Farm equipment auctions Georgia
Estimating your assets value:

Typically, among the first questions a company operator will ask me is,"how much will the assets bring in an auction". After taking the opportunity to reassess the resources, the auctioneer should provide the customer a conservative estimate of the sale based upon his experience and the present market trends. It's important that the firm give sensible expectations so that the seller can make educated decisions based on their own best interest.

land auctions Georgia
Compensation and Expenses:

Is the company you're considering working for you or from you? The agreement you pick may determine this.

A business owner should carefully consider how the auction business is compensated. The most usual commission structures include: direct commission, outright purchase of resources, guaranteed base with a split over to both auctioneer and seller, guaranteed base with anything above moving to auctioneer or a flat fee structure.

At a straight commission arrangement, the company is paid an agreed upon percentage of the entire sale.

In an outright purchase agreement, the auctioneer simply becomes your end purchaser. The company purchases your resources and relocates them. Even though this can be an alternative in some unique situations, remember that they are going to wish to purchase your assets in a extremely reduced cost to create a profit at a later date.

At minimum foundation warranty, the auction company guarantees the seller that the auction will create a minimum amount of earnings. Anything over that amount either goes into the auction business or split with the vendor. Even though a seller may feel comfortable doing a market understanding that he is guaranteed a minimum amount for his sale, remember that it is the best interest of the auction business to secure a minimal base cost as low as possible in order reduce their financial liability to the vendor and secure higher reimbursement for the sale.

At a flat fee arrangement, the auctioneer agrees to appear to your sale and call the auction. There's no incentive for the auctioneer to get the lowest prices for your assets. The auction company is paid regardless of the outcome of your sale.

What is the best alternative for business owners? In my experience, an agreed upon directly commission structure. This puts the responsibility on the auction company to supply the best outcome for everybody involved. There's an incentive for the auction company to work for both parties, setup and operate a specialist sale, get the maximum bid and sell every item on the stock. Successful auctions translate to a higher bottom line for both the seller and the auction business.

Auction Expenses:

In most auction arrangements the expenses to conduct an auction are passed to the vendor. In the event the auction provider pays for the expenses, it is simply consumed in higher commission prices.

All costs should be agreed upon in advance in a written contract. Normal expenses include the expenses of advertising, labor, legal fees, travel, equipment rentals, protection, postage and printing. A reputable auction firm will be able to estimate all costs based upon their experience in previous auctions. An agreement should be real costs charged as expenses, not an estimated amount.

Advertising is typically the highest price in running an auction. The auction provider should set up an advertising campaign that will promote the sale to the very best advantage, not overspend to simply promote the auction business.

When the auction is complete, the auction company should offer a complete breakdown of expenses to the seller, including copies of receipts inside the auction summary report.



What's a buyer's premium? If you attend auctions frequently, you are extremely familiar with this term. The auction firm charges a fee to the buyer when they buy an item on the market.

The buyer's premium has been around since the 1980's and is regular auction clinic. It was first used by auction houses to help offset costs of conducting mortar and brick permanent auction centers. Since that time, it's spread to all aspects of the auction industry. It's prominent in online auctions and enables auction organizations to cover additional expenses incurred from online sales.

It is the obligation of the auction business to provide clear disclosure of the buyer's premium to both buyers and the vendors. Those not knowledgeable about auctions are often taken back from the buyer's premium. They looked upon it as an under given manner for the auction business to make more income. Reputable auction businesses will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will bill online buyers a greater buyer's premium percent compared to those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the vendor a level playing field for both internet buyers and people attending the auction in person. Without the buyer's premium, there is absolutely no means to get this done.

Pre-Sales:

We have all been there. We're looking forward to attending an auction only to find that some items were sold before the auction date.

As an auctioneer with over thirty-six decades of expertise, I can honestly say that pre-sales will hurt an auction. When a company makes the decision to liquidate their resources, it's simple to market off high-end pieces of equipment through online sources, gear vendors or to other businesses. The seller receives instant money and avoids paying a commission to an auction business.

Auctioneer's find themselves emerging to behaving in a self-serving capacity when potential clients say they are planning to sell off parts of their stock before an auction. It is difficult not to consider the auctioneer's commission when they warn you to not pre-sell anything. Yes, the auctioneer would like to make a commission on these sales but it is more important that the auctioneer protect the purchase from potential negative backlash that comes from pre-selling. The purchasing public understands when an auction has been"cherry picked" before the purchase and it reflects in their own bidding. It will become a purchase of"leftovers" which impacts prices.

A buyer who purchases before the auction ordinarily does not attend the sale. They bought gear at a fantastic price with no contest. If they do attend the auction, then they tend to let others know of their great pre-sale purchases which again, affects prices and the overall excitement of the sale.

It's important to see that auctions work best with an entire inventory. You need competition on your higher end gear. The easy to sell things make it possible to gain respectable prices for hard to sell things.

When a company owner decides to liquidate their equipment resources, there's just one chance to do it correctly. Employing a respectable auction business will assist you with a professional, systematic and timely manner.