ATTRACTING NEW BIDDERS TO AUCTION

by Deb Weidenhamer

Are you on a first name basis with most of your buyers? Do you stand around at a preview talking with those long time buyers? Are you surprised when you see new face at one of your auctions? These are all danger signs that you might not be recruiting and retaining enough new buyers to make your auctions maximally profitable for you and the seller.

One of the most basic rules of the auction business is that for an auction to bring a fair market price for its merchandise, there must be at least two eager bidders for each lot. When there is only one bidder for an item or almost as bad, two unenthusiastic bidders - merchandise sells at below market prices.

In last month’s column, I mentioned one of the major reasons that sellers hesitate to use auctions to sell their merchandise. That is the public perception that merchandise sells at auction at unusually low prices. This perception is aided by the stories of $50 surplus Jeeps and $1,000 Cabin Cruisers. To convince more sellers to use auctions as their preferred means of selling, we must be able to persuade them their merchandise will bring fair market prices. This we can accomplish by developing a large base of dedicated auction shoppers.

Millions of people make a hobby out of shopping. Weekend art shows, craft fairs and car shows attract buyers from all walks of life. Shopping at antique stores has become so popular that Webster’s Dictionary added an new word "antiquing". It can be difficult to believe that the majority of the population that has never been to an auction, doesn’t even know auctions are open to them - the public. But these are the new buyers we need to attract to the auction industry.

Consider your advertising. Do you only advertise in the "auction" section of your newspaper? Branch out and advertise under specific sections (tools, antiques, furnishings, etc.) where non-traditional auction buyers are more likely to be looking for products to purchase. Set up a booth at a weekend show and pass out business cards and auction flyers. Personally invite individuals and groups to attend your next auction. Look for opportunities to reach new buyers for your auctions.

When you are conducting an auction, make them new bidder friendly. Train your staff to look for new buyers. Ensure someone on the auction staff greets the new buyer and makes them feel comfortable. Display large signs at the auction welcoming new bidders. Provide a brochure explaining terminology of the auction and the terms and conditions. Encourage the buyer to get right in on the fun and begin bidding. The only mistake a bidder can make at an auction is not bidding on the items they really want.

When you begin attracting a new segment of buyers to your auctions, profits go up. You ensure market value on the items being sold at auction. Professional buyers are necessary at all auctions, but they are focused on purchasing a product at a price they can mark-up enough to earn a fair profit. By attracting end purchasers to your auctions, you begin to receive market prices as your winning bid for items. With a buying public such as this, buying at your auctions you can attract more sellers. Everyone wins - the auction company, the seller and the buyer and most importantly the auction industry.