In part 1 of this post we discussed it has almost become second nature to discourage new bidders at auctions in Arizona because they are unfamiliar with the process.

The auction process intimates new buyers and then they are publicly singled out for slowing down the auctions in Arizona. How many of us would want such acclaim as we ventured into a new business? The more important issue is the new buyer’s response to such uncertainty with the auction process. It is our job, to make the new bidder not only feel welcome but made welcome.

There are several ways to ensure a new buyer’s comfort with the auction process. We offer a pre-auction bidding seminar, about fifteen minutes long where we explain in laymen’s terms the verbiage of the auction, how to preview, bidding practices and a quick explanation of our auction rules. For latecomers to the auction we have a brochure that contains the same information as the auction seminar. But then we follow-up with a phone call and extend a personal invitation to attend the next auction. Once they have attended a second auction we send a coupon good towards their next purchase at an auction if they bring a friend of family member.

We must encourage new buyers to attend our auctions in Arizona. The argument could be that an auction firm’s active attraction of new auction buyers may run off the dealers who buy at AZ auction. It is true that dealers are not especially fond of buyers willing to pay retail. But if new buyers are consistently a part of the auction then the dealers learn how to “deal”.

To grow our businesses, grow our revenues and grow our reputations we must welcome each new bidder with the same enthusiasm as we display for each new seller. So I am going to change the close of my day planner to read “What have you done to attract a new buyer today?”

For more information about auctions in Arizona, contact Auction Systems.

As an AZ Auction House CEO my daily planner closes everyday with a question “What have you done to make money today?” The question is somewhat trite and redundant for those of us in business, but I have it in my planner as a reminder to stay focused on business. Many times I answer the question with the number of scheduled AZ auctions on the books. But it is easy to forget that we need buyers for the auction worse than we need sellers.

If you have been in the auction business for any length of time, you’re certainly comfortable knowing that if you have AZ auctions your buyers will come. And gratefully this is true. But it is the same group of buyers that always show up for that kind of auction. No one new — no new blood. The standard group of buyers is comforting to us because they know the auction procedure and auction rules. New attendees just slow the AZ auction down and make the regular crowd angry because the new bidders are bidding “too much”.

It has almost become second nature to discourage new bidders at AZ auctions. We don’t do this intentionally but we have somehow grown used to the fact that new people have a learning curve, so we just blow past them. For example if an auctioneer is selling choice of five items and a new bidder has the audacity to just purchase one of five items and then needs time to make their choice of the items, the auctioneer gets frustrated and starts to hurry the buyer along.

For more information about AZ auctions, contact Auction Systems.

This post will provide answers to frequently asked questions regarding paying, picking up and shipping at Scottsdale auctions. It will answer questions such as: How much does it cost to participate in Scottsdale auctions? How do I know if I won a bid or bids?   Do auction houses usually ship my purchases directly to me? What forms of payment are commonly accepted at Scottsdale auctions?

Q: How much does it cost to participate in a Scottsdale auction? / How much is charged to my credit card when I register as an Internet bidder?

A: At most auction houses only the price of the winning bids you place plus sales tax, if applicable and shipping if you choose not to pick your item up directly. There are no fees charged to bidders who are not winning buyers. Many auction houses do not charge Buyers Premiums fees. However the first time you place a bid in any auction your credit card is commonly authorized for $10. The authorization may appear for one to three days (depending on your banking institution) but is not a charge.

Q: What forms of payment do you accept for your Scottsdale auctions?
A: Most Scottsdale auction houses accept Visa, MasterCard, American Express and Discover Card. Commonly you may also pay in person on the day of the auction in Cash or Certified Funds.

Q: How do I know if I won a bid or bids?
A: Shortly after the Scottsdale auction has ended, you will receive an email from the auction house indicating the items won and the amount charged to your credit card.

Q: Do I have to pay sales tax on Internet Auction items?
A: Yes, unless you are registered with an out of state address and your items are shipped out of the state of Arizona. If you are a valid Arizona reseller, you can submit at tax exemption certificate to the auction house. If you are buying for personal use you will be charged sales tax of 8.3%.

Q: When do I have to pay for my purchases?
A: Most commonly at the end of the auction when all items are sold, your credit card on file will be charged. You may also commonly come to live Scottsdale auctions and pay for your purchases prior to the end of the auction however you will need to bring a valid form of payment such as Cash, Cashier’s Check or credit card in order to pay for your purchase(s).

Q: May I pick up my purchases from an auction?
A: Yes, most auction houses allow you to pick up your purchases on auction day prior to the close of the auction at the auction location. Most auction houses also allow you to come the first or second business day following the auction and retrieve your purchases at that time.

Q: May I send someone else to pick up my purchases?
A: Most Scottsdale auction houses allow this if you have paid in full and signed a third party release for a representative to pick-up your purchases.

Q: Can an auction house ship my purchases directly to me? / How do I know how much shipping will cost?
A: Yes most Scottsdale auction houses can ship to you for the cost of shipping and handling plus exact shipping charges. For larger items such as pallet lots or vehicles you will need to arrange for your own shipping of these items at most auction houses.

For more information about a Scottsdale auction, contact Auction Systems.

This post will provide answers to frequently asked questions regarding live auctions. It will provide answers to questions such as: What are live auctions? How do live auctions work? How do I register to bid in a live auction? Do I have to register to bid for every live auction I want to bid in? Should I sell my property through Internet auctions or traditional live auctions?

Q: What are Live Arizona Auctions?
A: In a Live Auction, bids are only accepted from the auction floor from bidders who are physically present at the auction. There is no online catalog for the auction. These types of auctions have become more rare due to the popularity of Internet auctions

Q: How do live Arizona auctions work?

A: Here’s how the live auction process works:

• Bidders must receive bidder cards from a cashier in order to make a bid on any item. In most cases a refundable cash deposit is required to receive a card.
• When the auction is about to begin, the auctioneer announces the terms of the sale so all bidders are aware of their responsibilities in bidding.
• When a bidder is ready to make a bid, they simply raise their hand or their bidder card and the auctioneer or ringmen acknowledges the bid.
• Phone bids are recognized by the phone person and these bids are considered the same as if the bidder were present.
• The ringman assists the auctioneer in spotting bids, holding up merchandise so the bidders can see the item for bid and marking the item with the bidder’s number once it has been sold. Upon successful winning of the bid, the auctioneer tells the clerk what the bidder paid for the item and their bidder number.
• This information is recorded and given to the cashier who tabulates the bidder’s purchases for check out from the sale.
• The bidder pays by either cash or cashier’s check. In most cases, the bidder must remove their property from the auction location immediately following the sale.

Q: How do I register to bid in Live Auctions?
A: At most auction houses if you are a registered bidder online, and you want to attend a live auction you can simply stop by the cashier, produce the credit card that you registered with online and you will be given a live auctions bidding card. If you aren’t registered online, you only need stop by the cashier and complete a registration form and leave a deposit or a major credit card to be held until you check-out from the auction.

Q: Do I have to register to bid for every Live Auction I want to bid in?
A: Not if you are a registered bidder online just stop by the cashier, produce the credit card that you registered with online and you will be given a live auctions bidding card.

Q: Should I sell my property through Internet auctions or traditional live Arizona auctions?
A: It depends on the type of product that you are selling. In some cases where you have a large amount of product to sell that would “flood” the market in your area - it is best to sell your items on the Internet. In other cases, where your products must be seen to be appreciated, a traditional auction fits your needs. There are times however when both marketing methods will meet your needs.

For more information about live Arizona auctions, contact Auction Systems.

In Part one of this blog post we discussed several advantages of real property auctions Arizona.

Real Property Auctions Arizona Create Buyer Competition

• The auction process encourages multiple buyers to compete to purchase your property
• Competition generates excitement and motivates buyers
• Competitive bidding often draws prices higher than the seller’s expectations

Real Property Auctions Arizona Provide Good Buyer Candidates

• High demand, broad interest properties where competition between buyers would increase price
• Property a seller desires to convert to cash quickly
• Properties owned by seller who has purchased second property using a bridge loan or who has signed a contract for property “subject to the sale of existing property”
• Estate and surplus properties
• Inactive real estate listing needing a fresh marketing approach

BENEFITS TO THE REAL PROPERTY AUCTION ARIZONA SELLER:

• Buyers come prepared to buy
• Quick disposal reduces long-term carrying costs, including taxes & maintenance
• Assurance that property will be sold at true market value
• Exposes the property to a large number of pre-qualified prospects
• Accelerates the sale
• Creates competition among buyers - auction price can exceed the price of a negotiated sale
• Requires potential buyers to pre-qualify for financing
• The seller knows exactly when the property will sell
• Eliminates numerous and unscheduled showings
• Takes the seller out of the negotiation process
• Ensures an aggressive marketing program that increases interest and visibility

BENEFITS TO THE REAL PROPERTY AUCTION ARIZONA BUYER:

• Smart investments are made as properties are usually purchased at fair market value through competitive bidding
• The buyer knows the seller is committed to sell
• In multi-property auctions the buyer sees many offerings in the same place at the same time
• Buyers determine the purchase price
• Auctions eliminate long negotiation periods
• Auctions reduce time to purchase property
• Purchasing and closing dates are known
• Buyers know they are competing fairly and on the same terms as all other buyers
• Buyers receive comprehensive information on property via due diligence packet

For more information about real property auctions Arizona, contact Auction Systems.

One of the quickest ways to secure revenue from your assets is by having people bid online for them on an Internet auction. Auction Systems offers Internet auctions and will help you get the most capital for your items. Following our some Internet auction selling tips.

Internet Selling at Auction Methodology

Internet Auctions are typically used as a way to sell special collections and small antiques that only appeal to a very selective buyer base. Assets are brought to our Internet sales division, and each item is photographed, a description is written for each item, which is posted to an Internet auction such as E-bay where people bid online for your items. The process of selling at auction on the Internet only auction is the longest auction to administer because of the length of time it takes to research the items for auction; however in special situations it produces the highest possible revenue for our sellers. Auction Systems will help you to get individuals to bid online by following these procedures and more.

For more information on how to get individuals to bid online for your items, contact Auction Systems Auctioneers & Appraisers.

Contrary to public opinion, a real estate auction in AZ offers selling conditions that are sometimes better than traditional real estate sales methods. Real estate auctions, in the United States, are on the rise. Banks, lawyers, and property owners are discovering that real estate auctions are a sound option and an avenue to profitability. Real estate auctions are effective and have advantages. They are an option that is worthy of your consideration.

The following are some advantages of real estate auctions:

• Quicker sale of real estate
• Eliminates high carrying cost for long periods of time (taxes, insurance, maintenance)
• Attracts the attention of buyers who compete for purchase
• Has pre-qualified buyers as real prospects
• Convenience of a complete package for the real estate and the personal property

A Real estate auction in AZ creates excitement because it brings together all of the potential buyers of a property, encouraging direct competition among buyers. Carefully planned promotions attract the necessary qualified buyers well in advance of the auction date.

Real Estate Auctions Have a High Exposure Sales Approach

• An advertising campaign is conducted for each property
• Quality brochures are distributed to a broad range of real estate purchasers

• Media is used to promote the property - including newspapers, television, radio, magazines, direct mail and video

• Encourages Realtor® participation

Real Estate Auctions Produce Buyers in 30 days or less

• Once the promotion begins, the auction sale takes place in three to four weeks
• Usually auction promotions generate a sale prior to auction day
• Auction avoids drawn-out negotiations and unnecessary contingencies because terms and conditions are preset by the seller

For more information about a real estate auction in AZ, contact Auction Systems.

Arizona auction house, Auction Systems Auctioneers & Appraisers, Inc., will be featured in a reality show about auctions on the American cable television network TLC.

TLC is owned by Discovery Communications and features a variety of reality-based programming. TLC features successful reality programming such as American Chopper, Jon & Kate Plus 8, Little People, Big World, LA Ink and more. TLC features a number of shows, such as American Chopper, that focus on the inner-workings of a business and provide viewers with a greater sense of how that specific business operates.

Auction Systems Auctioneers & Appraisers, Inc. is one of the most active auction and appraisal companies in the Southwest United States. Auction Systems success is in part based on the company’s technology and systems.

Arizona Auction House, Auction Systems, will be providing more information about their new reality show so continue to check back on our blog for more information regarding TLC’s newest reality show.

For more information about Arizona auction houses, contact Auction Systems Auctioneers & Appraisers.

The State of Oregon has recently been holding its own surplus auctions. An Associated Press article “State of Oregon Uses E-Bay for Garage Sale” by Peter Prengaman talks about the success the state of Oregon has experienced in selling its confiscated and surplus property on E-Bay. He explains that the State of Oregon, the first state to use E-Bay for surplus auctions, has been selling its surplus on-line since 1998 and grossed $7.3 million in sales in 2002.

In fact, Oregon has been so successful that they are beginning to assist other government agencies in selling their items at surplus auctions. Local City and County agencies in Oregon are already using the State’s on-line auction operation. Oregon is also selling items at surplus auctions for the Department of the Interior and the city of Lynchburg, VA. Many states have sent representatives to see how Oregon Surplus Property runs their operations and the State of California is now beginning to sell their surplus on-line. So here is my question…WHY?

These are government agencies - organizations that have made a religion out of outsourcing every functionality they can, so why are they so eager to in-source their surplus auctions. Could it be dramatic cost savings? Not if you really examine the process.

The article states that the State of Oregon has 16 employees in their surplus auction department and a warehouse that covers one city block. This kind of infrastructure supporting their on-line auctions costs at least one million dollars and probably closer to two. The State of Oregon charges 16 percent to other government agencies to handle their surplus property.

For some state agencies this percentage seems like it may offer a cost savings but the agency must provide all of their own digital photographs and online descriptions. Additionally, they must prepare the items for shipping. That is a tremendous amount of labor on the part of the contracting state agency. So for their 16 percent to the State of Oregon they receive the services of posting the surplus auction to E-Bay and handling all customer service for the transaction. A very expensive surplus auction solution.

E-Bay is a great venue for some surplus auction items - but certainly not for all. For example, six rolls of used fire hose recently sold on E-Bay for $148.32. At the same time one roll of used fire hose sold on our company’s own simulcast auction for $57.50 x 6 = $345. That is a difference of $196.68 - the simulcast auction garnered 322% more than the E-Bay auction. Why such a big difference? Simply stated E-Bay waits for its customers to come to them - but through the use of our industry’s marketing expertise - we look for the right customers for the product and drive them to our Internet auction. We still apply all the methods of the auction method of marketing more than just the online listing that E-Bay provides where they hope two or more interested bidders log onto the net to vie for product.

There are very few auction companies that don’t have their own website, but as an industry we must move to more closely integrate live and web auctions so that there is a fair representation of the time tested auction method of marketing on the Internet. The online auction process is certainly more complicated and costly - but the benefit of bringing in hundreds or thousands of Internet bidders to your auction cannot be ignored. If government agencies are getting on board with the idea - you certainly need to be offering simulcast Internet surplus auctions as part of your service menu.

Online auction companies like E-Bay have aided our industry in countless ways from making “auction” a household word to propagating “auction fever” across the world. The exposure for the auction industry has opened up many opportunities for traditional auctioneers and applying good marketing techniques to online auctions is just one more opportunity where E-Bay will never succeed and auctioneers already excel.

For more information about surplus auctions, contact Auction Systems Auctioneers and Appraisers.

Our Arizona auctions house is busy. Everyone is so busy that ” busy” is almost a mantra in our Industry.  And what are we busy doing?  That question can take an hour or two in staff meeting.  We know we are supposed to be bringing in as much business as possible to our Arizona auction house.  But is the business always worth the effort when the yield to the company is minimal.

Recently, a very large auction firm larger referred some business to us.  The client who needed an auction didn’t have enough revenue for the larger auction firm to pursue.  Of course the referral made me question why they thought it would be a large enough account for our Arizona auction house to touch.  Perhaps they are a larger firm because they know how to say “no”.

Many auctioneers are hesitant to turn any business away because they never know what future business that client might have for their Arizona auctions house.  And in theory it is easy to understand that concern.  However the once in a lifetime client may never produce another auction for the company.  What the auction can do is wear down staff and eat at the company’s resources.

Auctions continue to grow in popularity.  More buyers want to buy and sellers want to sell.  However there is some product and clients that don’t merit the effort of an Arizona auction house.  Many of us can say “no”.  It is easy when you get a phone call from a seller who wants to liquidate an inventory of 20 year old hair pieces ranging from magenta to sky blue.  We understand the market is not going to pay enough for an auction to take place.  But the client who needs a business liquidated which has more assets in the people and not in the product can be harder to walk on.

I am a firm believer that in order to be successful in business you must be willing and ready to walk away at anytime.  If clients understand that there is a level of business you will do and nothing beneath that level, they will respect the standards.  Our Arizona auctions house instituted a team of people called “The Acceptance Team” that does not work with sales people.  The idea is that once a client comes on board for an auction, they must talk with the acceptance team, and be accepted by our Arizona auction house.  Although the transition for our sales staff has been challenging, it has prevented some big mishaps.

A seller was bringing in 43 pallets of TV’s for us to auction.  On the surface it sounds like a great deal and good addition to most auctions.  When the acceptance team talked with the client, it was discover that the TV’s did not work.   Can you imagine how many disgusted buyers that would have generated from an auction?  If you do the math at 8 TV’s per pallet times 43 pallets that could equal 344 buyers who tell their friends about the bad TV they purchased at an Arizona auction house.

This is an example of the kind of business that we don’t need to keep us busy.  On the surface what seemed like a good client to the sales person would have ended up costing our Arizona auction house countless buyer business.  The acceptance team caught the fact that the TV’s were a bad deal before they even hit our warehouse doors.  You don’t need a large staff to have an acceptance team.  You need one person who was not in attendance at the sales presentation to ask questions after the deal was completed.

Remember if you are going to incorporate this idea into your Arizona auctions house, you need to make a change on your auction agreement for services.  The signature line will have the client’s signature, the sales person’s signature and then one more line for the acceptance team signature.  The idea is certainly not to loose business, it is to think like the big companies and only do the kind of business that is profitable for you and your buyers and sellers.  If you are going to be busy, be busy doing business and not practice.

For more information about Arizona auctions, contact Auction Systems Auctioneers and Appraisers.