Equipment Appraisal Blog | Understanding Machinery Appraisals

It's a straightforward principle. When you're willing to invest more in something, you should expect a superior product or service in return. You can find a reputable and proven commodity that will undoubtedly stand out by conducting thorough research into the providers of these higher-priced goods and services. This process ensures you're getting the best value for your money and instills a sense of security and trust in your decision.

The decision-making process can be daunting, from service providers, such as appraisal firms or home improvement contractors with extensive experience and premium fees, to consumer products where you need to balance price and quality. There are always cheaper options available. However, by choosing to prioritize quality over cost, you can find the best quality items for your investment, leading to a sense of satisfaction and fulfillment with your choices.

Before you start reviewing options, decide ahead of time that you want the best there is to offer. Then, research potential service provider candidates or product manufacturers to fully flesh out who can deliver as promised.

As business and equipment appraisers with decades of experience and the best accreditation the industry provides, we know the cost of engaging with companies like us will be the more expensive option when you need valuation services. We lose out on opportunities every day because our fee structure can't compete with less experienced appraisers who lack the credentials and ability to provide a higher quality service and product in the form of an accredited report.

In the valuation industry, or any type of service, the decision to go with the best available, higher-cost option revolves around vetting several firms and determining who you believe will be the most responsive from beginning to end while working with you to understand your goals in the larger transaction or dispute being resolved. From scope of work discussion to engagement to report delivery and consulting, these services should be unparalleled in quality to any other option out there.

Once you've committed to working with these service providers or decided that you prefer to purchase the best products on the market, you can begin the process and ultimately be very satisfied with your choice.

A successful and reputable appraisal firm will have clients who return and ask to have their machinery and equipment appraisal reports updated. This could occur for any number of reasons. For example, they may want to track annual changes to their asset portfolio internally to determine material changes in value and ensure their capitalized depreciation records are current. They could be working on a long-term business plan to potentially merge with another company, or they might be trying to continue to attract investors and utilize lenders for new working capital infusion.

Whatever the reason, the quality report you provided the client with during the prior experience will have them coming back for an updated version. Here are a few things to consider as the appraiser when this occurs.

• Check the period when you last updated the report. The amount of time that has elapsed will drive your scope of work and decision-making process. If it has been over three years, then you can treat the engagement like a new assignment without stating that you have more recently completed an appraisal of the same equipment and, therefore, do not need to call it an update.
• If you have appraised the assets of the company in less than three years, then you should make a statement to this effect in your certification and refer to the valuation as an update.
• Clarify whether the purpose of the appraisal has changed and whether this may lead to adjusting the scope of work and include different value premises.
• Determine if you need to go back on-site or are able to complete the appraisal as a desktop. The opposite may also be relevant, where you weren’t able to complete an inspection the last time you issued the report, and you feel it is important to conduct a field visit this time around.
• Does the client expect a discounted fee given the work previously paid for? Before you grant this, ask them how much has changed with the makeup of the asset portfolio, which may create the need to include a significant number of different machines recently acquired.
• Your goal should be to utilize, in some way, the previous work that was done and create some efficiencies so you can deliver the report in a timely fashion. The client may have loved the prior report; however, they may be inherently assuming by coming back to the same firm that the project will be less expensive and time-consuming.

Repeat business is the goal of any small business, and having clients return on a semi-regular basis with updates or new projects will lead to a steady source of revenue while further building a solid reputation for you and your valuation company.