12 Best Practices When Choosing an Online Auction House

Are you planning to auction off your company’s tangible assets and intellectual property? Before doing so, you should  research auction companies that are competent in working with companies in your respective vertical.  Working with a reputable and knowledgeable auction company that is familiar with your industry will yield you the greatest return on your investment.  With that said, these are some of the best practices for identifying an auction partner:

Cloud Based Software Platform

Make sure the auction company has all of the resources needed to sell your items. When looking for the best auction platform to sell your surplus equipment, you should consider more than just the auction itself. The right platform should take all of the work off your hands, making your selling process as effortless as possible. 

Marketing Strategy

When you inquire about a marketing strategy, make sure it is tailored to your business. In order to get the most out of your auction, the auction house needs to attract a lot of potential buyers.  This requires marketing.  It takes time to create an effective marketing campaign. Your auction partner should have the capability to produce a clear and concise marketing plan.  If the auction house cannot compose a marketing plan tailored to your business, the auction itself will likely not yield optimal results. 

Strong Marketing Team

A modern marketing team with skilled automation tools and campaign workflows is a must. The efforts of the marketing team will inevitably determine how far your reach will be during the auction process. Inquire about the marketing plan the auction house will be focusing as well as timing and execution of their marketing efforts.  

Savvy Sales Squad

Dedicated Sales Representatives will be able to assist you in determining how likely your lot or equipment might sell for. A well connected sales team and their existing relationship with potential buyers is something to look out for when choosing a successful auction house. 

Dedicated Project Managers

It is a great advantage to have experienced project managers to be involved, for cataloguing assets and taking care of the buyer and seller throughout the entire auction process. A company should make sure items are catalogued in detail in order to maximize returns. Everything should be cleaned-up, staged, and powered on. The project managers should use industry nomenclature and detailed configurations to best answer every question potential buyers may have.

Cross-functional Professionals

It is a big plus to choose an auction house with someone who is competent in working with banks, attorneys, and stakeholders in a company. It will give you more security and peace of mind when it comes to all auction transactions. 

Company History

Do your research. Learn about the company’s history and their competitors. How many auctions have they completed lately? Do their average clients assets mirror or are comparable to yours. 

References

Ask for references, and speak with others in the industry who may have worked with them. Research the company’s case studies in order to determine if the auction house is a good match for the industry niche you are in. 

Costs

Make sure to get answers on most of the obvious and often overlooked questions regarding the cost to participate in an auction. In order to avoid hidden fees, clarify upfront how much it will cost to be a buyer/seller. Also find out how you will get paid in the event of a successful bid and transaction.

Professionalism

In order to build trust with the auction house, they should display a way of conduct with you that is competent and professional. Initial conversations, adequate response time to inquiries, and the staff’s attitude towards their customers will give important clues in this regard. 

Valuation Service

Check if your auction house offers valuation services. Many auction houses can offer free or low cost valuation services prior to the auction, providing you with an accurate amount that you should expect to receive for your asset. 

Post Auction Support

Additionally, check the platform’s policies on what you should expect post-sale: What are the equipment removal policies? How will the paperwork be handled? The best auction houses will take care of you from start to finish. 

If you are a technology company that is looking to recoup value from unused tools, manufacturing facilities, and even related infrastructure and real estate, contact FabExchange at inquiries@fabexchange.com.

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