Most people
have heard about auctions at one time or another, but not everyone
is fully aware of how this excellent marketing method works
for selling and buying real estate and personal property. You
the public have the opportunity to buy or sell only when you’re
ready. Auctions are a quick and efficient way of converting
property to cash and are very adaptable to your personal business
needs.
First, the
Auctioneer meets with the potential seller. It is important
to see what the seller intends to have auctioned in order for
the Auctioneer to understand the seller’s expectations.
At this point the Auctioneer’s services and the seller’s
desires are discussed. Another decision that has to be made
is whether to sell at absolute auction or with reserve.
Shortly
after the initial meeting, the merchandise is evaluated and
appraised. The Auctioneer will then present a proposal which
details the auction date, location, time of auction, cost of
advertising, sales commission and other matters that relate
to the auction. When the terms of the proposal are agreed upon,
a contract is initiated.
At this
point, different steps are taken for different types of auctions.
An advertising campaign is prepared to help assure good attendance
at the auction. Newspaper ads and direct mailing pieces are
common means used. A well planned advertising program is essential
to the success of the auction.
Auctioneers
also take the responsibility of preparing the merchandise before
the auction. Much cleaning, grouping and organizing takes place
to ensure that the property will be as marketable as possible
on auction day.
Prospective
buyers have the opportunity to preview the goods being sold
and ask questions about particular items. The auction preview
enables people to make intelligent decisions on what they want
to bid on during the auction.
When people
arrive at the auction, they must first register. They give the
auction company basic information that will include the name,
address and telephone number. At this time, they are given a
number for bidding.
During the
auction, auctioneers stand where they can be clearly seen and
often use a public address system so that people can clearly
hear them. An item is selected, described and then the Auctioneer
asks for the opening bid.
As increasing
bids are received, the Auctioneer uses a "chant" which
is a series of filler words to make the chant more rhythmic.
Ringmen assist the Auctioneer to assure that all bids are accurate.
When the highest bidhas been received, they call out the final
amount, ask for any higher bids, and then indicate the item
is sold. At this point, the buyer will usually identify himself
with the number given to him when he registered. The bid number
system is the most commonly used to maintain purchase records
in todays auctions. The clerk records the number, and when the
buyer is ready to leave, the cashier is on hand to receive payment
for any purchases made and to release the merchandise to the
highest bidder.
The
Auction Method Of Marketing
How
to bid at an auction