Internet Auctions Hot Topic At National Auctioneers Convention

The 61st National Association of Auctioneers (NAA) Convention was held last week in Greensboro, North Carolina. Over 1,000 attendees from across the United States were represented along with some auctioneers from South Africa and Ireland.

There is no better way to network with fellow auctioneers to find out which methods are working and which are not. Online auctions were certainly the most talked about topic. There are many auctioneers who have not delved into, and do not want any part of this increasingly growing method. Others are studying this method and have tried incorporating online auctions on a small scale.

Bottom line, the consensus tells us online auctions are here to stay! You know what they say, “If you don’t change with the times, you get left behind.” I believe there is a balance between respecting tradition and embracing change. The auction industry has, for so many years, been a relatively untouched method of marketing. As the world watched the birth of the Internet, auctioneers now have to make decisions about the way they conduct business and future business platforms. There will always be a place for the live auction. The questions is, will Internet auctions eventually outnumber the live auction setting?

As an astute colleague of mine stated, “In the future, there will be fewer auctioneers; however, the ones that remain will be doing more auctions.”

Nashvillians Prove Faithful as “Volunteer” State

The middle Tennessee business market has been hard hit by the recent economic downturn. Couple that with the recent floods and you would think Nashvillians would be suffering from a bad case of economic and psychological depression. HOWEVER, such is not the case. As a matter of fact, in the recent issue of Chief Executive magazine, Tennessee was ranked #3 as those states rated as the best places to do business.
I am consistently amazed at the attitude among Nashvillians. I have not spoken to anyone who doesn’t know someone who either lost his or her entire home or suffered a tremendous loss during our recent epic flood. Their attitudes are positive, thankful and gracious for all the people, some complete strangers, who have offered a lending and helping hand.
What does this have to do with auctions? Everything. People are beginning to rebuild. People are going to need household furnishings. The auction may be a great way for you to help your neighbor re-stock and refurnish. McLemore Auction Company, LLC conducts monthly consignment sales of just about anything you may need. Also, if you know of someone who needs to sell inventory or assets, please give us a call at 615-500-4917. We too are here to help!

Banks listen up…

I recently attended an auction of a 40 foot Sea Ray Vessel on behalf the secured party; a bank.  An attorney conducted the actual sale/auction. All notifications were properly documented in one of the newspapers where notifications of that nature are run.

The sale was scheduled for 1:00 pm. On sale day, I showed up about 8 minutes before 1 p.m. I walked the marina looking for an auction sign. I didn’t find any signage. Finally, I saw several people holding brown expandable files not looking like they were ready for a cold day on the water. I asked if they were there for the auction. As it was, they were the representing parties who would conduct the auction.

About 5 minutes before auction time, about seven people showed up in the parking lot. Then, 3 minutes before auction time, the representative asked if anyone wanted to see the boat. Several people walked down the make inspection. About 10 minutes later, they all returned. Announcements regarding legalities were made. Bidders were asked to bid with their names first then the amount they wished to bid.  It seemed most people knew each other and all were from the immediate area. No phone bidders and certainly no on-line bidding was occurring or available.

As the bidding began, there was discussion between bidders. It was hard to tell whether there was a group representing one bidding entity, or whether they were just there watching and talking about the vessel. There was one fellow there though who was trying to strike up a partnership with anyone who was interested. He was mostly ignored. Nonetheless, it was apparent to me that only the locals were there.

It was also apparent to me this vessel would probably have performed much better had there been some advertising done, which could have brought in bidders from outside the immediate area. It was almost as if all the bidders had gotten the word about this vessel by word of mouth because as I said, they all knew each other and were from only the local area.

While I understand the nature of these type sales, I urge secured parties, especially banks, to use a professional service.  We tease in the auction industry that you can’t have a successful “secret” sale. By that we mean, you can’t just do “nothing” in regards to promoting an auction and expect a good auction result. If you don’t tell anyone, no one is going to participate or attend.

I know the sale/auction of this vessel would have performed better if a professional auction company had handled the sale. Yes, times are hard and it seems banks are not willing to pay even a little bit to a professional to get the job done better. I pose this question then to these banks. How can you measure a successful sale without a good representation of the bidders pool present?

By the way, the buyer who bought the vessel is local and is going to re-sell it. I guess that tells you something about the price. By hiring a professional auctioneer, you will render a more professional performance and result. Think about it.

The Auctioneer’s Show

I had a conversation this week with an acquaintance that had attended an Absolute Auction this past weekend for several tracts of land. Her question to me was regarding the traditional Auctioneer’s countdown. “Oh, the countdown,” I thought. She told me she became very aggravated because it seemed every time the Auctioneer started the countdown, one of the groundmen would say “Wait a minute, wait a minute” then get another bid, hence delaying the countdown. The Auctioneer would then calls for bids and after a couple of minutes; the Auctioneer would start the countdown again. Low and behold, the same thing would happen.  Yes, I’ve been there and done that. Let me try to explain.

The traditional Auctioneer’s countdown will go something like this:  “Going once, going twice, third and last call…going, going, gone!”  Why do we need a countdown? Well, while it may seem somewhat dramatic, it is very necessary. Much of the time, this is when the bidding really takes off and the professionals can sometimes intimidate the newbies!  The pressure becomes very intense because the countdown is truly the “Call to Action”.  The countdown is a tactic. After all, the last bid is the only one that counts, right? An Auctioneer wants the last bid to be the best bid.

Many bidders “lay back” (auctioneer talk) until the countdown begins. There is nothing like the feeling of throwing in a bid when the Auctioneer says,  “Third and last call”. The adrenaline pump is extreme for both the bidder and the groundman/woman.   And for the Auctioneer calling the countdown…well, it just feels good. It feels good, that is, if you’ve achieved a good selling price. On the other hand, if you are the Auctioneer calling the countdown and you know your selling price is below expectations, it’s the worst feeling in the world. That is, though, the nature of the beast.

As Auctioneers, we want to win them all and lose none. We work for the seller and we will work that countdown and sometimes just wear it out until we feel we have gotten every dime we can get. While an Auctioneer’s countdown may sometimes seem like a “show”, it is our business to get the most money we can for whatever it is we’re selling.  Moral to this story…it worked for my acquaintance. She and her husband bought the tract of land they came to buy.

There’s no Bank for time…or is there?

It seems our most valuable resource both as individuals and as business entrepreneurs is time. Here are some rather well known phrases and quotes you may recognize.

•    Could I have a moment of your time?
•    There are only 24 hours in a day.
•    If I just had more time…
•    Never put off till tomorrow what you can do today.
•    Time is money.
•    Time heals all wounds.
•    You can ask me for anything you like, except time.
•    Time flies.
•    Time will tell.
•    Who waits for time, loses time.
•    Time is of the essence.

Certainly if someone could figure out how to “bank” time, that someone would be a very wealthy individual. The truth is, we all have control over our own time. We may each be obligated to spend a certain amount of time each day doing any number of activities or fulfilling obligations. However, we each also choose how well our time performs. You can either waste your time or be productive with your time.

The point here is we are all our own bankers when it comes to our own time. As they say, “Spend your time wisely” because as Benjamin Franklin said, “One today is worth two tomorrows”.

Trim the Fat!

With the New Year brings a renewed commitment to getting things in order. This year, America’s number one New Year’s resolution is to get personal finances in order. Yes, it even took over the top spot of “I’m going to go to the gym and lose some weight”.

Getting personal finances in order can mean anything from documenting spending habits, to “trimming the fat” so to speak. Start simple. Look around your home at some of your personal property. Instead of spending money buying Rubbermaid storage bins, or renting a storage unit for your unwanted furniture, or furniture you’ve acquired through other means, think about selling it!

We all want a healthy financial portfolio. Making a decision to sell Real Estate may also be a consideration. How much are you spending to maintain your investment properties?  Are you ready to downsize your home? Are you the Executor or Executrix for an estate and don’t know how to liquidate? An auction may be the answer you’re looking for. In this first season of the New Year, try to get some of these questions answered. Spend some time looking at ways to improve your portfolio a little bit at a time.

Let’s get Started

Welcome to the first post of AuctionPatti’s blog. The purpose of this blog will be to share perspectives, views and results of the ever-changing auction industry.

Whether your auction niche is Real Estate, Personal Property, Heavy Equipment, Art and Antiques or Benefit Auctions, I would like to hear from you. If you’re a newbie to auctions, I especially want to hear from you. Although the word “auction” may be universal, there are many different auction methods we use in today’s market. We’ll talk about all those topics and much more.

Now, if you’re ready, let’s get started!