Repricing 101: A Practical Guide for Equipment Dealerships
5/29/2025In the current market environment, a host of factors are creating pressure on dealers to move equipment off the lot quicker to avoid carrying costs and maintain cash flow. These factors include capital costs, softening values, and decreased market demand.
One of the most effective ways dealers manage cash flow is to proactively reprice their equipment to make it more competitive and ensure a baseline return on investment – even if that return is less than originally anticipated. And repricing isn’t a practice that just applies to the kind of slowdown we are experiencing now. It’s a tactic that all dealers can practice, which should help improve capital availability to continue to operate and grow the business
“Most aged inventory issues start the moment the trade-in is accepted.” — George Keen
What is repricing?
Simply put, repricing is the process of adjusting the listed prices of equipment based on market data and dealership objectives. It’s not just about discounting when something won’t sell—it’s a deliberate and recurring evaluation of how each piece of used inventory is positioned against current market demand, auction trends, and internal goals like turns, inventory levels, or margin targets.
There are two primary types of repricing: Reactive and Proactive.
- Reactive repricing usually takes place when a piece of equipment sits too long on the lot and a dealer is forced to lower the price to spark buyer interest and hopefully move the equipment to reduce carrying costs.
- Proactive repricing is more strategic and takes place when dealers actively monitor real-time market signals, set frequency reviews, and adjust prices before a stock unit becomes stale.
In a volatile market, dealers shouldn’t be asking, “Why hasn’t it sold?” Instead, they should ask themselves, “Is it the market – or is it our own math?” Proactive repricing sets dealers up for success by seeking data-backed answers they can use to inform their decision-making and act on.
When and why dealers reprice their inventory
To be effective, repricing should be part of a broader inventory strategy that is based on periodic reviews using data to guide decisions (and avoiding emotional or reactive price cuts). Dealers typically reprice when key triggers or goals align.
Key triggers for repricing equipment
- Aging inventory benchmarks (e.g., 45, 90, 120, 360 days): Inventory that sits too long ties up space, capital, and selling potential.
- Market shifts (e.g., auction trends, commodity prices): When values fluctuate quickly, adjusting pricing can help you align with buyers’ new expectations.
- Seasonal demand changes: Equipment loses appeal if it’s priced too high going into the off-season.
- OEM program deadlines or interest costs (floorplanning): Holding costs stack up fast -- repricing can reduce exposure and floorplan charges.
Common goals of repricing
- Improve turn rate: Faster sales mean less lot rot and higher overall profitability.
- Free up cash flow: Selling even at slimmer margins can unlock funds for new opportunities.
- Maintain competitiveness: Transparent pricing aligned with the market earns trust and drives leads.
- Avoid end-of-year write-downs: Clearing aged inventory before the fiscal year ends helps protect financial performance.
- Improve margins when the market is on the upswing: When demand rises, adjusting prices upward ensures you’re not leaving profit on the table.
Reason dealers might avoid or put off repricing equipment
Dealers often hesitate to lower prices on used equipment. This isn’t necessarily because it’s the right move economically, but rather because it can feel like taking a loss.
- Lack of time To effectively reprice, you not only need to be alerted to how long a piece has been sitting on the lot, but also:
- The direction of the current market demand
- The supply of suitable substitutes or similar models
- The demand history for that particular unit at its historical price points
- And accurate comparable machine values.
The traditional way of doing valuation makes repricing time prohibitive for many dealerships.
- Emotional attachment to pricing leads to stagnation. Holding on to units out of pride or past decisions keeps them parked and unsold.
- Holding out for “what it’s worth” vs. “what the market will pay” Dealers often price based on perceived value rather than what current buyers are willing to spend.
- Overvalued trade-ins lead to long-term aging problems. Accepting inflated trade values up front can clog inventory and hurt future deals.
What does repricing include?
- Internal price reviews: How frequently and who’s involved Regular cadence matters, and every dealership has its own methods. Some dealers review pricing every 30, 60, or 90 days, depending on the priority of equipment, with input from sales team members. In larger dealerships, used equipment managers typically take the lead on reviews.
- Sourcing reliable equipment data to set realistic pricing:
- Auction and dealer comps platforms: Benchmarking against real-time auction results and retail sales numbers keeps pricing in line with market trends and helps improve inventory turn rate.
- DMS and internal sales and pricing history: Using dealership platforms that provide insights into your historical pricing and sales information can help you identify patterns and set realistic (but competitive) pricing on current inventory. Having that data all served in one place helps alleviate the time burden of repricing.
- Appraisal workflows and pricing checklists Standardized steps ensure consistency when assigning or adjusting equipment values.
Tools & best practices for more effective repricing
A structured repricing process helps remove guesswork and ensures consistency across the sales team. Here’s a quick checklist of tools and practices every dealership should have in place to reprice faster and more effectively. (Note that this is just an overview – we recommend getting consulting from peers and industry experts on best practices before initiating any repricing strategy.)
- Inventory age report: Identify how long each unit has been on the lot to trigger timely pricing reviews and prevent costly aging.
- Market comp scan: Use platforms like Tractor Zoom Pro to benchmark against auction and retail prices and equipment market trends for similar units in your region.
- Sales feedback loop: Because your front line often sees shifts in demand first, capture input from sales reps and your dealer CRM about customer reactions, quoting volume, and objections.
- Realistic markdown schedule: Implement a pre-set cadence of reminders for price adjustments (e.g., every 30/60/90 days) based on data to avoid delays driven by indecision.
Anvil Pro can integrate with Tractor Zoom Pro to provide full visibility into your inventory details, including aged units by category, risk rating, and pricing outside of the market, among other metrics.
Final takeaway: An informed repricing mindset = healthier inventory
Repricing isn’t about taking a loss on purpose—it’s about making more effective decisions with the stock units already on your lot. It’s a tool for managing inventory, freeing up cash, and moving iron with intention. By shifting the mindset from “cutting prices” to “controlling velocity,” dealers can avoid stagnation and stay aligned with market realities.
In today’s market, repricing is how top-performing dealerships stay competitive, protect margins and cash flow, and adapt quickly to uncertainty and market forces out of their control. It’s not about reacting when something won’t sell. It’s about proactively using data to guide when, how, and why you adjust.