Advantages of online fundraising auctions

Fundraisers are increasingly turning to the Internet for new ways of raising money. Online auctions are one of the most cost-effective methods for charities to raise funds on the Web. Auctions have long been a staple of fundraising in the offline world, but are often time-consuming and laborious to organise and can be disappointing in results. Online auctions, however, are relatively quick and easy to organise and tend to be significantly more successful in raising funds.

There are many benefits and advantages to online fundraising auctions. One of the most wonderful advantages of online auctions as a method of fundraising is their enjoyableness for the public. Auctions are exciting and fun. When people take part in an fundraising auction they tend not to feel they are "giving away" their money to charity. Rather, participants often feel they are getting a bargain for an item they really desire. This makes bidders feel both good about themselves for helping the charity and pleased and excited to be getting something in return. Auction participants may even be drawn into making donations or giving their long-term support to the charity.

It is also helpful that, although most people remain unfamiliar with real-life auctions, the vast majority of people nowadays have some experience of online auctions and how they work (thanks to popular sites like eBay).

Online auctions' potential to reach a vast and diverse audience is a colossal advantage; Internet auctions can be accessed by huge numbers of people from all corners of the globe. This is in stark contrast to offline fundraising events, whose attendance is very limited by geography. The larger the number of participants in an auction, the higher the prices that items are likely to sell for.

As well as attracting a larger number of bidders, online auctions can also attract a large number (and better quality of) donations. Donors from all over the world can donate items for the auction. Lack of good-quality items to auction can be a troublesome problem with offline fundraising auctions, but this is less of a problem with online auctions.

Visitors to the organisation's main website can be attracted to the auction, and email campaigns and social networking can help spread interest in an auction in a way offline methods would not. The relative lack of social interaction in online auctions can be a disadvantage, but it can be an advantage. With no social distractions bidders are likely to focus more on competing to win the items they want.

There is a wealth of data to be mined on online auction sites about the behaviour of bidders and visitors to the site. This information can be used to great success in targeting marketing and your site layout according to people's habits. For example, if the data indicates that site visitors tend to be most interested in a certain type of item you have up for auction, then you could feature these items on the site homepage to attract even more interest.

The lack of time constraints of online auctions is a great asset to fundraisers. Online auctions are open 24 hours a day, 7 days a week. They can go on for weeks (or even months), as opposed to just a few hours like most offline fundraising events. This all means that bidding can carry on for longer and thus lots are likely to sell at a higher price.

Finally, the biggest benefit of the easiness and lack of stress of setting up an online auction!

Source: http://www.artipot.com/articles/1242646/advantages-of-online-fundraising-auctions.htm

Auction Brokers Represent You, Not the Auctioneer

Auctioneers are not all the same. Just as Doctors and Lawyers have different levels of experience and different areas of specialty, so do Auctioneers. Some Auctioneers have considerable experience, while others are fresh out of Auction School. Most Auctioneers are generalists; others are experts or specialists in a particular area. Some Auctioneers have an excellent reputation and a strong following of loyal customers, others are struggling to stay in business. Most Auctioneers are honest, some are not.
And if you select the wrong Auctioneer to handle your consignment, your decision could cost you dearly.
That's where an "Auction Broker" comes in. The difference between an "Insurance Agent" and an "Insurance Broker" is that the Insurance "Agent" represents one and only one company, whereas the Insurance "Broker" represents several companies, and is able to shop your business around with several companies in order to locate the best company, and to obtain the best rate, for your particular needs.
The same is true of an "Auction Broker". Whereas an "Auctioneer" represents one and only one Auction Company (their own), an "Auction Broker" represents several different Auction Companies and can steer your consignment to the Auction Company best suited to handle what you have to sell. This is extremely important because the key to getting the most amount of money for what you are selling at Auction is to locate the best Auctioneer for what you have. And the Auction Broker is often the best person to help you accomplish that.
Most Auction transactions involve signing a contract with the Auctioneer. That contract will specify important points such as the commission and fees involved, when you will get paid, standard terms and conditions of sale, etc.
All Auctioneers are going to charge you a "Commission". That commission will normally be a percentage of what they sell for you. For example, if your consignment sells for $10,000, and your flat rate commission is 20%, you will receive $8,000, while the Auctioneer keeps $2,000 to cover his/her staffing, advertising, administrative, and other expenses...and hopefully their profit.
If you are unable to deliver your merchandise to the Auctioneer, most will charge you to pack it and transport it to Auction. And occasionally other fees such as photography fees, listing fees, Internet fees, and other charges may apply.
In exchange for these fees you are, in effect, "renting" the following from the Auctioneer:
• The Auctioneer's Name and Reputation.
• The Auctioneer's Place of Business.
• The Auctioneer's Years of Experience.
• The Auctioneer's Expertise in the commodities you are selling.
• The Auctioneer's Marketing and Promotional Ability.
• The Auctioneer's Mailing List and Contacts.
• The Auctioneer's Knowledge of Potential Buyers for what you are selling.
So the key to getting the most amount of money when selling at Auction is to locate the best Auctioneer for what you have to sell. As an extreme example, you wouldn't want to sell your Tools through a Doll Auctioneer, because there would be few, if any, Tool buyers attending a Doll Auction. And you wouldn't want to sell your Doll Collection at a Tool Auction for the same reason.
But what if you have little knowledge of the Auction business in general? Or the specialties and reputations of local, regional, or national Auctioneers? What should you do with your consignment? That's where the "Auction Broker" comes in.
Just as the Insurance Broker can place your business with the best Insurance Company for you, so too can the Auction Broker help you to locate the best Auctioneer for what you are selling. A qualified "Auction Broker" will perform several vital services that will help you to obtain the most amount of money for what you are selling:
• They will explain the Auction process to you.
• They will explain the difference between National, Regional, and Local Auctioneers, and which Auction level is best suited for what you have.
• They will walk you though the legalese on an Auction Contract.
• They know which Auctioneers specialize in specific commodities, and which Auctioneers have upcoming Auctions in your particular category.
• They will locate the best Auctioneer for what you have to sell.
• They will help you to understand the best time of the year to sell.
• They will help you understand when to send it all to one Auctioneer, and when it's best to split your consignment between two or more Auctioneers.
• They will negotiate the fairest commission possible for what you have to sell. (Are you aware that in some instances Auctioneers will work for "Zero Commission?").
• Depending upon the merchandise, sometimes (but not always) they can negotiate a reasonable "Reserve" for you. (A "Reserve" is a minimum price below which the item will not sell, and usually has to be negotiated with the Auction Company).
• They will help to ensure that you are not cheated in the process
Here are just a few examples of how Auction Brokers have helped clients receive the most money for what they have to sell.
• Client had several pieces of better art, some better Tiffany and Cartier sterling silver pieces, along with some more average, middle market merchandise. Arrangements were made to have the better items saved for a much better "Catalog" Auction with a prestigious Auction House several months later. These items were pictured in a 4-color, printed catalog and sold on the Internet as well as before a live Auction audience, in order to attract a national and international bidding audience. Those items not worth storing were sold more quickly and turned into needed cash faster.
• Client had mostly middle market items, along with a few better pieces of jewelry. Arrangements were made to sell the jewelry through a company that specialized in jewelry sales, while selling the lower end items through a less experienced Auctioneer who was eager to sell such items, and who sold most of the items individually rather than as "Box Lots" (i.e., selling them by the box), thereby netting the client more money.
• Client wanted to dispose of a Stamp and Coin Collection. Arrangements were made for the Stamps to be sold in a Stamp Specialty Auction, while the Coins were sold in a separate Coin Specialty Auction, resulting in significantly higher prices than if they were sold through a non-specialty Auctioneer.
How are Auction Brokers paid? They are generally compensated in one of three ways.
• Flat Consultation Fee: Here the Auction Broker will charge the client a flat consultation fee to review the items, sort them into specific categories, and make recommendations where they will sell best. If the Auction Broker is expected to pack and transport the sellable items, those fees will be additional. This usually works better with smaller consignments.
• Percentage of Final Selling Price: Some Auction Brokers will work on a percentage basis. In this compensation format, they receive a percentage of the final gross selling price of all items. This concept encourages the Auction Broker to sell for as much as possible because the higher the final selling fee, the more money both the client and Auction Broker will receive. This format works better with higher value consignments, and not as well with low-value consignments. The more work that is expected of the Auction Broker (i.e., packing, transport to the Auction House, etc.), the higher the commission rate.
• Referral Fee from Auction Company: Sometimes the Auction Broker will receive a "Referral Fee" from an Auction Company, just as the Insurance Broker is paid for writing business with a particular Insurance Company. Often this represents a percentage of the final commission the Auctioneer makes on the consignment.
The "Broker" concept is well-established in the Insurance industry, but is fairly new in the Auction business. If you regularly attend Auctions and understand the Auction process, you probably don't need the services of an Auction Broker. But if you are relatively inexperienced in the Auction field, and if you are considering selling things of value at Auction, then an Auction Broker can probably help you from making a very major and expensive mistake.

Article Source: http://EzineArticles.com/4798400

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I'm an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I'm also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I've run everything from business overstock auctions to charity & special event auctions. I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience. Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I've seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don't say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here's the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can't make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell "as is". They simply don't have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It's difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.

Attend an auction this week, it's one of the only market places where you can set the price.

Thanks for reading and have fun.

Source: http://ezinearticles.com/?How-to-Find-Great-Live-Auctions-for-Resale-Items&id=801441

Liquidation Auction: What Businesses Need to Know

A liquidation auction, also known as a surplus auction, allows businesses to get rid of excess inventory. It’s also a way for companies to sell-off inventory before going out of business. In this event, the company needs to raise money to satisfy its creditors.

Given the two examples above, the term liquidation auctions implies “everything must go.” Clearing inventory doesn’t necessarily mean the business is closing. Typically, an auction helps companies maximize the amount of money they get for the products they remove from inventory.

Businesses will usually hire a professional auction company to handle the liquidation sale. The auction house provides a wide variety of services including taking a complete inventory of assets, advertising for the auction and managing the event from start to finish. To find the best auction service for your liquidation auction, you should focus on experience, reputation, services, pricing, schedules and references. Thorough evaluation in these areas will help determine the right auction service provider for your business.

Closing a Business

Conducting a liquidation auction may be voluntary or forced by the courts. In many cases, it’s a step that must be taken before a business closes. In this scenario, the funds generated from the sale of goods typically go to the creditors first. Next, the shareholders of the business benefit from any remaining funds.

A liquidation auction for a closing business not only includes the stock of the company, but every other asset used by the company. For example, if the company produces a product or sells products, these items are auctioned. In addition, other items the company owns, like office equipment, computers, supplies, furniture, artwork and anything of value will be auctioned to the highest bidder.

An Alternative to Bankruptcy

Sometimes financial difficulties are short-term events for businesses. If your company is experiencing some cash-flow issues or other financial problems that you think are short-term, you may consider a liquidation auction instead of filing for bankruptcy. By liquidating some assets, you may be able to bridge the gap in negative cash flow situations.

This is an especially good strategy if you have inventory you can’t resell. For example, customer returns, damaged goods and surpluses may be prime asset candidates to bring in some extra needed cash. Because of the recent economic challenges many businesses have faced, reputable and experienced auction houses are specializing in liquidation auctions to help businesses get the most money from their inventory.

Improving the Bottom Line by Selling Unneeded Assets

Liquidation auctions are a great way for your business to earn extra profit. Targeting inventory you can’t sell as indicated above, or just have too much of, can help you pad your finances. You can also auction other assets used in your business that you no longer need. Old office equipment and furniture are prime examples.

Whatever your reason for conducting an auction, make sure you understand how to achieve the best results. Finding the right auction service is an important step. But, you also have to look at your particular situation and evaluate your financial statements. You have to know what you paid for these items so you can make sure they don’t sell for less at auction. In most cases, it wouldn’t make sense to lose money.

Liquidation auctions are great opportunities for both sellers and buyers. Businesses can earn extra cash, stay out of bankruptcy or satisfy creditors before a closure. Buyers can often get a wide variety of merchandise at below retail prices. And, there’s nothing better than a win-win situation!

Source: http://goarticles.com/article/Liquidation-Auction-What-Businesses-Need-to-Know/6436236/

How Business Owners Can Benefit From Liquidation Auctions

Whether you're exiting your business, need extra cash for creditors or just ended up with a bunch of additional inventory to unload, liquidation auctions offer an excellent opportunity for selling your assets. The term "liquidation" usually implies "everything-must-go." In many cases, owners hold these auctions when they're closing up shop.

You need to make some tough decisions when it comes to exiting a business. Your alternatives involve selling it, merging it, passing it on to someone else or liquidating it. A lot of owners assume they'll sell the business or have their kids take it over. But, these options can be elusive.

Not only have recent economic conditions been challenging for many businesses, but the current climate has made it difficult to find qualified buyers willing or able to pay you the true value of your business. And, your kids may not have the interest or capability to run your company. If you find yourself in this situation, you may have no choice but to sell the pieces of your business that have value - the equipment, supplies, tools, inventory and other remaining assets.

But that doesn't imply selling your assets is a less than favorable last resort. Quite the contrary. Conducting your sales through a liquidation auction offers a sound strategy and may be just the ticket to accomplishing your goals.

Plan Your Exit

When it comes time to exit the business, you need to consider all your options, as well as develop a well thought out exit strategy. Creating a plan will help remove some of the emotional attachment you may have with your business. A sound exit strategy helps you make decisions objectively that provide you with the best benefit.

So, it's a good idea to discuss your strategy with some professionals, such as an attorney and accountant before finalizing your plan. You want to be sure you cover all your bases, especially on all legal and financial ramifications.

And, liquidating your assets undoubtedly creates a lot of stress. That's why many business owners prefer to use an auction company to manage the process. The bulk of the responsibility shifts to the auction service so you don't have to worry about much.

Liquidation Sale vs. Liquidation Auction

Before discussing why liquidating assets is a viable strategy, it's important to differentiate between a liquidation sale and an auction. Understanding the distinction ensures you make the best decisions for your situation.

Contrary to a liquidation auction that takes place quickly from start to finish, liquidation sales are conducted over longer periods of time, such as weeks, months or even years. The hope is the longer selling time will help the business owner get higher prices. In some cases, owners can review multiple offers and then select the best one. This scenario works best when you're selling specialized or unique equipment.

However, you have to store your assets during a liquidation sale. This means paying for mortgage or rent on the facilities, utilities, security services, taxes and more. Although you're holding out for the highest prices on your assets, the costs of conducting the sale over a longer time frame can add up.

Why Go the Liquidation Auction Route

Liquidation auctions offer numerous benefits for selling your business assets, including:

* Convenience - As mentioned earlier, you're probably dealing with a stressful situation if you're closing your business. The last thing you want to do is pile on more stress at this time. You'll probably have to do some sorting of items, but the auction professionals will take over so you aren't taxed with selling each item individually.

* Marketing Services - Professional auction houses are expert marketers. They'll help you reach a much broader audience than you could do on your own. In fact, professional auction companies can have hundreds or thousands of prospects in their databases that they market to repeatedly.

Because full-service auctioneers have a regular following, you have greater assurance your assets will be sold at the highest price possible. In addition, experienced auctioneers use online technologies so they can literally attract buyers from all over the world. And they're very adept at targeting other businesses that could use your assets.

* Fast Turnaround - Liquidation auctions are quick. The whole process can be over and done with - from start to finish - in about 90 days. Sorting the assets, writing item descriptions, marketing the auction, conducting the auction, cleaning up, etc. is all managed within a short window. If time is of the essence, liquidation auctions can deliver like no other option.

* Higher Prices - Auctions always create an environment for higher prices to be paid on your assets. The nature of auctions involves competitive bidding that can drive prices up. Although the auction company takes a small cut from every sale, the bottom line result can be much greater than paying for all the associated costs involved in going solo. Remember, you have to pay for storing facilities, utilities, security, taxes, marketing and other costs when you sell assets yourself.

* A Bankruptcy Alternative - Because it still comes with a stigma, many people want to use bankruptcy when they have no other options available. Instead, liquidation auctions offer an attractive option, especially if you're experiencing a shorter-term cash flow issue. Liquidating some assets lets you bridge the gap until your financial situation recovers.

* Improving the Bottom Line - Liquidation auctions make perfect sense if you have inventory you can't resell in your business. Examples include customer returns, damaged goods or surpluses. Since you can't resell these items in your business, you can generate additional cash by selling them at an auction. If you have assets you no longer need in your business, have too much of, or can't resell for the reasons noted, a liquidation auction can help pad your bottom line.

Recent economic turmoil has prompted many businesses to shut their doors or unload assets for much needed extra cash. Whatever your reasons for needing to sell assets, liquidation auctions deserve serious consideration. A reputable auction company specializing in liquidation auctions will help you get the most bang for your buck.

Liquidation auctions are great opportunities for everyone involved. Buyers have access to good deals. And, you can get an attractive return on your assets that help you remain solvent, satisfy your creditors or put a nice chunk of change in your pocket.

Source: http://goarticles.com/article/How-Business-Owners-Can-Benefit-From-Liquidation-Auctions/8142892/