Blog Post 3: Glossary of Terms You’ll Hear at an Auction

The auction industry is a world and culture unto itself. Auctions and bidding wars are an ancient form of commerce… and nothing survives that long unless the value is there. If you’ve never been to an auction, it can be quite an experience. The noises, the excitement, the fast pace, the deals, the poker-faces, the competition… it’s quite exhilarating. It’s like a controlled form of gambling where you can truly stack the cards in your favor by having more knowledge than those bidding against you. However, hard-earned knowledge like that is usually only gleaned through years of experience. Perhaps you’re not yet a seasoned veteran of the auction culture… wouldn’t it be helpful to have a glossary of commonly used terms?

Of course it would… so here you go:

The People You’ll Encounter

Auctioneer: Obviously, it’s the person with the microphone, calling the bids and conducting the auction. Most states require the auctioneer to have specific training/schooling, licensure, bonding, and insurance. Some states even require a prospective auctioneer to serve as an apprentice for up to 2 years before they can be licensed. Such strict regulations are an effective way to protect the integrity of the industry and protect the bidders (public).

Ringman: The Ringman/Ringwoman, also known as Bid-Assistants, or Barkers, are the people you’ll see in the crowd, helping the auctioneer see and hear all bidders. The crowd can get quite large, compacted, and huddled around the action. The Ringman is there to help ensure you’re heard by the auctioneer. They also function as a translator between you and the auctioneer. If you’re not accustomed to hearing and following the auctioneer’s fast pace, the Bid-Assistant can help. The Ringman is your conduit to the auctioneer.

Bidder: That’s you… and it’s also many people in the crowd around you. I say many, because not everyone in the crowd is a bidder. Being a bidder means you have registered to bid and have been assigned a unique bidder number. This may be in the form of a card, a paddle, or just a piece of paper with your number written on it. Getting that number means you’ve provided identification, contact information, agreed to the their Terms and Conditions, and perhaps placed a deposit or credit card authorization. It’s usually the same process for online bidding. Keep your bidder number secure, it represents you.

Seller: Usually the seller is a 3rd party that owns the equipment being auctioned. The seller is the one that hired the auctioneer to sell their assets, or consigned their equipment with the auctioneer to be sold at a multi-seller auction. It’s good to know the difference because this can give you clues about what you’re bidding on. Think of yourself as a detective, searching for clues… clues which can help you formulate better strategies, and ultimately get the best deals. Knowing who the seller of an item is, and why they’re selling it can be a handy clue to have.

Clerk: There’s a lot of accounting going on during all the excitement. Bids are placed, lots are sold, totals are calculated, and premiums are tallied. And while all this is going on, it’s also being categorized and stored, according to bidder numbers. This can be done manually, on a computer, over the internet, or any combination thereof; and this is all performed by the auction clerk(s). This is usually the same person(s) that issues you a bidder number, and takes your payment if you buy anything.

Types of Auctions

Online: This is an auction that takes place inside of an online bidding platform. This can be an auctioneer’s website, or through a portal to a secure bidding platform on another website. The secure bidding platform, separate from the auctioneer’s website can be particularly useful to you as a bidder. Some of the most reputable platforms, such as HiBid.com, ProxiBid.com, and BidSpotter.com have hundreds or thousands of auctioneers paying for their services. This means that you, as a bidder, with just one account, can bid in, keep track of, and have access to thousands of auctions and auctioneers online. Plus, these large-scale, multi-auction platforms enable you as a bidder, to do a proximity search, by zip code or city, for specific items, across all auctions on that platform (a huge time-saver!).

Live: This auction takes place live, in-person. It’s the classic auction format, with the auctioneer calling bids while the crowd gathers in a frenzy to buy. It’s a terrific way to liquidate enormous collections of assets, estates, supplies, equipment, vehicles, surplus, or anything you can think of. It’s also the most exciting way to do it. You can’t beat the energy at a well-orchestrated, live auction…. it’s incredible.

Simulcast: Also called Webcast, this is when the auctioneer combines the live auction format with online bidding, through special software or online integration platform. It can be an effective method for reaching the largest amount buyers when auctioning off niche equipment with small local markets.

Absolute: If an auction is advertised or disclosed as “Absolute,” then ALL LOTS in the auction will sell to the highest bidder, regardless of price. If the auctioneer only takes a single bid on a particular lot, and that bid is only $1… then that lot just sold for $1.

Though it’s worth noting that this doesn’t mean the auctioneer must drop the price until someone bids. If the auctioneer determines the price has dropped too low, and no bids have been placed, the auctioneer, at his/her discretion, has the authority to stop the auction and withdraw the lot. This is often referred to as No-Sale, Pass, Passed, or Withdrawn. It’s important to understand this because if you’re waiting for the price to drop, there’s no guarantee the auctioneer won’t stop the auction before the price drops below a certain point. This is why it’s good to follow the auctioneer on other items you may not be interested in, just so you can get a better idea and feel for that particular auctioneer.

But don’t panic… if you miss out on an item because it was withdrawn before any bids were placed, feel free to approach the auctioneer or Bid-Assistant and make an offer. They’re not required to accept your offer, but many times they do.

Reserve: This is when an item being sold at auction has a pre-determined, minimum selling price. The reserve is not usually disclosed to bidders (but it can be, at the seller’s discretion). Though, during the bidding (if live) you may hear it announced during bidding, that an item has reached the reserve and will sell. If an item does not meet the reserve, it is not sold. If you’re the high bidder, and the reserve was not met, don’t be afraid to approach the Auctioneer or Ringman and negotiate a deal. Many times, the seller can be nudged in your direction if you agree to be nudged in theirs a little more.

Silent: Silent auctions are often encountered at benefit auctions but can be used anywhere. Also known as a sealed-bid auction. This is the type of auction where nobody is calling the bids. There will be a bid box in front of each lot up for auction. As a registered bidder, you will fill out a bid slip and place it in a sealed envelope. When the auction concludes, the auctioneer will open the bids, then award that lot to the highest bidder. This is not to be confused with a max bid feature or absentee bid (described next).

Commonly Used Terms

Absentee Bid: Mostly used for live, on-site auctions, absentee bids allow for bidders with scheduling conflicts to place a bid, by proxy. Usually this is done in writing, after signing and agreeing to the terms and conditions of the auction. The bid will specify a maximum amount chosen by the bidder, and the auctioneer will bid on behalf of that bidder, up to that amount. If the auction closes below that amount, the absentee bidder wins the auction item for that lower amount. If the auction exceeds the amount, the absentee bidder loses the bid and the item is awarded to whomever the highest bidder was.

All One Money: When there are multiple items in a particular lot, and the lot will be sold for a single price. So if a particular lot consists of 200 wine glasses, and the closing price is $25… then that entire lot sold as one item… for a total of $25.

By-The-Piece: Also known as “times the money’ or “quantity” (x2, x3, x4, etc.) … this is a bid multiplier, where the high bidder must take all. Let’s say a particular lot consists of 20 folding chairs. If the auctioneer announces that they will be sold “by-the-piece,” and the highest bid was $5, then the total price for that lot will equal $5 per chair, multiplied by 20 chairs… or $100.

Choice: Let’s use the chair scenario again, but this time the auctioneer announces “Choice.” This means when the auction closes, the high bidder will be able to choose which, and how many of the chairs they want. Their winning bid will then be multiplied by the number of chairs they selected. The high bidder can select any number of chairs they want, from 1 to 20, and are usually allowed to quickly cherry-pick which ones they want. If the high bidder doesn’t take all the chairs, the back-up bidders will be offered choice next. If no back-up bidders take the offer, the remaining chairs will be auctioned in a new round of bidding.

As Is: Usually described As-Is/Where-Is, meaning the auctioneer makes no representations as to the condition, quality, or functionality of an item. It could be missing parts, it could be broke, or it could be in perfect working condition. As with any auction, it is incumbent upon the bidder to perform their due diligence and bid accordingly. Additionally, the “where-is” identifier means that lot is sold where it is, and the high bidder is responsible for all labor, expenses, and liability for removing that item. If you’re new to the auction world, this may seem harsh. But many times, this is the only way an auctioneer can ethically sell an item. Think about it… that auctioneer doesn’t own that item, they have no history with that item. And in many cases, the seller doesn’t either. This would be the case in an estate liquidation where the seller is deceased… or a bankruptcy or tax liquidation where the seller is the lien holder. The auctioneer can’t be expected to ethically represent such equipment in any way other than As-Is/Where-Is.

Bidding Increments: Auctioneers move fast, and they need to if you expect hundreds of lots to sell in a single day. One way in which an auctioneer achieves this is by moving in predictable increments that the crowd can follow. How confusing would it be if the bids went as follows: $1… $4… $6.37… $6.41… $7.67… $7.68… $7.69? That makes it difficult to know what the next bid is. This is why auctioneers follow increments that make numerical sense. It makes the bidding easier to follow and predict, thus the bids move along much quicker. However, these increments can and usually do change as the price goes higher. Typical bid calling increments are:

• Single Digit: 1, 2, 3, 4, 5, 6, 7, 8, 9

• Double Digit Fives: 10, 15, 20, 25, 30, 35, 40, etc.

• Double Digit Quarters: 45, 47.50, 50, 52.50, 55, 57.50, 60, 62.50, etc.

• Triple Digit Tens: 100, 110, 120, 130, 140, 150, 160, 170, 180, 190, 200, etc.

• Triple Digit Quarters: 100, 125, 150, 175, 200, 225, 250, 275, etc.

• Triple Digit Halves: 500, 550, 600, 650, 700, 750, 800, etc.

None of this is the rule however; these are just guidelines. And it’s up to the auctioneer to choose the best routes to take; and that will likely include switching back and forth as the bids go higher, and speed up or slow down. You should familiarize yourself with these increments and try to get a feel for the auctioneer’s rhythm. Then you can focus more on your bids, predict the next bid, and be a more effective auction-goer.

Chant: This is everything that comes out of an auctioneer’s mouth during the bidding. It’s their rhythm, their words, their patterns, and their speed. Many auctioneers have a chant that’s unique to them, but all great chants have that unmistakable sound. It’s not music, it’s not singing, it’s not talking, it… well… it auction-speak! And I absolutely love to hear a good one! The chants can differ greatly depending on what kind of auction you’re attending. Art and wine, for instance, are typically much slower paced. Whereas livestock, or car auctions are much faster. This is primarily because those auctions are full of professional bidders/dealers, and multiple hundreds of lots must be sold. Cases like this require speed and efficiency.

Catalog: Also referred to as the Auction Bill, this is a list of all the items in the auction, and is subject to change. It also can contain the Terms and Conditions, or other pertinent details on the auction. The lots in an auction are usually numbered, and those numbers are referenced in the catalog when accounting for closing bids. It’s always a good practice to have a pen and write down your winning bid amounts in the catalog. That way you can keep track of your spending, and address any accounting issues when you settle your invoice. But don’t forget to keep a mental note of any buyer’s premiums, taxes, or other fees that may be added to your invoice, as defined in the Terms and Conditions of that auction.

Hammer: The auctioneer may or may not have an actual hammer, also referred to as a gavel. When you hear the term “hammer-price” it refers to what a lot sold for (not including fees, premiums, and taxes).

Last Call: Although not a requirement, many auctioneers will announce “Last call,” to signal to bidders that the hammer is about to fall (close of bids), giving them fair warning to bid now or lose the item. Other common warnings are “all in,” “all done,” or simply repeating the next requested bid with more verbal emphasis.

Bid Sniping: This is a tactic used in timed and online auctions. It’s when a bidder waits until the very last second to place a bid, hoping that no other bidders will have time to jump in before the timed auction closes (think eBay). Most auctioneers feel this is a terrible experience for all parties involved. Therefore, we usually have an extension feature built into the auction ending, dictating that if a bid is placed within the last moments of an auction, the auction will automatically extend, giving all bidders a short window of time to reassess and bid again if they choose.

Bidder Collusion: This tactic is against the law, and occurs when two or more bidders agree not to bid against each other, or form some other type of agreement in an effort to manipulate outcome of an auction.

Shill: This is also against the law, and occurs when an false bids are placed as a tactic to drive up the selling price of an item at auction.

Tie Bid: This is when two different bidders bid at the same time. If this happens, (and it happens often), the auctioneer will decide how to handle it, and will choose who gets that bid. The bidding will resume, and any bidder that wasn’t chosen will then have the opportunity to place the next higher bid.

Sold: Obviously, it’s when the auctioneer closes bidding, drops the hammer, and announces an item is sold. When this happens, a legally binding agreement is executed between the auctioneer, the seller, and the high bidder. Once the auctioneer declares an items sold, it’s too late for any other bidders to jump in. If a bidder claims they weren’t seen or heard, it doesn’t matter; the deal has closed and a legally binding agreement was verbally executed. When the auctioneer refuses to re-open the auction, he/she isn’t being mean, they’re just following the law.

Title: Some items come with a title, such as vehicles, boats, and trailers. This differs per the regulations of the state an item is titled in, but it also differs per lot. Even though an item is supposed to come with a title, it doesn’t mean an actual title is present, or even available. The auctioneer will make announcements regarding the title, and it may also be announced in the auction bill or catalog. But beware! If a title is described as “attached” it does NOT mean what you think it does. Attached means the title is NOT present at the sale. It may be in transit, it may be in the mail, it may be lost. The best scenario for title is “Title-in-Hand,” which means the title is actually in the auctioneers possession and ready to be signed over.

Terms and Conditions: This is the legal jargon of the auction and should not be overlooked or taken lightly. It describes all expectations, requirements, liabilities, responsibilities, fees, removal details, limitations, and more. When you register for an auction, or agree to sell at auction, you are agreeing to the Terms and Conditions of that auction. If you’re bidding, the Terms and Conditions become a legally binding contract the moment you place a bid… and that contract remains in effect unless/until you are out bid. Be sure you read and understand every word the Terms and Conditions! One more thing about this subject… you also need to listen to the auctioneer’s announcements because there’s usually a disclaimer in the Terms and Conditions that states “Any announcements made by the auctioneer at the time of the sale take precedence over the Terms and Conditions.” So it’s important to pay close attention to all the announcements.

Fees and Monies

Buyer’s Premium: This is a common fee, though not every auction charges one. It’s usually a percentage, that’s added onto the winning bids to help recoup some of the expenses an auctioneer incurs. The premiums vary, so familiarize yourself with it when you read the Terms and Conditions.

Seller’s Commission: This is the fee the auctioneer charges the seller. It can be a flat fee, incremental fee, percentage of sales, or other charge, written into the contract. It’s not cheap to be an auctioneer. We must pay for schooling, continuing education, licensure, bonding, insurance, payroll, site logistics, transportation, equipment, advertising, jurisdictional permitting, security, accounting, software, professional associations, and a ton of other stuff. Furthermore, there are many hours of work going on behind-the-scenes to make sure an auction is successful.

Taxes: This will depend on what state you’re in, and what items are being sold. Some auctions have no sales tax, and some do. Familiarize yourself with the terms and conditions, and all auctioneer announcements at the sale.

Rigging & Removal: Some auctions include lots that (for safety) require trained professionals and specialized equipment to de-install. This fee will usually be charged to the winning bidder, and clearly disclosed in the Terms and Conditions, and sometimes in the auction item description. It’s usually also announced by the auctioneer at the time of sale. Examples can be, but are not limited to:

• Crane services to remove roof mounted equipment

• Electrician services to disconnect high voltage supply lines

• Plumbing services to safely shut off water main, or disconnect lines

• Industrial equipment requiring specialized rigging or lifts

• Flatbed loading services or logistical transport

Deposit: Many auctioneers may require bidders to place a deposit before being allowed to participate in an auction. This deposit is at the discretion of the auctioneer, and can be in the form of monies held, bank letter of credit, credit card authorization/hold, or other form of consideration, described within the Terms and Conditions of the auction.

Credit Card Processing: Credit card companies charge the auctioneer around 3% to process credit cards of the bidders. Some auctioneers offer bidders a 3% discount on the buyer’s premium if the buyer pays in cash. This discount is at the discretion of the auctioneer, and will be explained in the Terms and Conditions, and/or auctioneer announcements at the time of sale.

I hope this was helpful. It’s not an all-inclusive list of terms, but it should be enough to get you through your first several auctions looking like a pro. Good luck, and happy bidding!

If you’d like more information, or if you have any questions, please don’t hesitate to reach out. I love what I do and enjoy helping any way I can.

Mark Busby - Principal Auctioneer/Founder

BidTender Auctions in Fairfax, VA

www.bidtenderauctions.com

Blog Post 2: How to Buy a Used Commercial Freezer or Refrigerator

I’ve owned two restaurants in my life, and many of my closest friends are restaurateurs. It’s gets in your blood… but if you’re reading this blog, you already know that. Here’s something many of us have in common: at the beginning of our entrepreneurial adventures, we didn’t know squat about refrigeration, other than what temperature the health inspector wants. Gradually, we learned more as we went along. Most of these lessons usually happened in the middle of a Saturday night pop, when the freezer goes down, you’re short staffed, in the weeds, and repair techs are charging their “emergency after-hours” rate. Nothing against the repair techs, they’ve saved my butt many times… if they want more money to come out at 9pm on a weekend, I’ll gladly pay.

Equipment failures are part of the job. The food service industry is not for the faint of heart. We run our equipment, and we run it hard. And since we’re not made of money, we probably bought it used, at auction. A choice which enabled us to outfit our entire kitchen for about 10 cents on the dollar. Publicly-traded, corporate restaurants may be able to spend a quarter million dollars on kitchen equipment, but we know better. We always negotiate the deal, or our dreams suffer what’s known as “death by a thousand cuts.”

If you’ve been in the business a while, you likely are familiar with the following tips. But if you’re new, or in the process of getting up and running in the food service industry, these simple tips can save you a lot of headache and money. Let’s get started!

1.         Read The Data Tag: Most refrigeration will have a manufacturers data plate or sticker inside the unit. It will tell you a lot about the unit. What kind of refrigerant does it use? Refrigerators should be R134a, R290, or newer. And freezers should be R404a or newer. Avoid units running on R12, R22, etc. They stopped manufacturing those a decade ago, so supply and demand has driven the price of those gases to ludicrous prices. Also, if a unit runs on an older refrigerant, you know it’s a much older unit, and probably best avoided altogether. The data tag will also tell you the power requirements (you’ll probably want single phase, 120 or 240 vac). Lastly, the data tag will have a serial number on it. Some brands (like True Manufacturing) will have a serial-number lookup on their website. You can input the serial number and determine the age of the unit, which should play a huge factor in the price you’re willing to pay.

 2.      Check The Thermostat: We already know the unit is cold and maintaining the proper temperatures. But that doesn’t mean the thermostat is functioning properly. This tip also applies to ovens, warmers, holding cabinets, bain-maries, just about anything with a thermostat. Get the unit to the desired temperature, then slowly lower or raise the setting on the thermostat until you hear or feel a faint click. That clicking sound is where the thermostat setting meets the actual temperature of the unit. And you should be able to slowly turn the dial up and down, hearing the click, or the compressor and fans turning on and off. If nothing happens, it’s likely you have a thermostat issue, which will lead to the unit getting too hot, too cold, etc.

 3.      Check The Door Gaskets: Open the doors and inspect the gaskets. Run your fingers across every inch of them. Are they torn? Do they seat properly? If they’re magnetic, do they seal properly when the door is closed? Replacing them is usually simple enough, but they can cost over $100 each, if they’re still being made for that particular unit. A cost that should definitely be factored into the price you’re willing to pay. The same goes for shelving inside the unit. Needing $600 worth of shelves kills the deal in my mind.

 4.     Check The Casters and Legs: I can’t tell you how many times I’ve seen a piece of equipment up for bidding that is missing a back wheel or leg, and the unit is kept upright by a brick or some other form of half-assed rigging. Don’t get me wrong, I understand the restaurant or bar owner doing this on the fly to keep his business running… but as a prospective bidder you should look for this kind of thing. It may not sound like much, but restaurant equipment is deceptively heavy. A typical double-stacked convection oven weighs over a thousand pounds. And refrigeration typically weighs in at four hundred pounds per door. If you buy one of these units, you have to get it out of the building, into your transport vehicle, and into your building. A missing wheel or leg can make that move far more difficult. And finding a replacement caster that matches the others can be difficult and expensive, because they’re usually proprietary (meaning the one at Home Depot or Harbor Freight probably won’t fit). A missing leg or caster shouldn’t preclude you from bidding on the unit, and it might even enable you to get an incredible deal because others don’t want to deal with it. Just be aware of it.

 5.      How To Get It Out of The Building: This may sound obvious, but it’s an easy thing to overlook when you get caught up in the excitement of an auction, or a good deal. Look at the unit, then before you buy it, walk the route it will have to go to get outside of the building. Are there stairs? Will it go through the doorways without having to be taken apart? If you have to lay a unit down to get it through a door, is the ceiling on the other side high enough to stand it back up?  Do you have enough manpower to safely lay the unit on the side or back?

 6.      Tipping Refrigeration Over: This is a task that’s best avoided if possible. The reason is that the oil inside the compressor will percolate into the lines when it’s tipped over. Not a deal killer, but not ideal. If you must tip it over, take a look at the compressor. Some compressors you will notice all the copper lines come out of the same side… if you’re lucky and this compressor is configured that way, tip it over on the opposite side. That way the oil won’t pour into the lines. But either way, once you tip it over, be sure to wait at least 48 hours to plug it in so you give the oil plenty of time to percolate back into the compressor. IMPORTANT: Before tipping over a refrigerator, inspect the mounts on the compressor. Many times, you fill find units with the bolts removed. This means if you tip the unit over, the compressor will fall over inside the unit and likely cause expensive damage to the unit. If this is the case, don’t tip it without securing the compressor in place. You can do this on-the-fly with wire-cutters and a metal coat hanger, or heavy-duty zip ties, or even a ratchet strap. Just be careful, the copper lines are easy to break or kink. Also, be sure to remove the shelves, and any covers.

 7.       Check The Condenser Fan and Coils: Take a good look at the condenser fan coils. Are they blanketed and choked up with dust? Here’s a basic description of how refrigeration works: Refrigerant is compressed, then allowed to decompress as it flows through the evaporator inside the unit. Decompression of refrigerant is endothermic reaction, meaning it absorbs heat and thus cools the temperature inside the unit. The refrigerant must then circulate out of the evaporator, and back into the compressor to be re-compressed… and that process is a continuous loop. During the compression stage, the process becomes exothermic, meaning it produces a lot of heat. This heat energy must be removed as it passes through the condenser coils. That’s why fans are blowing directly on the coils… it’s to draw out the heat via forced-air convection. Over time, those coils will build up dust, which restricts airflow and makes the entire system work much harder to keep up. The dust is easily removed with a brush. Therefore, if the previous owner allowed the coils to get choked up with dust, you know the compressor is tired and more prone to future failure. You also know that the owner wasn’t keeping up with preventative maintenance.

 8.      Duct Tape Is Your Friend: Ok, you’ve done your due diligence and bought a great unit for a great price at auction. You’ve even moved the unit out of the building and onto your truck or transport vehicle. Now what? Obviously, you’ll want to use ratchet straps to safely secure the unit during transport. But is that all? Nope. You’re almost done, but there’s another critical step. Can you move or wiggle any part of the unit? Will wind move any part of the unit? Will doors open, or covers fly off while you’re driving down the road? The answer is probably yes. The easiest fix is duct tape (provided it’s not raining, and your unit is not greasy). I found that the “Gorilla Tape” brand works best and leaves less glue behind when it’s time to remove the tape. I use a lot of it. Tape the doors shut, remove the panels, or covers, or tape them securely in place. Remove the knobs and secure them somewhere they won’t get lost, or tape them in place (they’ll vibrate right off the unit if you don’t). If it’s raining, or the unit is greasy, the tape probably won’t stick. It’s probably best in this case to remove every moveable part and secure them inside the vehicle. If this is not possible, bungee cords are incredibly useful. Whatever it takes. Don’t drive away until your entire load is secure. Pieces that blow away on the highway are expensive to replace. But even worse, they could kill someone driving behind you. And if a cop sees it, you’ll surely get fined.

I hope these tips are helpful to you. As a prior restaurateur, I understand what you’re going through, and am truly excited for you. I wish you nothing but success. Hopefully these tips, in some small way, contributed to that. Thank you for reading!

Mark Busby - Principal Auctioneer/Founder

BidTender Auctions, Inc., Fairfax, VA

www.bidtenderauctions.com

Blog Post 1: Smarter Tactics for an Advantage at any Auction

The following tips are meant to help you find the best deals on equipment at any auction, anywhere, not just with my company. I’ve been buying and selling at auctions for most of my adult life; and over the years I’ve picked up many helpful tricks of the trade. I can’t give away all my tricks, but I’m happy to pass along some good ones to help you get the best deals possible. Here’s just a few, I’ll post more in the future.

Vince Lombardi once said: “Football is a game of inches, and inches make the champion.” Think of these tips and tricks as inches in the auction game. These small gains in inches can add up quickly, and over time, will give you a measurable advantage over your competition. Let’s get started!

1. Know The Equipment More Than Your Competition: This may seem obvious, and it probably is. But there are more reasons at play here than many realize. The key is to study types, brands, and models of equipment that are most useful to you; then organically grow your product knowledge on those items. Become the authority on that particular equipment. Here’s just one example how that knowledge can serve you: Look for online advertised auctions with poor photography. Your knowledge of that equipment will enable you to spot clues in the pictures that non-experts will miss. This will help you in knowing what to bid on… and equally as important, what not to bid on. It can also improve your luck at in-person auctions by helping you decide which auctions to attend, and which not to attend. You can’t be in two places at once, so being able to make educated decisions on which auctions will provide the best opportunities is critical.

• Example: Years ago, there was a subtle design change in the door handles of most True brand commercial refrigeration. The door handles on these units come either a) bolted onto the door, or b) integrated within the door via a cutaway. The units are otherwise nearly identical. The cutaway door handle is the newer design, so 99.9% of the time, you can tell the type refrigerant inside the unit just by the type of door handles. Let me explain: in refrigerators you want R-134a refrigerant or newer; with freezers you want R-404a or newer. Anything using the older, banned refrigerant types will be incredibly expensive to service because they stopped making those refrigerants a decade ago. So just by the door handles, you can tell if a particular unit is over a decade old, expensive to service, and probably best avoided.  

2. Government Sourced Equipment Can Be Superior: There are several reasons for this. First, you’re likely buying equipment from the original owner (the government), so you pretty much know it has been professionally maintained since new. And since it’s the government we’re talking about, you know it was owned by someone who can unquestionably afford the cost of such contracted services. The government doesn’t typically buy equipment by piecemeal… they contract for entire fleets of equipment, from top-of-the-line commercial brands like Hobart, Vulcan, True, Beverage Air, Lincoln, and Berkel, just to name a few. These fleet contracts usually include regularly scheduled, professional service… at intervals recommended and performed by the manufacturer. When you see government sourced equipment at auction, or for sale, many times it because the government is replacing the entire fleet with another fleet contract-purchase. And typically, the government only liquidates equipment because that equipment has met the government’s predetermined standard-replacement-criteria for age… which can be as little as a couple years old. Other times, they close or move a facility and liquidate equipment that is nearly new. Many times, we’ve even seen brand new, never used equipment, still in original packaging, being liquidated by the government. What would you rather have, equipment as described above, or equipment with an unknown history or age? While none of this is a guarantee, it’s a pretty good bet.

3. The Bigger The Equipment, The Bigger the Deal: This tip is for the industrious bidders that have experience and can handle heavy lifting with hard physical labor. Personally, I love that stuff… even if my body regrets it in the morning. The following tip isn’t usually the case, but it’s one that happens often enough to merit keeping it in your bag of tips and tricks.

Many auctions will have extremely large, heavy items that most bidders don’t know how to handle without hiring a commercial moving company. This drastically reduces the number of competing bidders, thus reducing the potential auction price. I’ve been to onsite auctions where walk-in coolers and walk-in freezers sold for only $50 because none of the bidders had the knowledge or ability to professionally disassemble and transport them. I’ve seen other equipment, weighing 2000+ pounds, sell at auction for peanuts because bidders lacked the knowledge and equipment needed to move it. And we’re talking about equipment that has potential for bringing several thousands of dollars or more, with better marketing exposure. I call these situations “Bluebirds.” Why bluebirds? How often to you see a bluebird in the wild? Not too often. But they pop up occasionally, and when they do, it’s makes you happy. You’d be amazed at what you can safely and effectively move with just the following equipment:

• Truck with commercial liftgate (can be easily rented if you don’t own one)

• Pallet Jack

• Commercial Grade Appliance Dolly

• Floor Dollies

• Machinery Skates (rarely needed)

• Pry Bars, Johnson Bars

• Basic Tools (socket set, adjustable wrenches, screwdrivers, channel locks, vice grips, wire cutters, electrical tape, and a voltage detector)

It may seem overwhelming to consider moving a 2500-pound piece of equipment out of the building and onto your truck or trailer. But don’t think of it that way. I’ve actually done exactly this… completely by myself, in the beginning of my career. The key is having a proper mindset, and taking your time. The mindset comes from thinking “I only have to move this equipment one inch at a time… and I can move anything one inch.” It’s not a trick, it’s true. If you have some basic tools, and knowledge of leverage, you can move anything an inch at a time. How do you think the pyramids were built? But there’s also a safety measure built into this “inch” thing. If your goal is only to move it an inch, if something fails, if you misjudge or miscalculate, if you loose control of the load, it only moves an inch.

Also consider that it might be easily disassembled into much smaller, manageable pieces. Just be sure to take pictures of it as your disassembling, so it’s just as easy to put back together. It’s also handy to keep Ziplock baggies on hand for screws and hardware.

It’s a great idea to call the auctioneer before you bid to find out what difficulties may be involved at the auction site. You’ll be glad you did, and the auctioneer will surely appreciate the call. You’d be amazed what auctioneers see from unprepared bidders showing up to pick up equipment they have no capability of safely handling. When calling the auctioneer, you’ll want to ask things like:

• Where in the building is the equipment located? Will you have to contend with stairs? Are there wheelchair ramps that you can use to bypass carrying the equipment up or down stairs. Is there a useable elevator that can handle the equipment weight?

• What is the parking and vehicle access like? Can a truck pulling a trailer easily access the building? If the building is in the city, what is the parking situation (meters, availability, etc)

• Has the equipment already been disconnected from gas, water, and electrical lines? This is a great question, even it doesn’t apply to the items you purchased. Would you want to be walking around a building while untrained, unlicensed, unknowledgeable bidders are disconnecting gas lines, cutting power cables, and spraying water all over from leaky waterlines or mishap disconnects? I know this sounds ridiculous, but I promise you, it happens every day in this industry. It pays to make sure you’re dealing with a reputable auctioneer, and there are plenty of reputable auctioneers out there; just do your homework… and keep this tip tucked away in the back of your mind for your own safety.

The prospect of moving any of the equipment as described above may be well outside the scope of what some bidders are prepared to handle. This is when it’s important to do business with auctioneers that have the professional, trained staff and equipment to help. BidTender Auctions is happy to provide such a service to our customers. We usually relocate all the equipment to a location that facilitates the easiest, safest removal for our customers. This saves valuable time and money for everyone involved… and that’s good business. We’re not the only auctioneer that provides such services, there are other great companies that do this as well. But we’re few and far between, and its details like this that can take an otherwise nightmare logistical problem and turn it into a walk in the park.

4. Scrutinize All Items in the Auction: Take a deep look at all the items in the auction, not just the items you want to bid on. Knowing the quality and condition of all the items in the auction can give you possible clues on the source of the equipment. Is there a lot of junk in the auction? That by itself doesn’t necessarily mean much… but it’s worth noting because we’re looking for patterns. Patterns allow us to connect the dots and spot potential issues. Are there items in the auction that don’t fit into the general genre of that particular auction? If so, why would they be there? Are the item descriptions given in an honest, straightforward manor; or are they a sales pitch? I’m not suggesting that a sales pitch is always a negative thing; they can be useful for bidders that are unfamiliar with a particular item up for bidding. But they can also be misleading by unscrupulous sellers.

• Example: A refrigerator in an auction is described by saying “just needs Freon.” Statements like that should set off red flag in your mind. At best, it demonstrates a lack of technical knowledge… and anyone making a statement like that should possess technical knowledge. Refrigerant isn’t “used up” like gasoline in your car. Refrigerant is compressed by the compressor, then allowed to decompress, all while remaining inside a closed system. If a unit “just needs refrigerant,” then that means it leaks refrigerant. It’s simple to add refrigerant, and the unit will probably work ok for a while… until too much of it leaks back out. While leaking, the compressor works overtime to compensate for the low levels of refrigerant. This puts undue stress on the compressor and can result in a premature failure of the entire unit. The proper repair is to sweep the unit for leaks and repair them by safely reclaiming the refrigerant, purging with nitrogen, brazing the copper lines and retesting for leaks. Then you purge the system again, using nitrogen, bring it to an atmospheric vacuum, and recharge it with the proper refrigerant, measured precisely by weight. I don’t expect you to remember all of this, and you don’t need to. But you can now see why some equipment owners don’t fix the unit properly… it’s expensive. So whenever you hear an “easy fix” sales pitch on a piece of equipment, ask yourself… if it really is an “easy fix,” why didn’t someone just fix it?

I have plenty more tips and tricks for you, but that’s enough for this blog post. Thanks for reading!

Stay tuned for more helpful information from an industry insider.

Mark W. Busby - Licensed Auctioneer, Founder

BidTender Auctions, Inc., Fairfax, VA

www.bidtenderauctions.com