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DLL Publishes Whitepaper on How Buyer Behavior Knowledge Can Improve Pre-Owned Solutions


News provided by

DLL

16 Feb, 2016, 08:30 GMT

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EINDHOVEN, the Netherlands, February 16, 2016 /PRNewswire/ --

DLL, global provider of asset based financial solutions launches its fourth whitepaper, 'Improving pre-owned solutions by understanding the buyer'. This whitepaper comes shortly after DLL was awarded by the World Economic Forum Young Global Leaders for providing financial backing for the circular economy to become mainstream.

Today's knowledge on pre-owned buyer behavior is limited
Today's business-to-business customers are mainly focusing on buying and selling new products. Understandably pre-owned buyer behavior knowledge is limited within the business-to-business market. On the other hand, there is an urgent need to rethink how we produce and use our assets due to the growing world population and the pressure on our planet's finite resources. More and more companies and individuals see the necessity of a more regenerative economic model, more known as the 'circular economy' where products are recycled, reused or remanufactured at the end of the first life cycle. Selling and buying pre-owned products fit in this philosophy.

The circular economy relies on usage rather than ownership of assets. It enables manufacturers to maintain more control on their assets throughout the technical cycle and offers the potential for product services to become an increasingly important profit center for manufacturers. New service-based financial solutions such as leasing and pay per use are enabling manufacturers to do so.

Buyers' reasons to acquire pre-owned assets
In order to gain insights into pre-owned buying behavior DLL conducted a survey towards a substantial number of customers that have leased pre-owned assets through DLL in the Dutch construction, transportation and agriculture industries.

DLL's research concludes that factors driving organizational buyers to acquire pre-owned products are the price-quality ratio, available funds for investments, and value depreciation. The latter is less for pre-owned products, as a significant part of the investment value is already lost to depreciation when the asset leaves the showroom. Additionally, immediate availability and the level of flexibility and asset knowledge are guiding buyers towards pre-owned products, even as the level of risk associated with the purchase decision would appear greater.

Guidance for manufacturers
"Based on these findings we advise manufacturers and dealers to approach new- and pre-owned buyers differently", says Rob van den Heuvel, Senior Vice President Global Asset Management at DLL. "Taking into account their needs, and as such, perceived objectives will positively contribute to their ultimate expected buying behavior. Our whitepaper presents six focus areas that potentially support manufacturers and dealers in anticipating the behavior of pre-owned asset buyers and thus might support our partners' business, which is always our ultimate goal."

Saying this, Van Den Heuvel adds, "Although new and pre-owned buyers are often compared as separate entities, it is important to realize that these aren't exclusive titles. The truth is that the new and pre-owned buyer is often the same person purchasing a mix of assets, over time and varying needs, that best supports their business."

To download the full whitepaper click here . Available in English, French, Dutch and German.

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