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Choosing An Industrial Auctioneer
Choosing An Industrial Auctioneer

Choosing an industrial auctioneer to sell your manufacturing equipment is an

important decision and one that can dramatically affect the retirement funds of many

manufacturers. Here are some of the most important things to consider when shopping

for an auctioneer:

1. WRITTEN CONTRACT: The auctioneer should supply a written contract

outlining the responsibilities of each party. Most importantly, when does the

Seller get paid? The contract should be specific on both the timing and manner

of payment.

2. ADVERTISING: Your contract should include advertising specifics; what

newspapers or trade publications, what size brochure and how many will be

mailed. If it's not in the contract, the auctioneer is not obligated to do it. Good

advertising makes for a successful auction. Know what you're getting for your

advertising dollars.

3. REPUTATION: Ask industry professionals and associates what they think of the

auctioneer. Does the auctioneer have a reputation for running quality auctions?

Do they have a strong local, national & international customer base?

4. REFERENCES: Ask for references and follow-up! We recommend running a

credit report on the auction company. This will show if prior clients have had

legal disputes with them, or difficulty collecting funds due them.

5. EDUCATION: Choose someone that has professional training as an auctioneer.

Some states require licensing while others do not. The auctioneer should know

the law for the State in which they're doing business and be able to answer any

questions you might have. Also, in some States auctions are governed by

municipal law. The auctioneer should be responsible for obtaining any local

permits required by law.

6. ASSOCIATIONS & MEMBERSHIPS: Is the auctioneer a member of the

National Auctioneer's Association and/or their State Association? Why is this

important? Members of these associations are held to higher ethical standards.

Involvement in these associations indicates that the auctioneer is involved in

continuing education and ongoing improvement of their trade skills.

7. COMMUNITY: Does the auctioneer make donations of their time and auction

skills to community events or worthwhile charities? While not necessarily an

indication of his or her qualifications to conduct your auction, it does speak to

the character of the individual.

8. LICENSED REAL ESTATE BROKER: If you are selling your real estate at the

same time, consider hiring an auctioneer that is also a licensed real estate broker.

If your equipment advertising is already reaching a highly targeted audience, it

makes sense to alert these potential buyers to the availability of the real estate.

Choosing your auctioneer to sell the real estate portion of your business can

substantially add to your bottom line. Typically when real estate is sold at

auction there is NO SELLER COMMISSION. The auctioneer is paid by the buyer

via the "buyer's premium".

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