Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

Home Based Business – Working With Your List

When you start building your home based business one of the main things you will need is a list, a list of people who are interested in your product or services that you have to offer. Without a list, basically your online business will not succeed and you will have just wasted your time and money in setting up your business.To build a list you will need to have a squeeze or landing page with an opt-in box for your visitors to enter their details. Once they enter their name and email this gives you an indication that they are interested in what you have to offer. The more people that enter their details, the bigger your list becomes. This is where your home based business starts to grow.If you have watched any videos on YouTube about list building for your home based business, then you may have herd the saying, the money is in the list, this is not completely true. The money comes from the trust of your list, if you gain your lists trust then you will start to make money, they will start to buy from you because you have gained their trust and feel like you are someone they can relate to.To gain your lists trust, don’t just keep sending them emails with just sales pitches, because if you do, you will lose their trust. Try to send emails offering some great free content and tips, tips on how you can help them in building their home based business. A good way to gain trust is for you to do a video, when they first join your list, introduce yourself, let them actually see who you are, this way they can put a face to the person that is sending them emails.Another good way of gaining your lists trust is to try to find out what they are looking for, send them a survey, asking them what they really want. An example would be something like 10 questions on how you could help them with their home based business. Once you get their replies, then you can put together products or services to suite their needs.Once you gain your lists trust, they then become more responsive to your regular emails. Your open rate will increase and your sales start to increase, which in turn brings in more profit. Another good thing that happens is your name starts to get known around other websites as a person who cares about their subscribers and is someone willing to help. This is because people will talk about their experience on the social media websites. This in turn then brings more people to your home based business website, who then subscribe to your emails. Working with your home based business list is very important.Let me finish with asking you this simple question. If you were to go into a shop wherever it may be, and the sales assistant was very polite and helpful in showing you the product you were interested in, but at the same time not very pushy, you know what I mean, he was not pushing for that sale, would you go back to that shop at a later date if you were looking for something else?My answer to that question would be yes, I would go back, in fact I do go back to the shops I use, and the reason is that I know I can browse without the pressure for a sale. That’s why it is so important to build a relationship of trust with your list in your home based business.

Bowhunting Teaches Many Lifelong Lessons

Hunting Lessons

People, as I have learned, need not to learn to kill during an archery hunt, but to learn more how to live. When I was very young, my Dad taught me the importance of learning how to enjoy “Mother Nature,” not just to hunt. I have passed this on to both of my sons and friends I’ve made throughout my life while bowhunting. By learning to live along side of “Mother Nature,” it can teach you how to become a better person in everyday life.

My Dad taught me how to hear not to just listen. When you listen carefully, you hear many things around, not just what you want to hear. In those moments you may hear the birds singing, the small critters on the ground start to scramble around or if you’re lucky, the footsteps that sound like a human walking on the forest floor, only to find out it is a deer starting to move slowly toward you. He taught me to see, not just look. To see what is going on around you. Next time you are out in your stand take look around you and see the clear blue sky or maybe how beautiful the leaves are on the trees. Sometimes the warmth of the early morning sun hits you just right and you feel good all over, inside and out. He also taught me to be courageous, not just to be satisfied with the way things are now, but to go out and explore the many new horizons yet to be seen. This could mean the next crossing of a small stream or maybe a new job.

I try to stay connected to the animals that I see during an archery hunt. I know when to shy away from something or to forage on, just like that monster buck that didn’t get to be a monster just by accident. He learned just as you did, from others or from his own mistakes where not to be or what not to do. In order to be successful in life, you must see and hear what is going on around you and your loved ones. To share and teach the care of our forest home and hunting heritage may just be the most important piece of education you have ever taught. Even though my Dad has been gone for awhile now, his lessons that were taught to me are now still being taught. The path he led me on, has helped me to determine who I am as a person and he has taught many others, who are still feeling and doing the same as I am.

The sport of archery hunting was passed on to me and I will continue to pass it on to others as if my Dad were still alive. Remember that hunting is less about learning how to kill, and is more about how to respect others and what “Mother Nature” has to offer.


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