Everything in the world is constantly changing and one of the biggest ways is how we start new businesses. For the longest time a brick and mortar was the only real choice. Along has come the Internet home based business and that has changed the way we do things. Most people do not have the money to open an offline business as the expenses can be very expensive. This is why more people are choosing an online business to start their business career. In this article we will take a deeper look at the Internet home based business and give you some very important tips you can use.More people than ever are online and the opportunities are virtually endless when you talk about starting your own business. It is not easy and it will take a lot of hard work. Many misconceptions abound about how easy it is to make money online with your own business. Here are some tips to follow to get you off to a very fast start.When you decide to start an Internet home based business choosing something you like to do or have a passion for is a very good thought. Many times people come online and have no passion for what they do and failure will usually be the result. By having something you like you will tend to stick with it a lot longer.Take your time to choose your business. No matter what your passion or choice maybe there can be many different variations of the business. By looking over each opportunity very carefully you can choose the one that fits your talents the best. Take your time and do not rush your decision with your new choice.An Internet home based business is something you must build at a steady pace. When people start an online business they must understand it takes time to build a customer base and profits. It can take up too two years before you really see the growth you may like. The key is to just keep plugging away and do not get discouraged.Do not be afraid to ask for help from others. Starting an online business is a tough proposition, but many people online can be found that will help you. The Internet is filled with plenty of help from individuals, businesses, and websites. Use every available option at your disposal to build your business.Starting your Internet home based business is going to take some time. It is not easy and for many it can be more than they have imagined. The rewards though can be very good for the people who are willing to do the work needed.Internet home based business is something that is growing at a very fast rate. With more and more jobs being eliminated going online is a logical choice. Starting your own online business will take some work, but the rewards can be worth it.
Affordable Home Based Business Opportunities With Prospects
Take a look on the Internet and you will find plenty of affordable home based business opportunities. Many of us dream of working from home. After all those who run an online business can be their own boss and work when they choose to.So running a business from the comfort of your own home sounds pretty idyllic. But anyone who works from home in order to earn their living will tell you that home based business owners probably work twice as hard as anyone else. If you are trying to locate a legitimate way of making money online then begin by starting a small home based business.Small OpportunitiesMighty Oaks from little acorns grow. There is no point in investing huge amounts of money in an online business if the return is minimal. When we talk about starting up an affordable online business we should consider ideas that require little or no investment.Take an overall look at the area that you live in and consider supply and demand. Do residents in your locality need cleaners or gardeners? If you are an accomplished gardener or a cleaner then you could set up a website and advertise your services. You may not be physically working from home but your operating costs will be low so you should be able to maximise your profits.Businesses that Allow You to work within Your Own HomeEvery entrepreneur had to start somewhere and all of us have hidden talents that we never bring to the forefront. Maybe you make wonderful gift cards, handmade jewellery or cute hand-crafted goods.If that is the case then use your skills to make an income. Accomplished cooks could try their hand at baking and selling celebration cakes, hence you make money from working at home doing a job you enjoy.The Home Party Business Industry is BoomingIf you are a great host and you have the gift of the gab then you should try earning a living from home party plan systems. This is one of the many affordable home based business opportunities that can be profitable.A high percentage of firms that claim to have the ideal way of earning an income from home ask for a substantial start-up fee. Run a home party business and you may well have to purchase a party plan starter kit but that is usually relatively affordable.Are There Any Internet Business opportunities?Anyone who has access to the Internet and a few hours to spare has the potential to earn cash from home. Look online and you will see that many companies are advertising for customer service handlers, article writers and data entry workers.Listed above are a few ways of earning money from home and all of these ideas are affordable. The majority of people seek online work to boost their income and it is up to you to find a business opportunity that matches your skills and interests. There are many affordable home based business opportunities in this world and some of them will bring great personal and financial rewards.
Why You Want to Partner With A Small Business Coach-Advisor
According to The National Federation of Independent Business [NFIB] Education Foundation, over the lifetime of any small business, 30 percent will lose money, 30 percent will break even, and just fewer than 40 percent will be profitable. The Small Business Administration [SBA] reports that 50 percent of all small business fail after their first year, 33 percent fail after two years, and nearly 60 percent fail after four years. Reasons for failure cited by the SBA include: limited vision, over expansion, poor capital structure, over spending, lack of reserve funds or too little Free Cash Flow, failure to adjust to market changes, underestimating competition, poor business execution, poor business location, failure to establish company goals, poor market segmentation and strategy, poor knowledge of the competition, no management systems, over dependence on specific individuals, and/or focusing on the technical aspects more than the strategic aspects of the business, and an inadequate business plan.Developing and growing a small business enterprise, either from a new venture or as an existing one, is difficult in a bull market, where the economy is growing. The difficulty factor is there none the less. However, in a down economy, in a recession, where the risk of business failure is magnified several times, the difficulty factor is increased by a significant magnitude. Entrepreneurs and small business enterprises find themselves working in their business as opposed to working on their business. That is, when times are tough, the small business owner feels compelled to spend all his or her time on operations just trying to keep the boat afloat, while putting off where the boat may be going. It is particularly critical in a recessionary economic cycle to spend as much time as possible on the direction of your boat, as it is on operations. If the vision is lost or clouded, it won’t really matter how hard you try to keep things afloat, at some point you may well run aground because you were not watching where you were going. Having an extra pair of eyes to help stir your ship and keep you in the right direction is critical to not only maintaining your business, but helping you to grow it. And as the principal in your small business, this is where you want to position yourself; at the helm stirring your enterprise in the direction of your vision.Successful athletes typically hire a coach to help them achieve success. Certainly this is the case in professional golf. It is the case in the world of professional cycling. And it is the case in professional team sports, such as baseball. For the entrepreneur and small business enterprise, having a coach, advisor, on the sidelines as well as in the game, to provide critical objective guidance to help them attain their business objectives can be the difference in achieving real success. As a small business enterprise, you want to be in the category of a ‘small business growth’ company, positioned for IPO, acquisition, merger or growing into a medium-sized company. A Business Coach and Advisor will work with you to help avoid becoming an SBA or NFIB Education Foundation statistic on their list of small business failures. From time to time we all need outside guidance, counsel, mentoring and advice. A Business Coach/Advisor will actually help you to become a success story. The benefits of partnering with a Business Coach/Advisory far outweigh the costs. Five critical benefits of partnering with a Business Coach/Advisor include, but are not limited, to the following:1. Accountability. A Business Coach /Advisor will help you to maintain focus on driving your business forward, and helping you to work through the temptation to work in your business and not on your business. A good Business Coach/Advisor will insist on holding you accountable for achieving your goals and objectives, and work with you to delegate operation tasks that need to be performed by key personal, and guiding you towards providing the strategic vision your business needs to grow. Your Business Coach, acting in an Advisory capacity will work with you to develop or refine strategic short- and long term goals and then hold you accountable to achieve them. You want your coach to be tough, yet personable having the capacity to understand your business and where it is you want to take it. There job is to help you formulate that and to get you positioned to attain it.2. Formulating Strategic Goals, Ideas, Objectives. A Business Coach/Advisor will work with you to develop and refine your goals, ideas and objectives. A combination of coaching and advising is necessary here, and your Coach has the acquired expertise and experience to work through these with you and knows how to adapt them to your business.3. Contributing Business Growth Strategies. A good Business Coach/Advisory will have the ability to share and communicate their experience and expertise in developing business growth strategies. Remember, no one has all the answers. No one. Not a coach or a business executive. Sharing ideas are critical. Thinking out of the box is essential. So, when you’ve just “run out of ideas” on how to market and sell your products and services, your Coach will work with you, as a partner, to develop and then implement the business growth strategy or strategies that are specific to your company and market to meet your growth objectives. To be most effective, weekly communication with your Coach will keep you on track.4. Resources. When it is needed, your Business Coach/Advisor will provide referrals to contacts or resources for your business, such as expansion capital, legal and accounting services, social media marketing, technologies, and other resources that are relevant to helping you meet your goals and objectives. My view here is that it is incumbent on a business coach and advisory to have a teaming or partnering viewpoint, and it is essential for them to do so for the benefit of you, the small business owner.5. Objectivity. A Business Coach/Advisor provides you with the necessary objectivity to see your business as it really is. This is essential for an honest assessment of where your business is in its life cycle. When you get used to the same processes and procedures, tasks, basic routine, you lose the ability to see your business with the same objective clarity that you once did. Your Business Coach provides you with a double perspective; looking into your business from the customer perspective, and looking out at the customer from your perspective. And then provide you with feedback about what works, what doesn’t and what your options are. To be effective, weekly communication with your Coach will keep you on track.Partnering with a Business Coach/Advisor should be on a retainer basis for three to nine months, preferably six months. It will normally take a good Business Coach/Advisor two months, sixty days, at least to become fully knowledgeable about your business, its practices, your strengths, weakness, your vision, and your objectives. Then another month to begin working with you to arrive at your business objectives. While three months is the minimum time needed for a good Business Coach/Advisor to begin making a difference under a single retainer agreement, nine months is the maximum under a single retainer agreement, where six months is the optimal. During a six month retainer, a Business Coach/Advisor should be able to meet all goals and place in to practice the critical elements that a small business needs to attain strategic objectives. Typically, once a small business has partnered with a Business Coach/Advisor, they retain them continuously, or as needed.In today’s troubled economic climate, the use of a Business Coach/Advisor makes strong financial sense. While you might feel you can go it alone, the resulting cost may far outweigh what it would be had you partnered with a Business Coach/Advisor when needed. It’s sort of like the old TV commercial about changing your oil, you can either do it now at the cost of an oil change, or wait until your engine blows and pay the cost then. Waiting will certainly cost you infinitely more. If you are facing a limited vision, over expansion, poor capital structure, over spending, lack of reserve funds or too little Free Cash Flow, failure to adjust to market changes, underestimating competition, poor business execution, poor business location, failure to establish company goals, poor market segmentation and strategy, poor knowledge of the competition, no management systems, over dependence on specific individuals, focusing on the technical aspects more than the strategic aspects of the business, or simply need help in growing your business, then partnering with a Business Coach/Advisor makes good financial sense.
4 Reasons You Need A Niche Market
Key #1: Focus
When we focus our business to serve a niche market we create a compact business strategy that knows the ‘ins and outs’ of our market’s needs. Our web page speaks to a select market from an expert point of view. Speaking from authority that respond to a familiar need with a focus is a powerful way to attract your niche market. It is called marketing by attraction, or pull marketing.
A niche market may include a million potential buyers, or ten million potential buyers. A small business web site would most likely be pleased with having 10 thousand potential buyers, and to get attention from a niche market of 10 thousand buyers we will need to focus.
You might be inclined to try and sell to a wider market than a specific niche. The broad approach is common and it most often fails because in trying to speak to everyone it speaks to no one. A broad message is lost on all aspects of your market when they have a specific problem to solve.
The majority of business web sites seem to have fallen for the false idea that a web site can sell to the world. The reality is that the web creates a one-to-one relationship. Our web sites need to be more specific to each aspect of our web market.
For instance, a web designer may develop a niche market for business owners that are new to the web. There is also a niche market for those business owners on their second or third web design and the changing needs of that niche. A niche exists for certain professions like a dentists or a realtor.
Of all the different kinds of businesses needing a web design it will be a specialist that can be found quickly and the business jargon speaks volumes to the client.
Key #2: Specialize
You will need your web site to speak about how you specialize in order to attract attention from an important niche that exists within your wider market. Your web site may sell picture frames but you specialize in wooden frames. This would be your primary market, but you can still sell other types of frames. The important thing is to capture your special niche market because it is obviously a big enough market for you to want to specialize in.
Creating a web page for a niche market is often referred to as building a landing page when you have more than one niche market to serve. When this happens then you pull one niche to a certain landing page and pull another niche to a different landing page. Keywords play a big part in which landing page is delivered.
Call them by name:
It helps if your web site can address your niche market by name. Something like “wooden picture frame lovers… ” should catch their attention and from there you can talk about the unique features of wooden picture frames.
Why does your business specialize in wooden picture frames and why do you love wood and like to work with wood? When you speak this way about why you truly appreciate wooden frames your web site is expressing your values as a knowledgeable business owner. Your niche market likes this and they identify with your business because they share the same values.
Key #3: Be of Service
As you build content for a niche market you help them to feel right at home. The jargon you use and the solutions you offer provide a unique experience for your niche market that otherwise have to guess if a web site really does offer a solution for their specific needs.
Your niche market becomes comfortable because you are serving their need to find trust, quality and respect for the values they share with you. This is an unspoken service because your web pages doesn’t say, “We are trying to make you feel comfortable and let you know that you belong here with us”, but this is what your market feels just the same.
When your web site provides insight and helpful information for choosing products and services you’re pulling your niche market in. Your market is not only made more comfortable they are educated in ways they never knew before. This is because their needs are unique to the special niche they are a part of. The market that loves wood probably wouldn’t know why a hardwood may suit some projects but not others. Members of your market may only want the appearance of wood and not care about its other qualities. There are so many things to talk about in providing good service.
Okay, you don’t sell wooden picture frames
Almost every business will have a lot to talk about that is informative for their niche market. As the market become more knowledgeable on the features and functions of a natural product (or your product) then you can educate them on being price wise so they don’t purchase the cheapest product and end up being dissatisfied.
Your service needs to extend beyond the price so your market can purchase in the price range and other considerations that is best for them. And this is true whether the final price is high or low. Good service provides all the important reasons for spending less or spending more so that the final purchase is without regret.
This is truly being of service and it is that old time value we loved about the local business owner that we could always trust to keep us safe while giving us their best information.
Key #4: Search Engine Placement
As you build quality content that covers all the bases in your niche market from beginning (curious) to end (sophisticated answers) you will also be completing your own page SEO. You used to pay big dollars to an SEO expert so the search engines would place your site high on the list for your search terms. Today, it is by providing the quality content that you also complete the SEO for your page.
Over the years Google has changed and the new requirements are that your web site needs quality and quantity when it comes to relevant web content. An SEO specialist cannot do this for you. They might be able to tweak your content slightly to perform better, but no one can support your market as well as you can.
These changes by Google fit perfectly for focusing on your niche market. In the process of providing insight and specialized knowledge for your niche market your web pages are sharing unique information of quality that search engines want. Search engines are in the business of listing the most relevant pages for a search. By giving your niche market the information that helps them the most you are also giving the search engines the pages they want to deliver. It is called symbiosis.
If you didn’t write content for a niche market you would be writing content to cover a broad market and then your business web site would read more like a department store than a specialty shop. But – and this is a BIG but – even a department store needs to have landing pages with a tight focus for a specific (niche) market.
Google will choose pages that provide a specific focus to match a keyword search. Those broad general market descriptions so many business web sites use to attract everyone in the world do not capture the interest of any particular market, and they do not attract the interest of search engines.
The common search terms used to attract traffic are not specific enough to capture the interest of a niche market. What really happens is that the common search terms act as the default. When there is nothing else to choose then common terms will have to do.
Your web site, written for a niche market you are familiar with, is far from common and a niche market will close in on your site with the keywords that identify their need for information.
The Benefits of Advertising Outdoors
There are many ways to market one’s product or service. One of the most powerful forms of advertising is advertising outdoors. In the UK, this is a booming market and because of this, outdoor advertising space can be hard to come by at times. However, once the space has been secured, any business will begin to see the benefits of this form of advertising.
Captive Market
With all of the cars on the road, the people who are driving those cars have no choice but to look out their windscreen at their surrounds. Part of those surroundings are the marketing campaigns utilising advertising outdoors. With the popularity of holiday ventures to rural areas as well as camper trailers, not to mention urban driving becoming more and more common, there are avenues for any marketing campaign that will get seen by thousands or hundreds of thousands of people a day. The advertisements outdoors make big statements and cannot be ignored, unlike other advertising mediums, such as a reader skipping advertising pages in a magazine.
Repetitive Exposure
On top of guaranteed views of an advertising campaign, there is a high level of repetitive exposure to the same advertisements. The typical commuter drives the same route five days a week so that means that any given outdoor advertisement will be viewed by that driver repeatedly during the week. Repetition in advertising is difficult to obtain in most mediums but while advertising outdoors, it is one of the most cited reasons for choosing this medium for advertising.
Gets to the Customer at the Right Time
With any marketing campaign, timing is everything. A bold advertisement is lost if there is a large amount of time, from the advertising impression, to the decision to make a purchase. Outdoor advertising minimises that time, sometimes dramatically. Advertising a product utilising an outdoor ad in front of the store where that product is sold is the most striking example of this. However, even having a product featured on the expressway will still leave an favourable advertising impression when a person stops at their local market before heading home after a long day at work.
Outdoor Advertising is Cost Effective
When looking at the cost per viewer, no other advertising medium is so cost effective. While an advertisement in a magazine may be a bit more targeted toward an audience, the cost per impression is dramatically higher than a high-quality and dynamic advertisement placed outside. Getting repeat exposure for the same product requires even more outlay of capital from a company’s marketing budget, yet with outdoor advertising campaigns, the same commuter will see the advertisement for weeks before beginning to truly ignore it.
The initial cost for an outdoor advertising campaign is fairly low as well, depending on the location and size of the advertisement. As with other marketing outlets, size and the variety of colours affects cost. However, compared to most other marketing mediums, the initial cost is most often lower and the monthly cost after the first month is more of a rental agreement and maintenance fee agreement, rather than a reoccurring fixed cost.
The Finer Points of Internet Auctions
WHAT IS A PENNY AUCTION?
Penny auctions have exploded in popularity with the massive growth of the internet. However, few people know the true origins of penny auctions.Beginnings actually stretch back to the Great Depression. Those were hard times for everyone, but even harder for farmers. Farmers struggled to bring in steady income because of droughts and crops not selling as well as they had previously. As a result, the banks would foreclose on the farmers who couldn’t keep up with their mortgage payments.
The banks weren’t satisfied with just repossessing the house, they wanted to raise as much capital as possible, so they resorted to selling off the possessions of the owners of the repossessed houses. There was not much the farmers could do about it so they began bidding ridiculously low prices, pennies, on the items while threatening others who dared to bid higher than a few pennies.
The auctions of today hardly resemble their tremulous beginnings. Being part of a penny auction today is exhilarating, fun, and addictive. It combines the selling format of auctioning with a little bit of chance factored in.Auctions are a game of strategy but also a game of luck.
The premise behind penny auctions is giving people the chance to win an item at a drastically reduced price.Auctions make that possible by spreading out the cost of the product among multiple bidders. In order for a person to take part in an auction, they must pay a set price for each bid. For example, if a person wanted to bid on a fifty dollar Amazon gift card then he would spend a dollar for each time a bid placed. If he ended up winning the gift card, then he would only have spent a few dollars for a fifty dollar gift card. Usually penny auctions sell bids in packages.
HOW PENNY AUCTIONS WORK!
The main foundation of penny auctions is the pay-per-bid format. It is the key that allows bidders to win items at the fraction of their retail value and allows the auction owners to keep their site profitable. Most y auction sites run on the same premise: people pay a set amount for each bid, whenever a person places a bid within the closing seconds of the auction time will be added, the last person left with a unique bid after the clocks runs out will win the item. There are a large variety of items that can be won, but they tend to be popular electronics or gift cards to popular stores.
There are two types of auctions: lowest unique bid auction and highest unique bid auction. Lowest unique auction sounds confusing but it is actually quite simple. A unique bid is when only one person has a bid at a certain price. Bids usually start at one penny, a bidder can then place a bid at two pennies. Until another bidder places a higher bid, the most recent bidder will be the lowest unique bid because that was the only bid at two cents and nobody bid higher. However, penny auctions generally don’t stop at one penny. It is not uncommon to find auctions that end up at a couple hundred dollars based on the popularity of the item being auctioned. However, the same principles apply for those auctions. Highest unique bid auctions follow the more traditional auction format such as eBay. The person with the highest bid at the end of the auction wins the item.
Auction site owners turn a profit by selling bids. Say twenty people are bidding on a ten dollar gift card at one dollar per bid, at the end of the auction if there were twenty bids placed in total then the site owner would have made twenty dollars with a ten dollar profit.Auctions do seem like a win-win situation:The site owner makes money while the bidder gets an item for dirt cheap. However, not everyone wins in penny auctions. The people who paid one dollar each bid but left with nothing to show for their investments will not be so happy.
HOW TO WIN!
Penny auction has a lot of chance mixed into it, but one can incorporate strategy that will help raise the chances of winning. Playing smart can make all the difference between gambling and auctioning.
The first crucial tip to winning penny auctions is to know how to manage your bids. Your goal should be to win as much as possible without spending a ton of money buying bids. Managing your bids means that you should already know how much you are willing to risk in order to win an item. The amount of capital you are willing to risk will determine how many bids you can use. Once you know how many bids you have to spend on an item, then you will be better able to manage how and when you place a bid. That will keep you from blowing away all of your bids in the first few seconds of the auction.
The next tip is to practice time management. When fighting in the trenches of penny auctions, you have two enemies: other bidders and time. Knowing when to bid is a must if you want to have success. Placing a bid when there is a lot of time left on the clock is never a good idea. You have to remember that the key to winning a penny auction is being the last one standing when the clock runs out and that each bid increases the amount of time left. It would be a good practice to wait until the last few minutes of the auction before you begin to bid.
The final tip for successful auctioning is to keep your emotions under control.Auctions have a lot of similarities to gambling, and just like gambling, your spending can get out of control. If you keep your emotions level, it will keep you from making rash decisions and blowing loads of cash. Keep your mind clear so that you can gage the behavior of the other bidders and outsmart them.
HOW TO AVOID SCAM SITES!
Penny auctions are a great addition to the web whether you want to win an item that otherwise you wouldn’t be able to afford or if you simply enjoy the thrill that comes with bidding in auctions. Unfortunately, scam sites have tarnished the reputation of the legitimate penny auction sites. However, there are ways that you can protect yourself from scamers and enjoy your auctioning without having to worry about losing your money due to dishonesty.
Checking the reputation of the auction site before you start spending your hard earned money is always a good idea. Chances are other people have tried the site before you and some of them have left reviews. The reviews are your way to gage whether a auction site is trustworthy or not. If a site is getting overwhelmingly negative reviews, then that is a clear indication that you should steer your business elsewhere.
Another tool you can use to protect yourself is checking the Alexia ranks of the auction sites. Alexia rank will give a solid view of how much traffic the auction is getting. If you see a huge difference in the amount of traffic Alexia is projecting and the amount of active bidders on the site, then warning signals should be ringing in your head. Some auction sites have been known to set up robots that automatically bid on projects in order to keep the auction going and inflate the price. That is known as shill bidding. You can sniff out those sites by comparing the traffic the site should be getting to the amount of users using this site.
CONCLUSION!
New legislation may come out later down the road that will officially make penny auctions gambling, but until then, it is a fun, exciting auction that allows one to win the item they’ve always wanted but couldn’t afford.Auctions are also quite lucrative for the site owners because of the pay-per-bid strategy they’ve incorporated. Penny auctions had humble beginnings with farmers who just wanted to get back at the banks who kicked them out of their house. More recently, auctions have enjoyed an explosion in popularity with the rise of the internet.
There are two main formats fora auctions, lowest and highest unique auction, however they both run on the same premise where the last unique bid wins the item. Winning a penny auction will require a certain amount of mental tactic and a bit of luck. However, you can increase your odds of winning by practicing certain techniques such as managing your bids wisely, learning how to work with the time, and keeping a level head and your emotions under control. When you combine those three strategies to your bidding plan, you will find that you win a lot more often.
It is important that you do your due diligence to protect yourself when participating in auctions. Not every auction is run by honest and trustworthy people. There are people out there who just want to take your money. You can protect yourself by ensuring that you only bid on sites that already have a very positive reputation from real users.
How to Find Great Live Auctions for Resale Items
Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.
I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.
Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.
There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.
There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.
Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.
There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.
Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?
Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.
Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.
A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.
Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.
When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.
When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.
Hiring An Auction Company
Estimating your assets value:
Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.
Compensation and Expenses:
Is the company you are considering working for you or against you? The agreement you decide may determine this.
A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.
In a straight commission structure, the company is paid an agreed upon percentage of the total sale.
In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.
In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.
In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.
What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.
Auction Expenses:
In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.
All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.
Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.
Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.
Buyer’s Premium:
What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.
The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.
It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.
Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.
Pre-Sales:
We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.
As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.
Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.
A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.
It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.
When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.
Five Tips for Selling at Live Auctions
Ah, the old-fashioned country auction! The idea of a country auction conjures up certain images for people. The image of a fast-talking auctioneer offering up an antique table or chair is a popular example.
People who are buying household goods or collectibles are looking to get their items at the lowest price possible. However, the people who are selling their items at auction are hoping for the highest price!
Unless a person is in the business of buying and selling antiques or other items, not a lot of thought goes into how goods are prepared for sale via the auction process. However, if you are one of the growing number of people using auction venues to sell your collectibles or other inventory, there are a few things to learn first about how to sell at auction before you bring a truckload of stuff over to the next event.
Tip 1: Make sure the things you want to sell are a good “fit” for the auction house you’ll be using.
Never bring a load to an auction house without actually having been to one of the previous auctions. It’s important to get a feel for the type of goods that the house sells. For example, at one very rural country auction it was common for the owners to sell live chickens, pots and pans, car parts, and farm equipment.
After close investigation, this would not be the right venue for selling your daughter’s “Hello Kitty” collection. On the other hand, the spare John Deere parts that you bought at last week’s yard sale might be just the right thing for the buying crowd at this auction.
Tip 2: Be sure you clearly understand the terms and policies of the auction house.
Visit with the auctioneer ahead of time. Call to find out what the best days and times are to visit. One of the worst possible times to drop in for an informational visit with an auctioneer is the day of the auction. Call ahead and ask. While you’re at it, find out what are the best days and times to drop your stuff off.
Once you have a little time with the auctioneer, you’ll be able to find out what type of commission he or she takes from consigners (which is you), and what type of paperwork might be needed. Some auction houses send out Form 1099 tax forms at the end of the year. An auctioneer may need to see your identification and have you fill out a W-9. Be prepared.
Find out what happens to your items if they don’t sell. For example, some auctioneers may have a minimum starting bid. If, for some reason, one of your items does not sell, it may be grouped with another one of your pieces. Know the auctioneer’s strategy beforehand so that you aren’t surprised on pay day.
Tip 3: Make sure the auctioneer knows what you’re selling.
It might be perfectly obvious to you that the signed print you are consigning is a rare and valuable piece of art. However, the auctioneer may not know this particular artist. Make a note of anything particularly special about your items, and leave the note with the piece. Be sure to tell the auctioneer about it as well. He or she might determine that this is something to highlight on the company website or in the newspaper listing.
Tip 4: Present your items neatly.
No one likes to have to dig through a box full of grimy and greasy car parts to see what treasures might be in there. Separate the parts and lay them out on a flat, or use more than one box to de-clutter the lot.
There is no need to buy fancy display boxes. It’s easy enough to go to the local convenience store or supermarket and ask if you can have the emptied boxes or flats that they are discarding.
While it’s good to present clean items, take care not to ruin the value of anything by over cleaning. For example, if you find some old cast iron cookware, clean the obvious dirt and grime, but don’t scrub it to its original finish. For many people, this ruins the value of the item. So, clean and tidy and organized is the key here.
Tip 5: Don’t complain to the auctioneer if your stuff doesn’t sell for as much as you’d like.
The phrase to remember here is, “You win some; you lose some.” That’s just the way it is. There are some days where an auction house is loaded with people who all seem to want what you’re selling. There will be other days where the crowd is sparse, and the bidding is simply not competitive.
Remember that it’s in the auctioneer’s best interest to sell your things for the highest possible hammer price. But sometimes, it’s just not going to be a stellar sale. The auctioneer is only human, and is also disappointed if a sale doesn’t go as well as planned.
If you notice that every time you bring a bunch of goods to sell that you’re not realizing as much as you think you honestly should, try another auction venue and compare apples to apples. That is, bring the same types of items to the new auctioneer and compare the results.
Unless the auctioneer is particularly disagreeable or inconsiderate to you or buyers, there is no reason to confront him or her about a sale. If you find you just don’t care for an auctioneer’s style or methods, find another one. Believe me, there are plenty of them out there!
The primary thing to remember as you learn how to sell at auction is that the business is unpredictable at best. You will have good days, some not-so-good days, some great days. The more you sell, the more experience you will gain, and the more enjoyable the business will be.
Real Estate Auctions – The New Land Rush
On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.
Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.
Real Estate Auctions Work in Up or Down Markets.
Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.
When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.
Evaluating Your Real Estate for Auction
Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.
Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.
Locate a Qualified Real Estate Auctioneer
Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.
Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.
Types of Real Estate Auctions
Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:
Absolute Auction
The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.
Minimum Bid Auction
Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.
Seller Confirmation or Reserve Auction
With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.