« Older Entries

Differences in the Types of Auctions That Take Place Around the World

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.

Tags:

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.

Tags:

Much Ado About Advertisements

When you first start out in a business, some people might tell you that you should start advertising in a local daily or a national newspaper. The advertisement need not be a full-page advertisement. The point is to advertise…to get the word out – be it small or big. When I first started out in my business, I advertised small too and it didn’t cost me an arm and a leg. Thinking back, it didn’t even qualify as an advertising campaign because throughout the nine months that I advertised in a national daily, not a single response from the advertisements was seen! Yes, none…as in nil…yes.

Sad but true. You see, the whole thing about ‘just advertise irregardless of whether the advertisement is going to be big or small’ is a whole bunch of hogwash probably spun by the media to encourage people to advertise in their papers or magazines.

Don’t get me wrong…I am not saying that everyone have to advertise a full-page advertisement in order to effectively get the word out – this is not true either. The truth is that one must never waste financial resources to ‘just advertise’. Small advertisements rarely work because the location is ill-fitted, the size of the advertisement is too small to be read and there’s not enough information in the advertisements to encourage others to ‘act.

The whole point of advertising is to get people to respond. You want ‘WOW’, you want ‘YES’. You don’t want ‘Mmmmmm….”. Many of the important factors of successful marketing and advertising tactics are lost when the advertisement is insignificant.

THE SHOCK, SURPRISE FACTOR

Successful advertisements are usually those that either make you laugh, cry, sad, shocked or surprised. There must be an emotion attached to the advertisement. Don’t be surprised but even small advertisements with enough emotion attached to it can elicit a reaction. I repeat, it doesn’t have to be a full-page color ad. Just something big enough or strategically placed is good enough.

THE INFORMATION FACTOR

Imagine you’re looking at an advertisement of your competitor. It’s a small advertisement beside the ‘classifieds’ section with small print, black and white and literally devoid of information except for a telephone number and website. Would you be curious enough to call the number or log into the website? Would you even remember the phone number or website address from the advertisement? Probably not. You need to arouse curiosity in your target audience and this need is very evident in an advertisement. There are hundreds of advertisements in a newspaper or magazine and you’re all competing for the same attention. To elicit response or reaction, you need to give them just enough information to make them curious and not enough for them to dismiss you. That’s one of the biggest advertising secrets the world over – and this formula works for every industry.

If your advertisement is too small or too plain, it’s not going to be enough to entice your audience.

THE ‘ACT NOW’ FACTOR

You don’t have enough space to even write your web address, explain your business and also print your telephone number in the advertisement space, what more expertly written copy to encourage your audience to ACT NOW! Another industry secret if you want to call it that. an advertisement is successful when it is able to get someone to WANT to act NOW – not later, not tomorrow and definitely not next week. You want to make the target audience act as soon as they get the chance to.

Admittedly, this is one of the hardest things to do because consumers are not stupid – in fact, they are getting smarter and smarter by the day. And that is why we, business owners, have to be just as smart, if not smarter. Find a way to get to their heart and get them to acknowledge that they WANT (note: NOT NEED) to find out more about your products or services.

CONCLUSION

The above is enough to convince you that placing small insignificant advertisements every day in a local daily is not going to be good enough. In fact, most advertising and marketing experts concede that it’s a total waste of time and money. However, here’s the loophole, small advertisements work for some industries like real estate, classifieds, credit facilities and other industries that has been using this method for some time. For us, small business owners, who are new to the market and plan to penetrate it, we’ll be better off promoting ourselves elsewhere.