Let me be clear on one point. When I started MKS Consulting Solutions (www.mksconsulting.solutions), my intent was not to get into buying/ selling geophysical equipment. I did think that it would be a part of MKS as a whole, but my original intent with the company was to support seismic contractors with systems, process, business analysis, organization of data... you know all that fun stuff no one wants to do because its boring. During my time in the seismic world, I learned the value of knowing accurately the details about things that affect a project.
Perhaps it's due to a depressed market, not as many operating crews in the market, but aside from a few requests from seismic contractors looking for technical seismic staff, I have not had any requests for seismic business support. All requests, networking, and business development have revolved around seismic equipment brokering.
There seem to be two schools of thought on equipment Brokers. The first camp is a group who really do not have time for Brokers, and would rate a Broker as an unneeded cog in the business wheel. They would rate a Broker as someone who is not adding value to a transaction, and as someone who they can do business without. If they are an equipment supplier, they may view a Broker as a person or business who is a threat to their marketshare.
The second camp, and surprisingly the larger group, are those who appreciate the position of a Broker. These supporters note the value a Broker can add to a business transaction through a variety of 'outsourced' aspects of the deal.
Here are a few examples of how a Broker adds value to a business transaction -
1. Network -
Most Brokers spend their full time efforts in establishing, growing, and maintaining their contact network. A good Broker has a strategic network, where they have a solid foundation of trusted colleagues who have access to geophysical equipment, and information about the industry. A well informed Broker is invaluable to understand potentially ALL possible sources for the equipment or service a customer may be searching for. Quite often, a Broker may even be speaking with a competitor of the customer, so they usually have a unique picture of the industry and market.
***** Please Note****** Of CRITICAL importance to MKS, Secondhandseismic, and most of the network colleagues who I deal with, confidentiality is KING!!! Brokers run a very tight balance of sharing general information (non-confidential info)throughout the network, while keeping all key strategic information (confidential info) closed. It could take years to build up your strategic network, and minutes to cause its collapse through sharing sensitive information.
2. Price Negotiation
Because Brokers are involved in several hundreds of discussions regarding market rates for selling and buying products, Brokers can offer an informed perspective of market prices for your products for sale, or products you are looking to purchase. This will assist you in your negotiation, and ultimately result in you achieving the best deal.
3. Manufacturers - Your products may be sitting otherwise
In most cases of equipment sale, the reason the equipment is being liquidated or sold is due to inactivity. Essentially, someone has the equipment, but are not using it, and do not have any future prospects to use it!
Brokers provide support to the Manufacturers by finding the inventory of their idle equipment, and finding an active contractor to buy and continue to use their products.
Equipment Manufacturers may view a Broker as a threat, but it should be noted that generally, the buyers of second hand seismic equipment are of a different market pool than those who would purchase new equipment. It would be like a new automobile dealership competing with a second hand automobile dealership, they are two completely different markets with different consumer bases...
4. Brokers can Deflect Distractions from your Organization
Your Broker can handle all inquiries, all (approved by you) negotiation, contracting, logistics, and details regarding your business transaction. This service offered by your Broker will allow you to remain focused on your core business. It is also encouraged if you do have a well known need, to sign your broker to an exclusive Brokerage agreement, to dissuade other parties from contacting you, and distracting your organization by chasing the same opportunity.
There are lots of other reasons a Broker adds value to your non-core business activities. Feel free to contact us at any time to discuss.
Oh, and to be clear, I still do not think I'm an equipment Broker... I provide Strategic Support to Seismic Contractors (including Brokering Equipment) :)