Home Based Business Ideas – Customer Loyalty Generates More Business

Your home based business ideas take time to flourish but there are few key concepts which you need to follow while implementing your ideas. Customer loyalty is one of the major factors responsible for business success. It is one of the proven methods to keep your customer happy in order to get repeat business and recommendations from them with your home based business ideas.Retaining customer on a long term basis is a very trying task in any business. You’ll need to have proper strategies in place to retain them. You could entice the customer once or twice by offering special offers and discounts. However, to retain your customers for the long term will require some special efforts on your part.Here are some ways to achieve customer loyalty:Keep your customers attracted:In order to achieve customer loyalty, you will need to deliver quality to your customers with a firm indication of value. Some of the other popular methods of achieving customer loyalty are:o Free offers
o Issuing discount coupons
o Providing products on credit with low interest rates
o Extended warranties, and
o other rewards and incentive programsUsing these techniques will help to keep them constantly attracted towards your home based business. Remember that the main idea of the customer loyalty program is to keep the customer happy and induce them to do repeat business with you. It will also motivate them to persuade others to use your products/services.Excellent customer service:The next key element to gain customer loyalty is by providing excellent customer service to them. Customers always expect help whenever they encounter issues and problems related to your products or services. You’ll need to have a proper support system in place to help them with addressing their concerns and finding solutions to their problems.They may not always come to you with the same problems and therefore it is very important for your support team to know everything about your business in order to provide effective resolutions.For example, if there are any problems with your product, it should be replaced or repaired or the customer’s money should be refunded. Dedicated customer support guarantees better results.Keep in touch:Never let your customer loose contact with you. Initiate contact periodically and remind them that you value them as your customer. You can do so with the help of newsletters, monthly fliers, holiday greeting card, anniversary cards etc.For any business to flourish, it is very important to retain your customers with periodical customer loyalty programs which will encourage them to do more business with you through your home based business ideas.

Statistical Benefits of a Home Based Business Versus Traditional Job

We’ve all grown up listening to instructions on how to live the American Dream: go to school to get a good education, get a good job working for someone else, and you will be taken care of, and have a nice retirement plan in your golden years. Is this ‘American Dream’ still in place?As of the Summer of 2010, unemployment rate has been just under 10% (though REAL unemployment is estimated 20%). The Obama Administration is stating that the 8.5 million jobs lost will probably never come back. Health care coverage is so bad that people actually want the government to run it! And Social Security is expected to run out by 2018.The following are statistics detailing the plight of the average American family:
• Taxes – for four months and a week, or 3 hours out of every 8-hour day, you’re working for Uncle Sam – (The average American family of four with a median income of $47,012 will pay $10,250 in federal taxes and another $6,110 in state and local taxes for a total “tax liability” of $16,36
• average childcare costs – $7000 per year
• higher standard of living – make more/spend more – Average American spends $1.22 for every dollar they earn
• gasoline – $1200 per year
• spend hundreds on dry cleaning and biz wardrobe
• eating out for lunches $2000
• auto insurance – $500
• costs of raising a child – (quarter million $ to raise child birth-17) ($17,000 for 1st yr)Does working for someone else equate to the American Dream or the American Nightmare? Due to these disturbing economic factors, more people are seeking different opportunities for generating income, and starting a home based business is a popular alternative. After all, why work to generate revenue for someone else when you could do this for yourself?According to IDC, a top national research firm, there are between 34.3 million and 36.6 million home office households in the United States alone generating over $427 billion dollars of revenue. To put this dollar amount into perspective, $427 billion is more than the medical industry, the food industry, and the medical drug industry combined. In fact, the Small Business Administration estimates that more than half the businesses being started in this economy are home based or online businesses. And this trend is expected to continue due to low start up costs and higher success rates.The following are some statistics about home based businesses:
• About 70% of home-based businesses will last over a three-year period, compared to 29% of other business ventures, according to the Home-Based Business Institute.
• 89% with household incomes greater than $80,000 have a home office compared to 14% of those with incomes below $25,000 (Find/SVP).
• According to IDC, home-based businesses create an estimated 8,500 new jobs daily, or one new business every 11 seconds
• Over 85% of small business owners still have their small business 3 years later, which is a much higher success rate than the traditional brick and mortar business.For some people, working from home may be a method of supplementing their ‘real-world’ income, and for others it may be the only way to work because of other responsibilities or lack of other opportunities. In any case, work-from-home jobs provide you the luxury of working at the time you like, while staying close to your loved ones.Online marketing is one of the most popular work-from-home jobs. A wide variety of products are sold online using different marketing techniques, such as online social media marketing and pay-per-click marketing. Online marketing is also one of the techniques that can help you earn enough to take care of your everyday needs, monthly bills and more.A word of advice: find a topic that you are passionate about, find out if the industry is successful, and focus on that item. For example, I have always enjoyed buying and selling gold and silver coins. Who doesn’t like collecting money?! The industry for numismatic coins is booming. The numismatic industry does more than $10 billion dollars of business in North America alone, and also that 9,023,500 American Silver Eagle coins were sold by the US Mint in the first three months of 2010. The worldwide numismatic business is well over $100 billion. Therefore, focusing on a rapidly growing industry that I have a passion for makes perfect sense and has lead to great financial success.The trick is for you to find out what your passion is and focus on that industry.

Top Home Based Business – The Best Way to Work From Home

Most people would love to work from home. Well most people would love the idea of what working from home is and what it gives you. That is, time flexibility, financial freedom, being your own boss, working your own hours etc.What however, stops most of us, is the fear to take that leap of faith or find the right business for us. We want to find the top home based business but where do we start? So we keep meandering along the current path where our financial and lifestyle dreams elude us.The problems with working from home can be vast, high risk, arranging office space, etc. The list can go on and on, and let’s not forget the money side of things. Most small businesses costs thousands to start up and working from home may mean you need to rearrange your house and pay thousands in inventory costs. Finding that top home based business is tough.I spent a lot of time researching to find that top home based business. My aim was to find a business that provided me with the ability to work from home, yet not having to risk quitting my job while I start it. I wanted a top home based business that allowed me to have small start up costs, but still provided me with huge earning potential.I then stumbled upon a world renowned financial author Robert Kiyosaki. His book Rich Dad Poor Dad won the New York Times bestseller. He explained a very important concept called the cash flow quadrant – the very first tool I used to help fine me that top home based business.He explained that people were in four categories. The Employee, The Self Employed, The Investor and The Business Owner. Basically, the self employed although their own boss, trade hours for dollars and if they take a break from their business so does the money from their pockets. The employee is the same, trading hours for dollars and working for the boss who earns all the money. The investor, well there is huge potential there but you need a lot of money to make money. The real system that works for you is business. He explained having a system that allows you to work less and still earn great money is where you can really become rich.I had to be on the B side of the quadrant. I had realised that a financial expert had basically pointed me in the direction of a top home based business. The answer was in that B quadrant. I did some more research on the author and realised he endorsed Network Marketing.Network marketing really is the top home based business, with little start up costs, an ability to contribute as much time as you like, great earnings potential, no risk and the ability to obtain your desired lifestyle. There is no competition like in a corporate hierarchy and everyone helps each other succeed. They key with network marketing companies is to do your research! Find the best company. The one that pays you well, rewards you for your efforts, is very team orientated and has a wonderful product.

A Home Based Business and the 4 Pillars

Starting a home based business is a good option for those who want to have a great work life balance. Care should be taken to make sure money is not poured down the drain in the name of starting a business. People preach the many pitfalls that can be avoided and the wise do take heed and tread with caution.Is it all Doom and Gloom?The fragile world economy features in the news everyday and so does how things are expected to get even tougher. A lot of people are anxious about how to support a decent lifestyle. For most families it is almost impossible to cover expenses on two salaries with increase in food costs, household bills and other basic needs. A home based business is a great consideration for anyone who wants to supplement their income or create flexible working hours to meet family demands, get rid of unemployment or solve other issues.Working from home is a great way to earn some extra income and for some people their entire income comes from their home business. The best thing about this type of set-up is the low start-up costs. A home based business is not as easy as it sounds though; it requires a lot of planning with the right knowledge and skills.Pillar 1 – If It Is Too Good To Be True It Probably IsYou probably have seen a lot of adverts online about how someone made £10,000 in one day. We will all like to strike it lucky and find that deal of a lifetime. But beware, if you are thinking of working from home, do not get sucked into these false claims of making millions in a few months. There are businesses that generate a healthy profit but think about it, if those claims were true everyone will be doing it.Consider the risks involved before you take up any offer for a home based business. Carry out adequate research about the business before you commit funds to it. Search yourself, if this is what you really want to do or if you are doing it for the love of money. Remember the love of money can only satisfy temporarily.Pillar 2 – Start with Minimal CostStarting a home based business should not cost the earth. Just because you are not renting an office space, does not mean you should blow your budget on a state of the art computer system, an executive desk and a recliner chair with a built in massage service. Manage your budget effectively especially when starting off as money may not come in immediately but bills still need to be paid. Beware of the stationery habit; it can spiral out of control especially for those who work from home.Pillar 3 – Dream Big Start SmallDon’t bite off more than you can chew when starting a business from home. Consider your working hours, family schedule, space within your home and other important factors before you commit to your customers. Do you have the space to store the raw materials for your products? Can you manage more than 10 clients a month without impinging on family time? These are some of the important factors you need to consider when you start your home based business. Remember your business reputation is at stake if you do not deliver on your promise.Pillar 4 – Easy MaintenanceMany people who choose to work from home are probably tired of the status quo. So why complicate things even further by setting up a home based business that is too complicated to run. This opportunity should give you the chance to follow your passion and run a business too. Working from home should be a pleasure not another daunting task you hate to wake up to. You should set things on your own terms and within certain guidelines. If you intend to laze about the house and pretend to be working, you might as well stay in your current job. It takes a lot of dedicated hard work to get any business off the ground – a home based business is no exception.All these pillars might sound like child’s play when it comes to starting a home-based business, but one wrong turn can lead to a frustrating experience. Make sure you follow your passion when starting a home based business and understand the basics of running a business. Consider the 4 pillars stated above in addition to other relevant information when starting out to help you stay on the right track and enjoy the process.

How Will My Small Business Benefit by Having a Website?

OverviewRunning a small business takes a lot of work. Every small business owner would like to see their business in the best position to grow. One of the surest ways to invest in your small business is to have a website. There are still a lot of businesses that do not have a website for their customers. In today’s online world people expect to be able to do an online search and find your business, products & services there. If you want to take steps to improve your small business, this is one essential place to start. Here are a some benefits for your small business having a website.Brand RecognitionThe vast majority of customers today use the internet when they are searching for the product or service they need. By owning your own website, you will be able to extend the overall presence of your business, being both offline and online. There are a lot of small businesses that do a lot of their marketing online. Not only does this save money, but consumer studies show that this is more effective as well, since your potential customer is already online using their mobile device to search for you. Your website can provide all the information about your business, products and services you provide, how they can contact you, maybe even shop online for your products 24/7, you can offer helpful information, tips and hints and you can provide photos of your business, team, products and testimonials from happy customers. Your website is your representing your brand online.More TrafficCustomers need to know that your business has a product or service to sell. Many customers are searching for quality products and services at a great price. However, it will be very hard to find your business if you don’t have a website. Building a quality website will drive traffic over time automatically to your website. This increases the amount of people who see the products or services that your small business offers. Always take the time to build a quality website, with quality information, in order to build up your web traffic.Higher ProfitsThere are few things as impactful in marketing in today’s world as having a website. If you want higher profits in your business, it is important to invest in a website that will drive customers to sign up for your newsletter, call you for a quote, buy your products direct from your online store or call you for more information about the services you offer. Over a period of time, this will lead to higher profits in your business. Every small business owner wants to increase profits in their business over the long-term. Dollars spent investing in a quality website that is customer friendly will yield many more dollars for the business in the future. All small business owners must think about the long-term trajectory and vision of their business and seriously consider investing in a website.Final ThoughtsThere are many small businesses today that do not have a website. They either do not understand the importance of owning their own website and the benefits to their business or they think they do not have the money to invest in one. A good question to consider is what money are they losing to their competitors (who are online)?The good news is that this is now easier than ever before to get a website. There are hundreds of web designers ready and able to build a quality website, most likely several right there in the area where they live. Anyone worried about building or coding a site can simply hire someone to do so. The price of building a website has gone down drastically in recent years.Investing in a website will do several things for your business. Not only will it increase your brand recognition in the marketplace, but over time it will also drive traffic leading to potential increased sales, ultimately yielding higher profits for the business.

Like A Walk In The Desert – Easy Home Based Business

Imagine you are lost in the desert. You have been walking for miles, are exhausted and dehydration is beginning to take its toll. Right when you believe all hope is lost, you catch a vision of the very thing you’ve been praying for. You see what appears to be your source of life…water! You are now rejuvenated and a new energy is released within you giving you the strength to forge your way forward to get to the very thing you need the most. Following an agonizing fight to reach the water, you are slapped in the face by the truth of what lies before you, nothing but more inhospitable desert; it was a mirage. This is similar to the experience many people face when they think they have landed an easy home based business.

Please understand my purpose here is certainly not to deter you from starting a home based business. There are wonderful perks and benefits to having a successful home based business. It is however to prepare you for the reality of the home business industry. Additionally, you should understand is that an easy home based business is a perceived idea, instead of a tangible thing.

Easy Home Based Business Expectation

Much like a mirage in a desert, people see what they want to see, regardless of reality. In the case of an easy home based business, people are looking for an easy solution to their problem. People practice wishful and hopeful thinking. When we answer an easy home based business ad, we are really hoping it will be the answer to our prayers. We read the testimonies of how easy it is, and because we need to change our situation, we desperately want to believe it is for real.

So we choose to buy into the testimonies, and forfeit a few dollars to receive our easy home based business starter kit. We get energized and excited at the thought of finally finding the answer for generating the additional money our family needs. We can hardly contain ourselves as we check the mail every day anticipating its arrival. We know with the receipt of this package, we’ll be on our way to receiving checks in the mail and our life will be changed forever.

Easy Home Based Business Reality

The day is finally here. Finally our life altering easy home based business is about to be started. The box is torn open and once again, the harsh reality is staring us in the face. The package is not what we thought. Rather than money flowing in, all we see is the amount of money we need to come up with to actually launch this program. As with the mirage, we are now numbered among the countless individuals lost in the desolate desert.

I have witnessed this too many times in our industry. Usually when people fail, it’s not at the fault of the company, but rather due to a misalignment of their expectation versus reality. Even when you are forthright and explain that it won’t be easy, people still want to believe in the idea of an easy home based business. It is the get rich quick mentality that leads people down the wrong path. Although the majority of individuals will tell you they don’t want a get rich quick scheme, honestly they do. A get rich quick scheme is exactly that, a scheme.

Changing Your Easy Home Based Business Perception

Don’t throw in the towel on finding the right home business just yet. I am here to tell you that real opportunities are everywhere. You simply need to be open to seeing businesses as they are, not what you hope they are. Adjust your understanding of what an easy home based business is. You first need to realize that solutions don’t just come to you, you need to take action and work for what you want. Make a decision to find a business worth working and a goal worth fighting for. Also understand that being successful has nothing to do with luck; people don’t just stumbe upon great opportunities, they seek and prepare. Lastly, understand that a something for nothing proposition is really a nothing for something sales pitch. Don’t give up on your dreams, but rather go after them with vigor expecting that victory never comes without a battle.

Reviewing Which PPC Advertising Is The Finest For Your Business Enterprise

The fundamentals for pay-per-click are deciding on the kind of clicks to work with and the way to guarantee that each click is targeted on the market an organization desires to reach.

Pay-per-click advertising campaigns falls into two classes: PPC search engines and advertising which prospective customers can click on (what are known as clickable adverts). Search engines using the Pay-per-click model impose an advertiser a fee towards the ranking it obtains each time a certain term (keyword phrase) is searched. The more well known a keyword phrase is the greater the charge for an advertiser’s site to be visible on the returned search list. Marketers who pay out the most can have their products and services show up at the start of the list returned to the individual that began the search. Clickable advertisements display on web pages that contain written content very similar to that from the adverts. A consumer looking into the web page might find advertisements intriguing and possibly click on them. The marketer pays only if a possible buyer clicks on that advertiser’s advertisement. Some Pay-per-click advertisers be trying out clickable adverts in which the marketer will pay only when a consumer clicks on the advertisement and decides to buy something in the process. Both these types of Pay-per-click advertising include advantages. A smart On-line advertiser will certainly analyze each type to ascertain which will be perfect for its organisation. It’s often feasible that combining both products will offer a business the best value for money.

Just how can an organization begin evaluating the numerous PPC advertising systems and determining what type is most effective to its needs? A business should initially investigate the Pay-per-click search engines as well as clickable advert programs available; then it’s smart to make a modest expense to check those systems which appear worthwhile. When selecting a system, largest might not always be the best choice. Some businesses will reap the benefits of spreading a wide net using a major company. Various other organizations might be far better served by dealing with smaller marketing agencies that are experts in specialized niche markets. Keep in mind that a company does not need to pay the top price to be positioned on a Pay-per-click search engine return web page. Businesses are put within the web page in descending sequence from the greatest to the smallest bidder. Possessing a position on the 1st or 2nd search web page might deliver substantial return at a more affordable price.

When a marketer has chosen to work with a PPC search engine or to set a number of clickable adverts, an experiment run is a good idea. As with any advertising providers, Pay-per-click advertising will be based upon a fixed spending budget. An organisation creates an account and every occasion a possible buyer clicks on the keyword phrase or the advertisement, a sum is subtracted from the advertiser’s account till it is emptied. An organization will need to create small accounts with a few PPC agencies that seem to be suitable for its needs. Following establishing the accounts the marketer then ought to develop something on its business website to monitor the number of site visitors it obtains through each PPC provider. Pay-per-click providers themselves can provide the advertiser a summary of website visitors that clicked through on their own advertising however these listings might not give a company adequate details for making an educated conclusion concerning the results of its advertising. A business needs to realize not simply that it obtained site visitors but the visitors were genuine prospective customers, not merely idle browsers.

The Finer Points of Internet Auctions

WHAT IS A PENNY AUCTION?

Penny auctions have exploded in popularity with the massive growth of the internet. However, few people know the true origins of penny auctions.Beginnings actually stretch back to the Great Depression. Those were hard times for everyone, but even harder for farmers. Farmers struggled to bring in steady income because of droughts and crops not selling as well as they had previously. As a result, the banks would foreclose on the farmers who couldn’t keep up with their mortgage payments.

The banks weren’t satisfied with just repossessing the house, they wanted to raise as much capital as possible, so they resorted to selling off the possessions of the owners of the repossessed houses. There was not much the farmers could do about it so they began bidding ridiculously low prices, pennies, on the items while threatening others who dared to bid higher than a few pennies.

The auctions of today hardly resemble their tremulous beginnings. Being part of a penny auction today is exhilarating, fun, and addictive. It combines the selling format of auctioning with a little bit of chance factored in.Auctions are a game of strategy but also a game of luck.

The premise behind penny auctions is giving people the chance to win an item at a drastically reduced price.Auctions make that possible by spreading out the cost of the product among multiple bidders. In order for a person to take part in an auction, they must pay a set price for each bid. For example, if a person wanted to bid on a fifty dollar Amazon gift card then he would spend a dollar for each time a bid placed. If he ended up winning the gift card, then he would only have spent a few dollars for a fifty dollar gift card. Usually penny auctions sell bids in packages.

HOW PENNY AUCTIONS WORK!

The main foundation of penny auctions is the pay-per-bid format. It is the key that allows bidders to win items at the fraction of their retail value and allows the auction owners to keep their site profitable. Most y auction sites run on the same premise: people pay a set amount for each bid, whenever a person places a bid within the closing seconds of the auction time will be added, the last person left with a unique bid after the clocks runs out will win the item. There are a large variety of items that can be won, but they tend to be popular electronics or gift cards to popular stores.

There are two types of auctions: lowest unique bid auction and highest unique bid auction. Lowest unique auction sounds confusing but it is actually quite simple. A unique bid is when only one person has a bid at a certain price. Bids usually start at one penny, a bidder can then place a bid at two pennies. Until another bidder places a higher bid, the most recent bidder will be the lowest unique bid because that was the only bid at two cents and nobody bid higher. However, penny auctions generally don’t stop at one penny. It is not uncommon to find auctions that end up at a couple hundred dollars based on the popularity of the item being auctioned. However, the same principles apply for those auctions. Highest unique bid auctions follow the more traditional auction format such as eBay. The person with the highest bid at the end of the auction wins the item.

Auction site owners turn a profit by selling bids. Say twenty people are bidding on a ten dollar gift card at one dollar per bid, at the end of the auction if there were twenty bids placed in total then the site owner would have made twenty dollars with a ten dollar profit.Auctions do seem like a win-win situation:The site owner makes money while the bidder gets an item for dirt cheap. However, not everyone wins in penny auctions. The people who paid one dollar each bid but left with nothing to show for their investments will not be so happy.

HOW TO WIN!

Penny auction has a lot of chance mixed into it, but one can incorporate strategy that will help raise the chances of winning. Playing smart can make all the difference between gambling and auctioning.

The first crucial tip to winning penny auctions is to know how to manage your bids. Your goal should be to win as much as possible without spending a ton of money buying bids. Managing your bids means that you should already know how much you are willing to risk in order to win an item. The amount of capital you are willing to risk will determine how many bids you can use. Once you know how many bids you have to spend on an item, then you will be better able to manage how and when you place a bid. That will keep you from blowing away all of your bids in the first few seconds of the auction.

The next tip is to practice time management. When fighting in the trenches of penny auctions, you have two enemies: other bidders and time. Knowing when to bid is a must if you want to have success. Placing a bid when there is a lot of time left on the clock is never a good idea. You have to remember that the key to winning a penny auction is being the last one standing when the clock runs out and that each bid increases the amount of time left. It would be a good practice to wait until the last few minutes of the auction before you begin to bid.

The final tip for successful auctioning is to keep your emotions under control.Auctions have a lot of similarities to gambling, and just like gambling, your spending can get out of control. If you keep your emotions level, it will keep you from making rash decisions and blowing loads of cash. Keep your mind clear so that you can gage the behavior of the other bidders and outsmart them.

HOW TO AVOID SCAM SITES!

Penny auctions are a great addition to the web whether you want to win an item that otherwise you wouldn’t be able to afford or if you simply enjoy the thrill that comes with bidding in auctions. Unfortunately, scam sites have tarnished the reputation of the legitimate penny auction sites. However, there are ways that you can protect yourself from scamers and enjoy your auctioning without having to worry about losing your money due to dishonesty.

Checking the reputation of the auction site before you start spending your hard earned money is always a good idea. Chances are other people have tried the site before you and some of them have left reviews. The reviews are your way to gage whether a auction site is trustworthy or not. If a site is getting overwhelmingly negative reviews, then that is a clear indication that you should steer your business elsewhere.

Another tool you can use to protect yourself is checking the Alexia ranks of the auction sites. Alexia rank will give a solid view of how much traffic the auction is getting. If you see a huge difference in the amount of traffic Alexia is projecting and the amount of active bidders on the site, then warning signals should be ringing in your head. Some auction sites have been known to set up robots that automatically bid on projects in order to keep the auction going and inflate the price. That is known as shill bidding. You can sniff out those sites by comparing the traffic the site should be getting to the amount of users using this site.

CONCLUSION!

New legislation may come out later down the road that will officially make penny auctions gambling, but until then, it is a fun, exciting auction that allows one to win the item they’ve always wanted but couldn’t afford.Auctions are also quite lucrative for the site owners because of the pay-per-bid strategy they’ve incorporated. Penny auctions had humble beginnings with farmers who just wanted to get back at the banks who kicked them out of their house. More recently, auctions have enjoyed an explosion in popularity with the rise of the internet.

There are two main formats fora auctions, lowest and highest unique auction, however they both run on the same premise where the last unique bid wins the item. Winning a penny auction will require a certain amount of mental tactic and a bit of luck. However, you can increase your odds of winning by practicing certain techniques such as managing your bids wisely, learning how to work with the time, and keeping a level head and your emotions under control. When you combine those three strategies to your bidding plan, you will find that you win a lot more often.

It is important that you do your due diligence to protect yourself when participating in auctions. Not every auction is run by honest and trustworthy people. There are people out there who just want to take your money. You can protect yourself by ensuring that you only bid on sites that already have a very positive reputation from real users.

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.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.


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