The Benefits of Auction Marketing
Today, more than ever before, auctions are providing results for buyers and sellers. Online sales methods have created a buzz around the word “auction”. Coins are sold at auction. Automobiles are sold at auction. Large Collections are sold at auction. And Real Estate is the fastest growing segment of the auction method. Auctions are transparent, and buyers and sellers like that among other benefits of buying and selling at auction.
Auctions provide a definitive time and date for your asset sale. A carefully planned accelerated marketing program gives your property high exposure. You can stop costs of maintenance, vandalism, insurance, utilities, mortgage payments and other costs of ownership. Auctions are an excellent way to convert assets to cash in a short time period. Competitive bidding determines the best price for your properties. The perception of value of equipment and other assets and reality are not always the same. Reality says your assets are not worth a dime more than a person will pay and has the ability to pay for it.
On the lawn or online, auctions are taking place in communities large and small across the country with billions of dollars in assets and goods being sold via auction every year. One of history’s oldest forms of commerce, auctions continue to be the most efficient and effective means of price discovery. That said, auctions continue to be plagued with misconceptions and misunderstanding in today’s marketplace. We’ve heard it before from naysayers who say, “selling at auction is selling at a discount.” We’ve also heard the rumors that auctions only exist for selling distressed property. As unfortunate and frustrating as these rumors are, what frustrates our proud profession the most is that nobody questions the market value attained when rare works of art are sold for millions of dollars at auction or questions the method when the homes of Whoopi Goldberg, Cher, or head football coach Nick Saban are sold by an auctioneer. Nobody challenges the pair of signed Nike Air Jordan 1s that sold for $560,000. However, mention selling everyday real estate, commercial assets and other assets via the competitive bidding of an auction and doubt and uncertainty immediately follows.
Auctions work: Good market or bad market
The auction method of marketing is the world’s oldest and most misunderstood method of selling assets. An auction is simply a marketplace where assets or goods are sold via competitive bidding with the highest bid winning the rights to own. Auctions are the purest and quickest form of price discovery. At an auction, the marketplace (consumers), tell you how much they believe an asset is worth and how much they are willing to pay through incremental bidding. No more. No less. Yes, auctions are used to dispose of distressed assets, but people fail to recognize or admit that these assets are sold via auction because other options have not met the needs of the clients or provide the speed and efficiency needed to complete the transaction. Most importantly auctions force buyers to be decisive because there is no “I’ll buy it tomorrow factor”, the “For Sale” sign languishing in the yard does not force or motivate buyers to purchase. The sign will be there tomorrow and most likely the day after that. With an auction, there won’t be a sign after Auction Day in most cases.
We don’t just talk fast, we act fast
Auctioneers are problem solvers, not just fast talkers. Auctioneers take pride in helping their clients find solutions. Auctioneers are strategic asset disposition experts. At the mere mention of auction, people hear the rhythmic cadence of an auctioneer’s trademark bid call. Contrary to public perception, talking fast isn’t our specialty. Professional auctioneers are marketing specialists who use product knowledge, technology and advanced advertising to promote the assets they are charged with selling. Experts in the psychology of selling, auctioneers have the tools and knowledge needed to create a portal for buyers and sellers to connect. The public perception of auctioneers is that “all they do is talk fast”, but the reality is that the auctioneer spends one percent of their time captivating their audience with their famous chant and 99 percent of their time marketing, building, managing the auction for their clients.
I won it at an auction
No other form of commerce or sales method today leaves customers walking away delighted that they’ve won something they have wanted. You didn’t win that sweater or compete for that flat screen TV at the department store. You paid for it. Only at an auction will you walk away invigorated and excited that you “won” the item for which you were searching. How you actually paid for it is of little significance because at the end of the day you won the battle and that newfound treasure is yours.
Auctions create ACTION
Many people fail to realize that auctions take place in a variety of forms and for a variety of reasons. Hundreds of auctions take place every day that don’t involve distressed assets or involve owners who are in financial trouble. Auctioneers are called upon by seniors wishing to downsize their estate and to begin the next chapter in their lives. No immediate need for cash, just results and assistance. Auctioneers come to the aid of the business owner who wishes to move on to a new aspiration but fails to have the means or expertise to attain the highest price for their business and assets.
The auctioneer is called to help a farmer sell thousands of dollars of tools and machinery they have accrued over a lifetime in the profession. The auctioneer creates a marketplace for the young farmer in search of the same materials so they can follow in the footsteps of the retiring farmer. Auctioneers provide a platform for the corporate CEO in search of a marketplace to replace used business equipment. At the same time they minimize loss and return the highest dollar value to offset the purchasing of new equipment for their growing business.
Auctioneers provide assistance to the frustrated homeowner wishing to sell her home quickly without waiting for the phone to ring with an offer. The homeowner fears what they already know, which is any offer they received will come with a lower offering, followed by drawn-out negotiations, inspections and contingencies. Auctioneers help charities across the country increase their donations. Auctioneers create the venue where the collector and the car lover can pursue the next treasure for their collections.
Why negotiate down when you can always negotiate up?
Whether it is luxury, everyday, or distressed assets, the auction method of marketing has worked successfully for hundreds of years. Auctioneers will continue to offer their assistance to buyers and sellers and continue creating a marketplace for them to connect. Auctioneers will continue to assist those in need of our disposition services during troubled times. We will also wait patiently for the future. We’ll be here when disposable income and market values increase. With fewer homes available on the market and hundreds of interested buyers, you wouldn’t dare consider accepting the first offer that comes through the door when there are others who also want to buy your home. Would you? No. You’ll want to sell it at auction.
We want you to know the facts before you say no to auctions. The auction method has been our primary choice of marketing for over 50 years. We get auctions! Today, should you select our firm to conduct your accelerated marketing event, you can rest assured that with our internet bidding capabilities and/or a live auction event, anyone interested in your assets will have a chance to participate in a competitive bidding environment. Just remember, the marketplace will determine what the real price is for your assets. No more. No less. When you are serious about selling, we stand ready to serve you!