Common Misconceptions About Auctions, Part 2
This blog is part 2 of a series on “common misconceptions about auctions.” Part 1 of this series can be found HERE.
Like with any industry, auctions are often mischaracterized by misunderstandings and misconceptions. In this two-part blog series, we will be addressing some of the top misconceptions about auctions. Read on to learn more about the reality of the modern auction world—especially the online auctions we offer at Bid-2-Buy.
“Auctions are something my grandpa and grandma did—they’re not right for my needs”
For some people, the term “auction” triggers the image of fast-talking bid callers selling miscellaneous items off a wagon. And, indeed, in a previous era, many auctions looked a lot like that. But that approach is now a relic of the past. Today’s auctions—the kind of auctions we offer—are conducted online, have the potential to reach a global audience of motivated bidders, and utilize modern tools and resources to promote maximum value return for your assets. In short, we’re not talking about grandma and grandpa’s auction here.
“The fast pace of auctions produces low sales prices”
This relates to the previous misconception. And it’s easy to understand how people think this way. Historically, a defining quality of auctions has been fast-paced bid calling, where the majority of items are sold within 30 seconds or less. Online auctions offer a completely different format. Our auctions typically run for 14-21 days. From the moment the auctions are live, bidders have the ability to continuously bid on items. Additionally, we use staggered item closing—based on the total number of items you’re selling, we will close a specified number of items per minute. And, crucially, if a bid is placed on an item within the final minute of the bidding window, bidding will automatically extend an additional three minutes (and that process will continue until bidding ceases). These factors ensure that all interested bidders have adequate time to place bids on your assets.
“An auction will intrude on my space and privacy”
This again may be influenced by the history of auctions. Those traditional live auctions typically occurred on site at a seller’s property. With that format, a seller could anticipate hundreds of complete strangers showing up to their property—and maybe even a concessions stand. Online auctions offer a much different atmosphere. First and foremost, any interaction with potential bidders and/or winning bidders happens in a structured, scheduled manner. Our team will work with you to identify convenient dates and times to facilitate all inspections and payment-and-pick-up sessions; furthermore, our team will facilitate all interactions with potential/winning bidders. The process is organized, controlled, and efficient—and, for better or worse, there aren’t any concessions stands.
“I don’t have enough assets for an auction.”
As we mentioned in part 1 of this blog, it’s true that auctions may not be the right fit for everyone. However, even if you’re only looking to sell a few assets, auctions can still be a great vehicle for accomplishing that.
Depending on the nature of the assets you’re looking to sell, you may only need a few pieces for a successful auction. Over the past two decades, we have conducted countless successful auctions that have featured 10 or fewer items. And, in fact, with fewer items, you reap the benefits of efficiency: your auction can be set up and completed in a relatively short time frame. Also, with the advantage of modern marketing tools and keyword search capabilities, our team has the ability to place your assets directly in front of motivated bidders.
But even if your assets aren’t the right fit for a standalone auction, another option is a consignments auction. In a consignment auction, your assets are sold alongside other clients’ assets. Consignment auctions benefit from the “strength in numbers” factor. While a bidder might view an auction because they’re interested in a different item, by viewing the auction, they may also become interested in one of your items. And, from there, the competitive bidding environment can work to further the drive the value of your assets.
“All auctions are consignment auctions”
While we just discussed some of the benefits of consignment auctions, we recognize that not everyone wants to sell their assets alongside other clients’ assets. And while we believe that consignment auctions are a great approach for some clients, the vast majority of our auctions are the single-client variety—i.e., all assets for auction belong to one client.
Well, there you have it—that covers some of the most common misconceptions about auctions. Hopefully, with what you’ve read, you now have a clearer understanding of what modern auctions look like—especially the online auctions we offer at Bid-2-Buy.
If you’re intrigued by what you’ve read and are interested in learning more about our auction solutions, please get in touch with us today. We want to partner with you next—let’s build value together!