The Auction Method Of Marketing
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’s 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 must 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 that details the auction date, location, time of auction, cost of advertising, sales commission and other matters relating 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 ensure 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 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 informed decisions on what they want to bid on during the auction.
How to bid at an auction
When people arrive at the auction, they must first register. They give the auction company basic information including their 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 people can clearly hear them. An item is selected and described, 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 ensure all bids are accurate. When the highest bid has 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 today’s 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.