Whether you’re selling a used HD DVD player or want to sell your car, there are many Web 2.0 solutions that can help you. Life is a little different when you’re trying to move one or two diggers. This is the market that Boom & Bucket entered; Used heavy equipment sales industry in the current millennium. The company is on the heels and just raised a $5.5 million round to tackle this tricky industry.
The problem the founders are solving is the traditional way to sell heavy equipment is Craigslist or local auctions. Both have flaws, and neither of them has the trust of consumers from Caravans and Watches of the World. Also, unlike eBay, there is an implicit understanding that when you buy something, you buy it as it is and where it is. Horror stories abound with purchases that didn’t quite go as the customer intended.
This also includes real money. “Today I’m reviewing our deals thread on Slack,” said Adam Lawrence, co-founder and CEO of Boom & Bucket. “These are the people who offered the cars: $75,000; another $75,000; $50,000. The largest one we sold cost over half a million dollars, and the cheapest was about $12,000.
The company is trying to solve some of the major problems in this industry; Trust, visibility and funding.
“Ebay has been offering the motorcycle category since 1997. The problem is that a car can show up and look perfect – that’s a common thing in this space. Someone painted it bright yellow, now it looks like new, but it may have a fundamental flaw. The engine is overheating or all the hydraulic pipes need to be replaced,” Lawrence says. “We have customer testimonials from people who bought a $350,000 bulldozer from us. Previously, he bought one at an auction and climbed this huge mountain on it, and it got hot there. The previous owner replaced a good engine with a faulty engine and a warning light covered in oil. This is often what you get when you roll the dice at the auction. So we’re trying to fix it.”
With early customers including Sunstate Equipment Rentals, Spiniello Construction and Los Angeles County, the company has already sold millions of dollars worth of equipment. The average car is in the five-figure range, and the company has sold “about 100 machines” since launching its platform in February.
“On average, equipment was sold 40% more than at wholesale auctions, which was made possible by the added layers of trust and assurance,” Lawrence says. “These machines are the lifeblood of our customers – they really stand next to them. It’s a tool that builds the infrastructure for America, and it has to be reliable. When you’re building a bridge and your excavator breaks down and you have 10 dump trucks to clean up the mess, the whole day is almost ruined. And so we have the opportunity to back that up and make sure the quality remains high. ,
The company employs 15 people and is in the process of refueling its cars to enter a phase of major growth, with the former completely deciding supply in this market game.
“We want to grow significantly. We want to build and release the base platform,” Lawrence said, adding that the first version of the app has already been posted on the website. If you want to buy a $300,000 bulldozer, he’ll have your back. “We want to work with some of the key vendor-side customers and prove to them the value of the offering, and then continue to grow the team significantly.”
$5.5 million in seed funding was provided by Human Capital and Brick and Mortar Ventures, the largest construction venture fund. Subsidiary investors include 8VC, Global Founders Capital, Wellbeing Ventures, Quiet Capital and MaC Venture Capital.