Going, going, gone – An Auctioneers’ guide to auctions
As recovery in the region begins to gain pace and projects in hot spots such as Saudi and Qatar are tendered, more companies are looking to replace their old equipment or re-stock their collection. “Our auction is far more popular now than it has ever been,” says Ritchie Bros general manager, Steve Barritt, who continues: […]
As recovery in the region begins to gain pace and projects in hot spots such as Saudi and Qatar are tendered, more companies are looking to replace their old equipment or re-stock their collection.
“Our auction is far more popular now than it has ever been,” says Ritchie Bros general manager, Steve Barritt, who continues:
“Again there are upwards and downwards trends in our business and they go through different price ranges but today is our highest point ever with the biggest crowds.”
Similar trends are observed by World Wide Auctions (WWA), who last month sold US $18.3m of cars, trucks and bulldozers in three days at an auction in Jebel Ali.
“People buy at auction because of the universal need of all shoppers, buyers and investors to search for a bargain,” comments WWA regional VP of sales Keith Lupton.
“Dealers the world over use auctions to replenish stock, or to encash old or slow moving inventory to turn over their finances. Many buyers prefer to buy at auction as they can see their fellow men, often commercial competitors, bidding to a certain value and hence rest assured that that is a true and sensible value and the machine is indeed worth buying or investing
in,” Lupton adds.
The rise in popularity of modern day auctions is not just down to the likes of EBay and similar online portals; maintenance costs drive demand for reliable equipment and the industry defies recession as the equilibrium between buying and selling fluctuates.
Cashing in on the opportunity of worldwide trade, many equipment auctioneers now offer online bidding so companies worldwide can source the correct machine.
It’s a tactic Barritt attributes to the supply demand gap currently present in the sector.
“The supply of equipment around the world is very poor. Manufacturers are not building, they’re building to order rather than what they used to build, so people have to come to us for equipment to source the machinery they need,” he explains, adding that such activity is the largest indicator of economic stability in the industry.
“People say there is nothing happening but the world is busy,” he adds saying properly functioning equipment is key to meeting this pace.
Bargain hunter
Aside from the price advantages of buying at auction both Barritt and Lupton say speed is a key element to the attraction of trading through auctions.
“You can come on Tuesday, buy a machine, take it, pay for it on Wednesday and have it that day and start work,” says Barritt adding that everybody comes to auction for a particular reason.
“You’ve got people coming to fill their supply, you’ve got people coming for specialist items then you have people who come to get it cheap.
Different people come for different reasons and the auction gets into their blood- they get auction frenzy and they will go mad. They start bidding on everything. When we see it we think ‘oh here we go’ and we ask them if they are sure they know what they’re doing. Sometimes they are and other times they’re not,” he adds.
It’s something witnessed at auctions worldwide.
“Many enjoy the ‘networking’ of a live auction, the human intermingling, meeting people of fellow interests and the excitement to see real-time big-ticket spending – the excitement never wanes. Pay your money and instantly take the item away,” Lupton says.
WWA auctions also offer their ABSOLUTE AUCTION, in Lupton’s own words a “superior, quick, low overhead method of disposing of ones equipment in an atmosphere of anonymity and privacy” – advantages that draw bidders from around the world.
Sold
For those looking to auction over the coming months Barritt and Lupton’s tips include everything from proper planning and observation to budget setting.
“The only issue is everything is sold as is where is. As soon as the hammer goes down you own it and it’s not going to change. Every auction we get somebody saying they bought the wrong machine, but we film and tape everything,” says Barritt, adding: “The auction business has a stigma but we live on our reputation and we try and do everything we possibly can to make sure everything is correct.”
“I suggest marking in their book a ‘boundary’ or a maximum bid so as not to be led into paying more. Rather like sitting at the gambling tables of Monaco or Vegas, bidders have to know when to walk away,” Lupton advises. “Just keep one’s wits about you, network, relax, enjoy the exciting process and feel the buzz,” he concludes.
Tips from the auctioneers
Keith Lupton, Worldw ide Auctioneers Ltd: “The golden rule is to expect, examine analyse and check, pay attention to the bid board, keep your wits about you and remember all bids are finite.
“Pay attention to the bid board, which clearly illustrates last and highest so far bid given. The bid catcher ring men will not allow you to bid against yourself but advise the bidders of a higher bid received and unless the potential bidder increases his bid he is out of the running for that particular lot .
“Understand the often used term ‘choice’ the highest bidder wins the right to choose a lot or lots from a group – usually similar items by type and age and how equipped – but remember each item is individually priced.
“Finally, read and understand the printed rules of the auction given in the registration form and the Bid Book, that are read and distributed prior to the auction.”
Steve Barrit, Ritchie Auctions:
“The first thing we advise them on at a Ritchie Brothers Auction is come early, sit down and watch what happens. Our auctions run very fast. We sell a machine every 30 seconds and we have a number of people there on sell day that wear orange shirts and we are there to help. Tell us your numbers, what you want to pay and we will help you, but be careful and check what you are buying before you bid.
“We don’t sell any machine unless it has the correct documents; any problems with machines we have people there to help. For example if there’s a paperwork problem because on some machines over the years the serial numbers change, so we make sure that is correct.”
Paschal Quinn, Plant Manager at Fas Training Centre , Ireland:
My advice to those buying equipment at auction would be to do it, but be careful that you check the paperwork first; CO certificates, maintenance history and so on.
