Question
Okay, so once we decide to attend auctions, since we have never done this before, what are some of your learned lessons?
Like, how much money do lots usually go for? How much money should we bring? Are the lots inspected or are they a pig in the poke?
Thanks for any/all help offered!
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There are a couple of great threads on this here somewhere, but I love auction threads so.... Some random thoughts...
Bring lots of money. Better safe than sorry! LOL Be sure you know payment terms, some auctioneers want to pre-approve checks or use a reverse discount of cash. As in a surcharge for CC purchases.
Always get there early and inspect the lots carefully. In most auctions, YOU are responsible for determing condition, etc.
If it is a box lot, be sure and check it before bidding, since items are known to migrate from box to box.
Plan you maximum bids and do not let auction fever take over.
Sit on the aisle. You can get up to look things over easily and have space to stack purchases.
Attend a couple with no intentions of bidding, just to learn the ropes. Watch the bidders, get used to the cadence of the auctioneers, etc.
when bidding, don't play the "rub the nose" or "nod the head" game. The auctioneer might miss you. Throw that bid card hand up in the air and holler if necessary!
one of the fun parts is trying to get the first, lowest bid in. Sometimes that's the winner! But pay attention to the auctioneer; some will stop calling for bids rather than go any lower, then you miss the item.
Stay till the end if you are bargain hunting. that is always when items go lowest, and sometimes things gets combined into lots, making even better bargains!
If you have been there for 30 minutes and all you can say is "Wow! Things are going for high bids!" go ahead and hit the road. Usually the first half hour is a good indicator of average lot costs. Modify this rule as needed depending on what is being sold. If they are doing furniture and you want those old linens, things might change.
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Plan you maximum bids and do not let auction fever take over. <HR></BLOCKQUOTE>
this is THE most important aspect....DO NOT buy on emotion, it is a business treat it as such.
do not always expect to get that 1,000.00 ugly bug wall pocket for two bucks, sometimes you gotta pay 25.00 or 30.00 for a good item http://community.here.com/infopop/em.../icon_wink.gif...know your stuff.
research your niche, if you don't have a niche, use the buckshot method until you find what you really love and make money at, yes you need to have both aspects....especially the making money part.
If you find an auctioneer/house you like and plan on attending regularily, don't insult the aucitoneer with a 1.00 opening bid on a 200.00 set of china, start it off at 50.00 lots of times it scares off the other bidders and you end up getting it for 100.00 instead of the 200.00 you were prepared to pay for it...
sometimes I will start it at 100.00 and it almost alwyas scares off the other bidders at this on auctioneer I frequent. He always looks to me for the opening bid.
then every third of fourth time I will start it at 50.00, everyone else figures it is cheap china so they don't bid then either.
There are lots of tricks for fooling the crowd at a regular auction, but be forwarned after your third trip through and buying stuff, some will bid against you just because you are a "dealer".
UGLY and TACKY sell....and usually no one else wants them. http://community.here.com/infopop/em...on_biggrin.gif http://community.here.com/infopop/em...on_biggrin.gif
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Primer, huh? See the man calling out numbers in front of the crowd, he is an auctioneer. See the man bid. See the chandelier bid. See the man bid again. http://community.here.com/infopop/em...on_biggrin.gif
Okay, in no real order:
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Plan you maximum bids and do not let auction fever take over. <HR></BLOCKQUOTE>
I personally recommend that whether or not there is a catalog, take notes for yourself including the price you are prepared to go to on any lot. The only time to exceed that price is if you want the item for yourself personally and don't think you will get another opportunity to get it.
I always keep a tally of what I have spent (and remember to include the buyers premium), most people don't. When buying multiples always keep your tally though - a friend opening a shop went to a liquidation of childrens clothing and was buying items between 30 cents and $1.50 per unit. He *thought* he had spent about $2,500, but when he went to settle discovered he had actually spent just over $11,000 - quantities can be deceptive and they can be very good buying. I always tally and make sure it balances with the invoice when I am paying.
Buyer's Premium: Some auctions (moreso in the city than in the country) charge a buyer's premium. This is a percentage "fee" that is added to the hammer price. The percentage varies, so familiarise yourself with whether there is a premium on the auction you are attending, and how much. Thus if there is a 10% buyer's premium and the item is knocked down for $100.00, you will actually be required to pay $110.00.
Remember to calculate the buyer's premium when you are working out what to bid prior to the auction - particularly on high value items. If there is a 10% premium, and you are prepared to pay $1000.00 for a lot, only bid as far as $900.00.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Attend a couple with no intentions of bidding, just to learn the ropes. Watch the bidders, get used to the cadence of the auctioneers, etc.<HR></BLOCKQUOTE>
I absolutely agree. Get a feel for what is happening, what the process is, etc. Register in case there is an unmissable bargain - but only bid if you have inspected the item (there are often serious reasons why people are not bidding) but only really be there to get the feel for the auction process.
If you don't trust an auctioneer - (within reason) trust your instincts. There are some rogues in the industry, and you will never come out ahead with them. There are usually plenty of other auctions to attend.
Psychology:
If an item is worth a bid of $100 to you, calculate whether you are comfortable paying $110. If so, it puts you above a psychological barrier where you may get past the competition whilst still getting a good profitable buy. There are certain obvious prices that form a psychological barrier, if you can get in the next bid it can give you an advantage.
I will leave the other "psychology" stuff until you are more familiar with the auction process. I very much see psychology used in the auction system, both between bidders, in the presentation of goods (to maximise interest), and in the way that auctioneers or their staff coax bids. It is an important part of the process, and can be advantageous (but not necessary) to recognise how it is or can be used.
Cheers, Kevin
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yep, what Kevin said.... http://community.here.com/infopop/em...on_biggrin.gif
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If you plan on going to small rural auctions or regularly scheduled consignment auctions you will probably be spotted as "new blood" by both the auction company and the regular auction goers. As others have stated, it can be a good idea to do more observing than bidding at the beginning.
Try to get an idea of the existing dynamics of the auction, and remember that many auction-goers are very territorial and will not appreciate the appearance of new competition.
Try to find someone you know, or at least shares your areas of interest, and get to know them. Auction crowds can be very clannish, each with their understood niche of expertise. Unless you buy from them, or sell to them, you will probably be viewed as competition. Thus it will not be in their interest to help you.
The auctioneer, on the other hand will be glad to help you ... bid higher, and higher, and higher. Most of them get a kick out of watching feuding bidders drive prices out of the realm of reason.
I love going to auctions, and have been going regularly for over forty years. (my grandfather used to take me http://community.here.com/infopop/em.../icon_wink.gif) The best advice I could give you would be to keep going, keep watching, keep learning. Don't purposelessly knock heads with another bidder, but don't get run off either.
A good area to start buying is one where there isn't much established competition. It doesn't cost near as much to get your auction education there, as it would in a category of hotly desired items.
Visit a lot of different auctions, note the differences and similarities. You'll start recognising faces, and they'll start recognising you. Understand it can take a LOT of time to succesfully become and accepted factor in an established auction community. These people routinely see new people get into and out of this business every year.
Sorry for rambling so long, but there's always a lot going on at every good auction, and it takes practice to try and keep up with it.
When the regular auctions start to bore you, go to one with multiple auctioneers selling in numerous rings simultaneously.
Good Luck and Have Fun!
Lane
Fairdealing Trading Company
"If you're satisfied and we're satisfied, that's Fairdealing."
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Great Thread!
I always take plenty of bottled water and snacks if I know it is a long one. Like larroune said, "there are real bargains at the end" I hate to even take a potty break.
... also, Never go with a "friend" I always have friends who want to go with me and I politely beg off or "forget" to invite. I don't need chatters standing next to me nor be put in the position to bid against them. I always take my husband as he likes to be the "gofer" and round up all my goodies. We make a good team.
Janet * Lanetzliving.com
My Website, up and running and I already sold stuff!! woo hoo!....
Me Page
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A hard lesson I learned earlier this summer -
I bid, then someone else bid, and I stopped, but the auctioneer took my twitch or something as another bid, and I wound up the winner of something I didn't want at that price.
Next time, I will definitely speak up and say that I didn't bid again, even if it makes me look foolish.
Lynn
Lynnber almost everywhere
selling books and other stuff
Lots and lots of my Ebay Auctions
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Lynnber,
I know how that is http://community.here.com/infopop/em...on_biggrin.gif, Was at an auction a couple weeks ago and was going to meet hubby there. I saw him drive by and stupid me start "Flayling" my arms all over the place to get his attention.
All of a sudden I notice the whole audience was looking at me as the auctioneer was trying to figure out why I "kept bidding" against myself! Ha! I had egg on my face and my husband had a funny story to tell as he heard the the auctioneer over the speaker phone asking me what on earth I was doing!!
Lesson learned (said in my best embarrassed voice ever) http://community.here.com/infopop/em...on_biggrin.gif
Janet * Lanetzliving.com
My Website, up and running and I already sold stuff!! woo hoo!....
Me Page
Answer
What Gabs, Larruone, Fairdeal, and Kevin said. Could not be said better.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Stay till the end if you are bargain hunting. that is always when items go lowest, and sometimes things gets combined into lots, making even better bargains!
<HR></BLOCKQUOTE>
We have purchased some of our best deals at the end. Everybody is getting burnt out, run out of money, or loading their treasures. Last auction we purchased a load of technical tapes at the end for $1.00. So far proceeds have been over $700.00. What percentage of profit is that?? http://community.here.com/infopop/em...on_biggrin.gif
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> don't insult the aucitoneer with a 1.00 opening bid <HR></BLOCKQUOTE>
You know I have never understood why people wait to start bidding when they know darn well, it will go above that price. By the 4th item, the auctioneer is looking at me to get stuff rolling. But I am a LITTLE impatient http://community.here.com/infopop/em...on_biggrin.gif
If you get on the good side of a auctioneer, it is ALWAYS good for you. I have actually introduced myself, give him a business card, and buisness intentions to auctioneers. I have found they take me far more seriously off the bat.
If you buy any amount a "gopher" is needed. One auction I kept 3 huffing and puffing http://community.here.com/infopop/em...on_biggrin.gif A little OT, this auction was located in a town which I know people. Asked one the next week "didn't see you at he auction". Nope, heard 3 people bought EVERYTHING. Yep we did http://community.here.com/infopop/em...on_biggrin.gif
Man was that fun http://community.here.com/infopop/em...on_biggrin.gif