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.

Reaching Out the Advertising Market From Home

Online marketing has become one of the essential media tools in promoting new or existing products and services, and at the same time, reaching out consumers from any corner of the world. Online advertising has become the centre of attraction to business owners. The reasons behind this are that online advertising is cheaper compared to billboard or usual advertising, all of this for the fact that large target audience can be covered at no time. This leads to more chances of interacting with people who are actually interested in an advertised business.

Various types of online marketing

Even for experts, it is very difficult to identify which is the best online advertising method. You can choose any of the following methods according to your preferences and goals. The only thing you need to understand that whichever method you will use, it should reach your targeted audience. Your method of advertising and content of the advertisement should be such that it not only generates attention but also convinces customers to purchase your product. Here are some various methods of online advertising:

Article marketing: this type of method is commonly used when you want to run your advertisements for a longer period of time.
Search engine optimisation (SEO): this comes on the top of the list when you need quick and fast results. It is one of the best methods for online advertising and helps your business get entry in the global market easily.
Pay per click advertising: this is relatively a favourable method to do advertisements online.
Forums
Link exchange
Banner advertising
Affiliate advertising
Email advertising
Online classifieds advertising
Others: also there are other methods of free advertising i.e. giving advertisements on social media sites, like Facebook and Twitter.
Whichever method of online advertising you choose, it will definitely bring good results in the promotion of your products.

Various rules of online advertising:

1. Set objective of the advertisement: in your advertisement, your objective should be clearly defined. Your message should be precise and clear in your advertisement. You can easily reap maximum benefits of your online advertisement campaigns if you know how and what to advertise to reach out to your audience.

2. Decide “where” to put your ad: you should be clever enough to acknowledge the best site where you can put your advertisement. You have to do a little research to find the best site for the promotion of your product. You can consider online yellow pages, search engines, Service Provider directories and other large web sites.

3. Be creative: tailor and mould your message according to your target audience. Use the language that appeals them the most. It is equally important to present your idea according to the mindset of your targeted audience. This step needs creativity and will make your advertisement outstand in the market.

3 Revealing Reasons Why You Want a New Home Based Business in 2010

You really need to think about this next statement. “You want a new home based business in 2010.” You are well aware of what is going on with this economy. It is going south and it will continue in that direction for some time.The entire reason for this report is to shed light on why people are not getting ahead of the financial game. It is a sad truth, but the educational system didn’t teach us how to prosper on our own. Once we understand this, great things can happen. But with out knowing you have a choice makes a person feel like a trapped victimSee if this sounds familiar. It is Monday morning and you wake up to the irritating sound of an alarm clock. Rubbing your hand over your face trying to get gain some logical thoughts, you realize it is time to get up and go to your job. You know, that place were you rent your time out for wholesale, so your boss can sale it at retail and live out his dream.It’s not necessary to drag out this debilitating story before you realize the first reason to have a new home based business in 2010. Life was not mean to just get by. Take a look around and see how many people just exist. They get up and do the same thing over and over and become human doings. Not you, life is about seeking possibilities and becoming a human being.There is a reason why the philosophers of ancient time said, “do what you love and you will never work a day in your life again.” Think about that statement. Most people never even consider what they want out of life, they just react to what others want.Would you agree there are a lot of people out there struggling with depression? Why do you think it has become almost epidemic? The answer is the second reason you want a new home base business in 2010. Which is to find out who you are and what you are made of. Working for someone else will never allow you to find your unlimited potential. Why? Because you will always having someone else telling you how much you are worth.Take a moment and think about what you would love to do. If money weren’t an issue, what would you love to do? Maybe travel the world? Do ministry work in third world countries? Write a book? Whatever it is, what are you doing to make it happen?Imagine having an opportunity where you can learn and develop who you really want to be. To have someone come and mentor you towards unlimited possibilities. Having success isn’t that difficult if you know were to look. Just like failure, it leaves clues all over; we just need to find them.Which leads to the third reason You Want a New Home Based Business in 2010. To have an opportunity to educate yourself on who you are and what your potential is. The main reason wealthy people have so much money is they understand how the money game works. If you were asked, what is your largest expense? Would your answer be? Most people answer the mortgage or rent. NO! It is your taxes.Having a home-based business is the number one tax shelter in this country today. The majority of home base business owners can write over five thousand dollars off their taxes every year. Get this; you can save between twenty to fifty percent of your taxes that you pay in. Go get one of your pay stubs and look at how much more money you could have, if you had a home base business.If you are ready to make a change in your life and are tired of not getting ahead, then check out the information in the box below.


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