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.
