7 Common Mistakes Buyers Make at Auctions

Auctions represent your opportunity to find quality equipment at affordable pricing. However, if you don’t have experience in the auction process, you may make mistakes that could cost you more money or leave you with ineffective equipment for your business. To help guide you as you bid for new equipment, our Toronto-based auction appraisal team at Michaels Global Trading will highlight the 7 most common mistakes that buyers make when they visit local equipment auctions.

1. Not Completing Preparations

Many steps go into preparing for an auction, including some you might not have considered. For example, have you reviewed the process for integrating the new equipment within your facility? Is your team ready for the new equipment delivery? Do you have a clear understanding of the bidding process and how to communicate your bid with the auction house? A lack of preparation may have a significantly detrimental impact on your organization.

2. Presenting Low Bids

When you visit the auction house and make your bids, you might be afraid of bidding too high on the equipment. Remember: the bidding process is a competition. You want to show your competitors that you are serious about the process, and that you can spend the money and secure the product for your business. Remember to be bold in your bidding and try to act as quickly as possible.

3. Failing to Bid

If you don’t get your bid in on time, your competition may capitalize on your failure. Remember to bid early and consistently, and show your competitors that you’re not afraid of being aggressive to access the item up for bid. However, if you find that the bidding goes beyond your budget, you should also know when to back down.

4. Not Knowing the Auction House Rules

In addition to preparing for the bidding process, you should know the specific rules for the auction house. Make sure you consult with the auction house early on in the process. Discover their deposit and final payment rules. Discuss the storage requirements for the equipment, and make sure you know how much time you have before you must take the equipment from their property.

5. Failing to Remain in Control While Bidding

Keep calm during the bidding process, and remember that the auctioneer only wants the highest price for the item. They will allow you time to make your bid if you remain calm and in control, and follow all the auction house rules.

6. Not Knowing the Real Equipment Worth

Take the time to analyze the equipment that will be up for bid. Consider all equipment elements, and review these elements alongside your team to create an approximate value for items up for auction.

7. Failing to Consider Hidden Costs

Many buyers rush into a transaction without first considering the hidden costs once the process is complete. Before visiting the auction house, make sure you have a clear idea about their buyer’s premium, and that you’re comfortable with the total cost of the equipment before you finalize your bids.

Book a Consultation With Michaels Global Trading Today

Our team can help you plan for upcoming equipment auctions. We have decades of experience as Toronto-based auction appraisal experts, and we can provide clear guidance regarding your equipment options. To learn more about liquidation and auction services, contact us today.

‍