Reinvent and resize

In my last blog post, I talked about rethinking how to go about planning your next fundraising auction. One of the main points I covered was the size of the event. It really comes down to the ROI, return on investment. What if I told you that in the following year, you should only invite half the people AND double your ticket price? Your first thought would probably be an emphatic NO. I'll let you in on a not-so-secret secret. As with most other sales transactions, the 80/20 rule applies. This is true for most things in the world of business, auctions included. What is the 80/20 rule? Also known as the Pareto Principle, it is the rule of thumb that 80% of your output is determined by 20% of your input. For example, in business it works out that 20% of your customers represent 80% of your sales. Or in our case, 20% of your event's patrons are bidding for your auction items 80% of the time. That means, in a crowd of 300, there are really only 30 actual serious bidders!

Let's do the math: starting with 300 people, divide that by 2 because most people come as part of a couple, apply the Pareto Principle by calculating 20% of 150, you are then left with only 30 true bidders in the room. What if, instead of trying to accommodate a lukewarm crowd of 300 at $250 a head, you double the ticket price and halve the number of guests? That translates into $75,000 in ticket sales right off the bat! Plus your fundraiser is left with only your most committed of patrons. Isn't it likely that the guy/gal who already spent $1,000 to attend your fundraiser with his wife/her husband, be the same guy/gal who takes home the grand auction prize?

Do your own little study at your next fundraising event and then give me a call.

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.