What is an Auction?
An auction is a sales process allowing equipment to be sold on the open market by competitive bidding. An industrial auction can be held for a single item (lot), or for 1000’s of lots (known as an event).
Auctions enable the selling of any fixed asset to the highest bidder (buyer) through public competition. When working within a limited timeframe, auctions are the most effective way to recognise, create and channel demand; while the public competition component ensures the item is sold for the highest market value.
Our public auctions create an industrial used equipment marketplace providing maximum exposure for our clients' assets into the second user markets; while offering great value and opportunity to purchase used industrial equipment for our buyers.
Auctions thrive on competition and are most effective when selling a wide range of items to a large number of buyers. Understanding of global markets is key to retaining high levels of competition - the more bidders, generally, the better the price achieved.
We are the pioneers of two primary auction sale types:
If there is a limited number of buyers for a group of assets, a Private Treaty might be a better solution.
Online auction sales are entirely web based sales events, offering used equipment for sale in lots and having buyers from around the world bidding over the internet.
Our online auctions help sellers to transcend local market conditions and achieve global fair market value for their assets. Via our intuitive and user-friendly website, online auctions are an effective way to attract buyers from around the world. Sellers’ assets are listed individually as part of sales events and bidders globally can bid against each other in real time. The sale closes (finishes) at a given time on a given day and all lots over the reserve price are then sold.
An online auction:
- provides sellers easy exposure to world markets, and allows buyers from anywhere, with access to the internet, the opportunity to bid and buy used industrial assets
- is a fast and reliable process allowing sellers to turn surplus assets into cash in a timely and cost effective manner
- is marketed by us to expanding and hot-buying regions, thus becoming a conduit in the recycling of used industrial equipment around the globe
The extensive marketing campaign that accompanies each auction, also offers dedicated branding and spotlights for clients in order, to leverage existing brand recognition.
Live & Webcast Auctions
A live & webcast auction will have an Auctioneer at a venue selling to either the audience in the room who have specifically attended the sale or to buyers bidding live on the internet over our webcast system.
Sometimes the best solution for a client is to run a live auction. In this case, we offer buyers in various regions a chance to participate by streaming the event live via a high quality webcast. This enables bidders to participate in the live auction in real time from wherever they are. A live & webcast auction is preferable where you have a strong local marketplace or in certain industries where this method of sale is commonly used.
The Auctioneer commences the sale at lot 1, accepting bids from the audience and selling to the highest bidder over the reserve price. The sale continues in sequence and finishes at the conclusion of the final lot.
The Auction Process
There are common processes for both auction sale types:
When an organisation has identified surplus assets and decided to sell, the first step is to value the items (known as assets) and create a lot catalogue. The lot catalogue details the individual items, has a range of photographs, full descriptions and the reserve price. The reserve price is the minimum price below which the organisation (the seller) will not agree to sell the item. This is generally not published, known only to the client and the Auctioneer. Our experts will advise on suitable reserves based on the valuation, current market conditions and real time evidence-based data from similar sales being conducted. The reserve is sacrosanct allowing our internal expert knowledge to advise the seller and also allowing the seller to retain control throughout the selling process.
Publishing and marketing
Once the lot catalogue is complete, our marketing team launches a high impact marketing campaign to create demand and drive potential bidders to the website, where they can sign up for the event. At this point, any potential buyers are also encouraged to view the assets in person (at viewing times typically set by the seller).
The auction then opens for bidding; bids are accepted and processed; and lots are sold to the highest bidder. When the last lot closes, the auction event closes.
The final stage is clearance and settlement. Our skilled project managers will arrange for successful buyers to pay for and then collect their lots. Once payment and collection has occurred, our accounts department settles the funds, less any fees and charges, direct to the client.