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.

Lack of Sleep Can Hurt Health and Fitness

Many people are so busy that sleep is the last thing on their minds. Many people work long hours and cut out sleep time in order to have more time for fun activities. Getting enough sleep can greatly affect a person’s overall health and fitness. The body needs enough sleep to recuperate from stressful daily activities. Not getting enough sleep can be harmful both mentally and physically. Even if a person exercises regularly, not getting enough sleep can wipe out the benefits of exercising. Lack of sleep is also associated with numerous other health problems including weight gain, high blood pressure, and type 2 diabetes.

Many times when people do go to bed they can not relax enough to fall asleep. There are a few things people can do to help them sleep better and improve their health and fitness. If possible people, that have trouble resting, should avoid caffeine. Caffeine takes a long time to metabolize, therefore the affects of caffeine can last a long time. This means that if someone has caffeine in the early afternoon, it could still have an effect on their ability to fall asleep late at night. People, who are having trouble sleeping, should avoid drinking alcohol. Even Though alcohol can make you tired, many times people who drink it wake up a few hours later and can not fall back asleep.

There are a few other things people can do to get more sleep and improve their health and fitness. People, who are having trouble sleeping, should keep their room complete dark or as close to completely dark as possible. Not watching TV before bed will help keep the mind from becoming overstimulated. Not having a TV in the bedroom is the best way to resist the temptation to watch it before falling asleep. Many people find that listing to relaxation Cd’s, while they are in bed, helps them get a restful nights sleep. Keeping a journal and writing down thoughts before bedtime is another way to relax before falling asleep.

If people try these things and are still worried about their health and fitness due to lack of sleep they should make an appointment to see their doctor. Their doctor can double check to make sure they are not taking any medication that could be keeping them awake. A doctor might also make suggestions on some vitamins or supplements to take to help them relax and sleep peacefully.

What You Need to Know About Starting a Profitable Business Online

Are you thinking about starting your own business online? Do you want to learn how it’s possible to start a profitable business online from the comfort of your home? Then you have to read this article. I will explain how you can build your own business online and how to become successful as well.

The first thing you need to do is to decide what type of online business you want to build. There are many ways to start a profitable business but there are only a few that you can actually profit from. For example, internet marketing is one of the most successful and profitable ways to make money and build a successful business online. What this means is if you want to create a good business that will be profitable for you, then you must learn about the basics of internet marketing. Are you planning on creating your own products to sell to customers or do you want to sell other peoples products which is also known as affiliate marketing. These are the only two ways to actually start a profitable business and become successful online. This is a decision you have to make but both methods use the same techniques and strategies to build a successful business.

After you have decided which method to use, you then must understand how internet marketing works and how to use it to start a profitable business. This is how the basic system works, first you would go out and perform market research using websites like amazon, ClickBank, and others to find a niche that is very profitable. The best niches are the ones that have lots of customers but not much competition. After you find a good niche you would then perform keyword research. There are many tools out there that allow you to search for keywords related to your niche. One of the best keyword tools is Google’s free keyword tool. This allows you to find high search and low competitive keywords related to your niche. You would then create articles around these keywords and put them on your website. After finding about ten good keywords to start with, it’s time to build your website.

Many people think they need to know HTML to build a website, but this is simply not true at all. Websites are built on templates which you can get for free if you search on Google. At the end of the article I will show you how you can get a free customized template which you can use for all your websites. On these websites you would either create an information eBook that you would sell and keep all the profits. Or you would sell other peoples products on your site and collect a commission from the sales of the product or ebook. The choice is yours but remember that both methods follow the same basic principles and will allow you to easily start a profitable business.

After building your website and putting your articles on your site, next you need to promote your website. Promoting your website is the hardest part of internet marketing and creating a profitable business. If you don’t promote your website you will never be successful online and you won’t get any traffic to your websites without it. There are hundreds of different ways to promote your website, but there are only a few that are really effective. I would suggest creating articles relating to your niche and submitting them to article directories with a link that points to your website. There are much more ways but start with this and you will eventually start seeing targeted traffic that will last for many years.

Use these simple strategies to start a profitable business online, and begin generating income from the comfort of your own home today!