Should Ritchie Bros prioritize expanding its online-only auctions to reach more bidders globally, or focus on enhancing in-person auction experiences to maintain local customer relationships?

Introduction

The trade-off question at hand is whether Ritchie Bros should prioritize expanding its online-only auctions to reach more bidders globally or focus on enhancing in-person auction experiences to maintain local customer relationships. This scenario involves balancing digital expansion with traditional customer engagement in the industrial equipment auction industry. I'll analyze this trade-off by examining the business context, user impact, technical feasibility, and strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market trends, I'm thinking online auctions might be gaining traction. Could you share how the revenue split between online and in-person auctions has evolved over the past 2-3 years?

Why it matters: Helps understand the existing momentum and customer preferences Expected answer: Online auctions growing faster, but in-person still significant Impact on approach: Would influence the urgency of online expansion vs. in-person enhancement

• Considering our global expansion goals, I'm curious about our current geographical footprint. What percentage of our revenue comes from international markets versus our home market?

Why it matters: Indicates the potential for global growth through online auctions Expected answer: Majority domestic, with growing international presence Impact on approach: Higher international percentage might favor online expansion

• Looking at our customer segments, I'm wondering about the preferences of our high-value clients. Do our top 20% of customers prefer online or in-person auctions?

Why it matters: Helps prioritize based on the needs of our most valuable customers Expected answer: Mix of preferences, with some resistance to online-only from key accounts Impact on approach: Might suggest a hybrid strategy or phased approach

• Considering the technical aspects, I'm thinking about our current online platform capabilities. How scalable is our existing online auction infrastructure to handle a significant increase in global traffic?

Why it matters: Determines the feasibility and cost of online expansion Expected answer: Moderately scalable, but would require investment for major growth Impact on approach: Could influence timeline and resource allocation for online expansion

• Regarding our competitive landscape, I'm curious about our unique selling proposition. What do customers say is our biggest advantage over competitors in both online and in-person auctions?

Why it matters: Helps identify core strengths to leverage in either strategy Expected answer: Strong local relationships for in-person; user-friendly platform for online Impact on approach: Would guide which aspects to prioritize in each auction format