Continue reading »]]> As of late, the buzz words in the auction industry, and many industries, are “social networking.”  However, the implementation thus far within the auction industry has been spotty at best, and when implemented most get it all wrong.

I’ve written about social networking on two separate occasions in the past both in May of 2008: Jumping into the social conversation without drowning; and Connecting via social networks.  There is some good information that is still pertinent to conversations about social networking, especially in the jumping without drowning post.

In fact, in the jumping without drowning post, I review an article about 12 tips for success in social media.  The last 6 tips focus on “diving into social media” and are: 7. Engage Your Audience; 8. Engage Your Employees; 9. Engage Your Customers; 10. Be Honest and Authentic; 11. Define Metrics According to Business Objectives; and 12. Fail Quickly. Fail Cheaply.

As I look at that short list two things jump out.  First: engage, engage, engage; and second: honest and authentic.  This is where most auction companies get it wrong.  For the most part auction companies understand honest and authentic.  But it’s the engage, engage, engage part where the mark is completely missed.

Auction companies broadcast market events.  They mail hundreds and sometimes thousands of brochures, run multitudes of display ads, and run minutes or more of commercials on radio.  Often, this is just the beginning of the marketing campaign.  However, did you notice one thing these methods all have in common?  Broadcast, broadcast, broadcast.

A primary tenant of social networking is to engage honestly and authentically.  Yet, my experience has been auction companies are so trapped in broadcast mode that they fail to engage.  Rather, they fall back on the old reliable method of broadcast marketing.

What does this mean?  It means almost all the auction companies I follow broadcast links to auctions.  That’s not engaging.  Where is the insider information and tips?  What about links to resources you find, or articles you found interesting?  What about writing informational articles, and then passing that information along via Twitter or Facebook in the form of a link?

What if auction companies engaged their customers?  Companies could promote resources for buyers and for sellers, pass along industry information, provide behind-the-scenes information about upcoming auctions, and so much more.  What about actually interacting and having conversations with customers via Facebook and Twitter?  When it comes time for a customer to use an auctioneer, who are they going to look to first?  The company that merely blasts information, or the company that engages and interacts?  The company that provides useful resources and information to the consumer or the company that merely broadcasts notice about their next auction?

Now, our company is just as guilty of broadcasting, or I should say was just as guilty.  In fact, initially, we set up our website to automatically broadcast every new auction, real estate listing, and update to our Facebook page.  However, we recently turned that feature off.  At the same time, we added our company to Twitter (@SAuctioneers).  We did turn on a feature that will automatically tweet anytime we add a new listing, auction, or update to our website.  However, we’re determined to share links and information to our followers on Facebook and Twitter.  In fact, we’ve incorporated a section called “We’re all a Twitter” to the front page of our website which displays our two most recent tweets.  Consumers will be able to follow us on Twitter, Facebook or the front page of our website for engaging, honest, and authentic information.  They’ll be able to interact with us, learn from us, and teach us.  We’ll be able to share with them, and them with us.  It will be social and relational.

In the end, what are you doing to be social?  Are you broadcasting at the top of your lungs, or are you setting out to engage honestly and authentically those that come in contact with your company?  Given the choice, I know with which person I’d want to hang out!

Continue reading »]]> We’re all familiar with estate auctions. They are typically conducted on behalf of the family of a deceased individual. They are traditionally open to the public, and sometimes the family attends on bids on items against the public. However, within the last month, we conducted an estate auction for the family that was completely closed to the public, and only open to four family members. Let’s take a look at the results of each scenario.

This spring we had an excellent estate auction that included the real estate and all personal property. In my consultation with the family, we discussed how it was to their advantage that all the property be on the auction, and if they were interested in an item, to be present at the auction and purchase it there. Not only would allow all interested parties an opportunity to purchase, it also would set a fair market value for items in which the family was interested. Not surprisingly, the family was interested in the large items (guns, boat, motorcycle, appliances, et cetera). Interestingly enough, at the auction, the family purchased very few of the larger items (a few guns, some coins, and not much else). Needless to say, the auction was a success. There was a large crowd, prices were strong, and the larger items were hot commodities. Values were based on supply and demand, and very little emotion. In the end, the overall results were close to what I expected.

Fast forward to the last month. We were contacted by a family to conduct an estate auction. The catch, as I mentioned, was that the auction would be closed completely to the public, and would only be open to four family members. The family set the auction up just as normal, except nothing was removed from the house. Everything was put on tables, beds, any flat surface we could find. Each family member was given a fixed amount to spend, or not spend at the auction. Any funds not spent were part of their inheritance. What transpired that night was truly amazing. Value was based primarily on emotion, and very little on supply and demand. Items that normally would sell for good money at auction, sold for little to nothing, while items that normally wouldn’t sell very well sold for amounts that far exceeded the typical market value. In the end, the overall results were close if not more than I would have thought the sale would have totaled.

Would we do the private, family only, estate auction again? In both cases, we were paid for our services, and provided staff to work the auction. Our overhead was much smaller for the private estate auction. However, our fees were smaller than a typical estate auction and based on a flat fee. For the work we did, it was worth the effort. In a public estate auction, our overhead is much greater as we need more staff, but our fees are higher and based on a commission. Again, for the work we did in the above example, it was worth the effort.

Heading into the private, family only, estate auction, I wasn’t sure what to think. Looking back, I’d say we’d conduct another one if asked. It’s a nice little income stream, and it’s another tool in our toolbox to help the seller solve a problem. In fact, the family is thrilled with the results. Each family member had a fair opportunity to purchase items from their parent’s estate, and each had a level playing field of money. Our business is about solving problems, and we’ve now learned that a private estate auction is a viable tool in the toolbox.

Continue reading »]]> I had the opportunity to attend the 2009 National Auctioneers Association Conference and Show in mid-July. The conference is one of my primary networking vehicles of the year within the auction industry. In addition to the networking opportunities, there are numerous seminars over the course of the 5 day conference. Traditionally, I spin through my notes, and highlight key talking points that I can apply to our business.

In a twist, this year, I thought it’d be interesting to post those talking posts here. When possible, I’ve tried to match the point to the speaker, and these are not necessarily direct quotes by more of a paraphrase of their thoughts as transcribed into my notes. Many are applicable to business and general, and many are targeted to the auction industry. Feel free to review them, and make comments about points you like or maybe don’t like, and why. My apologies, ahead of time, if I’ve mixed and matched speakers, or mis-characterized their thoughts.

Aaron McKee
Keys to growth: Capital and Resources; Do good work; Don’t allow technology to make it non-personal; Company serving two industries is never a growth company.

Are we trying hard like our business is on fire?

When we stop prospecting, in 60 to 90 days there will be a significant drop in revenues. If we do not run non-stop, we’ll stop the revenue stream.

If a properly marketed asset takes a maximum pool of buyers, why do we self-select buyers out of the market by providing price ranges?

That last point really got me thinking about how we conduct business. We often inform inquisitive buyers, if they ask, of the expected price range of an asset. But when you consider Aaron’s point, it really is counter-productive to give any type of range. By not providing a range, we are ensuring that our marketing has reached all interested parties, and that they’ll participate. Why market to a specific group, and then “self-select” buyers out of the group and not allow the auction method to work (which coincidentally is dependent on parties at all price levels participating)?

Judd Grafe
We are professional exit strategists.

Companies are setup to be in business not to go out of business.

Judd primarily works in the business liquidation/industrial asset category of auctions. Yet, his comments about being professional exit strategists hit home for me. We primarily sell specialty collections (coins, firearms, stoneware, sporting goods, et cetera) and real estate. Within this realm many of our sellers are first time and only time auction sellers. They’ve spent years amassing their collections, and need us to provide an exit strategy from the collection. So often, we jump to offer them one option: auction. By repositioning as professional exit strategists, or perhaps “asset disposition specialists” we better serve our clients.

Will McLemore
Provide consistency across auction asset classes. Bring uniformity to the asset class by always selling it the same way.

Check website traffic for peak moments to our site. That is the recommended close time for an online only auction. Use the stats and the traffic to our advantage.

Will had much more to say, and I caught up with him during one of the banquets and exchanged thoughts on the industry (and put faces to the Twitter accounts). He is one sharp individual, and his ideas and comments are spot on. Because of his comments, we’re already exploring ways to provide more consistency within asset classes, and I’ve already explored the busiest times on our website (Monday nights at 9pm), and those of other companies to whom I provide tech consultations.

Ross Dove
We will have one mass integration of items for sale with results. Consumers will become dependent on auctioneers for advice, comparable sales, et cetera.

Use of a search engine levels the playing field. Search engines are bigger than the biggest companies.

Auction industry is becoming less transaction and more relational and interconnected.

If an asset has “one right buyer”, an auction is not the best method of sale. In an auction, the price is set by the backup bidder.

Creation of three to five global asset exchanges exclusive to auctioneers, and run by auctioneers.

Mr. Dove had a lot of forward looking, insightful comments – some of which I agree with, and some which I don’t. Yet, overall I left his seminar rejuvenated, and excited about the future. As I say that, I also realize his look into the future paints a picture that is drastically different from the current industry. His picture is of an interconnected commerce platform of all auctioneers providing services to all consumers similar to the MLS approach used in the real estate industry. There are others that champion this future, and those that embrace this “exchange” view of the industry are growing.

I currently straddle the fence a bit on the idea (not a good position to be in) only because there are many assets that we sell that it wouldn’t “pay” to list individually on an exchange (i.e. smaller household goods, certain hand tools, et cetera). The exchange will work for globally traded assets. But assets that can be consumed and traded in a local market, would not be served by the exchange. Yet, I see the immense power in leveraging the consumer to a primary exchange where all assets would be located. As an industry, each auctioneer would loose some of his/her uniqueness, but their clients would be better served.

The above is just a smaller teaser of my notes, and the amount of information and ideas that I packed into my head. I trust you’ll find some of it insightful and helpful. Above and beyond the seminars, the conference was a great opportunity to connect with friends and colleagues and make new connections with colleagues, and now friends. A case can be made that the educational offerings are not always at the level that an individual person desires. However, one cannot argue with unbelievable opportunities to network and get direct insight from industry leaders. We often joke that more is learned in the hallways than in the classrooms. Yet, the more and more I plugin to those individuals floating in the hallways, the more I get out of conference. I’m already looking forward to Greensboro, NC in 2010.