Auctions can be your best source for inventory or a quick way to lose money. Success requires strategy and discipline.
Types of Auctions
- Estate Auctions: Often the best values, especially in rural areas
- Consignment Auctions: Regular sales with varied inventory
- Online Auctions: Convenient but competitive
- Specialty Auctions: Higher quality, higher prices
Before the Auction
Always preview in person when possible. Examine items carefully, check for damage, and research values. Set maximum bids for items you want and stick to them.
Live Auction Strategy
Arrive early, get a good seat with visibility, and pay attention. Know the auctioneer's style. Some start high and drop, others start low. Wait for the right moment to bid.
Online Auction Tips
Factor in buyer's premium (usually 15-25%) and shipping costs. Bid late to avoid driving up prices. Use sniping tools for eBay auctions.
The Buyer's Premium Trap
A $100 hammer price becomes $120 with premium, then add shipping, and suddenly your margins are thin. Always calculate total cost before bidding.
Building Auction Relationships
Regular buyers often get better treatment - early previews, combined shipping, and tips about upcoming sales.