Equipment Auctions...Beware

[MotorSeven]

I always knew that the auctions had a potential for shenangans. But after seeing it in person it really bugs me to see people manipulated like a puppet. I know that every marketing strategy is geared to get a person to buy. But this auction thing seems to be trampling ethical lines and seeing it as a normal modus operandi. I refuse to support their actions by participating in this carnie type atmosphere. I guess having the dozer in the auction was what really openend my eyes, as I paid way more attention as seller than a buyer.

RD

 

[marimus]

I've seen auctions where the auctioneer calls for bids around what he thinks its worth, say $500.

No bidders, $450, $400, $350, $300 then someone bids $300 and its away do we here $350? 350? 350? 325? 325? 325 is bid 340 340 the bid now..

345, 45, 45, 45, 45 SOLD! for $545!!
(read that last line out loud).

Now at this point the experienced buyer points at the bid was $345 and the auctioneer correctly notes that as the selling price with apologies.

I see this mistake everynow an then, usually when a new bidder comes in

 

[charlz]

I've seen way more people overpay from lack of experience, lack of knowledge of the items worth or simply getting caught up in the 'action'.

I've been hit by the BS'ing thing, bidding slows way down so they start cracking jokes and talking about how fantastically rare or special the item is this usually gets someone to jump in and run the price up.... but I just let them have it if they have exceeded my price.

Around here there is 10% buyers premium and 6% sales tax.... I think a lot of new bidders forget or aren't thinking about that as they bid. I have seen quite a few people pay new or more than new price for a used item at auction once you factor in the 16%.


Overall I think I have gotten more and better deals off Craigslist than at any of the auctions. But I still like to go to the auctions to see all the 'treasures'

I have seen more shady things with Real Estate auctions where there are larger margins.

 

[forgeblast]

A buddy of mine will do a lot of auctions, from buying to selling. If he bids on his own object and becomes the high bidder he only has to pay for listing the object. I was taken back a bit by this, but then you replay the auctions you have gone to and you start second guessing whats going on.
I learned a lot by going to my first couple of auctions and bidding on one or two objects. I also would sit back and watch what looked like chaos, and try to figure out what was happening. A lot of the older farmers where more then willilng to help me out and let me know who was on the up and up. The older farmers where around a lot longer and where taken by some of these guys so they liked to expose what they where up to. That way when you sit back and watch you see some of the players involved in bidding things up, or if you didnt they would point them out. That way if they would start bidding on something i wanted or just liked i would stop bidding immediatly. But mostly I would have a price in my head, if it went over i walked away, no regrets.

 

[2manyrocks]

This thread reminds me of a guy who showed up late to a house auction. He thought it was going low--and hadn't looked at the interior of the house. He ended up being the highest bidder and then found out that it had a flat roof that was leaking and had a lot of interior damage. It was sold in a hot market--it the house had been any good, it would haven't been up for auction in the first place.

Biggest problem with auctions is in not knowing what shape something is in--then you have all the auction fees and the tricky practices.

 

[Charlesaf3]

Interesting.

A hint on bidding strategy. Don't bid yourself up. Meaning, wait till the bidding slows before you start to bid, so you aren't pushing the price up on yourself through keeping the tempo up etc.

Knowing what something's worth makes a big difference obviously.

 

[Tig]

My peeve is the "speculative banter" Auctioneer is working the price of a table up and as interest peters out he remarks to his assistant. "Say that's a great price for that table. Why it looks like solid oak doesn't it, Roy?" Roy reply's on cue "It sure does" and the bidding picks up to a price that is more appropriate for a table that is solid oak as opposed to one that "looks like solid oak".

 

[scgargoyle]

I go to an auction house that mostly does bankruptcy liquidations. They run a very clean sale- maybe the g'ment will get after them, since it's a bankruptcy auction? There are a lot of dealers there, so prices are decent, but not give-away. I did very well a few weeks ago, though. The auctioneer was getting cranky because things weren't selling, and he started getting ugly with the crowd. Bad move. Prices were very cheap after that, and a lot of people left. I got a like-new Honda generator for $300- and it retails for $3,000! I could have bought a lot more stuff that day, but I'm about out of room for more stuff.

 

[QRTRHRS]

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.

Let me state further that I am not a shill nor a dealer or anything like that. I only go to an auction if I happen to be looking for a piece of equipment of some kind. I do know what you are saying in general though.

 

[charlz]

My peeve is the "speculative banter" Auctioneer is working the price of a table up and as interest peters out he remarks to his assistant. "Say that's a great price for that table. Why it looks like solid oak doesn't it, Roy?" Roy reply's on cue "It sure does" and the bidding picks up to a price that is more appropriate for a table that is solid oak as opposed to one that "looks like solid oak".

Yep, see that lots. However, who do they represent? Is it unethical for them to try to maximize their clients profit? I see some of this as 'doing their job' and some of it as 'buyer beware'.... "It must be worth something! The auctioneer said you just don't see this 'Made in Taiwan' stuff anymore! So I thinks it's rare!"