6 Essential Tips for Creating a Successful Live Auction Strategy - FOX21- Entertaining Delmarva One Click at a Time

6 Essential Tips for Creating a Successful Live Auction Strategy

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auction strategy

Deciding to buy used or new equipment is an essential way for any new business to save money. Live auctions are a good opportunity to find equipment that’s been tested and inspected in advance of being offered up to the public. With the right auction strategy, you’ll be able to save whether you’re building a new business or maintaining an existing one.

Here are six ways to improve your live auction strategy.

1. Set Limits

If you’re going at a live auction without thinking about how much you’re willing to spend, you could end up in trouble. For bidders who haven’t thought about the terms of “hard” and “soft” limits, it’s easy to get caught up in the process and spend too much. Walking in excited and walking out empty-handed is common in these cases.

Are you new to live auctions? Make sure you have a talk with yourself about spending beforehand. If you set a hard limit and spend it all on one item, you might be regretful. You might even break your own rule and then bid on a second or third item.

Don’t make costly mistakes. Instead, set a price for the day by doing a little bit of research in advance. If you know what types of items you’re interested in and generally what they go for, you can leave without overspending.

2. Don’t Forget to Breathe

Just like any potentially competitive situation, people get very competitive about bidding in live auctions. They might be on the edge of their seat the entire time, far too susceptible to a bidding war. This leads to making emotional decisions and spending more than you intended.

The best way to blow through your budget is to end up in a bidding war. Instead, find a method for reasoning whether or not you need the item.

If you do, think about other opportunities there may be. Rather than overspending today, you could save a lot tomorrow.

3. Do Your Research

The best way to avoid any of the problems from the points listed above is to look at the auction list before you bid. When you’re headed to an auction, getting there early can help you have time to prepare what you really want.

Look carefully at how items are described. There are key phrases that will clue you in on what kind of condition those products really are in. You can make your bets based on more informed data than the item in its ideal state.

If the item you’re excited about is up for bidding later in the day, you could be in luck. People are more likely to bid heavily early on and blow through their own budget then. This means that there will be less competition by the time the item you’re looking at is up.

Taking the time to find out more could be a good way to save money.

4. Be Fully Invested

Bidding on something that you’re not sure fits your needs could be more regretful once the adrenaline wears down. You need to be certain about an item before bidding. If the condition, repair status, or other elements are questionable, steer clear.

You’re better off not bidding on an item that you’ll feel stuck with later. Buyer’s remorse is the worst feeling. This is especially true if you’re buying professional or business equipment.

Look at the lots and eliminate anything that doesn’t seem up to snuff. If you have too many questions about it that aren’t answered in advance, you don’t want to be wishing you’d saved that cash.

5. Confidence Matters

If you want to ensure that you end up winning your bid, you need to act confidently. When an item is attractive and in good condition, it’s likely to gather a ton of bids. This can make you doubt your own ability to win.

You need to also raise your voice in a live auction. Confidence is both a bidding strategy but also a plain necessity. If you’re in it to win it, be proud of your bid and sure of yourself when you’re placing your bid.

Many new bidders don’t have their bids heard simply because they’re sitting at the back and being quiet. If you want to win a bid, you’ve got to speak up. Confident bidders who sit at the front of the room will even scare off some other buyers who might not be sure about an item.

Aggressive bidding should be separated from confident bidding. If you bid too aggressively, you could overstep your budget and end up in a bad position. Know the difference when bidding.

6. Increments Matter

There’s a lot of strategy that goes into bidding. When jumps are $1,000 at a time, you don’t want to hit your maximum on your first bid.

Start low but interested to get the ball rolling. You’ll shed those looky-loos who don’t really want the item but will take it for cheap. Then make sure you take incremental steps along the way.

Just because you’ve budgeted a certain amount of money doesn’t mean that you have to pay that amount. You could end up getting the item for just a fraction of the price.

Your Live Auction Strategy Can Save You Money

Your budget doesn’t have to be spent by the time you leave the auction. If you bid carefully and strategically, you could walk out with everything you want and some change still in your pocket. Focus on your auction strategy and you’ll preserve your profits.

For more tips on how to build your business, bookmark our site and stay tuned.

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