Overview of the Auctions Industry
Auction businesses provide a forum for goods or services to be bought and sold to the highest bidder. The hope is always that a profit will be made, but this is not always necessary due to changing trends and what is considered to be ‘en-vogue’ at the time. The Auctioneer will start the bidding and may drop it to a lower amount if no-one initiates a bid. He will constantly scan the room looking for potential bidders and if instructed to do so, may also bid on someone’s behalf.
Auctions date back as early as 500 B.C and indeed through history there have been many recorded entries and mentions of public and private auctions. In Babylonian times, it has been said that women were auctioned off annually for marriage and during the rule of the Roman Empire; the Romans were known to sell off the assets off debtors who had fallen upon hard times. Their property would be seized, and all furniture and personal items would be auctioned.
Auction Houses or arenas are specialist buildings or sites where goods are sold professionally. These are open to all members of the public and beforehand the auctioneers or their event organisers will post in a local or nationwide newspaper, details of the forthcoming auction and the lots that are available. There are specific categories at auctions such as ‘Bric a Brac’, Watches and Jewellery, Memorabilia, Collectibles, Fine art, second-hand goods, Livestock and Real Estate.
Private auctions are usually when a seller is keen to auction off specific goods or property at a price they have in mind and will ask for sealed bids. It is common for real estate to be auctioned off in this manner and the property in question can usually be viewed over a certain day and time. Any interested party will then have the opportunity to send in their sealed bids by a certain date, and the highest bid has to be accepted, no-one is allowed to offer a higher bid after the event.
Livestock Auction is a huge business throughout the UK. There are hundreds of markets and auction houses geared specifically for the auctioning of livestock. For example, cattle, sheep, pigs and lambs are in huge demand, (either to be slaughtered and sold to supermarkets) and other such outlets or to be bought for breeding and/or dairy purposes.
By the early nineties, the amount of UK produced prime cattle had risen to almost 3 million. During this time, there was in excess of 15,000 butcher’s shops throughout Great Britain, but the rise of supermarkets and their 41% accountability of retail sales greatly affected the butcher’s shops share in the UK market.
The United States dominates the global market and in 2001 had a 47% share in it, and figures in 2004 showed the global turnover of the fine art market to be almost one billion.
In earlier times of livestock auctioning, farmers were severely restricted as to how far they could travel and which auction markets they could supply to but in more recent times, because of rail and redevelopment or roads, teamed up with the fact that today’s vehicles are better equipped to transport livestock and also more efficient and less noisy, they now have more choice about where to sell and can choose a market perhaps more suitably geared for what they are offering.
Fleet Auction Services are used when a bulk order of cars or vans is auctioned off. These are vehicles which have been previously owned by companies and have primarily been used by sales representatives, managers or other such staff. When the time comes for the company or business to update their cars, they can choose to sell their cars as a lot to a fleet auction service. This can mean a huge saving for the company, even more so as recently, (early 2013) figures have shown that there was an increase in the average price paid per vehicle. Garages are keen to snap up fleet vehicles as although they have a higher than average mileage, they have had regular services and tune ups so prove to be reliable cars to re-sell to the public.
Real Estate Auction Services are specialised business services companies who sell both residential and commercial property via their listings. This can range from flats, houses, pubs, mansions, barns, farm buildings, public conveniences, garages and offices. It is essential for pre-checks on properties registered for auction to ensure they are safe. In addition, checks are required to find out whether there are any existing orders against a particular property (which could prevent a buyer from renovating it or changing it from a commercial property into a residential property).
Repossession properties are a popular choice when it comes to selling via auctions as people know that a quick sell is usually required and professional house renovators usually frequent these types of auction houses. Although equally the downfalls are that you may not even achieve a sell, and if you do, it may go for much cheaper price than you anticipated unless you stipulate a reserve.
If you have a property you are thinking of auctioning or indeed wish to visit an auction then you can find all manner of Auction and similar related categories in an online business directory (such as TheBusinessIndex). Many will provide business listings of relevant auction related products and services guaranteed to point you in the right direction.