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Ours is a truly balanced world. Modern commerce has been built on fair trade, with equal opportunities for both sellers and buyers. In fact, from this basic ideal of marketing, comes the auction sale.
There are two essential and equally powerful parties to every auction sale: the buyer, and the seller. When there is a group of buyers, the exchanges must be balanced in order for the auction sale to be fun to everyone. A number of rules apply, both written and unspoken. In order for you to have fun at an auction, and avoid a potentially angry confrontation with other buyers, there are certain procedures that should be observed:
1. The term “auction” is used to describe a specific manner of selling and buying items. At an auction sale, every item is presented for bidding. Of course, for a buyer to win the auction game, you must be the highest bidder in order to take home the prize. The number of bids obtained while the item is presented determines the individual pricing. In other words, if there are only two or three bids, the price will probably be low. On the other hand, if there are many active bidders, the price will rapidly increase. The number and dollar amount of bids will typically reflect the price of the piece.
2. The rule of thumb at any auction is to generally use common sense. Bid only on what you need or truly want, and don’t allow your bidding to get out of hand. Spending extra than you can afford is no bargain.
3. Other auction sales will feature items set on a minimum bid and characterized by a “reserve price.” Bidding on the item will start at the minimum amount, and if the reserve amount is not met, the item will not be sold. However, even if the item doesn’t sell, the original owner is still held responsible for any auction fees owing. You can’t, in other words, place your item on reserve in an auction and expect to avoid paying listing fees if it doesn’t sell.
4. “Procurement” is the procedure of gathering items for auction. This is a vital factor in the overall success of the sale. The auction house wants to procure items that will absolutely attract attention from the public, such as rare antiquities or unusual historical pieces, thus tempting potential bidders to take part. It’s presumed that an auction with successful procurement will net higher overall profits if more buyers are in the house.
5. Sellers must truly understand the value and quality of their items, or they will be disappointed at the lack of good bidding runs.
6. Buyers need to learn exactly what they’re bidding on. Ask to examine the item before bidding begins, or arrive early to take advantage of the auction preview. Ignorance is no excuse, and it certainly won’t get your money back after you’ve bought a white elephant.
7. If you love to shop for unusual or rare finds, or just great bargains, try an auction sale. You’ll never know what you’re missing if you don’t try this distinct shopping experience.
8. Remember not to get caught up on the bidding. Some bidders are “planted” to lure others to bid higher. Don’t allow your emotions to get the better of you, and pay too much for something simply to make someone else lose. If you pay too much for something you really didn’t want anyway, you’re definitely no winner. On the other hand, if there is no bidding action on a specific item, it’s probably with good reason. If the price seems too good to be true, it probably is.
9. Do your homework, and know the value of the item before you begin bidding. This is where auction sale previews are crucial. Many auction houses put the items on display for several hours before the sale starts. Attend the preview and if you find something you like, make a few calls or check the Internet to find out what it’s really worth.
There are three basic kinds of auction:
* Commodity Auction: these are also called as exchange auctions. Professional auction buyers attend these sales, and can be seen watching their colleagues for any indications of unfair trading practice.
* Sale Auction: this is the basic auction where bidders will often vie for unusual or extraordinary items, or pieces of artwork.
* Dealer Auction: collectibles are often presented for sale at this kind of auction, usually attended by antique dealers.
Before joining in an auction sale, it is best that you do your assignment first. Never attend an auction without understanding the basic rules and regulations of activity, and be ready to follow them. Try to identify the kind of auction you’ll be attending, so you don’t feel out of your element. Each type of auction has its own respective sets of rules. Learn them and understand them to give yourself a head start.
There’s no question that an auction sale can be an enjoyable night out, and you really can bag some big bargains. You have to know that there are rules to the auction game, and there are also winners and losers. Like any game, knowing the rules can help you come out the big winner.
Tagged with: auction sale • home business
Filed under: Home Business - MYO