and other factors. But do you also weigh the value of its brand name? “Brand premium” is a measure of a brand’s perceived value, according to a new white paper, "What's a Brand Name Worth," from EquipmentWatch, and is a metric for evaluating the relative price strength of a brand in used equipment markets. In short, the percentage difference of a brand’s average price versus the category average is its brand premium.
“Putting this information to use will be unique to the equipment manager and fleet strategy,” the white paper notes. “One strategy could be to prioritize purchasing brands with lower premiums on the resale channel and higher premiums on the auction channel. Others may want to focus on balancing highest average age with comparatively high brand premium since a higher average age suggests the equipment has a longer life expectancy, and this combination could mean the equipment is more likely to fetch a better price upon being resold or auctioned.”
EquipmentWatch analysts looked into the impact of brand on price for construction, lift, and agriculture equipment. To see how brand names impact price as you weigh your equipment-buying strategy, download the free white paper.