5 Public Relations Tips For Home-Based Business Owners

No matter what you read in textbooks, online or hear from anyone else, you need to realise that traditional mainstream media advertising doesn’t work. I mean, it can work if you have millions of dollars worth of advertising budget, but for most businesses it is not an effective tool.Public relations techniques become the best option for home-based business owners, especially when you consider the possibilities presented from using both online and offline techniques.The purpose of this article is to share with home-based business owners 5 tips that you can utilise relatively quickly.Learn to write a basic press release- The press release follows a basic template that almost any business owner will be able to fulfill. You need to learn to write a basic press release so that every time your business does something newsworthy you can send off a press release to try and get some media coverage.Start a blog and utilise social media- I definitely think that you cannot overlook mainstream media coverage but you should also start your own blog, set up a Facebook page and set up a Twitter account so you can reach out to your audience directly without having to worry about your message being mediated.Join an online networking forum- You should also look at joining an online networking forum. There are plenty of online groups that you can join and there is bound to be one that is related to you your niche. You should join one or more of these forums in order to build your reputation as a respectable business owner.Referral marketing is the best way to grow your business- Going out and getting a sale can be tough. It is much better to make referral marketing a large part of your business plan. You need to aim to get as much as possible of your business through referrals. My personal preference would be for 100% of business through referrals.Credibility is more important than visibility- As a home-based business owner credibility is much more important than visibility. It is now much more about what you say and what others say about you then how many times people see your name.The old rules of advertising no longer apply. You need to make sure that you utilise the PR tips that I mentioned above so that you can grow your business effectively in this new economy. Otherwise you will find that you are doomed to failure.

Home Based Business – The Next Big Thing In The World’s Economy

With the recent slowdown in the economy, millions of people across the globe have lost their jobs. It has become difficult for these individuals to support the daily expenditure of their families. They have started looking for alternative means of income, which is stable and does not get affected by the unstable economy that has already caused them considerable damage.With the advent of the internet and technology, the world has shrunk. Internet has emerged as a powerful tool in many ways. Not only information sharing has become easier with this technology but also it has led to the development of a new form of trade known as E-commerce. Billions of dollars worth of trade is being done on the internet every year. In its short span of existence, the statistics say that a large portion of the world’s economy comes from the businesses that are done on the internet. The internet has the ability to instantly connect people located at remote places on the earth separated by thousands of miles. Thus, the growing communication between people across the globe is leading to business, which is eventually proving beneficial for everyone.There are various types and kinds of businesses that are being done on the internet. Some of these are huge and are worth billions of dollars while others are small home based businesses. In this fluctuating economy, a home based business that is run through the internet has become very popular among masses. There are various factors that account to this growing success of a small business that people are running from their homes.The first and foremost thing among several reasons for people picking up to do business from their homes is its unlimited income potential. People can earn as much as they desires as opposed to their 9am to 6pm jobs, where they were paid a fixed salary every month. Moreover, you are under no obligation to work on a set schedule daily, you can adjust your work timings every day to suit to other activities. There is no boss on your head. You are your own boss, who keeps all the profit that the business generates.Staring up a new business with the help of the internet has become a lot easier these days. All you need is a computer and an internet connection. Business ideas can vary from selling products and services to providing consultation to those who are in need of your opinion. A website can immensely help your business grow in a short time. Once you own a piece of the ever-expanding space on the World Wide Web, you can sell services and products on your website to potential customers. Billions of people search the internet looking for products and services they need. This number is increasing day by day as it is much convenient to purchase an item or service on the internet than to visit the brick and mortar store, which kills time. This is why the world is fast adopting the internet, which is growing exponentially. The increasing number of visitors every day means more business and enormous earning potential for everyone with something to sell and offer.The other reason why so many people are choosing to do a home based business from the internet is that there is no investment that needs to be done upfront, unlike the other startups where people risk thousands of dollars. The growth potential of an internet business is far more than that of any other kind of business because of its ability to spread at a staggering rate.Those people who have started their home based business have realized their goals of making substantial money to support their families and enjoy their life to the fullest. However, there are certain qualities like entrepreneurship, hardworking capabilities and positive attitude. Setting up a home office to run your business online can be of great help. When you sit in a dedicated space on dedicated equipments, you get a professional feel that enhances your performance and thinking capabilities. As you will be working from your home, you would have to be more disciplined to accomplish long-term goals because there are so many distractions, otherwise. Home based businesses have greatly contributed to the growing economy as people are earning and spending this money, which in turn leads to more commerce. In short, this is the perfect time to adapt to the most rewarding and enriching way of doing business, harnessing the unlimited potential of the internet.

Ideas For a Home Based Business – 3 Benefits of Starting an Unclaimed Money Business

What is Unclaimed Money? Unclaimed money is any money, property or asset that has been deserted by the original owner. Some examples of unclaimed assets are court payments, uncashed payroll checks, life insurance policies and any type of bank account.There is a business opportunity for finding unclaimed assets. Also, this business idea should be added to your list of ideas for a home based business. There is a lot of information about reconnecting people with lost money in the media.Most people could use some extra money and would jump for an opportunity to claim some owed money. In addition, unclaimed money is simply forgotten money.It’s pretty much money that’s waiting to be found and distributed to the rightful owner. Furthermore, this article will cover the benefits of starting an unclaimed money home based business.Many people find this line of working rewarding and are called lost asset finders. In addition, a lost asset finder has a minimum of experience and the business is started from their home computer.It is very easy to start an unclaimed money business and it doesn’t require a lot of time to get the business running.The main benefit to starting an unclaimed property business is the ability to be your own boss. Being a business owner for someone that has work for an employer for a number of years is a huge accomplishment.This type of business can be done part time or full time. It would be wise to start the business out as part time and work your regular job until the business is earning more then your job’s salary.Many people select starting an unclaimed cash business as one of their ideas for a home based business because the income is substantial.Think about it. There are billions of dollars sitting around waiting to be claim by somebody.A nice income can be made just by working part time. You will receive a percentage of every successful transaction. This process can be done over and over with any number of clients.In addition, this home based business can be shared with a friend or spouse. Moreover, the flow of the money coming in each day will encourage you to work harder at making the business a success.Another benefit of starting this type of home based business is the low start up cost for the business.In the beginning, you will only need a computer and most people have a home computer. Also, you will be working from one home without any employees.When the business starts to become profitable, you can hire a team of people to help with the research. This will eliminate having to pay for office space or any employee’s salaries.In addition, you will be in charge of the work schedule and able to keep all profits from the business. Furthermore, starting a home based will eliminate having to wait on a bi weekly pay check from an employer.Most business owners are in charge of their payment schedule. For example, you can be paid every day or every week. Furthermore, these are some of the benefits of listing an unclaimed money business as one of the ideas for a home based business.Helping others find their unclaimed money is one of the best ideas for home based business today. Get high commissions from doing so.

Small Home Based Business Opportunity

Are you one of the many looking for a small home based business opportunity but not sure what to do? Don’t fret! There are ways to do this.Some people get side tracked when they go online and look for a business opportunity. They start out looking for a small home based opportunity but get taken in by the flashing lights and the promises of earning tons of money. What happens next? They realize they have gotten caught up in a scam and write off the hope of finding a legitimate home based business.Owning your own small business can be very rewarding. It not only allows you to do something you love, but also offers flexibility and freedom in the hours you work. And being your own boss is great!A small business can either be locally based or internet based. The advantage of the second option is that you can take your business with you if you move. So, you can live wherever you want and still be earning money while you’re moving and getting settled in.A few ideas for starting a home based business:Offer a Service – this could be something like dog walking or doing some editing work or transcription online.Sell a Product – this can be your own product or you can sell other people’s products through affiliate marketing. It can all be done online if you choose. You can also sell through buying wholesale and reselling at retail.eBay – sell on the worldwide marketplace of eBay. There is a huge group of people searching to buy things!Start a membership site – find a niche topic where people are searching for information and resources (and willing to pay for them) and then offer it to them for a monthly fee. This is a nice way to build up a steady monthly income.Starting a small home based business can add purpose to your life. It is especially good to do as you are nearing the retirement years where you normally have extra time on your hands and also are in need of some supplemental income.There are many ways to start a business but always do your research before entering into a business opportunity. Make sure there is a market out there who is looking for what you want to offer and is willing to spend money on it. Avoid markets that attract those seeking everything for free.Check out the business opportunity you are considering with the Better Business Bureau and also do a Google search and read multiple reviews on the opportunity. What is the general consensus?The right small home based business opportunity is just waiting for you! Take the step and start a whole new venture.

Get Your Biz Busy For Small Business Saturday!

When the holiday season ramps up, as it is now, it is easy for the small business owner to feel a bit “lost in the shuffle,” particularly when large businesses have enormous advertising budgets that afford them a lot of visibility. Thankfully, there is a day that has been set aside to remind people of the importance, as well as the benefits, of shopping small (as in small business).Launched in 2010 by American Express, Small Business Saturday will take place this year on November 30, and is “a day dedicated to small businesses across the country.” Members of local communities are encouraged to get out and “Shop Small” the first Saturday after Thanksgiving, right in between Black Friday and Cyber Monday.When you visit the Small Business Saturday website, you will find numerous resources that can be a great help to you, such as:
- Put your business on the Shop Small map for American Express Card Members
- Link to the OPEN Forum to see what other businesses are doing right now
- Download customizable signage to print for your store
- Access sample social media posts and email campaigns
- Get online banners and Shop Small logosWhether your business is conducted in a visible shop or whether you work from your computer at home, you can make this special day work for you.

Rev the search engine. You can be sure that American Express is putting a lot of information on the internet to promote Small Business Saturday, so make sure that your website follows suit. By talking about it in your blog or by mentioning it in the content of your homepage (or a specially designed page), you increase your chance of search engine visibility.

Check (and double-check) for accuracy. Ensure that all of your information on your website, as well as all listings for your business throughout the Internet, are correct. An incorrect address or phone number could keep countless potential customers away.

Be sure your shelves are stocked. It would be a shame if people showed up to shop and your cupboards were bare! You’ll make a great impression on new visitors to your business if your store is well stocked and adequately staffed. Don’t think that this tip only applies to businesses with physical locations. If you work mainly from a website, make sure your products/services are displayed prominently. Also consider putting some holiday gift certificates front and center!

Promote! Promote! Promote! Get the word out about this big event by using the materials found right on the website! Use the logos, signage, and the email and social media templates to help create awareness of this day and attract shoppers your way.
The website also offers you the chance to connect with other local business owners online so you can share ideas, get inspired, and prepare for the big day together. What a great way to network and promote the small businesses of your area!

Home-Based Business: Success and the Common Man

“You are the only one who can use your ability. It is an awesome responsibility.” – Zig Ziglar

The figures are staggering; a startling 150 million individuals are making over 400 billion dollars in home-based business income. This figure eclipses the food industry. It even puts the pharmaceutical industry to shame.

By some estimates, home-based entrepreneurs are earning an average of $63,000 or more annually. The freedom of being self-employed allows many home-based business owners to consider a return to the corporate world something they’d avoid at all costs.

Consider some of these findings…

* Owning and operating a home-based business offers entrepreneurs an achievable point of entry. More than 40 percent of all home-based businesses require less than $5,000 for startup.

* Home-based entrepreneurialism is growing in importance and diversity. It offers opportunities for entrepreneurs and at-home professionals in every demographic and ethnic group.

* According to IDC, a top national research firm, there are between 34.3 million and 36.6 million home office households in the United States alone.

* According to The Success Factory International, America is in the midst of an extraordinary workplace transformation; the home-based business phenomenon shows no sign of slowing down

* Information technology (IT) has made it possible for e-commerce and has enabled small, medium-sized, and home-based businesses to compete more effectively in the global market. Ecommerce makes it possible for more people to start their own businesses.

Many home-based business startups are an outgrowth of either personal interest or a profession that severely limited the individual freedom of the worker. In either case, there seems to be growing satisfaction among those who have chosen a home-based business alternative.

Interestingly home-based businesses are extensively populated with women or aging workers. The reasonings behind this trend would require an article of its own, but the point is the Internet is filled with highly successful non-traditional business owners.

What comes as a surprise to many home-based business owners is the fact that their business started at home in an effort to save money with full intentions of moving the business to a brick and mortar store front. However, it is estimated that only 5% of existing home-based businesses will ultimately move out of the home.

Part of the lure of home-based businesses is the empowerment provided to the owner who understands the return of control in their life as a priceless benefit of home-based businesses ownership.

“My list of ingredients for success is divided into four basic groups: Inward, Outward, Upward and Onward.” – David Thomas

Scott Lindsay is a web developer and entrepreneur. He is the founder of HighPowerSites and many other web projects.

The Ambiguity Of Small Business Definition

When different people are using the phrase ‘small business’, do they refer to a common set of definitions? Like, how many employees are listed in the payroll? Or, the number of years it’s operative? A literature review of 23 papers, which have been published from 1958 to 2002, tries to shed light on this issue. The review revealed an inconsistency regarding both characterization and definition of small business.

The variety of definition used in these papers unable to set an agreeable format for small business definition. Mayer and Goldstein (1961) define small business as an employer of less then 200 employees. Potts (1977) set the barrier on 20 employees in addition to a minimum eight years that the business is operative. Robinson (1982) define firm as small if the number of employees is less then 50, the annual sales is under three million dollars and it’s operate as sole ownership. Covin and Slevin (1989) define small business according to number of employees – more then five or less then 500, as well as a minimum of five years that the business is operative.

Rue and Ibrahim (1998) define small firm as an employer of more then 15 employees. Perry (2001) set an upper limit of 500 employees as a sole identifier for business to be regard as small. The review clarify that the ambiguity is stable over time. The lack of uniform definition in the sixtieth continued throughout the decades into the millennium. The industries targeted by the different scholars do have one common base; the focus was on industries with low to average economic growth such as manufacturing, trade (retail, wholesale) and service.

Scholars have addressed the problematicalness regarding the inconsistency of small business definition for quite time, Golde (1964) which examine small manufacturing employers with less then 500 employees, argue that it’s an arbitrarily definition which can adequately feet non manufacturing firms. Welsh and White (1981) claims that small business tend to group in certain industries, such as – wholesalers, retailers, service and manufacturing. Peterson et al., (1986) note that the most common definition is the one that used by the Small Business Administration (SBA), in part, that definition state that small business can be define as one if both its ownership and operation conducted independently, and it’s not dominant at the industry which is operate in.

D’amboise and Muldowney (1988) write about the complexity of small business definition, which can be a result of the variety and different types of firms this phrase try to encompass. Pickle and Abrahamson (1990) address the question, what is a small business? There answer is that some will regard small business as such if it’s employ certain number of employees, others will claim that small business is one that limits his operation to local market, and part will classify business as small according to it’s nature (e.g., local pharmacy, clothing store, jewelry store).

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.


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