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.

Success in the Home Based Business Industry

Success in the home based business industry is a process and not an event. Even those seemingly overnight successes were anything but. It took months-maybe even years-of preparation, hard work, and determination to make that home based business work. To the outside, it looks as though the success happened overnight, but it truly never does.So why do people persist in thinking this? It’s the downfall of living in a microwave society! We are used to having things fast and easy-not necessarily high quality, but that’s another story. We can log on to the Internet at any time and find anything we want. There’s instant movie on demand ordering, drive through meals, ATMs in case we need cash at midnight.This has effected how people view success in their home based business. They expect to start today and be rich tomorrow. Anyone call tell you that doesn’t happen.In fact, the expectation of instant success is so powerful that people will just dive into an MLM home based business opportunity with no parachute-no alternative means of supporting themselves until the business takes off. When overnight success doesn’t happen in their home based business, they decide to quit.The real problem is that they didn’t do their due diligence to choose a better business model-a model that could help maximize their earning potential with fewer headaches.You see, a home based business is just like any other business. It has to be sustainable; it has to have a large enough target market willing to pay the price of the product or service; and it has to have an effective way of marketing the product or service to the target audience. Check it off your list: If the home based business model you are looking at doesn’t have all three of those elements, it’s not going to work, trust me!You also need to look at volume of sales in your home based business. If the product is priced low, you are going to have to sell a large volume to have any hope of making money. If it’s priced high, you don’t need very many sales to sustain your business.Once you do find the right home based business opportunity, you need to put in the work. Don’t just slap up a website and think that customers will blow your doors off. You need to build a brand and make it visible and compelling to qualified prospects. And guess what? This takes time. Success is a process-not a one-time event.Look at Donald Trump. After his first success, did he stop? Absolutely not! He kept going, kept building new properties. He didn’t stop there, either. He signed on for the TV show. He kept going! To this day, he is still releasing books, still building his brand. He knows that success is a process, not an event.Test this out for yourself. Find a successful person in the home based business industry. Ask them what they think-was their success a one-time deal or an ongoing process? I’m betting 10 out of 10 will tell you it’s a process-and you can never quit. When it comes to success, there is no finish line! Join a community of successful entrepreneurs who are creating substantial monthly profits in record time by using this Successful Business System!

The Pillars Of A Great Small Business Web Design

In the battle between big businesses and small businesses, it is the former which always have the upper hand. But while a small business might find it difficult to surpass a bigger business rival, a proper web strategy can catapult it to the top, and make it one of the leaders among its peers. However, one cannot negate the risk of failure. The owner of the small business is already on a tight budget, and he might not even want to spend extra bucks for gaining greater exposure in the market. But there is also no denying that both businesses and customers have changed radically. And when it comes to a small business (as it has to put in more efforts to succeed), this is the perfect time to create or revamp its online presence.Before we go forward, ask yourself this question: What is the very first thing your potential customers will search for when they look for your business online? You can still count and tell the number of customers visiting your store in person. Nowadays, it’s all about going online, and your power to hook in your customers with your online presence determines your success. And what is the first thing that comes to your mind when you hear the term “online presence”? Yes, you are right! It’s a website. A website is the storefront of your small business – the very first thing which your online visitors get to see. So if your web design is not up to the mark, you will fail to convert your visitors into customers.This sums up to the conclusion that your business website holds the primary key to your growth. As the owner of a small business, you do not need to spend like crazy behind your business. The website should represent your business just the way it is – in a simple and informative way. Here are some tips you need to blend into the official website of your small business:#1. Straightforwardness: You do not have time to waste, as your online visitors are not a very patient lot. Go straight to the point and show your straightforwardness. Don’t take more than 20 words to describe your business, and place it just under the header.#2. Availability: The first thing your visitors would want to do after liking your website is contact you. So make sure that your phone number and address are visible at the top of every page. Moreover, you also need to integrate a very user-friendly contact form.#3. Blog & Videos: Make it a point to include a blog section in your website. Keep updating it with fresh, original and relevant content. You must also make good use of videos. Create relevant videos about your business, and show them off on your website. These steps will make your website more search-friendly and attractive.#4. Go Mobile: “Going mobile” is now the ‘talk-of-the-town’. With the rise of mobile technology, you need to make sure that your website is supportable when viewed through any mobile device. You need to know about the latest web design trends, and implement them smartly.#5. Local Directories: This is the most important part. As you own a small business, you need to focus more on the local customers. You need to enroll your website into local directories and maps. This will enhance your visibility, and you will become easier to find in the SERPs.Conclusion:Once you ready your website with the help of these 5 steps, it’s a guarantee that your small business will find a blossoming growth in the sales figures. You just need to have patience, and follow the right path.


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