| Disclaimer: To my auction friends. The contents in this page is for entertainment purposes only. It is a collection of thoughts and articles from my prospective. For official rules and regulations of Louisiana Auctioneers, please go to our "link" and you will find the LAB web site. |
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Plain talk
about fast talking
New articles added from top 07/17/2007 |
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Article #7 - Tips on how to be a successfully “Seller/Buyer” at an auction: First let’s address the dealers. A dealer is a person who buys and re-sells to the public. If the dealers intent is to sell at an auction and the merchandise he is selling was purchased at an auction, good luck. Unless you are a very skillful buyer, then you have place yourself in a gaming situation. If you are playing for fun at the auction, it does matter. But if you are playing for real and to make a profit you must buy at a price that you can bet the market value at a particular auction. There are three market ranges associated with the auction market. Auction, Wholesale and Retail prices. To put it in prospective, if the retail value of an item is $45, then the wholesale value should be $30 and Auction valve should be $15. If the dealer pays the wholesale price and sell outside the auction at retail, then he should be successful. If the dealer gets it at auction price, then they can make even more profit. It is call the 1/3 rule of buying and selling. If you play using this rule of thumb, you should show a profit most of the time. All in all, you must keep in mind that the auction is an auction and not a retail store. If you buy your items at auction prices then your average should let you be a successful player in the auction outlet. For the average auction fan that goes for the entertainment side and to make those special auction purchases, the same 1/3 rule of thumb applies except for the fact that an individual is buying most of the time on taste and price is not the overall objective of the auction. Dealers cannot complete in auctions because the average auction fan is sometimes willing to go up to the retail price for something they want. This is where the problematic “reserve” items come into play. A Seller may realize that they have a very good item. Most auctioneers allow up to three reserves. Reserves are items that the price must be reach before the seller will sell. I use the 1/3 rule using the Auction price as my set in. If it reaches auction price, then I consider it to be sellable. In the same token, I do not as a rule, sell items below auction prices. Selling items below auction prices will create a domino effect which will downgrade your auction over a period of time. Please keep in mind that this article deals with the more common type “General Merchandise and low to middle antiques/collectables” auctions. Disclaimer: The contents in this article is opinionated and offer no guarantee for success. I have found it to be the most efficient method available.
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Article # 6 - How to become an auctioneer: For some of us in our earlier years, we had dreams of various vocations that we wanted to pursue. But like most folks, the financial responsibilities and managing a family took priority. So these dreams were just what they were – dreams. I first realized that I wanted to be an auctioneer many years ago. While in my early twenties, I attended a charity auction by legendary auctioneer, Mr. Bubba Smith. But that whim left and I spend the next 30 some odd years paying bills and doing what most of us do, making a living. As I got closer to my retirement years and the financial and family demand lessen, I had an opportunity to follow that dream, to become a professional auctioneer. It takes a lot of work, dedication and family support, especially if you wait as late in life as I did. There are three ways you can obtain an auctioneers license in the State of Louisiana. You can become an apprentice under a licensed auctioneer, attend an accredited Auctioneering School or obtain a reciprocating license. In the apprentice program, you must find an auctioneer who will allow you to work under him for a period of one year. During this one year, he must document your handling of different phases of the auction. Upon completion of one year, you can take and must pass the Louisiana Auctioneering Board examination. This is a very comprehensive test and it is very hard to pass just on the apprentice program alone. To apply for this apprenticeship, you and your licensed auctioneer must appear before the Louisiana Auctioneering Board. Bond and license are also required during the apprentice program. There are stipulations that must be followed during this term. For instance, you can not bid call an auction unless your sponsoring Licensed Auctioneer is in the building. If you do, then both you and the Licensed Auctioneer are subject to losing both licenses plus additional fines. Attending an accredited Auctioneering School requires a two week course with about 14 hrs. each day and the cost can vary depending on what school you attend from $1000 to $2500 for the entire process. The advantage of the apprentice program is the “hands on experience” which you cannot get at the school. The advantage of the formal training is “exposure to many facets of the auction profession” which you would never get as an apprentice. I got the best of both worlds by working with Mr. Bubba Smith as an apprentice then going into formal schooling. The last is reciprocating license and you must already hold an auctioneering license in another state that recognizes Louisiana Auctioneers Licenses and allow us to purchase license in their state without the requirements of testing. The only thing to keep you from following your dreams is yourself. You may have to wait as I did, but the time will come if you just be patient. One of the gentlemen that attended the Missouri Auction School when I did was 72 years young. Next time we will talk about how to buy and sell at an auction - 25 now 30 now 35 dollar bid.
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| Article #5 - Types of auctions – Auctions have manifested themselves into specialty fields consisting of mainly; equipment, livestock, antiques, estate, general merchandise and vehicle auctions. The primary auctions in our area are the general merchandise auctions. These type auctions are also known as your fun Auctions. Their low minimum starting bid is usually 2 to 3 dollars so every one can play. Not all items are started at the minimum bid depending on how the auctioneer conducts his auction. There are generally 6 to 8 different sellers with each selling around 25 items each. Most auctions allow the seller to protect 3 of their items by calling it a reserve. A reserve is a pre set price that the seller places on a particular item and if that price is not reached, and then the seller will not sell. Some auctions have a PO charge attached to these type items. PO stands for “pull off”, “pick off” or “pass on” the auction block with out accepting the highest bid. Each auction house has its own personality and varies somewhat in house rules. You will find that some folks will attend one particular auction in their area while other attends as many as they can. Reasons for this vary from location, liking the auctioneer or the social side of a general merchandise auction and the type of auction being conducted. But one of the main reason folk go is to enjoy themselves and have a good time. Auctions can become additive and they are easy to fall in love with. They also make a great pass time. Later on we talk about the other types of auctions such as antiques and estates auction. See you at the auction – 25 now 30 now 35 dollar bid……sold |
| Article #4 - Bidding at an auction and the various types of bidding – When the auctioneer ask for a bid, you raise your card or make an indication that you would like to bid on the item at his asking price. After you give the auctioneer that price, he will seek a higher asking price from others and this process goes on until there are no more bids. This indicates that the highest dollar value from this group of people has been reached on this one item. One of the most common statements of a non auction fan is “I am afraid that if I should scratch my nose then the auctioneer will sell me an item”. This is a myth and it can keep some folks away from the auction. The fact is “the auctioneer” knows 99% of the time if you are bidding or not. The only time you get him confused is when you raise your hand real fast like waving to someone in the audience. In any case, if you didn’t bid, simply tell him and he move on along with the next bid. There could be several types of bidding processes connected with an auction. Some auctions have only the bid calling while others may have silent bidding and absentee bidding. The most well known is the “bid calling” where the auctioneer calls out the numbers and ask for bids. Another one used less frequent is the “absentee bid”. The last is “Silent Auctions”, you hear about these mainly at charity benefits. There is not a lot of excitement created with silent bidding. It is sort of like “fishing with a net” or “using a pole and hook”, depends on if you are going after meat or just having fun. With technology now available such as the Internet, a few auctioneers are venturing out with bidding on line and we have to mention that household word “e-bay”. But nothing will ever replace the excitement of the “bid calling” auction. Next time we will talk on the different types of Auctions and Auction Houses. See you at the auction – 25 now 30 now 35 dollar bid……sold |
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Article #3 - The “chant” – 25 now 30, now 35 dollar bid flows from the auctioneers lips so smooth and rhythmic it can be hypnotic. No two auctioneers have the same chant. Even a father and son will be different. A chant usually consists of the auctioneer calling out the current bid amount followed by the asking bid amount. If he has a $25 bid, it would go something like this. 25 dollar, now 30, now 30, will you give me 30. The “chant” is actually a one way conversation between the audience and the auctioneer with the auctioneer doing all the talking. In normal conversation, it would sound like this “I have a 25 dollar bid, I would like to have a 30 dollar bid, I would like to have a 30 dollar bid, and will you give me a 30 dollar bid for this item. By eliminating the whole words and adding filler words with the dollar amount, you have the “chant”. You will find that most auctioneers tend to have their own set of filler words. It really does not matter what the filler words are as long as they are smooth, rhythmic and most important, it is understandable. Thus, you can speed the process of selling by using this method. At a general merchandise auction, the auctioneer will usually sell about 250 or so items in a three hour period. This means he has to average selling an item every 45 seconds. It is not unusual for an auctioneer to sell an item in 20 seconds or less using the “Chant”. The faster the chant, the more he can sell. Even though speed is very important to the chant, clarity is even more important. If the audience does not understand the amount being asked for, they are far less likely to bid. Next time we will talk about how to bid at an auction. See you at the auction – 25 now 30 now 35 dollar bid……sold
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| Article #2 - Why auctions are so popular today – Run this simple test. In a group of folks, bring up the word “Auction”, then look around and see how many are interested in what you have to say _ remember the old “E.F. Hutton TV ads. The #1 reason could be that there are no charges to attend or it could be because they are entertaining, exciting, fun filled and sociable. I know you remember the old saying “baseball, hot dogs and Chevrolet”, well just add Auctions to this list because a good auction fits right in. Two distinct types of folks are needed for the auction process, the seller and the at least two buyers. The auctioneer’s job is to bring these three together. There are numerous reasons why folks attend an auction but for the sellers, quite simple, it is the most efficient and quickest way to turn a material possession into cash. It is also the fastest way to draw a final conclusion. Whatever their reason, there are plenty of sellers for today’s auction. Now why they are so popular for the buyers - Some go strictly to turn a deal. Turning a deal in auction talk is “buying low and selling high”. Others go just to see if there is something they can pick up at a low price. Yet others go just for the fun and enjoyment, wherether it is the rhythmic chant of the auctioneer or the excitement that is generated at each bid call or even if it is just to watch the people and socialize or it could be all of the above. You have to be careful with the socializing. Some auctioneers do not allow any distractions during their auction and don’t have a problem ejecting anyone from their sale. This type of atmosphere is mainly confined to the higher dollar auctions. At most of the general merchandise auctions that I know, it is just part of the excitement and festives that go along with the auction process. In the general merchandise auction, the serious buyers normally set up front and the socializers tend to set toward the rear. With mutual respect they all seem to enjoy themselves. Next time we will talk about the auctioneer’s chant. See you at the auction – 25 now 30 now 35 dollar bid……sold |
| Article #1 - Origin of auctions-The first recorded record of an auction was in 450 B.C. , ancient Greek historian Herodotus referred to a Babylonian custom by which maidens were disposed of in marriage by delivering them to the highest bidder in an assembly annually. Later in History, the Romans disposed of their spoils of war by the auction process. Their reason for using the auction method was simple and the same as today-you can turn material possessions into cash in the most efficient and quickest manner. The Romans needed cash to support their massive pro-war activities. Many other conquering countries followed this same path though out our history. Following the civil war, the Government had a very bad need for cash due to war restoration and had tons of surplus war materials on hand. The Union commissioned a large number of their “Colonels” to make disbursement in the fastest manner possible. The auction method was chosen because it was the quickest way to generate cash and move merchandise. They auctioned off horses, cattle, land, rifles and everything else far and in between. This is where the honorary title of “Colonel” comes from when someone becomes an auctioneer. Next time we will talk about why auctions continue to be so popular today. See you at the auction – 25 now 30 now 35 dollar bid……sold |
