To bring a fair market price for a seller, a Tempe auction must attract enough buyers to promote profitable bidding. It’s great to have regular buyers who show up like clockwork at auction events. But, you want to be able to also see a lot of new faces.
A Tempe auction must find the right balance of making money for the seller and auction house, but still providing attractive deals for the buyers. Sometimes that’s a tough feat to accomplish, but a necessary one for successful results.
At a basic level, any Tempe auction must have at least two interested bidders for every item. This minimum bidding activity will help bring the fair market price for the item being sold. When only one bidder bids on an item, it typically sells for a price well below market. This is wonderful for the single bidder, but not so great for the seller and auction house.
The problem with items selling too low on a regular basis is the negative effect it has on attracting and maintaining sellers. If sellers believe they won’t get a fair price by selling their merchandise at a Tempe auction, they’ll look for another sales channel.
You can find countless stories about the super, unbelievable deals buyers have snapped up. A car bought for $100 or a diamond ring for $50 helps promote the “dirt-cheap” mentality of auction purchases. However, if a seller has a diamond ring that’s worth $1,000, they don’t want to take a chance that it might sell for $50!
So, the answer to this dilemma is attracting more buyers so bids for most items can be within market value. With a regular base of shoppers attending Tempe auctions, more sellers will be apt to participate.
Stay tuned for part two of this series. In the mean time, for more information about Tempe auctions, contact Auction Systems today.

