Secrets of the Auction World
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But what is it that makes some auctions stand out above the rest?
Today, Mark Stock, co-owner of BigIron Auctions, is here to answer that question and give us an inside view into what happens behind the scenes at an auction.
A time of preparation
A good auction takes preparation. A seller can’t be expected to do it all. My brother Ron and I learned that early in our career.
Right before our first big auction, we went to visit the farmer at his place. The auction was in a few weeks, but he hadn’t started getting things ready. You could tell the whole thing was overwhelming to him. So we told him, “We’ll be back tomorrow to help.”
He could hardly believe it. Back then, farmers had to do the sale preparation by themselves. The auctioneer just showed up the day of the sale. But we thought, “Why should farmers have to do this alone?”
The next day, we started power washing and waxing the equipment. We put items in the right selling order. The equipment looked good, and it brought high prices.
Before we knew it, we were getting a lot of calls. They’d ask, “Now are you the guys who set up the auction?”
That’s when our business really took off. We were giving the farmers what they needed – help with preparation.
Our online business is no different – we still give farmers what they need. The BigIron independent sales representative goes to the farmer’s location, takes all the pictures and writes the descriptions. Then they list everything online for the farmer.
Our marketing team promotes the equipment to our large domestic and international buyer base.
Like our onsite auctions, the only thing the farmer has to do is represent his equipment – tell the story and answer questions. That’s how it should be.
It’s all psychology
For decades, auctions have sold the best machinery at the end of the sale. The thought was to save the best for last to keep the crowd.
If you watch our auctions, equipment is sold in a different order. We lead with the money. The best items are sold first.
Not only do the items bring top dollar, but also they set the tone for the rest of the sale. People are paying more right out of the chute.
We do the same thing with our online auctions. Our biggest items are scheduled to sell first.
Sometimes, when a seller hears there’s no reserve on a BigIron Auction, they get a little nervous. They worry the item won’t bring what it should. But the truth is, an unreserved auction is better for the seller.
Farmers don’t like to waste time or be jerked around. If they bid on an item, they want to know it will sell to the highest bidder.
So when the auction is unreserved, they bid with confidence. That results in a higher take-home price for the seller.
In addition, BigIron does not charge any extra buyer’s fees. That means all the buying power can go toward the item.
With our large domestic and international audience, the seller can be confident they have a large buyer base for their equipment. There is strength in numbers, and a large buyer base means higher prices.
The drop of the gavel
From preparation to auction day, there’s a lot that goes into having a successful auction.
At BigIron, our values are the same whether the auction is online or onsite, because we believe treating people right is just good business.