GL Lost Surplus Contract

[tobyS]

Yep Sandcobra, they are doing what I used to do. I "flipped" them after recovering, titling, getting them running (using the 817 for the business). Of 16 trucks I bought, only one of them would start on it's own. Sometimes it was just batteries and other times much worse. I bought one for a parts truck and got it running then couldn't bring myself to part it out. Flipping was fun and I provided a service to my customers that did not want the auction hassles. No windfall profits, average 15-20% or so, usually enough to upgrade in the next buy. Flipping takes a lot of risk.

I'm okay with them eliminating my position in the scheme of buying and selling MV....I stopped even looking, since replacing me, not working with me is their profit maximizing strategy.

 

[sandcobra164]

Toby,
I only pointed out the "flipping" aspect because I think GP basically does the same thing you were doing minus titling. One thing they have going over the flippers is less risk in their business model. It they get a bum unit, no big deal. They'll sell it as a non-runner and not have much invested. I've never had a problem with flippers. Some people used to get mad with someone buying a truck from GL and listing it for 2 to 3 times what they bid on it and even have the audacity to ask for the additional $90 to file for the SF-97 "if the buyer wants it". You'd mostly see that on E-Bay advertisements. They'd even use the GL Photos alot of times. GP saw a market, underbid GL and they are the folks to go to now. I'm glad I got my stuff prior to GP because I hang out in the cheap seats as well. I personally don't think it's worth spending a few extra thousand dollars for a set of batteries but some folks do. I need to find out what those people do for a living as I'm in the wrong line of work. For me though, these trucks are truly just an extra. I need them like I need another hole in my head but I do love them.

 

[tobyS]

I wasn't offended and you were spot on, that we have been eliminated. I understand and it makes perfect sense that with moving significantly fewer, they had to improve their margin. They couldn't do that much work if they were moving the same number as GL. I did what I wanted to do, which was to end up with a couple of cool trucks....aka money pits. I tried three and that was one too many.

I use my trucks, especially the dump, taking real estate liability off of the (former) owners hands. An apartment (duplex) had a fire and the owner didn't want to mess with the cleanup so he gave me $1500 + the (corner commercial) property for the clean-up. He took the insurance money and split, I took a quit claim deed. I hired an excavator and hauled it to my farm and the landfill. I'm NOT commercial because I am not doing the haul for hire, I own both ends of the trip. I took about 15 loads of split foundation loads and will use them in retaining walls, fences, etc. Time before that was a downtown commercial building that I hauled about 120 loads for sorting and disposal.

 

[Jayco36REQS]

GP is well on it's way to eliminating 80% of the small companies that were in the "Military Surplus" game... From small sellers, to vehicle flippers, to transporters, to guys who would pick stuff up and hold it for other SS members. I personally know over 20 people who have lost their sole business, or side business because of GP winning the Surplus contract. Just amazes me how little is being auctioned off compared to when GL had the contract, and what IS being auctioned off is crazy high prices... more than I can buy it retail.. which prices are climbing there as well.

Good for RB and GP... Likely good for BIG Surplus businesses too. As usual, the little guys get trampled on...

 

[hcso2332]

I agree, watching the auctions today and amazed at what lots are going for. Buyers are just paying crazy prices compared to what they sold for on GL.

 

[Jayco36REQS]

I am guessing that my auction management team feels that as long as they continue to liquidate 85% + of the auction weekly that the current prices are supported by the market. Once the market no longer supports the price, the price drops. Unfortunately, that is called economics.

So what your saying is that GP is like OPEC... Sure, cut off supply to drive up prices. Then once all the small sellers are out of business, you can keep the prices higher as you sell large volumn to bigger retailers. Awesome.... As I said, great for GP... Who cares about small businesses... right??

 

[hcso2332]

The only plus for me is with the current surplus market is it's making me go through my warehouse, which full of old inventory, purchased from GL that I never got around to selling. The good ole days of buying triwalls full of hundreds of different items are long gone.

 

[Jayco36REQS]

The only plus for me is with the current surplus market is it's making me go through my warehouse, which full of old inventory, purchased from GL that I never got around to selling. The good ole days of buying triwalls full of hundreds of different items are long gone.

For the small sellers, that was a big portion of their business... being able to get triwalls of mixed lots. Once you factor in fees, transportation, storage, and sales costs.. There wasn't a lot of meat left on the bone as it was unless you were selling over seas, or just hold out for desperate buyer to pay the high cost some of these guys try to charge.

Like you, I have enough inventory to last me another yr maybe... But it will be an ever decreasing income.

 

[Valence]

I was just telling my mother these same things last weekend. Prices are sure climbing. It seems my main source of surplus is eBay any more as the little surplus dealers dry up or age out (retire) as GP is now "that person". The world changes and I'll just keep my memories of visiting all the various surplus stores when we went places in my youth.

I saw some photos with prices on the gear being sold at the 2018 Georgia Military Vehicle Rally and heck, some of the items they were selling are very commonly listed at 3 to 5 times that price out west here (I'm sure they sell slowly though, but the fact that they sell...)

 

[Jayco36REQS]

I was just telling my mother these same things last weekend. Prices are sure climbing. It seems my main source of surplus is eBay any more as the little surplus dealers dry up or age out (retire) as GP is now "that person". The world changes and I'll just keep my memories of visiting all the various surplus stores when we went places in my youth.

I saw some photos with prices on the gear being sold at the 2018 Georgia Military Vehicle Rally and heck, some of the items they were selling are very commonly listed at 3 to 5 times that price out west here (I'm sure they sell slowly though, but the fact that they sell...)

That what we call pricing as a "Sucker Bet..." High price just waiting for the "Sucker" that doesn't know any better. Some guys try to sell items at the "Retail" price of what the govt paid, or what Cummins or Other trucking companies charge. The bottom line is the Surplus industry will start to dry up as few are able to afford to be in it anymore. Much fewer can pay $12k for a 5-ton truck or $30k for a Hmmwv, and then pay $350 each for a fuel injector, or $50 for a fuel filter. Only because there were small sellers taking a small profit from the affordable prices of GL for mixed lot surplus, and spending hrs going through the stuff, and list it, and store it, and such was the Surplus market able to grow so big over the last 15yrs. It will become another hobby for the rich, or guys that got into it early on as many of us did... but eventually, you have to buy part... and that is when it will slowly drift out of being affordable or worth having these big trucks... except for the guys who use their truck as an income source.

As for me... I've had some discussions with friends at AFMC-HQ and DLA to see if they can find out what their side of things are, and if they are aware of what is whats going on. Sr Leadership may or may not care. But it doesn't appear they are aware of the impact in the shift from GL to GP.

Time will tell how it shakes out... but it's looking shady.

 

[aleigh]

Gov can't win. They sell at low prices and people cry about the waste of taxpayer dollars. They change to use modern business practices to wring the most out of the market and get the most people will pay, we complain that we're not getting bargains anymore. Have to remember the original point of selling surplus inventory which was purchased with taxpayer money is to recover as much money as possible for the treasury. If the gov' spreadsheet says these approaches produce more revenue year over year, then that is what they have an obligation to do...

 

[Jayco36REQS]

I worked for with the Navy for 11yrs, and Air Force Material Command for 12 yrs.... I can tell you the Govt doesn't give a crap about saving money on DRMO. The organizations and branches do not get any money back, so it doesn't affect them. The waste in the Govt is mind boggling... They went with GP as the lowest bidder.. overall cost DLA the least amount of money.. not because it was going to make any real money for the Govt. lol

If they cared about making money with DRMO items, they would focus more of unit transfers of parts, vs sending them to DLA in the first place.

 

[hcso2332]

I was watching quite a few auctions, and a lot battery chargers was on my list. GP had a starting bid on 19 charges for $2800 which was ridiculous, but someone bid. Total out the door $3295 for 19 chargers, making $173 each. On eBay they sell for $85-$130. Wow, who the heck is buying!

 

[bigbe5678]

I all When I was a kid back in the 70s My father dealt with DRMO (sealed bids) I remember 3 Jeep lots in good condition would go for about $1500 of new field stoves for 25.00 Sad to say those days are over

 

[98G]

120 ammo cans in one lot and the selling price with fee and tax, $20ea sitting on base. How can you make any kind of profit on that??
View attachment 746013

GP is literally getting twice as much for them "wholesale" as I do retail.

I have gotten out of the habit of looking at the auctions. I haven't looked since I bought the welder a few months ago.

Judging from the fact that the stuff is still selling, enough people are looking (and bidding) that we won't be missed.

 

[mcv1964]

I all When I was a kid back in the 70s My father dealt with DRMO (sealed bids) I remember 3 Jeep lots in good condition would go for about $1500 of new field stoves for 25.00 Sad to say those days are over

Aw the 70's when life was a bit cheaper! But then again so were the wages ...lol!

I hate to be the bearer of bad news my friend because I too remember the 70's with fondness.... the 70's was almost 50 years ago ... ouch that hurt to say!

 

[NewHmmwv]

GP is well on it's way to eliminating 80% of the small companies that were in the "Military Surplus" game... From small sellers, to vehicle flippers, to transporters, to guys who would pick stuff up and hold it for other SS members. I personally know over 20 people who have lost their sole business, or side business because of GP winning the Surplus contract. Just amazes me how little is being auctioned off compared to when GL had the contract, and what IS being auctioned off is crazy high prices... more than I can buy it retail.. which prices are climbing there as well.

Good for RB and GP... Likely good for BIG Surplus businesses too. As usual, the little guys get trampled on...

Sad to hear that people have lost their businesses due to the shift. As I know the owner of a big surplus company, it is certainly not good for them. The price of speculative buying has gone astronomically high as companies fight over peanuts being offered on these sales. These companies are putting a big chunk of their usual capital into 1 or 2 listings rather than the 10-20 this time last year.
The only people winning right now is the ritchie brothers, they have innovated and revamped the way surplus has sold and in turn cut a large portion of the profit for surplus dealers (even the big ones)

What I don't understand is why there is not as much surplus material being sold. It is one tenth of what is used to be each week, and the items have been collected for Govplanet since April so you would think they would be overloaded. Maybe they are holding onto the items and not advertising them for whatever reason.

I am just curious if anyone has seen a large amount of parts when they have gone to the various GPs warehouses (espiecally in Vegas and PA)?
Any insight on this would be appreciated.

I really hope things change as today it was discouraging to see the price of items go sky high that one or two years ago would have brought a much lower price. Maybe this time next year we will be back to the way things used to be, at least how it has been the past few years on GL. One can hope...

 

[USAFSS-ColdWarrior]

Most assuredly, the one constant in life is CHANGE.

We can choose to adapt and overcome.

Or we can fight the changes and be devoured.

If we doubt this, just try to find a good blacksmith shop nowadays.

 

[ltrpd]

this question is for Phil at Govplanet direct. Phil what happened to all the surplus at Govplanet is it continuing to just pile up and your team is working on getting items inventoried and ready to sell? I have also noticed a lack of items listed. I am not being critical but I am just looking for clarification, thanks

 

[98G]

Most assuredly, the one constant in life is CHANGE.

We can choose to adapt and overcome.

Or we can fight the changes and be devoured.

If we doubt this, just try to find a good blacksmith shop nowadays.

There's plenty of good blacksmith shops. They've changed from a business model of "repair and fab" to a business model of "cottage industry making high end artwork using the old methods" and getting top dollar for their work....

But I get your point.

I often describe what I do with milsurp as "more than a hobby, less than a real business".

My plan at this point is to trickle out what inventory I have left at or below what things are currently bringing at auction. I don't anticipate being able to replace it until/unless things change.