Episode Overview
In this episode, Mike LeMaster, President and CEO of Black Star Auctions, shares strategies for rental companies looking to maximize returns on underutilized or retiring fleet. Built alongside his sons, Black Star acts as a “pinch hitter” for equipment rental businesses, offering flexible sale options, transparent fees, and access to a buyer base of over 250,000 across the U.S. and internationally.
We discuss why 90% of equipment listed on traditional platforms never sells, how national and international buyers drive stronger demand than local markets, and the three channels Black Star uses to sell equipment: pre-sale, pre-auction, and auction. Mike also explains how retirement dispersals work and when it makes sense for rental companies to consider an auction partner. His insights reveal how independents and regionals can unlock more value from fleet disposition and long-term growth.
Timestamps:
- 00:00 – Mike LeMaster, President and CEO of Black Star Auctions, shares his background as a serial entrepreneur and why he started Black Star with his sons.
- 04:44 – Black Star steps in as a “pinch hitter” when rental companies need help moving underutilized, slow-moving, or hard-to-sell equipment.
- 12:27 – Around 90% of equipment listed online never sells, and what does sell often brings 30–40% less than asking price.
- 14:43 – Black Star achieves 20–50% success in pre-auction sales compared to the industry’s 10%, usually at higher values.
- 15:50 – A retirement auction for a 70-year-old company expected $3M but brought in $4.5M with national and international buyers.
- 22:51 – Equipment sold through Black Star reaches buyers in the Philippines, Poland, Mexico, and Canada, showing how global demand boosts prices.
- 28:19 – Black Star uses data mining to match equipment with buyer brand preferences and unique applications.
- 31:18 – Fleet transitions like OEM brand switches require strategies to sell 100+ units without flooding the market.
- 33:45 – Private sale, pre-auction, and auction channels give rental companies flexible ways to sell equipment.
- 40:23 – Retirement dispersals often represent a rental owner’s 401(k), making professional auctions critical to maximize equity.
