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.

What is a Home Based Business?

For many, a home based internet business is their salvation. With recent global economic hardship, lots of mums and dads are turning their eyes to the internet to save them from financial ruin. And little wonder with all those fairy tale stories of millionaires in the making that get about.But to stand any chance of success with an internet home based business, it is vital you understand not only the benefits and advantages but also the disadvantages in order to decide if this really is an option for your.So let’s take a look, shall we?Benefits of a home based business
Low set up costs compared to a bricks and mortar business
There is only a small financial risk
No limit to your income
No travel or commute expense
You can work in your pyjamas
Flexible work hours are great
Need I say it – no boss to answer to
Great for stay at home mums
No discrimination between sexes or age, education or background
You can start slowly and build up over time
Disadvantages of a home based business
You may feel isolated
You might feel like you never leave home
You might have trouble achieving balance in your home life/work life
You could work very long hours
You might not get paid regularly
You may be constantly interrupted by friends and family
You may struggle with motivation from time to time
There can be a loss of privacy for you and your family
Your family might not take your work seriously at first
It will be difficult to take holidays initially
There are a number of options to consider when choosing your model of home based business.Here are just a few:
Buy an existing business
Buy into a franchise
Join a network marketing company
Learn affiliate marketing
Create an eBay store
When trying to decide what you will sell, you need to do some serious brainstorming.The key question to ask yourself is: will my idea work?First you need to establish that there is indeed demand for your idea.Success questions to ask:
Who will be my target market?
How big is my target market?
Who are my competitors?
What makes my business different or indeed better than others?
How do I know visitors will buy off me?
How much time do I have available to put into the business?
Now you k now where you are headed, it is important to be sure you are suited to your venture. To get a better idea, take a serious look at yourself and do this keen inventory:Do I have these success traits:
Able to think laterally
Have positive mental attitude
Have courage and confidence
Prepared to take some risk
Self motivated
Have good judgement of opportunities and people
Show leadership qualities
Have good health
Training in small business
Able to make decisions
Self disciplined
Good organisational abilities
Once you have worked your way through these questions you might be ready to take a first step. Be warned though, when you find your favoured home based business, there will be times you feel overwhelmed. This is perfectly normal, so don’t be tempted to give up.Remember, a home based business might seem like an easy option but it is not necessarily so. The going always gets tough before success comes knocking. Just follow the road you choose, persist and in time you will arrive at your destination.

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.


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