[meteorite-list] AUCTION POLICIES & TECHNIQUES

From: Count Deiro <countdeiro_at_meteoritecentral.com>
Date: Sun, 6 Feb 2011 13:35:00 -0800 (GMT-08:00)
Message-ID: <15287789.1297028102320.JavaMail.root_at_elwamui-royal.atl.sa.earthlink.net>

Dear List,

I realize that this post is going to be painful and embarrassing for some to read, but more than a few attending and watching the auction last night were confused and critical of how it was conducted. Today more than a couple of Listers have asked on line for clarification of generally accepted auction policies.
As I am uniquely qualified, not only as a participant in this auction, (I was bidding over the phone while watching on Ruben?s streaming video) but a professional auctioneer with over thirty five years of experience, I will offer these criticisms and explanations.

I owned and have operated some of the largest auction firms in the nation since receiving my Certified Auctioneer Institute professional designation from Indiana University in 1985. Prior to that, I attended Missouri Auction School and served an apprenticeship at Sothebys in New York. I became licensed in eight states. I was the Charter President of the Nevada State Auctioneers Association. My firms have sold, and I have gaveled down, over a billion dollars in real and personal property, even some meteorites at this auction last year. I have sold my auction interests to family members and have been of counsel to our firms and other companies for the past 15 years.

So the qualifying remarks having been made?here we go:

SOME (NOT ALL) AUCTION POLICIES AND TECHNIQUES

Auctioneers have a legal fiduciary obligation to Consignors.

They should be knowledgeable of the items they sell and should be able to pronounce names and make accurate descriptions.

An auctioneer has to know the retail value of every lot and have examples to quote to the audience, so that he can open the bid at a sum that encourages bidders to bid on the money. Opening a $500 item at $20 is incompetence. Getting an opening bid that is off the money...say $100 on a $500 item and then asking for $120 instead of $200 is something you learn not to do the first day at auction school.

It is critical that auctioneers make the audience believe they know what they are selling, and what it?s worth, so that bidders will have confidence to bid what is being asked. Failing to answer legitimate questions from bidders ruins credibility.

Never say ?I have $200?. Auctioneers don?t have anything. Better to say ?at $200?, or $200 is bid.?

Taking a bid from an opening bidder, and then acquiring another bid and then not go immediately back to the opening bidder is insulting to him. Work the first to bidders dry?then take a competing bid. Saves time and respects the first bidders.

All auctioneers should employ trained ring persons. They are invaluable in encouraging bidders, showing lots, and answering questions like ?where we at?? or ?what?s the bid??

It is not accepted practice for an auctioneer to bid on his own behalf, even if he does not own the goods being sold. If he does, he should never announce the fact, as it tends to discourage bidding and hurts his consignors and credibility.

He should have several house numbers to sell a passed lot to, or a lot that didn?t meet an undisclosed reserve, or a lot he has bought.

Do not disclose reserves. Do not announce the mail in bids. Give the mail bidder a number and use it as if in the audience. If you disclose the mail in bid maximum before selling the lot you are in deep kimchee.
Phone bids should be handled by staff, with a bidder number and the auctioneer should not say ?on the phone?. Merely acknowledge staff?s raised hand. You sell to a number?not a person.

As a general rule do not identify bidders by calling out their name. It can do no good and may stop a bid because of a personal issue.

Bid calling is an art form. One should develop a pleasing appearance and voice. Use rhythm chants on small amounts and walking chants on the big numbers. The audience gets comfortable in following you and entertained and the sale moves quickly.

Start on time and be prepared. Inform the audience of the order of sale and the terms and conditions before calling for the first lot.Introduce your staff and mention who to see for check out and pick up.

Arrange lots to develop and keep interest and drama. Don?t bunch smalls one after the other?bidders will get bored and not bid on these items hurting the consignor. Scatter smalls through the sale.

Don?t place late entries at the end of a sale. Give them the respect they deserve and place them through the sale by saying ?additional lot number so and so?. Give a proper description. If you add undisclosed lots at the end of a sale you will have lost the bulk of the bidders and hurt the consignor. Tell the audience that there are late entries scattered through the sale and that they are on display at the front.

It is absolutely necessary when selling small items such as meteorites to have as much of a preview period as possible and during the sale, either put them up on screen, or run them through the audience with ring persons.

Ring persons should know to run the lot being bid on from bidder to bidder not to non participating audience members.

Remember! An auctioneer is a third party intermediary between seller and buyer who has been paid to be knowledgeable in auction advertising, promotion and conduct, knows intimately the lot and its value and is beyond criticism of his business methods..

We could go on and on?.but these are some of the absolute necessary policies and techniques. There have been books written.

Count Deiro
IMCA 3536 MetSoc
Received on Sun 06 Feb 2011 04:35:00 PM PST