You can expect there to be more and more online and in-person construction auctions happening across the country all summer long.
These auctions are an easy way for various people and companies within the industry to get the equipment they need at a reasonable price. That being said, these auctions can be equally as difficult for anyone unfamiliar with the process and equipment.
- Know The Terminology
Once you’ve figured out what auction you are going to, it’s time to educate yourself on the terminology you will hear during the auctions. You should be doing your research on the various things you will be looking at and hearing because you don’t want to be surprised. Not only do you need to do your research on the expected prices of the industrial parts you are considering, but also how to spot damages and other issues with it. You want to figure out whether or not you should bid on certain equipment and not knowing everything beforehand can be a costly mistake. Here is some common jargon you will likely hear and see during this type of action:
– Terms and Conditions
You need to read all of the terms and conditions before you bid on anything. Understand what you are getting into.
– Buyer’s Premium
This is the total cost that the buyer is responsible for paying along with the bid price.
Knowing the terminology being used is essential to have success at your next auction. You need to know what you are looking at and hearing and how to navigate. Without knowing the ins and outs, you could find yourself making poor decisions.
Some Bidding Tips:
Now that you know exactly what equipment you want and need, it’s time to start bidding. However, you may have no idea how to go about that process. The first thing you should be doing is coming up with a budget. You need to know how much you are looking to spend. This can keep you from going overboard and bidding too much. Never begin your bids with the maximum amount you are willing and able to pay. You want to start with smaller bids and gradually increase. You also want to be aware of when it’s time to pull out of an auction if things get out of hand.
Another thing you need to do is to start paying attention very closely. While this should be obvious to anyone, it’s not something everyone does during an auction. You could find yourself spacing out during a pivotal moment during the auction and you could bid on the wrong equipment. Once the auctioneer says the word sold you are responsible for paying for the item.
You need to remain calm throughout the entire process. Auctions can get very intense. You don’t want to get overwhelmed during the auction. When you are participating in an online auction, it can get easy to click a button to increase the bid. This can make it easy to overpay for the equipment you are buying. Rather than getting caught in any type of bidding war, try to stick to your intended budget. Know that if someone outbids your set budget, it’s time to leave it alone. There is always going to be another auction. There is no need to overpay for equipment even if you need it.
Empowering Your Auction Company
InnovA is a company that helps all equipment auctions to effectively liquidate single equipment and large fleets alike. The entire process is made simple and efficient for every involved party. You can schedule a demo with us below.