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| Breaking into auctioneering career is difficult |
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| Breaking into auctioneering and getting a foothold from which to start building a successful career can be tough. A lot of people outside of auctioneers do not understand and believe that but, if it were not true, everyone would be an auctioneer and rolling in the easy dough that some outsiders think they make simply by humming, “I’m bid a hundred, will you give a half.”
That is not the way it is and, before an auctioneer ever cries a bid, a seller with worthwhile goods must be found, sold on having an auction, contracted with, and the goods marketed and prepared for sale.
Last week, I pointed out the sad truth that the path to success in auctioneering is so difficult that most newcomers will fail. New auctioneers lack two essentials needed for success – experience and business. An auctioneer without business cannot gain experience and, without experience, it is difficult to get business. New auctioneers have to find a way to break this catch-22 and obtain business, and this makes getting business a top priority.
In an effort to reduce the steep climb from start to success, I shared some ideas for new auctioneers to use in locating and landing sellers. These thoughts could also prove helpful for long-time auctioneers who may have been idle for awhile, or who are looking to break old molds and branch into new areas.
In my previous column, I covered four possibilities. These were: (a) procure goods to sell for your own account; (b) work flea markets to meet prospective sellers there; (c) visit local antiques and collectibles dealers to meet these people who are both prospective auction sellers and buyers; and (d) build a mailing list with everyone you meet so you can repeatedly “mine” this list for prospective sellers and buyers for your future auctions.
Now we will pick up where we left off and continue our list of ideas on meeting prospective sellers and gaining auction business. I ended with a fourth point last time and will begin with number five here.
Fifth, auctioneers have an extremely valuable tool available in auction marketing and it gives them the ability to liquidate assets into cash in a very short period. This sharply compressed selling cycle can be important to many sellers and that is particularly true with sellers looking to raise money for various causes.
Every organization needs money these days and, with many traditional sources being dried up, the people running these ventures are becoming more creative in their efforts to get the gold. This makes associations of every kind, charities, fire and rescue departments, and schools (private and public pre-schools, elementary, middle, and high schools, as well as vocational schools, and colleges) good candidates for auctions.
When making a prospect list, do not forget the Salvation Army, Goodwill, and the like. Auctioneers should consider all of these opportunities to get business and pursue them vigorously. Dress professionally and go and meet the people who run these organizations and pitch how you can turn donations of assets from others into cash for present use – and do not hesitate to build a commission for yourself into your presentation. You will be producing value, so you should be paid some value for your service.
Sixth, so where is all the money these days? Much of it is in the banks where a lot of auction business resides. Auctioneers should learn the identities of those who run the departments where customers’ assets might need to be sold and then figure ways to contact these decision makers. Many banks have foreclosed on real estate and these REO properties (real-estate owned) need to be sold.
Likewise, the commercial departments often deal with non-performing business loans that are collateralized with various types of assets that will need to be repossessed and liquidated. Also, a long productive vein of business exists in the trust departments where banks frequently act as executors for deceased customers and administer their estates and liquidate both personal and real property assets.
Seventh, speaking of trust departments and estate liquidations, some lawyers are specialists in the area of trusts and estates. Auctioneers ought to learn who these lawyers are, meet them, and cultivate good relationships in an effort to gain the estate business that these lawyers can steer their way.
Eighth, selling keeps the money moving in the economy and auctions play a central role. Certainly bankruptcy trustees know this. When they come into possession of assets held by debtors who have sought the law’s protection from creditor actions, they turn to auctioneers to sell these assets for cash to be used for the benefit of unpaid creditors. These trustees are another valuable source of business that auctioneers should nurture. Contact the clerk of court to gain a list of the names and contact information for the court’s trustees.
Ninth, maybe you have seen the TV reality show, “Storage Wars” … maybe not. Either way, auctioning off the contents of mini-warehouse spaces for the operators of these businesses can generate some income for an auctioneer. It is a low-fee, high-volume business with a lot of experience to be gained from doing it.
When tenants rent these storage units and default on their leases by failing to timely pay rent, warehouse operator will move to sell the contents of the subject units to free the units up to be rented to new tenants. Auctioneers should obtain a copy of their state’s statutes that apply to these sales and learn the law. Then they can solicit these warehouse operators in a try to gain a slice of this business.
Tenth, salvaged goods are another area for auctioneers to consider. The key is to find a supply of worthwhile goods that can be used to feed an auction business. Auctioneers should contact possible sources of salvaged goods, including retailers, wholesalers, and salvage dealers to see if they have inventory overruns, returns, closeouts, etc. that might need to be liquidated. If they do, an auctioneer can offer a sale plan built around an auction for solving the problem.
Eleventh, municipalities need to liquidate equipment and other goods from different departments of government, including police departments needing to turn found and unclaimed goods, plus seized items into cash. While some local governments have moved onto the Internet to offer these lots directly to buyers, auctioneers can still present proposals to handle these liquidations through traditional auctions and should do so.
Twelfth, other auctioneers hold business potential for newcomers, too. An established auctioneer might have moved beyond selling certain types of offerings that once were accepted and these things might work nicely for a new practitioner. Likewise, auctioneers might need assistance with sales they are offered, particularly retired and semi-retired auctioneers. These auctioneers represent sources of business and auctioneers starting out should meet those who preceded them at the auction block and offer their energy and services to help where needed. Local and state auctioneering associations are a great source for networking with other auctioneers for both professional advancement and business development.
Thirteenth, once a new auctioneer gets that first auction scheduled, the auctioneer should do the very best job possible. Professionalism and hard work are always big boosts in seeking additional business. This is due to the oft-repeated axiom that an auctioneer’s next seller is in the auction audience today. This is true and auctioneers are being watched by prospective sellers when they have no idea they are being scrutinized. |
| 9/15/2011 |
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