Equipment Auctions...Beware

[MotorSeven]

I am sorry to say that I was a bit naive about auctions. They seem to be getting more pervasive around the country as a sign of the times. I have bought a few things over the past year, and recently tried to sell my dozer at a local auction without any luck. I have learned some things through my observations that I want to share. If others here want to add to the list please do so, because I would like to reveal some of the under handed, manipulative practices that some auctioneers use.

The first is one we all fear, the fake biddeder. Someone working for the auction house walking thru the crowd and using subtle signals at key times durng a bid. This can also be the official looking(well wearing the t-shirt anyway) auction employee doing proxy bids with a cell phone stuck to their head franticly pretending to have trouble hearing over the noise.

Now here is one I didn't know about, but have witnessed. You see, auctions are kinda like a living entity, it gains & looses momentum depending upon many factors. When the tempo is up, more people bid, and bids go higher, tempo down the opposite occurs. The auction houses use fake bidders and better yet non existant bidders to keep momentum. Yelling "sold" when the item never met it's reserve and moving on to the next item sounds way better than "NO SALE". This most likely is not illegal, but to me it is a huge red integrity flag. You have to ask yourself this question...if they go that far to play smoke and mirrors, what else are they doing?

These tactics prey on human emotions. Some of us are more vunerable than others, getting folks to bid on something that the had not intended to bid on, and most likely did not need. So far I have not fallen in the trap because I never bid on something that I do not know it's value. If I want something, but don't know what it's worth, I walk away. But, when I did bid, could I have paid a little more due to bid manipulation? It's possible.

So, if you go to these things, heighten your awarness. Watch the crowd carefully. Pay attention to prices on items that you know the value of even if you were not bidding. Even better, grab a program and write down every winning bid. If you have time hang around after it's over & see who loads stuff up, you may be suprised to see things that "sold" being loaded back up by the vendor that brought them.

There are great deals and fair deals at auctions. There are respectable auctioneers out there that do not play games. For me, if I smell something rotten, I am just getting in my truck and driving away.

So, how about y'all? Stepped in anything at an auction & didn't know it until the wind changed?

RD

 

[PAGUY]

I have my suspicions concerning an auction that I'm participating in presently. It is an auction house that displays your merchandise for a month and accepts written bids during that time. Then on the first Saturday the auctioneers awards the item to the highest bidder on the tag. The thing is a couple of times I have searched for all my items to see how the bidding is going and I haven't been able to locate every item. This leads me to believe the auction house is selling items to "special customers" before the actual auction. I have also experienced being told a few items had "No bid" but when an auctionhouse employee tries to locate these items one may not be found and then I was told that it must have been sold after the auction. So this leads me to believe either the special customers or auction workers are taking advantage of items not bid on at the day of the auction. If it wasn't for the fact that I'm trying to rid my home of stuff I don't need anymore or wouldn't have room when I downsize I might question my observation but then I might lose my source of selling my junk that can be someone else's treasure.

 

[Western]

The few I've been too, I went early, found what I liked, went over it, came up with what I was willing to pay and stuck to it. If they want to bid me out, that is fine. Most of the time I did get out bid, but I never went to buy something that I "had" to have. so I really never get caught up in the "hype".

Cattle auctions are easier to me, unlike auto or equipment auctions, easier to get some one else s headache.

 

[Cat_Driver]

I sorta agree and can understand, but when an item gets up there artificially the "shills" back off pretty early and are pretty insignificant because the shill can get stuck with the item and that's bad for the auction house.


I think if an item is worth 5K and the bidding starts out at $500.00 the shill might bid it up to 2K but then has to walk away.

Remember it is an auction and that NEXT BID is never guaranteed, so all bids can back fire. Besides everyone at an aution bids what they feel comfortable with or on how bad they want that item.

I've been to hundreds of auctions and have seen homes sell for $1000.00 and large big rig tow trucks sell for 3K ( heck you couldn't even buy the tires on that rig fro 3K )

The only time I was stung at an auction I bid in a 2 suit cases at a storage facility auction contents unseen. The guy brought the two suitcases out and set them down by bending his knees sorta squatting like these things weighed 100 pounds each, I won the big and the two suit cases were empty and weighed about 5 pounds each.

Every item I have ever won a big on has been a huge savings for me.

But yes I agree there are scam artists everywhere and it can never be stopped, just big at the max you feel comfortable with and walk away, that's the best defense.

 

[chh]

Some auction companies are pretty straight and some are quite a bit more on the "shady" side. I have seen items end as "sold" and see them a month later still sitting on the lot. The only equipment auction I go to nowdays will either end with "sold" or call "passed out"(reserve not met). If it is close to the reserve and the seller is present I have seen them ask him if he will sell it for the bid amount or if he will change the reserve, some do and some don't. I have seen equipment owners bid on their own items(or have a friend do it) trying to get the bids up, knowing they will have to eat the commision if they go one bid to far. I actually saw an dozer owner run before they could get his bidder number once at a heavy equipment auction. They resold it and it brought about $5000 less the second time.
Most of the time the most common tactic seems to be to have one of the hands try and talk you into one more bid when you stop. I try to have a very good idea of the value of anything I am interested in before I get there and set a price and stick with that limit.
One of the big items here in OK at farm autions is corral panels. There is a company that builds them mainly for that market is it seems and a lot of times they will bring more at auction than you can buy buy better made ones for from the feed store.

 

[two_bit_score]

Inexperienced buyers do get caught up in the auction and bid haigher than they really intend. Experienced buyers rarely do.

What's the difference in experienced and inexperienced?

The experienced one's have been caught up in it enough to know when to back out.

 

[Lloyd_E]

Motorseven,

You nailed it. I used to go to auctions all the time but found your remarks bang on to what was happening at the sales. I do better on kijiji or local inet selling site and negations.

I also do cash deals and if they want to sell it they meet my price - if not I walk away.

Lloyd

 

[Taylortractornut]

Ive sold many an item to a shill Lol. I got tickled one time my neighbor had an auction. He had a parking lot full of items I bid on a consignment and one a trailer type chisel plow. for 25 bucks. There was a nice IHC 4 row planter there and it belonged to a contractor. This boy that was kissin arse before the bidding was braggin Im gonna sell that for my buddy. on an on he bragged about running the price up. This old man got it up to 2000, and the shill got greedy when they said 2100 the old man bidding stepped back and said he can have it. That old boy got a sick look. He still has it in his yard for sale and thats been a few years ago. I also hate it when they already have the new owner picked out. When Belmont homes went out I worked there, they let the workers view items way beforethe sale. The day of the sale i went to buy a 3 phase welder. I got the welder and beside it was a pallet of cylinders about 12 of them. I bid 250 and the other bidder had stopped at 225. I already had my bid in and they took his over mine.
I have a friend that runs and auction company and anyone that offers to be a shill will get asked to leave.
I also dont like an auctionneer that has alot of bs in the works where they kinda visit during the sale and pick at buyers. Ive been to TAC enterpises sale and its no nonsense and they move fast.

 

[QRTRHRS]

I learned alot at auctions by striking up casual conversations with strangers while strolling around scoping out the offerings before the show started. By acting a little naive and curious, people will point out things that you might not have seen or were not aware of as well as what a good price would be.

 

[Scooby074]

I learned alot at auctions by striking up casual conversations with strangers while strolling around scoping out the offerings before the show started. By acting a little naive and curious, people will point out things that you might not have seen or were not aware of as well as what a good price would be.

Thats why i keep my big mouth shut Or if their insistent, point out several "defects" and try to convince them to look elsewhere. I know their games, and play one of my own.

My issue at auctions are the big money guys, the ones that have no idea what a object is or its value, but jump in on the action because several people are bidding on it, "So its gotta be worth somethin".

Dealers at a auction take away some of the bargains. They usually have deep pockets, and always seem to have that extra $100. Usually they dont drop out till theyre within spitting distance of what they'd sell it for retail. They look at a couple hundred profit as good. Ive lost out on several lathes and mills to this.