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.

How To Generate Home Based Business Leads Offline

Having any type of business is all about marketing. Regardless of what anyone says having a profitable home based business is all about effective marketing. How do people know your in business if your not marketing your home business? People think that marketing is expensive and that you have to have a degree to be effective at profitable marketing. I want to dismiss this myth and share with you some cheap and effective ways to market your home based business and start generating leads starting today.

Guerilla Marketing 101

To make a lot of money with your home based business you don’t have need a marketing budget of a large corporation. Let me share some ideas and tips on how you can effectively market on a shoe string budget.

The first step with any marketing strategy is identifying your target market. With your home based business this is pretty easy. Your target market is anyone looking to earn extra income outside of their job. You can even narrow it down further then that and target stay at home mom’s,professionals, young people, etc. Second step is addressing a certain problem which is lack of money. Then you want to address how they can solve this problem through your home based business. And lastly having a call action whether it be calling a toll free number or even a online website. You can bring offline prospects online!

Offline Marketing

The best place to generate leads for your home based business is in your own back yard. Some people want to hide behind the computer to generate leads, but you need to get out there and start networking locally. Network marketing is all about meeting new people and creating relationships. Here are some easy ways to generate leads locally.

Sizzle Cards

Sizzle cards are business cards that are tiny billboards about your opportunity. An example of what one might say is this

“Do You Want To Earn More Money?
Earn $2000 to $5000/month without leaving your job!
Call 888-888-8888 (recorded info) to learn more!

See short and sweet, it addresses a problem which is earning more money, then it tells them how much they can make with your home based business, and lastly to call the number to get more info. Now you’ve generated a lead and for pennies! You can get these through your company or a 3rd party vendor with a generic message.

Yard Signs

You’ve seen these when your waiting at a light at a intersection. Those little signs with some sort of advertisement. This is a great way to generate home based business leads and they are a bigger version of the sizzle cards. These work 24/7 as long as someone doesn’t have them removed! It’s the same concept as the sizzle card and it’s really cheap as well.

Car Signs

Turn your cars back window into a mobile billboard for you home based business. Imagine someone sitting behind you in rush hour traffic coming from a job they hate and they see your sign. Think they might call? You bet they will! Turn your back window into a moving sizzle card! This works really well if you drive a nice car and you can even put a ad like this.

“Want To Drive A Car Like This?
Call 888-888-8888(recorded info) to learn how!

Newspaper Ads

Post a classified in any of your local papers. This is a really cheap and effective way to generate leads for your home based business locally.

Networking Groups

If you go online you can find all kinds of networking groups in your home town. This is a great way to meet people that are professionals and are looking to network with other people. Be cool here, don’t vomit all over people about your business keep it professional and ask for their business cards and exchange yours with them as well. If you make a good impression you can call them later and invite them to take a look at your home based business opportunity. One good site to network with people is YAP(young active professionals) They hold local networking events at local places like bars,restaurants, and other venues. Get out there and meet new people!

These are all examples of ways you can generate leads for your home based business and hopefully gave you some ideas and how to get started right away. You can become creative with this and might even come up with some new ideas of your own. Bottom line is that you always want to market,keep it consistent, and find out what works for you.

Fight the Economic Meltdown With a Home Based Business Opportunity

Home based business is better any day than a conventional nine to five job. Many people have been losing their jobs in the last year due to the heavy recession all across the globe. People have started looking for other options that could save their families from a financial crisis. The best way to deal with this economic catastrophe is to start a home based business opportunity.

Have you ever thought why home based business is the choice of millions of people? Quite a large number of people find it to be the best model to work on. In United States itself more than 36 million people are working from home. What qualities and benefits of this model attract millions of people?

Get to Spend More Time with Your Loved Ones

Working from home gives you personal freedom and that is what attracts a lot of worldwide population. You get extra time to spend with your beloved ones. Picnics, outings, shopping and other activities can be managed easily which you normally don’t get to do in between a conventional nine to five job. This does not mean that you have less work or you can take your business lightly.

Home business gives you flexibility in scheduling your life and so that you get a chance to spend fruitful time with your family and loved ones. You have the liberty to decide what is good and bad for your own company which you don’t get in your normal job. You can learn a lot and utilize your time the way you want to, for the benefit of your business.

Be Your Own Boss

In a conventional job, you may feel that your boss is an evil person sitting right on your head with a whip in his hand. People love the thought of being their own boss in a home business. You can work the way you want to and feel comfortable doing it even while wearing your pajamas.

As a matter of fact when your business expands, you will need to hire people. In that case you will be the boss who takes the responsibility of your organization and employees. You will need to learn how to make your own decisions which will help your business grow. You will be able to achieve a greater control over your life.

What will help you to succeed in your home based business?

Home business is definitely better than the normal office jobs, but it is not an easy task by any means. About 90 to 95 percent of people fail in their home based business. They do not realize what it takes to sustain in the market and build a profitable business.

  • You have to be disciplined in life in order to build a successful business.
  • Dream big to stay motivated all the time. It takes courage to dream big.
  • You will need to keep an open and positive frame of mind to be able to see new opportunities.
  • Dogged determination to keep you going through any situation is a pre-requisite for any kind of business.
  • Positive attitude will help with in your personal growth and benefit your home business opportunity as well.


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