Online bidding statistics

Ritchie Bros. sold over $770 million of equipment, trucks and other assets to online bidders during the first nine months of 2011, representing a 24 percent increase compared to the same period in 2010 (first nine months of 2010 – $620 million). Internet bidders comprised approximately 50 percent of the total bidder registrations at Ritchie Bros. industrial auctions in the first nine months of 2011. Since launching its real-time online bidding service in 2002, the Company has now sold over $4.9 billion worth of trucks, equipment, and other assets to online bidders, confirming Ritchie Bros.’ position as the world’s largest seller of used equipment and trucks to online buyers.

Website statistics

There was a 23 percent increase in the number of visitors to rbauction.com for the nine months ended Sept. 30, 2011, compared to the same period in 2010. More than 3 million visitors made 8.0 million visits to the website during the nine months ended Sept. 30, 2011 compared to 2.4 million visitors and 7.2 million visits, respectively, in the same period in 2010.

New Services and Fee Structure

On July 1, 2011, as previously announced, the company launched a range of value-added services for its customers in the United States and Canada, with many of these services also available at other auctions around the world. These value-added services include the Detailed Equipment Information program, Insurance Services and Powertrain Service Warranty.

In addition, Ritchie Bros. Financial Services (RBFS) began providing financing options for customers who purchase equipment at Ritchie Bros. auctions. The company expects to complete the roll out of these services to its remaining auction locations around the world in the future. The company’s value-added services are designed to extend the appeal of its auctions, thereby enhancing the Company’s ability to retain existing customers and attract new customers. In addition, Ritchie Bros.’ revised administrative fee structure took effect on July 1, 2011.

Blake notes that it’s “important to remember that our auctions are not fixed in a quarter and this was evident in this quarter as a number of auctions that occurred in quarter three 2010 will take place in quarter four 2011.”

He says that in the third quarter, 30 percent of the compnay’s gross auction proceeds were at risk, which is more in line with historical levels compared to the second quarter, though the company still intends to use it as an effective tool to compete for the limited supply of late model equipment.

“These market conditions had an effect on our business in the third quarter; however, the pricing environment for late model equipment remains firm and our fourth quarter auctions are building strongly ahead of the equivalent period in 2010,” Blake said. “Our gross auction proceeds for October 2011 were approximately $280 million compared to $180 million achieved during the same month in 2010.”