All successful businesses are based on the
simple principle - buy something cheap - then
sell it at a mark up. Simple, in theory -
but rarely simple in practice. One of the
major entrepreneurs 'headaches' can be where
to get goods to sell at a cheap enough price
to allow a large enough profit.
Fortunately, there is a way that problem can
be solved - easily. Quite simply, auctions
offer you the chance to buy all sorts of
goods at under market value. It's then a
simple matter to resell them, perhaps
immediately, at in excess of market value.
A clear, quick profit!
Auction buying is not just an aid to those
already in business. There are many cases of
people who do nothing but buy 'anything' at
auction and resell for a profit.
Just consider, it only needs a few items bought or
sold a week with a few hundred pounds mark up
on each to build a considerable income. You
can be an auction entrepreneur in just part
time hours.
Of course, auctions are still shrouded in
some mystery. That's what helps to keep the
undetermined away from the profits. But,
they are generally simpler to follow than
they were. With a few visits you can be
quite experienced at 'snapping up' bargains
at auction and reselling for an immediate
gain.
Really, it matters not what you buy. Just
consider an auction as a place where you can
get things for a lot less than they are worth.
That's nothing short of an instant money
making opportunity!
Sheer Potential
The great thing about auction trading is
that you can actually prove the potential to
yourself before actually spending anything.
Just go along to a few local auctions.
Auctions are mainly a quick way of selling
goods for vendors. And, they are also a way
of selling things where any other techniques
e.g. press advertising would be difficult.
Because of this the prices are invariably
far less than market price. Auctions are
rarely an attempt to get more for an item
than it is really worth, despite appearances
to the contrary. But, of course, you would
always guard against being over charged.
Discounts at auction vary according to the
type of goods sold, type of auction, type
and number of crowd - even things like the
weather. In some cases auction discounts
have been quantified at as much as 80%!
Rarely would the saving fall below 10% - but
a reasonable ready accessible saving would
be 20-30%.
Quite simply, the auction potential means
you might buy an item (say a car) at œ1,000
one day. Then, the next day sell it for at
least œ1,200 to œ1,300. That's a
considerable, instant profit for hardly any
work; a way of making very quick extra cash.
How to find an Auction
Auctions are held the length and breadth of
the country almost every day of the week.
So, there will always be a chance to make
money. It's not always obvious which are
the best to attend though, and this will
need some market research on your part.
There are directories available listing
auctions and auctioneers. But, the cheapest
way of finding them is to look in the Yellow
Pages at your local library. Check the index
to see what different categories 'auctions'
might fall into.It is wise to visit auctions
before you even consider buying. Because,
although they offer the same service they do
work on different principles. Check, by
observation, that the auction is fair.
Auctions are, of course, working to get
highest prices for sellers - but they should
not be biased.
Good auctions should display goods prior to
the sale for inspection. And, they should
issue a catalogue or list of what is on offer.
The buyer accommodation should offer a clear
view of the auctioneer during bidding. More
importantly, the rules of the particular
event should be displayed on site - and
followed by staff at all times.
Do ensure the auction you attend is fair to
all buyers, and not favouring the 'regulars'.
Also that the price is not artificially
inflated by the auctioneer - it should be the
demand that sets the price. Most auctions
are honourable organisations, but there could
be exceptions!
Do stay behind after an auction has finished.
This gives a chance to see if those who have
bought are pleased with their purchases - or
if any 'little disputes' arise. A good guide
to finding the best, most honest and most
profitable auctions.
Successful Buying at Auctions
When you have gained a little experience at
auction you can venture to make your first
deal. And, there's no reason why it should
not be very profitable.
Do remember that most auctions demand cash
on sale. So, take an appropriate amount
with you. If this is risky ask for a
bankers draft at your bank. This is really
a cheque that cannot be stopped and most
auctions will take them.
At auction, goods are sold in lots. So, you
will need to decide which interests you. It
is a good idea to select 'substitutes' in
case your choices are bought by someone
else.
To start bidding, the auctioneer will
normally set a price. This could be far too
high - or far too low. So, wait until a few
bids have followed. You can then decide
whether the price will allow you sufficient
sale margin and start your own bidding. Each
bid may rise in œ1, œ10, œ100 or larger
units. So you have to keep a check on the
total carefully.
There is a good deal of showmanship involved
in auctioning and you'll certainly need
all your wits about you. Perhaps the main
aim is to ensure you only buy at good low
prices. Fall out of bidding if the price is
getting too high.
Although experienced bidders may make
strange signals to the auctioneer there is
nothing wrong with making your bid quite
clear. You can pick up the 'tricks' that
others use in the future.
When the bidding slows and the appropriate
sum is reached the auctioneer will proclaim
the classic 'going, going, gone'!
When the hammer falls the item is sold at the
final price.
Most auctions will demand a cash deposit at
the fall of the hammer. The only exception
being if they require all bidders to register
and lodge a deposit before the auction. The
balance must be paid and your purchase
removed within a certain time limit.
Note that auctions operate on a 'sold as
seen' basis and rarely give refunds. Only a
few give a guarantee against faulty goods.
So, bid enthusiastically, but with care
taking professional guidance as appropriate.
For best results you should arrange to
process and resell your purchase immediately.
Don't sell at auction though - the profits
won't be enough. Best profits are perhaps to
be found through newspaper advertisements.
Then - when you've cashed your purchase in
and made your profit why not reinvest the
proceeds in an even bigger auction deal?
Some possibilities
Following you will find a list of the proven
opportunities auctions offer:
- Cars. One of the biggest auction money
makers; huge discounts. But, do buy carefully
as you have little protection against faulty
cars, although most auctions have warranties
against stolen cars. Follow all vehicle
regulations - a car dealing licence may be
needed in some areas.
- Household effects. Ideal place to start in
auctions, buying up household items. Often
valuable items can be bought for pence in
'job lots'. Sometimes changes to pick up
antiques.
- Stock. Bankrupt trade stock, discounted
lines, etc. are frequently sold off by
auction. There are good opportunities here
to buy up lines and then offer to traders or
sell via market stalls etc.
- Tools/Plant. Items from the trade are
frequently sold off by auction. This may
include new and used items which can be
bought up and then sold back to the trade.
Do check items offered, as with many other
auctions, it may be up to the bidder to
check whether they are working or not.
- Farm Stock. Another popular auction line.
But it is probably not suitable unless you
have some experience in this area.
- Property. A real potential winner with
huge discounts available on property of all
types. Do take legal advice, and advice from
a surveyor/valuer though.
- Art and Antiques. Offers profits to beat
them all. Needs a little study of the
business - but there are smaller markets you
can try and succeed in. Not all auctions
sell 'old masters' for millionaires only
Always remember of course that auctions do
not always fall neatly into categories. Some
may be a combination of several types - or
completely new auction lines. Just keep
your eye out for any auction - because it's
almost always a chance to enjoy huge price
cuts!
Auction Success
Auctions are a unique opportunity in a way.
Because, unlike other ventures you can't
guarantee a certain trade week in and week
out. Remember though, this means your income
is limited by virtually nothing!
It does not matter how little you know about
auctions - or what you buy. Simply consider
them as a way of getting attractive
merchandise at very low prices indeed. A
source only open to the most enterprising of
people.
'Buy cheap, sell dear' is a principle that
means nothing less than complete success.
Exploit that principle and let auctions make
money for you.
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