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 Opportunities – Begin a Fulfilling Career!

Most people who work for someone else lack the level of fulfillment they want in their lives. Living and working simply to pay the bills can leave many workers feeling less than satisfied with their employment situation. Working for the success of someone else’s business may be good enough for some people, but if you find yourself wishing for more, now is the time to see what home based business opportunities are possible for you to delve into.

Even with the feelings of discouragement and lack of accomplishment, many people continue to shy away from the idea of starting their own home based business because they simply are not sure about the best ways to get started. The first steps are the hardest and prove to be the reason many people who begin investigating home based business opportunities lose motivation before they even get started. The key is a good amount of pre-planning that will allow you to focus on what aspects of running a business will help it evolve into a successful endeavor. Before you even begin work on the business itself, you must plan every part of it.

Choose a category of business that you are passionate about. Working for yourself will be no more enjoyable than working for someone else if you are doing things every day that you do not enjoy. The business will run you if you do not run it first! Complete some research about competitors in the same field to determine what makes them successful. Obviously, you will not be able to duplicate everything because their business is not a cookie cutter copy of yours, but by utilizing a few key points, your rate of success will increase. Once you get some thorough research done, keep your attitude positive if you hope to succeed. There is no limit to the effect positive thinking can have on your actions. If you find yourself constantly thinking negatively, your business will never thrive.

A good combination of research, hard work and a good attitude is all you need to get your own home based business going. Stop working at a dead-end job and begin a satisfying career working at home. With organization, patience and perseverance, you will reach your business goals. There is no need to reinvent the wheel, so read up on tips about home based business opportunities. You will quickly learn you are not alone in your endeavor.

Home Based Business System – 4 Steps To Becoming A Top 2% Producer

If you’re looking for a home based business system to help you build a staggering organization in record time, I want you to pay very close attention to this article. In it, I will outline a four step process and home based business system that will get you to the top of your company’s leader board in record time.

Traditionally, most people get caught up in their company’s home based business system to market their business. They pass out product samples, brochures and DVDs. They plaster their body, their car and their home with company logo-covered stuff, making themselves virtual walking billboards for their company – and for someone who is going to try and sell something to everyone they meet.

While this kind of home based business system is one way to build a business, it is a painfully slow way to do it. I am going to open you up to a mental paradigm shift so that you can start to see your business in a different light. In order to do that, there are four critical steps you need to understand.

Home Based Business System Step #1: Understand that building a business is really just a big game of numbers. Having said that, it is your job as a marketer to understand certain things so that you can stack the odds of success in your favor. Passing out CDs etc is not putting yourself in a position to stack the odds in your favor.

A much better home based business system is to use the Internet as a platform to reach the masses. That starts with a squeeze page designed to do one thing: brand and position yourself to generate the lead. All you’re looking to do is to get the lead, so that you can enter the relationship building process with them (which I’ll outline in a minute).

Home Based Business System Step #2: The next step in this home based business system is to drive targeted traffic to your squeeze page. There are a lot of proven strategies and methods to make this happen. One simple and proven way – one which you can also do without breaking the bank – is article marketing. You’re seeing this in action right now as you’re reading this.

This is nothing more than creating articles optimized under specific keyword phrases, so that when someone types in that keyword phrase they will hopefully find your article in the top 4-5 non-sponsored listings of page 1 of the search results. This is known as natural or organic traffic. Although there are several different ways to drive traffic, the most important thing to keep in mind is “k.i.s.s.” (keep it simple stupid). Start with one form of traffic, master it, then add another.

Home Based Business System Step #3: At this point in the process, you need to build and create sound relationships with your prospect. The better the relationship, the more likely it is that they’ll buy your products and services.

One solid way within this home based business system to create solid relationships with your prospects, is to share meaningful content with them free of charge and with no expectations. Your first 4-5 emails should consist of nothing more than information to help your prospects solve the problem that got them to find you and join your list in the first place.

For example, if you have a list of people who are looking to eliminate acne problems, then those emails should be geared to talking about things people can do in their daily regimen to help their acne issue, which ointments to uses and where to find them, which kind of foods keep your skin clear, and what kind of soaps can reduce/prevent acne. You get the idea. Just remember that you need to provide content that is relevant and make it free of charge.

Home Based Business System Step #4: This step in this system is all about how to start making money from your list. So at this point – starting around email 5 or 6 to your list — you can start to do offers. Maybe you will invite them to a conference call or webinar. Maybe you will offer downloadable products that you’re selling online or offline. Maybe you will invite them to call you for a 25 minute “needs assessment” where you can introduce your products and services to them.

You get the idea here. What is critical to note about this, though, is that if any of the first three steps aren’t done properly, then this whole home based business system will collapse like a ton of bricks.


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