Why Auctions are an ideal source of goods

There has never been a better time to visit Auction Houses to buy goods for re-sale. Many people now, with the advent of on-line shopping and on-line auctions, are quite happy to sit at home and have goods delivered. For someone who is prepared to search out the buying opportunities, the bargains are to be had, often with little competition. Go to the auction viewing, examine the goods, set your bid limit and then bid! The advantage of viewing, as opposed to on-line auctions, is that you can assess the goods and work out exactly how much you should pay.

In todays consumer-led society, there is a massive surplus of goods. What is fashionable today, will be upgraded or replaced tomorrow. Perfectly good computers, mobile phones, office equipment, tools, are been ditched in favour of the newer model.

• Auction Houses are used by many companies to clear out excess and surplus goods
  
• Government departments, Councils and public bodies are always replacing equipment, (it's not their money that's being spent!).
  
• Many companies are going bust every day, often these are new businesses, with modern equipment, often on lease or rental schemes.
  
• Equipment costing thousands is often auctioned for peanuts.
  
• Personal bankruptcies / IVAs are currently running at over 300 PER DAY in the UK!
  
• Auctioneer's simply try to get back what they can, as quickly as possible.
  

This is why auctions are so good. It's not their goods they are selling, they could really care less what price they get, (they do work on commission, but it's more about numbers) they get their fees for selling the goods. The person who makes the real profit is you, because you can be more selective who you sell the goods to. you can take your time, you don't have to sell immediately. If you specialise, and research your market, you will soon find the bargains. Always be prepared to branch out into new areas though, don't get stuck in a rut. If you become a regular at auctions, you will often see the same people, again and again.

Many of these are traders who long ago realised that auctions were the best places to pick up stock. But obviously they aren't going to tell everyone where they get their goods! At the present time, between 200 and 300 companies, per week, are going bust!. Coupled with house clearances and deceased sales, personal bankruptcies, repossessions and people putting goods up for sale because they need cash quickly, you can see the enormous potential. Many people are too lazy to go to an auction house, especially in winter, or feel that they couldn't bid, or are too frightened to bid! This means that for someone who is prepared to put in the effort, the rewards are there. You can then advertise to the huge captive audiences on the online auctions and sell your purchases for a profit. buy low and sell higher.

Many Auction Houses require you to register and obtain a bidding number BEFORE bidding. Do check the catalogue or at the office first. There is nothing more embarrassing than being told by the auctioneer to go get a bidding number, in the middle of the auction, but you would be surprised how many people forget! You will have to provide ID and/or a deposit. Some auctioneers require a larger returnable deposit if you have no ID, can be upto £100. This is to reduce the problems of rogue bidders. It's a pity that eBay don't offer the same service! Make sure you examine the goods before the auction starts, you won't usually get chance after it's started. So if you're interested in lot 700, don't assume you can turn up a couple of hours into the auction and inspect it then. Once an auction is underway and a lot comes up for sale, the auctioneer will say the lot number, give a brief description and suggest a starting price.

Auctioneers by their very nature, are an optimistic bunch, and you will often find that no-one takes the bait, so he will try a lower price or ask for a start price. If you are interested and no-one else is, suggest a low price. If there is little interest and no reserve price, you may get it. The auctioneer will not hang about, he usually aims to clear 100-150 lots per hour. If no-one bids he can always put it in the next auction. Remember, people are often half-asleep at the start of the auction, you can pick up bargains in the first 10-15 minutes, especially if there are multiple items for sale.

With regard to multiple lots, if there are many items the same, the auctioneer may give the option to "stand on" or "follow on" or "the option" on the rest. This means that the buyer can have as many of the following lots as they want, at the winning bid. When you want to start bidding, raise your bidding card, paddle or hand and make a clear gesture to the auctioneer, and LOOK DIRECTLY at the auctioneer. Once you have contact with the auctioneer, you can resort to a nod, but DO remember the difference between a nod of the head(yes) and a shake of the head(no). He is only human and is trying to see all relevant bidders.

Don't panic if the bidding is initially fairly busy, it will quickly settle down to between 2 and 3 bidders, many experienced people will start bidding then. Don't wave your hands around like a mad thing or people will think your'e desperate and you will end up paying too much! Be restrained, but forceful. It's not a competition. If it's down to you and another bidder or 2, REMEMBER your item LIMIT! If it goes too high, simply shake your head, again LOOKING DIRECTLY at the auctioneer, to indicate you are no longer interested. He will then concentrate on the other bidder or bidders.

If the price is close to your limit, and you need a second or 2 to decide, STARE DIRECTLY at the auctioneer, he is waiting for your reply, you literally have between 1 and 2 seconds, then he will move on and you will have lost it. In this 1 to 2 seconds either bid, or shake your head, to indicate yes or no. Bidding is as simple as that, no mystique, no magical methods, keep it simple. Make sure you have a direct line of sight between your eyes and the auctioneers. If not, you will be bidding blind and resorting to waving your arms and appearing desperate.

These are the people who usually pay too much. YOU must remain calm at ALL times. It is NOT a competition, you are NOT trying to beat the other people in the room, you are trying to buy the item, AT or BELOW your limit price, in order to sell at a PROFIT. If you forget that simple rule you are wasting your time! If you win the bid, at some auction houses, you will be required to give a deposit, check before the auction in the catalogue or terms of sale. Others simply want your bidding number.

Remember, you are entering into a legally binding contract. Also remember that many auctioneers also have friends and colleagues who are bailiffs, or are Sheriffs of the Court. DO NOT think you can mess auctioneers about like people do on eBay! At the very least you will be banned from using that saleroom again.....you have been warned! If you paid too much...that's too bad, but that won't happen if you examine the goods first and stick to your limit....will it? Many auctioneers will only deal in cash, some accept cheques...always with a guarantee card and some accept Credit Cards.Most will charge a 2-2.5% fee if you use a Credit Card.

Do check the catalogue or conditions of sale...carefully and at this point I will mention VAT and Sale Commission. Read the sale conditions carefully. If it's a catalogue sale, the terms will be inside and will state the auctioneers commission, if any, and the VAT details. Make sure you check carefully. What seemed like a bargain can be less so if there is a 10% + VAT to be added! For amounts above your cheque guarantee card limit and for business cheques, you will have to make arrangements with the auctioneer BEFORE the auction.

Do check the time limit for paying for goods, sometimes it is only a couple of days, sometimes it's by the end of the same day! Also be aware that once the hammer falls, the bidder is responsible for the goods! Whether or not they have been paid for! Auctioneers often charge per item, per day, storage fees for late payers!