There was a time in American car design when the front, or nose, of the car was the most important part of the overall design of the automobile. One of the most iconic designs at the time was the 1949 Ford Sedan. It really captured the post-war period which focused on the emergence of the rocket and jet age, into which the United States was entering. I came across one this summer in a wrecking yard in Northern California. Without seeing the emblem, you could determine the brand of the car by looking at the nose alone, because they were just that distinct. That today is no longer a car's distinguishable trait; unless of course on the front of your car, there's a stallion or a three-point star.
The future of real estate auctions
Here is the final proof of the first article I wrote for All Things Real Estate PDX. I started writing a monthly column back in the early spring of this year. Have a read and let me know what you think. Better yet; I'd love to hear what auction, car, fundraising and real estate related topics you'd like to read about or to see more of in my blog?
Size doesn't matter. Really
We live in a world where if it's bigger, it must be better.
In the fundraising world, that axiom is not always true. Sure, it's exciting to be in a room filled with hundreds of other well-dressed and like-minded people thrown together to raise money for a shared cause, while also being entertained by the theatrics of the auctioneer. But the reality of large fundraising events is that only a small portion of those in attendance are actually active participants in the live auction. In my experience, I would venture to guess that only about 20% of the room is doing 80% of the bidding and buying. Yes, it does seem that more people tend to join in on the bidding for a special appeal. Though often, that may be the single occasion of the evening when that specific bid card saw any action.
So my question to event planners out there is, "How much thought and effort do you put into the process of guest selection?" Like most not-for-profit organizations, do you simply send out invites to the masses hoping to fill the huge ballroom that you have rented for the night? Or do you pick and choose those patrons who have potential in their pocketbooks and the ones with proven buying power to contribute to your night's cause? What if you could cut the cost of producing your event in half and at the same time, double your audience participation? Wouldn't you be interested in knowing how? Stay tuned for some hints in my next blog.
Being an auctioneer
I’m one of the lucky people out here in the working world who really enjoys what he's doing for a living.
Being an auctioneer is a unique profession. I have been lucky enough to make it my career for the past twenty plus years. I’ve been involved in auctioning everything from real estate, both wholesale and collector cars, as well as art and wine at fundraisers.
In each of these different scenarios of the auction, the same theme repeats itself. That similarity is competition. Finding value or just establishing something's worth is best done via the auction method.
Then why haven’t auctions become a more mainstream method for selling? There are a couple of reasons. First, I think there still lacks information and understanding about how this selling process works. For instance, if you scratch your nose or accidently raise your hand during the bidding process, you don't necessarily have to buy the item that's being auctioned. We’re looking at everyone in the room and to some degree, watching your non-verbal clues as to whether you’re truly a potential bidder. An auctioneer with experience will always ask whether you’re bidding or simply waving to your friend across the room. Secondly, an auction can be a intimidating for some. It puts most people, especially bidders, outside their comfort zone. You either have the resources to purchase what’s for sale or you don’t. When you bid, you may take a bit of ownership for the item up for sale. So being outbid can lead to some very intense stares between bidders around the room. All in good spirits, of course!
Factors are constantly changing. Nowadays, change happens frequently and quickly. Setting a defined date for an item to be sold, allowing only those qualified to participate in the buying process, and informing both buyers and sellers the terms and conditions of the sale - all of these factors combined level the playing field for all involved. So as more buyers and sellers look for more transparency in their business dealings; we will see auctions, becoming more often, the preferred method of conducting these types of transactions.
Estate sales
How would you like someone, anyone to take off your hands, a dearly departed family member's house filled to the rafters with stuff? In return, you've saved a ton of time and still end up with money in the bank.
A real estate auctioneer can do that for you.
Instead of you and your siblings having to coordinate a time to meet, in order to sort through an entire household of remnants from the past and take carloads of used clothing to goodwill. Then empty, clean, stage and list that old house in wait of the right buyer to make an offer acceptable to you. Why not hand that task over to a licensed broker slash auctioneer to liquidate your shared family home and its entire contents? Even that old car that hasn't been started for years, collecting dust in the garage, can be taken care of in one fell swoop.
I happen to be one of a very few professionally-trained auctioneers in Portland, who is also a licensed real estate broker in the state of Oregon. If an estate sale auction peaks your interest or sounds like it might work well for you and your family, ask away. I will try to answer any questions you might have or be able to point you in the right direction.
School fundraisers
School fundraising auctions are some of my favorites amongst the variety of events that I do. They give parents and teachers an opportunity to socialize outside of the school environment. You have a highly motivated captive audience. Everyone in attendance has a student who benefits from the proceeds of the evening. It's a winning combination.
With smaller budgets and fewer subsidies, more and more schools are required to do their own fundraising - from kindergarten to high school, private and public school. Academic institutions are raising money for sports fields and equipment, international exchange trips, scholarships. The list goes on.
I'm a part of the fundraising team at a local private school's annual gala. For the past few years, a table of desserts made with love by the school's teachers goes to auction after the dinner portion of the night. The parents get pretty competitive. Little Lisa wants to hear how her dad made the highest bid for everyone's favorite teacher's triple-layered chocolate cake. I've seen bids go as high as $1,000 for a homemade cake. This year, the dessert auction raised $7,500 for the school's foundation!
Something to think about as yet another school year comes to a close. Have a fun and safe summer out there.
The magic of the appeal
"What is an appeal?" you might ask.
An appeal in auction speak is a call for donations of cold hard cash. You may find it hard to believe, but some individuals and corporations would rather make a cash donation than to bid on another unnecessary trinket or luxury item. With increasing environmental and social awareness, it is no wonder why. It doesn't hurt that the entire amount of the donation is tax-deductible.
As a not-for-profit, you'd be surprised at the potential revenue an appeal may bring. Oftentimes, the appeal portion of your event may generate more money than ticket sales or even the live auction. Donation by appeal is quickly growing in popularity. If your charity happens to have close community ties, you may find support in a corporate donor that is willing to match your combined appeal donations. Thus $10,000 in individual cash donations grows to a whopping $20,000. In this scenario, not only is that company helping a worth cause; it is receiving a tax receipt and public recognition in return for its generosity.
Auctioneers: There is a difference
Auctioneering is one of those jobs where it's not unusual for someone in the crowd to think, "How hard could it be to do that? It looks pretty easy. If that guy on stage can do it, why couldn't I?" If you have been part of an audience during a fundraising event, you can tell the difference between a professionally trained auctioneer with experience and someone who is just trying to wing it. There is nothing worse than to watch someone struggling on stage. It's like the feeling you get when you're at an amateur comedy show where nobody is laughing. It is painful to watch and can be incredibly embarrassing for the person on stage.
Once the audience's interest or the bidding momentum is lost, it's game over. What do you do then? Not much you can do, except to wait till next year to do it better.
Big or small, we can help
Last weekend, one of our fundraising auction patrons told me how pleased he was with the results of the evening. Then he asked whether or not I did small auctions. "Of course!" I said. Actually, I love the small grassroots auctions when they are just getting started. All fundraisers or benefit auctions have to start somewhere, and it's exciting be there from the start to watch them grow and develop into major events. Most of the charity work I've done through the past twenty years has been working with groups who are just starting out. So if you've been thinking about putting together your first auction, or maybe hiring a professional auctioneer for an established event; give me a call or drop a line.
Welcome to my new blog
Welcome to my new blog at srdorsey.com. I plan to write whenever the mood inspires. Come back soon to learn about all the different types of auctions that we do - fundraising, real estate, collector cars. Plus commentary on what's new and happening in the exciting and little-known world of auctioneering.