When it comes to confidently valuing farm equipment and heavy machinery, not all valuation platforms are created equal. Quality and timely data, the foundation of any good valuation tool, is claimed to be leveraged by all platforms but it’s sometimes hard to identify which tools are authentic in their offerings and which just leverage overused data buzzwords or phrases to fill value propositions.
Working with equipment dealerships, auctioneers, Farm Credits, and other financial institutions across the country, we are often asked, “How can we trust the data in Tractor Zoom Pro?” Here are five qualities we reference in our conversations, keep them in mind when choosing Tractor Zoom Pro or any valuation platform and data partner.
1. Volume, depth, and recency of data set
In order to make confident equipment valuation or pricing decisions, a healthy sample of data is needed. Making a decision from one comparable piece of equipment, sold over nine months ago, is likely not going to give you the most accurate value based on today’s market.
The Tractor Zoom database is powered by over $39B of equipment comparables and sale data, growing by approximately $1B each month. Building the fastest-growing, most transparent database is something we are committed to and accomplish by partnering with over 5,500 auctioneers and dealer locations across the country.
Tractor Zoom Pro is built on comparable listings that include all equipment photos, full specs and descriptions, seller information, sold or retail price, and more. This rich listing data allows users to better filter and find comparables that best match their unique needs.
Lastly, the Tractor Zoom database is updated multiple times a day, ensuring equipment comparables and sale data is available in near real time. This ensures decisions are made based on data that reflects today’s market conditions, not last month or last quarter.
2. Check the data source and quality
Understanding where the platform sources its data can give you an indication of its quality. Is the data primary-sourced, is it collected from other, third-party sources, or is it a combination of both?
Why does this matter? The reliance on third-party data without proper checks can compromise the authenticity and accuracy of the information presented. Consequently, users may find themselves basing critical business decisions on data that lacks the necessary rigor and precision.
Moreover, examining how a company approaches data quality assurance (QA) provides an indication into the overall trustworthiness of the platform. Questions to consider when evaluating a potential partner include:
What type of data quality assurance process do you have in place?
How much of your QA process is completed by humans vs. technology?
How is duplicate data handled?
What type of data security process do you have, and how is personal or property information handled?
Tractor Zoom sets itself apart by implementing an extensive quality assurance process for data that includes both human and machine intervention. As equipment comps and sale data are ingested into our database, it undergoes multiple rounds of human review to ensure data is standardized and complete. Machine learning models and artificial intelligence are also incorporated to help us
detect outliers in equipment listings for further review.
While this QA process can be somewhat time intensive for Tractor Zoom, it’s imperative that our clients have data they can trust to make confident business decisions.
In addition to data quality, Tractor Zoom places a high priority on data security. To further guarantee the safety of customer data, including personal identifiable information within Tractor Zoom Pro, the company has pursued and achieved SOC2 Type 1 certification. This certification underscores Tractor Zoom's dedication to maintaining the highest standards of data security, providing users with the assurance that their sensitive information is handled with the utmost care and in compliance with industry best practices.
3. Is the data accessible AND actionable?
Being able to easily access the data you’re paying for may seem like table stakes but what often isn’t easily accessible are the actionable insights needed to drive your decision making. Data by itself is just that, data. In contrast, insights are what is derived from raw data and are what provide the actionable knowledge needed to quickly and confidently make a decision.
Tractor Zoom Pro goes beyond raw data, translating data points into actionable insights designed to assist users in making more informed and confident valuation and pricing decisions.
“What we're doing at Tractor Zoom is making data more accessible to everyone,” says Hank Mandsager, Lead Data Scientist at Tractor Zoom. “We're making it easier to digest and gain those insights so that our clients can stay ahead of the market, reduce overhead, maximize margin, and more. We want to empower them to get to decisions faster.”
Whether you’re exploring the latest supply and demand analysis of 425+ horsepower row crop tractors in Tractor Zoom Pro Market Trends, identifying at-risk units within Tractor Zoom Pro Inventory, or updating equipment values during renewal season in your Tractor Zoom Pro Equipment List, the platform organizes and delivers the insights necessary for optimal decision-making.
4. Ability to integrate other data sources
When it comes to making equipment valuation decisions, every organization has its own unique process. While Tractor Zoom Pro includes over $38B of auction and retail equipment sale data, other first-party data sources may be valuable to inform equipment values and fit the organization’s standard operating procedures.
For example, Tractor Zoom Pro is able to ingest first-party sold or equipment valuation data for easy analysis next to average auction and retail comps and values. Equipment dealers use this feature to compare their historic sale data, while Farm Credits and other financial institutions leverage this functionality to keep their custom equipment database information centralized, eliminating the need for multiple platforms or spreadsheets.
Tractor Zoom Pro also supports custom and open source API integrations, promoting ease of use and data continuity between business systems. Many organizations have in-house systems that are integrated into every facet of their job. They may not want or need another platform, but what they do need is a reliable data source to feed their system. Is the platform you are considering reliable so that you can trust the flow of information into your system without always having to verify the quality yourself?
5. Eye on the future
A good valuation platform and data partner will not only recognize the importance of building a sound data philosophy but will work to adapt and evolve with the changing data landscape.
Why? Because those that sit still will be left behind.
Farm equipment and heavy machinery continue to advance in technology, offering more data points to leverage when it comes to valuing equipment. Additionally, artificial intelligence and machine learning are becoming more mainstream in our everyday lives. Is your solution under consideration well-positioned for the future of your business?
Questions to ask a potential partner:
What product enhancements are included in your roadmap within the next 6-12 months?
What does your innovation process look like?
If I have an idea to improve our process, how can you help make that a reality? Any examples?
If I detect an error, how do you handle those issues?
How have other partners worked with you to solve problems of the future?
The future of data science at Tractor Zoom is bright. With equipment comps and sale data being added to the database daily and additional data points being added through first- or third-party API integrations, our vision to harness the power of the heavy machinery data ecosystem to accelerate business decisions is well within reach.
Through the utilization of new data sets, advanced analytics, machine-learning, artificial intelligence (AI), and more, we are committed to assisting our clients in the following ways:
Optimize accuracy of equipment values based all available equipment specs and added features
Improve inventory turn by identifying prospective buyers for equipment taken on trade-in before the deal is closed
Proactively identify risk within key client accounts, equipment categories, or the portfolio at large for financial institutions
Boost gross margin by predicting the time a unit will sit on the lot and calculating associated carrying costs
Stay ahead of the market and predict where it’s going to go based on buyer activity and intent, ensuring businesses stay ahead of industry shifts
Bonus tip: Openness to feedback
A good partner will not only work to ensure their evaluation platform continues to evolve with the changing landscape but they will be open to understanding how the data they provide helps your business, working to identify gaps in the data set or challenges interpreting the data to drive more confident and efficient decisions.
If your existing or future partner isn’t open to hearing feedback about their product, or doesn’t take action on issues you have been identified, this is cause to be wary. It may be a sign they do not have the resources to manage customer success, ongoing product development, or haven’t created a culture around advocating for the customer.
Tractor Zoom was built around the philosophy that listening to the customer and solving their problems is the best way to continue to grow and be successful as a company. Product development is only done in coordination with existing customers through product discovery and beta testing, and nearly all product enhancements are driven by customer feedback. This philosophy not only drives our culture but puts us in the position to continually meet and exceed customer expectations.