WWA Group to Hold Its First Auction in the United States
Yesterday WWAG announced news that they will host their first auction ever in Tempe, AZ on June 9-10th.
The auctioneer business is one of the last true monopolies on Earth and it’s held by Ritchie Bros. (RBA). They conduct well over 90% of the world’s physical auctions for used construction equipment and dominate every single market in the world… except for one.
Ritchie Bros. (RBA) is being outperformed by World Wide Auctioneers in the city of Dubai, UAE. It’s an important hub for global trade, and RBA is being beaten by little ol’ $5 million market cap WWAG. In fact, WWAG has been outperforming RBA year after year and currently holds 65% of the market share in Dubai.
WWAG is able to outperform RBA in Dubai because they undercut Ritchie Bros. (RBA) in consignor fees. While RBA charges an average 15-20% commission to consignors for selling their equipment…. WWAG charges consignors an 8-12% commission on average. It's the same low-cost model used by Walmart.
Until now, WWAG has only conducted auctions in Dubai and they’ve been the market leader in that city for years. But this summer WWAG will start hosting auctions in the United States and by using the same low-cost business model they could take away a lot of business from RBA.
