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Report: #433648

Complaint Review: Ritchie Bros. Auctioneers - Phoenix Arizona

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  • Reported By: Mesa Arizona
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  • Ritchie Bros. Auctioneers 5410 W Lower Buckeye Rd Phoenix, Arizona U.S.A.

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I recently placed several pieces of construction equipment on consignment from Ritchie Bros. and have left with a bad taste in my mouth'. It is my opinion that Ritchie Bros. had hidden additional fees from me when they acted as my Agent and sold my construction equipment.

Specifically, I had initially met with Chris Blood in early January in Phoenix, AZ. He had assured me of their leadership and integrity' in the auctioneer market place and that Ritchie Bros. had been in business for over 50 years so I decided to use Ritchie Bros. to help me liquidate the equipment that I no longer needed because of the slow down in the Phoenix market. Within 2 weeks I had handed over a lot of my total net worth including:

2007 Caterpillar 345CL Hydraulic Excavator
2005 Caterpillar 320C Hydraulic Excavator
2004 Caterpillar 312CL Hydraulic Excavator
Caterpillar 225B LC Hydraulic Excavator

The 2 day auction was held on February 25-26, 2009 and was anxiously waiting on their online bidding area at www.rbauction.com to see how much my equipment had fetched. I could have gotten about 30-40% more had I sold 6 months ago, but nonetheless I was content with the final sales prices.

A week later I received a check for my equipment and it was over $20,000 less than I had expected. Now I knew what the contract stated about maintenance and repair fees. But I got billed over $20k for paint! I find that absolutely appalling and dishonest to both the buyer and the seller.

Some of my equipment is 4 or 5 years old and adding brand new coats of paint adds absolutely nothing to the structural and mechanical integrity of the machines. My experience with Ritchie has left an awful taste in my mouth and when I voiced my complaints when them all I got was there is nothing we can do.

The auction model was great because I didn't have to deal with anyone else, but I don't think Ritchie Bros. gets you the best possible out the door sales proceeds. I guess I should have known all along--- Ritchie Bros. Net Profit Margin is 24% and is downright wrong to the entire fair market price claim they make so often.

Ritchie Bros. really does do a lot to manipulate the "fair market price" for buyers and sellers of construction equipment. Besides adding new coats of paint to equipment thats 5+ years old, they also go "all out" to create an "experience" at auctions. The fancy hats, the ice sculptures, the grab bags, excess staffing..... all these expenses come from somewhere and its not the best value for buyers and sellers since they're probably the ones paying for these unessential items.

If you think about the "fair market price" for any item than the math equation is:
(Seller's Proceeds) - ('Ritchie Fees') = Buyer Price.

In my opinion neither sellers nor buyers get the most value from Ritchie Bros. I feel like they owe me over $20,000 from their outrageous fees and I will never use their services again.

Sincerely,

Gary P.
Mesa, AZ

And by the way Ritchie Bros. is a public company so maybe its good policy for the shareholders to take additional fees from the consignors, sellers and buyers.

Gary
Mesa, Arizona
U.S.A.

This report was posted on Ripoff Report on 03/12/2009 06:34 PM and is a permanent record located here: https://www.ripoffreport.com/reports/ritchie-bros-auctioneers/phoenix-arizona-85043/ritchie-bros-auctioneers-unknown-transaction-feeds-charged-to-the-seller-of-construction-e-433648. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
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0Employee/Owner

#4 General Comment

Transparency

AUTHOR: thomas - ()

POSTED: Sunday, July 28, 2013

To whom it may concern at Richies Bros. ,

Gary is offering to show a contract I.E. A signed document. It appears as if Gary has his ducks ina  row. So, if your compnay is credable , why are you not putting together a siet that shows all signed documents to offer transparent "Hard Core" evidence that you did this man no harm?  It would put to bed any doubts in my mind to move forward with you. I am thinking that a telephone call would not satisfy my doubts. The old saying comes to mind when I read I* just call me* , that saying is "if you can not dazzle someone with brilliance, baffle them with BS." I don't care to be baffled , I care top be factual, it's called journalism . Can you provide this, or not?  If not I doubt most of us will believe you. If you can not provide what I am asking, don't bother to try to blow out my candle to make yours appear brighter. As this will be seen as such by other viewers. Simply not answering would be your best bet if what Gary says is true.

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#3 UPDATE Employee

Simply Slander

AUTHOR: Chris - (U.S.A.)

POSTED: Friday, January 28, 2011

Really? Note the date of my reply. Gary P is simply afraud. Although my phone number is listed, still no call. Ripoff report.com is simply a simple way for folks to defraud and extort honest companies. You got a problem, you have the number, call me.I would think that, for $20,000 you would have suedusby now for this money - yet I see no public filing for this.Go figure.Could it be that yourclaim istotallybogus and false? Nice try.You got a problem, bring itto me in a ligitmate formate andasour company has always done -we will make it right. Who deals with a $20,000 complaint on the internet otherthan someonetrying to slander? Anothercomment by you on this site will simply prove my point. C Holmberg1/28/11

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#2 Author of original report

Ritchie Bros. managers continuing to cover up lies

AUTHOR: Gary - (U.S.A.)

POSTED: Thursday, March 19, 2009

Chris Holmberg from Ritchie Bros. Phoenix location has recently called my complaint "a hoax" and once again i'm disgusted with the treatment received from Ritchie Brothers. I have documentation that Ritchie Bros. has charged me over $20,000 for paint that I never signed off on and I would be very happy to share it with the general public via email attachment.

And just like my initial transaction with Ritchie Bros, the auctioneers management team including Chris Holmberg and Chris Blood are hiding behind the guise of "being in business for over 50 years" in order to cover up their deceitful practices to consignors.

Unless i'm reimbursed for the paint that Ritchie Bros. charged me over $20,000 for, this can not be undone. In fact, the recent comments by Chris Holmberg demonstrate the lengths that Ritchie Bros. will go to blanket the truth about their practices.

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#1 UPDATE Employee

Response to "unknown transaction fees complaint" by Ritchie Bros Auctioneers

AUTHOR: Chris - (U.S.A.)

POSTED: Friday, March 13, 2009

I believe that the report from Gary P is a hoax for the following reasons: 1) we did not have a consignor in this sale with the equipment listed in this complaint and 2) we did not paint the equipment listed in this complaint for this sale. I am not sure what the motivation for filing this complaint was - and if the person filing this complaint would like to discuss it further, I ask that they call me at the number below. Ritchie Bros Auctioneers has been in business for over 50 years and we are known for our exceptional customer service. While we no doubt make mistakes from time to time, we strive to make it right with the parties involved. Let me assure you that any fees that we charge for painting, etc. are discussed with the consignor and approved by the consignor prior to any work being done. If any one has any questions regarding this complaint, I ask them to please call me at (602) 269-5631. Chris Holmberg, Area Manager - Arizona

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