Journalist: How did the marketplace come about?
Oscar Tantucci: We saw that we could help the transparency and professionalization of the used machinery buying and selling market. And to assure the client of a series of key aspects in a transaction of a team that he buys to continue his business, make money, preserve his potential growth and continue taking people. We took a model from the USA and adapted it to the local idiosyncrasies. We search from a single place and with just a few clicks to simplify the life of the client who is looking for a team of certain characteristics, with a certain amount of hours for that specific application. We have several partners who come from the distribution of new equipment, people linked to the after-sales service area (workshops) and specialists in digital channels.
Q: Do you only do direct sales or also auctions?
O.T.: We made an agreement with Adrián Mercado so that after a certain time if the client wants, we offer a product for auction. It is the right partner to close an operation with those clients who need to complete it within a certain period.
Q: What kind of machinery do you offer?
O.T.: We have 32 product categories. We go from light soil movement to heavy soil movement. And stowage or movement at height, which includes from a stacker to a crane. In that we differ. There are more than 124 brands to offer. We are not doing Farm Equipment, such as tractors or combines. No medium-haul trucks. But if it is a concrete mixer or road application truck, we do sell it.
Q: What stock do you have on offer?
O.T.: We have 630 published teams, with a market valuation of about $ 50 million. This represents 1% of the potential market for used equipment that currently exists in Argentina in the 32 categories that we commercialize. There are more than 55,000 products that entered Argentina in the last 10 years. A used crane today can cost up to $ 500,000.
Q: How much do you expect to grow in 2022?
O.T.: The goal is to reach 10% of the market, which is large. Now we could have more than a thousand computers, but we do not grow much in quantity because we put emphasis on the quality of the equipment, the photo, the video, the quality of the documentation. To offer greater security to the customer who buys.
Q: Who offers the used machinery?
O.T.: 99% are customers who are renovating their equipment and who prefer the marketplace instead of handing it over as part of payment to a distributor of new equipment. And the new equipment distributor avoids stagnant equipment in warehouses and creates a lack of working capital. That is why we have the main agreement with Grúas San Blas. Likewise, today the main brand on the marketplace is Caterpiller. In addition to helping the client, we help the distributor to find a platform that allows him to avoid stocking used equipment and channel the sale of that equipment throughout the country, not only in its area of influence. This is part of our work plan.
Q: How does the macro context influence your business?
O.T.: Something that supported our business a lot was that there are some restrictions for the entry of new equipment. The import issue and the lack of dollars, made many customers opt for the alternative of a used one with a few years in good condition and with a good diagnosis of the equipment and the quality of the documentation. And the recovery of economic activity also helps us, since the purchase of capital goods is multiplied by three for each point of economic growth.
Q: How are your expansion plans?
O.T.: We have a business plan in place to advance on five or six countries in Latin America, but now we are slowing it down a bit. But we want to consolidate ourselves in Argentina because here the potential market is still high. Many of the surplus pesos in the market end up being channeled into these equipment, which are quoted in dollars at the official rate and have the power to maintain their value in dollars in the event of a possible devaluation of the currency. It has a depreciation per year but it does not affect a devaluation as much. It is something that happens all over the world.
Q: What about financing?
O.T.: We established financing agreements with financial entities and SGR for used equipment. Because it is a key element to boost sales. A client who buys a capital good must finance it at least in the medium and long term. Banks are interested because there is an assessment that we make of these used equipment that is very different to go one by one to buy used equipment by someone from the financial system. We have agreements with Banco Supervielle, San Cristóbal Servicios Financieros, SGR Mills Capital, and we are seeing with Garantizar, Acindar Pymes, Banco Galicia is interested.
Q: How much was the initial investment?
O.T.: We think of the platform as a mother ship that can annex other businesses. That’s why we invested $ 100,000, but more than 80% was focused on technology to continue developing the platform that helps us have scalability and functionalities that allow us to add more businesses and countries.
Source From: Ambito
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