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.

Email Marketing – A Powerful Tool for Your Business

One of the excellent ways to get connected and engaged with your clients is using social media sites like Facebook, Twitter and Pinterest. However, people claim that email marketing no longer remains effective and relevant because of the success of social media.

Stop listening to them, as these are just misconceptions. Email marketing is still alive and doing well as one of the most effective and powerful techniques of online marketing and being in touch with your clients.

Defining Email Marketing

Firstly, you must know what email marketing is, before moving towards the reasons explaining why it is so useful in business.

When a person visits your website and thinks of subscribing to your mailing list with the aim to keep in touch with you through email, it is known as email marketing. A mailing list like this is quite important if you are selling a service or product. Email marketing enables you to build customer loyalty, earn trust and promote brand awareness while encouraging your subscribers to purchase from you more often.

Email marketing has several benefits. Although, it is a great marketing tool however, unfortunately, it seems to possess a bad reputation with a few businesses, who fail to understand it fully.

Some companies are of the view that people immediately consider finding an email from a stranger and they delete it, thinking badly about their company.

This may be true to some extent, chiefly because businesses have failed to take the time for nurturing their list. Nevertheless, with responsible marketing, an email marketing campaign can be made to work exceptionally well for your business.

Email Marketing Against Social Media Marketing

As explained earlier, social media sites like Facebook and Twitter are superb ways to connect with both existing and potential clients. They are ideal platforms to go for word of mouth advertising, creating strong bond with your current audience and putting yourself in front of a new audience.

Both of these tools are necessary for your business. However, you cannot keep a check over who is seeing your updates or when they are seen.

Apart from this, you cannot control these connections fully, as social media sites like Twitter, Facebook keep making changes without notifying how they could affect the way you are connecting with your followers.

Social media sites do not provide you the opportunity to connect people one-on-one as you can connect through emails. Using email marketing, your promotional campaigns can be fine-tuned by you, while forming a list of people who show genuine interest in whatever you are offering.

With Twitter for example, your message is competing with hundreds or even thousands of other Tweets from companies promoting similar products or services to yours. The same is true on Facebook.

Even if you have a huge number of fans, they certainly are following other pages as well, which reduces your message’s effect. The same thing is true about emails but by sending a personalized email, you can gain their attention as they would actually open and read your email. The distractions present on social networks including recent status updates, chat options and new photos are not there in email marketing.

For this reason, it is important for you to make an effort and transform your followers into your email-marketing list as soon as possible. Once it is done, you have full control and authority as they are in the list of YOUR contacts. You will lose them only if they choose to unsubscribe from your email list.

How Can You Make Your Social Network Followers to Subscribe Your List?

It is not at all difficult. You just have to provide them with the reason for joining you. For instance, offer them something for which they would not mind giving their email address is a good idea.

You could offer a how-to guide, special offer or an answer addressing a particular issue or problem that is bothering your audience, exclusive information or special type of voucher or discount, especially for all your email subscribers.

You must select something that is not only of real value to your email subscribers, but is also of interest to your target audience.

Such actions are not enough to keep your email list active and interested. To avoid losing these valuable connections, you are required to think how you can constantly deliver information that help them remain engaged and persuade them to open the email sent by you.

Consider Your Email Subscribers as Royalty

Customers visiting your offline business or contacting you over the phone, have high expectations that they will be treated rightly and in a special way. Undoubtedly, when you deal with your customers face-to-face, you get recognized for superb customer service and for offering an excellent buying experience. What you should do is, offer the same experience to your email marketing contacts.

When a person heads towards you by subscribing and trusting you with his/her email address, he is in fact conveying you that he likes whatever you are offering and wants to know you more.

Think of it this way, you have been invited by them into their inbox. Therefore, it is your responsibility that this relationship and trust should not be abused by the bombardment of your sales pitches that keep promoting your services and products. You must nurture your email list. Try to be helpful as well as informative and send news and offers, which you consider that they like to know about.

Do not consider your mailing list like a group of faceless names. Keep in mind your ideal customer and exchange thoughts with them one to one. This makes your emails more informative and personal, strengthening the bond with your target audience.

Design a Newsletter

A perfect way to remain in touch with your email list is a newsletter. It gives you an ideal mix of updates, news, information and special offers about your business to develop engagement with the subscribers and enables them to know more about you. Newsletter is also a superb way of encouraging calls to action, may be with limited time offer.

The main purpose is to make available the relevant information, which your ideal clients want to read. However, you should be careful about not to make them bored. The information should be passionate and interesting.

Establish a Strong Bond with Your Subscribers

With the passage of time, your connection with your subscribers will grow. As it becomes stronger, the loyalty of your subscribers to your business increases and consequently, your business sales and profits get a boost. Your company will get new referrals, opportunities and mutually beneficial associations together with building new customer base.

Your Business Gets Repeat Business with Email List

If you do not use the internet world, you might go for placing an advertisement in your local newspaper or investing in flyers or using any other advertising media.

Here, you capture new customer only if a good number of people see your advertisement. However, an email list provides you the opportunity to bond and nurture with your subscribers and in the long run, you successfully form a base of loyal customers who like to purchase from you repeatedly.

Email marketing is undoubtedly one of the most effective tools for establishing a large core of new clients online apart from your regular local clients in your business.

If you realize how powerful it could be to send out emails, which result in gaining extra sales as well as leads, you will eventually be able to formulate a marketing campaign making your business more profitable than before.

Cheapest as well as Effective Advertising Technique

Nevertheless, email marketing is one of the lucrative ways for promoting any business. With the passage of time, you can form a mailing list with numerous potential customers who show deep interest in whatever you are offering by giving you their email address.

Communicating with your subscribers is absolutely free and each of your email results in huge sales.

Underestimating the Power of Email Marketing is a Mistake

Email marketing tool is neither dead nor obsolete. Email marketing provides you more control and access over the message. In fact, by giving their email address, subscribers actually permit you to contact them. This action reveals their interest in whatever you have to offer.

Through email marketing, you are provided with the opportunity to form a strong relationship with your subscribers. This relationship is the one that empowers you as people like doing business with people. Looking after your list properly means your subscribers will like you more and trust as well. Ultimately, you are provided with a much better opportunity of increasing sales than your competitors.

Now you have understood the power of email marketing, you can create and run campaigns yourself and continue to establish a stronger bond with your online customers.

Becoming successful in creating a winning email marketing campaign and establishing a relationship with your customers, is surely a big achievement of yours. This is because, you actually become successful in winning their trust and acquiring their email address is definitely a huge and a rewarding responsibility.

If you do it properly, you will see your business profits bar rise. If you do it badly, you will see your business sales to decrease and it may also damage your brand reputation.

6 Tips to Make Your Email Marketing Campaigns Productive

It Should be Interesting

Make sure you have included lots of valuable information in all your messages. It should be in a way that captures your reader’s interest. Avoid sending out sales pitches or making it only about you. Add information that is actually interesting and useful for your target audience. If your subscribers think that you send emails only with the aim of enhancing your sales, they will never feel special or valued and you will fail to stop them from hitting the delete button, or unsubscribing from your list. They will not bother giving a look to your email messages any more.

Provide a Visible Link for Unsubscribing

You might consider it as a negative approach, but it is in fact a positive one. Your readers feel comfortable when they feel that they have full control and are not being pressurized to do anything. Therefore, never forget to include a link for unsubscribing in your email. Trying to hide it or not providing any link will only earn you frustration and anger of your subscribers, leading you to achieve completely opposite results of what you want to achieve.

Ask for Feedback

Feedback from your audience is necessary to make your relationship with them stronger and to enhance your email marketing projects. Therefore, keep asking for opinions, suggestions or feedback from your readers. Another way to receive passive feedback is through email marketing programs that track information regarding the number of people opening up your emails, or clicking on the links present there. All such feedbacks are essential for you to continuously improving and engaging with your audience.

Targeting the Right People

It is important to target the right people to achieve fruitful results. If you keep sending your emails to wrong customers, you will achieve nothing but their aggression and annoyance. Targeting wrong audience is simple a wastage of time of both, you and the targeted people. It is better to put in your efforts and time in your campaigns targeting audience who is actually interested in hearing from you.

Try Making Your Email Messages Mobile Friendly

In this technological world, your customers now can access their email messages on their tablets or mobiles. Therefore, it is of utmost importance that you format your emails correctly to ensure that you can read them easily.

Make Exclusive Offers Only for Your Mailing List Subscribers

You can show your gratitude to your subscribers by sending exclusive special offers, which is not available anywhere on your website. Such offers can be free delivery, discounts or any other deal that attract your customers encouraging them to buy from you.

Real Estate Auctions – The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.


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