My first machinery auction -- Any tips ?

I'll be going to my first machinery auction next week. I have a fairly good idea about how much used machines cost, and I think I'm disciplined enough to avoid getting swept up in a round of bidding. So I'm not worried about getting ripped off. However, I don't want to make a fool out of myself, nor do I want to be the newbie that gets in everybody's way.

Can anyone suggest some things that I should do, or shouldn't do, that may not be obvious?

If a buy a large machine, do I have to take it with me that day or can I come back for it the next day?

When they say "Buyers and Riggers of large machines must provide the Auctioneer with a Certificate of Insurance in the amount of $1,000,000.00 prior to removal." does that rule out hiring a flatbed tow truck?

Also, when they say "10% BUYERS PREMIUM IS IN EFFECT FOR THIS SALE. " does that mean I pay whatever the winning bid is, plus sales tax, plus an additional 10% ?

Here's the link in case anyone is curious:

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Reply to
AL
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Nope, as long as you'r insured to move the machines. They are worried about people who go to auctions to buy stuff, drop it on themselves, and sue for a living. Most riggers will probably have this sort of cover, might be worth hiring one to lift it onto your flatbed.

Yes.

Reply to
Ian Stirling

Bid + 10% + Sales Tax. The governor wants his share of the buyers premium.

Reply to
Howard R Garner

You don't want to be at the back of the crowd on the item you're bidding on. Stand near your item before the crowd moves to it. The bid taker needs to be able to see you.

Many many auctioneers act like they have a bid when the item first starts. Watch carefully on items before yours to see how they are doing it. In general, don't jump right in the first second he starts on your item of interest.

Its also real easy to bid yourself up or have two bid takers go "yup" "yup" when you raise your hand. best to not use too large a motion here (a nod works, after the first bid) and be looking right at the guy you want to take your bid. You can also look right at this guy, point to yourself and ask with a hand motion "Am I in?"

Remember these guys are pros at getting you to bid a little higher than you had in mind.

All this stuff really depends on the auctioneer - some of them want to play on confusion to raise the bid - others wouldn't dream of this and actually help you out.

Also try not to say to myself I'm buying this item. Look around the whole sale, find a dozen or so thing you could use if the price is right. If someone steals it, might as well be you.

Karl

Reply to
Karl Townsend

I found that being willing to bid on something early, maybe that you don't really want, just so the auctioneer knows you are buying not just looking, was a good idea. Something that is going to sell for more than you are bidding, so you don't get stuck with it, or if you do, it's a good deal.

Then I'd go to the back and potter around until the thing I REALLY wanted came up - a few lots before I'd get close to the front, make sure the auctioneer could see me again. I liked to wait until bidding had slowed down, either it was too much or it was time to bid.

If it got too much, if the guy taking bids looked at me "asking", I'd shake my head or mouth "no" - saved him some time.

Reply to
jtaylor

I've been to many auctions. The first one was a bit nerve racking since I didn't know the procedure. After going to several you get the genaral idea of how it works. Go early and look at the item you are thinking of purchasing. Fix a price in your head of what you might want to pay for it. And like the others have said stand up front near the item your bidding or are going to bid on. The auctioneer will start out with a high price then drop down to a lower price. At that point people will start bidding. If it's an item that I'm interested in I'll wait till the auctioneer calls around sveral times for any other bids. If the price is close to what I'll pay for the item I'll get in on the bid. If the other person keeps bidding it up I stop and figure he wants it worse than I do. I got a Sherline combo lathe/mill with quite a bit of tooling for $700 at an auction that way. I knew how much the lathe and equipment was worth. I was willing to pay up to $1000 for it. When I got home I checked the price on all the equipment that came with it, luckly all the bill os sales was with the machine, I had gotten $1200 dollars of equipment for $700. The guy I was bidding against said I paid to much for it. I don't think he knew what it was worth. BTW the Sherline and it's toolong was almost brand new.

Wish you good luck and don't get sucker into over bidding, it's easy to do. I know.

Bernd

Reply to
Bernd

Bid + sales tax + 10% = Bid + 10% + Sales tax.

The buyer doesn't care which way round it is, the number is the same.

Reply to
Ian Stirling

All good advice. Let me add that really big auctioneers managing a large sale of high value items usually don't sound like one of those babbling Virginia tobacco auctioneers. They speak clearly and don't try to rush. The high-rollers with the big bucks won't stand for that kind of ploy.

One trick they might pull however is to be watched for if the item you want is one of the very first ones up. An auctioneer will sometimes drop the hammer on it quickly for a bargain price to scare the crowd into thinking they dare not wait to bid. I've picked up some real bargains by being alert for that one.

Reply to
John Ings

Ok heres what i do wait till the auctioneer is at his lowest bid give a bid if it seams to go high fast back off back off wait a couple round and jumpin once back off a little when he is ready to strick if down jump in hopefully the others will loose intrest works most of the time try it on some stuff you can get cheap for practise

Reply to
HaroldA102

One tip I hear is to collect all the removeable things asap so they don't disappear before you load the machine. I have heard stories here about all kinds of things disappearing and you are just out of luck.

Reply to
Charles A. Sherwood

Occasionally, being nice to the auctioneer, and giving them a nice quick starting bid on everything, if bids seem hesitant (unless you don't want the item at that price) can pay dividends.

Reply to
Ian Stirling

I thought you were supposed to stand in the back so you could keep an eye on the shills. If they're watching you and don't think you'll loose interest because you got right up close to the item, they'll keep bidding it up.

Joel. phx

Reply to
Joel Corwith

$1,000,000.00

In addition to what the others have said, I would add that "get there early" means at least 1 hour. This gives you plenty of time to register and then poke around and carefully examine each item you want to buy and highlight it on your bid sheet. It also gives you time to strike up a friendly conversation with some of the other folks. I've gotten auction regulars to look at machines with me and give opinions on their condition and what they thought they were worth. Obviously if you pick the person that REALLY wants that machine they may spend most of the time pointing out the flaws but I haven't had that happen yet.

Another point is to check with the auctioneer before auction day on what payment methods are acceptable. Almost all the big machine auctioneers are going to require a bank letter guaranteeing payment (not a letter of credit) if you want to pay by check.

The auction will start out with the auctioneers instructions for the auction and how long you have to get anything off the premises. He will generally point out the licensed riggers that are present and, if you buy something big, the riggers will usually come up and slip you a business card to offer their services. You could probably negotiate with one of them on loading your truck.

One thing you can do to mark yourself as a newbie is to buy an item and then hold up the show while you dig through your pockets trying to figure out where you put your bidder number card. When the auctioneer yells, "Sold", hold that thing up so the auctioneer can get your number and keep things moving.

Good luck. Steve.

Reply to
SteveF

Look around to see who is bidding against you. At my first auction I found the auctioneer had me in a bidding war with a figment of his imagination.

ff

Reply to
ff

'Long as it ain't Bid + Sales tax + 10% of bid, 'cause that would make the Governor cranky. ;-) (But the buyer happier)

Pete

Reply to
Peter Snell

Digital camera + PDA, and somewhere local with a wireless access point, and you can look up prices of unexpected possible bargains you are considering buying. Check out the prices of what you hope to buy before setting foot in the place. Almost never buy anything that you know nothing of, unless you are willing to take a loss.

Reply to
Ian Stirling

One other tip: Some times an item you are interested in is grouped with items you have no interest in. When these items are sold, watch carefully to see who the buyer is, and approach him about selling you the item. This has worked for me numerous times.

(Minor Gloat) Last week I went to an auction where I did this very thing. They had grouped some items with a lathe that were not lathe related. I got a Hardinge dividing head and tailstock, a Mitutoyo toolmakers microscope, and an Aloris CA toolpost from the lathe purchaser. He didn't need them, and I bought them cheap enough to resell at a profit.

John Normile

Reply to
John Normile

You have recieved a lot of good advice. Generally, the opening call seems to be in the neighborhood of what the auctioneer hopes to get for the item. They will then start working their way down until they find someone to buy in. Depending on the order of things, it helps to buy(or at least bid on) something before what you really came for. For me at least there is always one or two things that you really came for. A lot of things that are of definite interest, and a few unlisted things or just to good to pass up as things go on.

If the auctioneer "knows" you, he will watch you for interest when he is looking for bids. Try to keep the yes bid subtle once you are in.

JW

Reply to
Jeridiah

Google "Old Nick"'s advice in some recent threads. On low value items, sometimes you want to have a bid in at a particular price point, otherwise the item isn't worth going another $10 or $20 for. For example, you're willing to go 30, the bidding starts at 20, if you're the first bidder you may benefit by offering 30, rather than needing to go to 40 after the second bidder chimes in at 30. It's usually easier to be recognized as the first bidder than as the second or third bidder.

If it is an "in-plant" sale at a going concern, you may be able to get someone there to load large equipment for you, even if the rules state otherwise. Also check out the availability of loading docks.

Reply to
ATP

I have been to many machinery auctions. Going to an auction is like going on a blind date. You never know what to expect. You could get lucky and score big or you could go home empty handed. Who shows up and how big of crowd is there really dictates the prices for the day. If the auction is poorly promoted, this will greatly benefit the bidder. The last auction I went to had an overwhelming turnout with prices sky high. I went home empty handed. Auction before that I picked up a Wilton 20" disk sander for $30. Actions that have online real time internet bidding to compete with those that show up in person yield the lowest possibility of scoring great deals for the bidder. They do provide the greatest return to the auction house.

Know your limits, stick to them. I usually develop a laundry list of items I'm interested in and break them down into several categories. I'm willing to pay what an item is worth to me for stuff I have a real need for. Other stuff that is "nice to have" I only pick up if it's a smoking good deal. You will be competing against guys that have their own shops and make money with this equipment. Items are inherently worth more to them then they are to a home shop type. Home shop equipement really doesn't provide any return on investment. There have been a few occasions where auction attendance was so poor that I was bidding on all kinds of nice to have stuff. Take a look at what kind of stuff is listed toward the end of the auction. Usually there are a lot less people around toward the end and prices can get pretty cheap. On occasion the auction house may auction off misc. items that aren't listed. These can be items left outside the shop in the yard out back, in the shed, or in a mezzanene storage area. Depends on what needs to be cleared out and what the future use of the building is.

Reply to
gradstdnt

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