Home-Based Business Idea – The Kiddie Party Market

Running a home-based business that fuels your passion is one way to increase your chances of success. Given the high failure rate of home-based businesses, doing what you love and doing it well will set you on the right path to success including profitability, self-satisfaction and the sense of doing good in your community.One great home-business idea is party catering for kids. If you love dealing with kids, making them happy and also have a great knack for organizing then this could be one area to look into.Of course you will have to do your own investigations regarding zoning laws as they affect home-based businesses, licenses and that type of statutory requirement. With that out of the way, your next step is to decide how best to organize this type of business.Key questions to consider would be:* What level of catering would you be doing – are you going to limit yourself to meals, entertainment and other party goodies? Or are you going to go the whole way with venue, food, accessories, party favors, et cetera?* Do you have proper contacts with suppliers and if not how are you going to go about making these contacts and what arrangements would be best for your business?* What age group would you be catering to, and given certain age groups what special arrangements will be needed. For example, would you be prepared to cater to a party for a bunch of 3-year olds that may not all be potty trained? And if yes, what would you need to have in place to ensure that the situation does not become chaotic?* How would you market your services? Would it be possible to link up with one of the big box children stores and offer them exclusive discount coupons to give to their customers? Taking this approach could significantly reduce your marketing costs but you would have to really convince each of the stores willing to listen to you that you are serious about this business and show how it is also a plus for them, especially if you are into particular party themes.Catering to parties for kids is certainly a great home-based business idea worth looking into given the seemingly attractiveness of the market. Of course a market research would be in order before making any final decisions. But this idea for a home business of itself seems very attractive and suited for one who loves interacting with small children and providing an abundance of fun for them.

4 Things You Need To Start a Successful Home Based Business

Many people wonder how they can have a successful home based business. Success is based on a number of things. Leads, commitment, time and motivation are just a few factors. I’m going to focus on a few things you should look at to begin.Leads are crucial to any successful home based business. You need people looking at your business, no matter what you are selling. You need foot traffic, you need readership, you need customers eating your product, etc. Lead generation can be hard, but with the right marketing system, and work on your part, can be highly rewarding and make you successful. Find the right lead generation system, the right marketing techniques and skills and you will be set.You need to be committed to what you are doing. You need to be able to wake up on a Thursday, with a cloudy sky, and resist the urge to go back to sleep. You need to be able to do the work involved with what you are doing. There will always be work that needs to be done, things you need to learn. You need to be able to stand in times of tribulation and discouragement (they happen, believe me!). It all comes down to you, but don’t let that stop you from starting your own business. The fact things come down to you also means you reap all the rewards and gains from a successful home based business. You don’t have to share with others, unless you outsource or contract things in your business. Unlike a traditional job where you get paid a set amount, you can increase your paycheck tremendously! The sky is truly the limit!There was once an ad that I heard where this guy told me I could work half days. I called him up and he said “Yes, pick which of the 12 hours you want to work.” You need time to create a successful home based business. You can’t work in the traditional 9-5 routine. You need to work from 9am-11pm if that’s what it takes. You build systems to help you get things done faster, but you are done when the work is done. Now, once the work is done, you are free to clock out. So it also encourages you to work harder so you can relax more. Just this Summer I went to Branson, Florida, South Dakota, and then back to Florida again. All because I spent the time to create my business in the beginning.Lastly, a successful home based business needs motivation. Think of how good it will feel to relax on the beach while your ex-coworkers are stuck under a fluorescent lightbulb working a dead end job. Think about how freeing it will be to pay off all of your debts. Think about how enjoyable it will be to give your family what they need. Think about the fact you have created your own job security. Think of what motivates you and that will help tremendously with the time and commitment above.Don’t let the fact that it takes work to create a successful home based business scare you off. It is highly rewarding, sets you up financially, and creates a sense of self-achievement that is unparalleled.

Setting Up a Home Based Business

A home based business can be a very rewarding experience. However, you need to carefully analyze the pros and cons. These need to match your personal outlook and temperament in terms of work processes. It is basically preferred by everyone for the flexible working hours and being your own boss. You do not have to commute to office, and you can have massive tax-advantage with home based business opportunities.Few Considerations:The major disadvantages are lack of motivation, loneliness and increased pressure of risk. Apart from this, you would have added responsibilities of managing everything yourself. A sick day could mean a total day off or missing project deadlines. In addition, you need to consider only legitimate home based business. However, it is possible to start a successful home based business. Once you consider the pros and cons initially, you can make a very well informed decision.There Are Certain Elements That Need To Be Taken Into Consideration.* The first thing you need to have is a free home based business idea. Just because you love doing, something doesn’t mean you can grow a business on it. It has to be revenue-generating idea.* Look into the taxes and finances. You might pay more than the required share of taxes when working from home. * How to set up your home office is another important consideration. You should have an office that enhances your productivity. Distractions from residents in the house would not help and add up to many wasted hours.As the business grows, you need to manage and function properly. When a home business starts and grows, it can be overwhelming. Both time and resources are scarce and you need to analyze which projects to take on. Additionally, you need to figure out how to do more in less time.Another important aspect is the marketing of a home based business. While the target audience might be the same as competitors, there is a major difference between an established company and a home based business. This is the financial resources available to a company. Therefore, you need to figure out effective and budgeted marketing tactics. Another very important growth factor for a home based business is network marketing. Once you get a grip on this aspect, it is possible to go from strength to strength in your field.How It Will WorkThe basic criteria should be that your family also needs to be adjustable to your requirements. You should have adequate financial resources to fund the venture. It will take you a while to make profit and your resources should be enough to cover the business as it succeeds.You would require a dedicated space for your office and the communication lines. It should not have any distractions from the family or friends. Assess if your personality is self-motivated and you have self-discipline. Is it possible for you to work in stressful situations and handle isolation? If you fit the bill here then it is entirely possible to have a successful business. This will only grow with time and dedicated efforts to reap rewards.

Home-Based Business Opportunities That Rock!

While some businesses are folding down because of the economic crisis, it is good to note that there are also numerous home-based businesses just starting up despite the crisis. Unlike traditional businesses, a home-based venture is easier to set up because you do not need much capital to start one. And since it is operated right in your home, then you do not need to pay for the overhead cost of an office or even a fulltime staff.But are home-based businesses feasible? A lot of people who have been employees for years are starting to shift to home-based businesses primarily because they have seen many successful ventures and they want to follow suit. Here are some of the possible home-based business opportunities you can start with on a part time or full time basis.BloggingMost people consider blogging as a hobby but if you are serious enough about blogging then it can be a good way to start a home-based business even without retiring from your regular job. Don’t worry about paying for a domain name or a host because it is possible to start blogging for free. There are many sites that will allow you to start blogging even if you do not know HTML. Blogger for one, provides bloggers a very convenient way of starting their own blogs with ready-made themes and easy set of Google AdSense. Don’t expect to earn huge money immediately because you need to build your blog rank and get in as many traffic as possible to get the clicks you need to earn from AdSense. Start by blogging about a niche that interests you most.Wedding ConsultancyIf you love people and parties then why not go into a wedding consultancy home-based business? Wedding planners are highly in demand today considering that up to 20 percent of the more than two million couples tying the knot every year are getting their services. This business requires professionalism and organization especially if you are planning to work from home. Just pull off one wedding successfully and you can expect many customers in the future. You will be surprised how many of the couple’s family and friends are also planning to get married soon and you might just get many clients in the future if you play your cards right. Start by joining bridal shows where you can establish contact with florists, photographers and other people who can help you start your home-based business at the right foot.While you do not need money to start blogging for as long as you already have a computer and an internet connection, you do need to register your wedding consultancy business to make it legal. But while any of the two are home-based business opportunities, it should not stop you from setting up a small corner in your home to serve as your office or work space.There are many home-based business opportunities you can start with small capital. Be prepared to lose the monthly income you have become accustomed with for years in exchange for a more flexible schedule and more income opportunities in the future.

Top 5 Resources For Small Businesses

When running a small business, resources to help you plan, maintain and succeed in your business are pretty plentiful. Yet, like many other things in life, some are better than others. Knowing which ones work, or offer the most useful information, can often be like looking for a needle in a haystack. So here, in no particular order, are my Top 5 resources for small businesses.Small Business AdministrationAlthough primarily for the North American market, the Small Business Administration, or SBA, continues to offer one of the best support networks for small businesses everywhere. Now over 50 years old, the SBA promotes free competitive enterprise so that even the smallest business can succeed. They offer numerous invaluable services, including sourcing financing for your project, expert advice from successful small business owners themselves, SBA programs on employment and business laws, special interest business groups and much, much more. If you are serious about starting or running a small business in America, this should be one of your first ports of call.Inc.comAlmost every small business starts off as an entrepreneurial idea. Sure, it may turn into a large multi-national conglomerate (just look at Richard Branson and his Virgin empire), but 8 times out of 10 any small business starts as a one-man band. So the information to be found at Inc.com is well worth your time. Offering you the opportunity to sign up for free and advertise your business via IncBizNet, Inc.com is designed exclusively for small businesses to find like-minded business people and network. The site also allows you to host a blog, post free press releases and much more. For any small business owner it is an excellent starting point.All BusinessJust like the name says, All Business is a fantastic website that has pretty much everything and anything you need to help you start, run and expand your small business. The site is very well laid out and shares expert advice on franchising, labor laws, marketing and advertising and how to complete legal forms, as well as offering tutorial videos from experts in your industry. It even has a Business Purchase Free Quote Center, enabling you get a free, no-obligation quote from vendors that sell the products you need.Microsoft Small BusinessOkay, so it might seem strange to recommend a behemoth like Microsoft – yet as much as he is often a figure of fun for many, Bill Gates is one of the key proponents of helping small businesses get off the ground. Whether it is making anonymous donations to thousands of small businesses with great ideas, or providing excellent small business tools with his various software solutions, his Microsoft Small Business Center is an extremely useful stopover for any small business owner. One of the prime reasons for this is that it is truly international – simply select your country from the menu, and you will be taken to a hub that is full of the business information you need. With articles, tips and software all leading to your success, the Microsoft Small Business Center should be added to your bookmarks today.Smart BizWith the Internet playing such a large role in allowing more small businesses the chance to start up in the first place, the Smart Biz website is a well of information for online resources. This includes useful information on how to choose an e-commerce partner (very important if you are selling anything from your website), what software is best to run your back office, what telecom networks are best for your business, what advertising or PR agency [http://www.pressreleasepr.com/] to use and much more. Although you can certainly take some of the advice on display here and transfer it to your offline business, Smart Biz is perfect for the online entrepreneur or small business owner.While there are literally thousands of small business resources, I have found that these offer the best choice and knowledge, particularly for free resources. Of course, if you find they are not for you, a quick search on Google will soon get you where you need to go. But for anyone looking for online resources to help you get started whether your small business is online or bricks-and-mortar, the companies listed here are some of the best.

Choosing the Right Money Generating Home Based Business

Starting a new home based business can be exciting and scary. Deciding on the right business and learning how to run it profitably are just a couple of the tasks new home based business owners must tackle. Most of the people starting a new business from home have never run a successful business before and it’s not as easy as most people think.

The first question most grapple with is, “What is the best business?” Most try to decide based upon what they feel they can earn the most money with. Others start by looking at the funds they have to invest and then look to find a business that fits their budget. Making a decision based on either of these factors will almost always lead to business failure.

Most people never make a profit with a new home based business. The three main reasons for all these failed businesses are as follows.

(1) Most people choose a business that is a poor match for them.
(2) Most people are marginally committed to their business success and fail to perform the tasks they are required to do.
(3) Most people who try to stick with their new business complain that they did not get the support they needed to be successful.

Choosing a business is a bit like choosing a mate. A successful relationship is not based on choosing the potential partner who makes the most money or who can be bought cheaply. There has to be a match there and it is the same with choosing a home based business. Novice business owners should choose a business they have a passion for.

The right business will match up with the owner based on his or her interests. The successful business owner will also choose a business based on the available business models available. For example, someone who does not like the idea of calling strangers on the phone should not choose a business where those activities are required. If the business owner does not like performing the basic tasks required, they will soon fade away from performing them and hence, will kill their business.

Novice home based business owners need to tap into an extensive support system. They need to learn what to do, how to do it and they also need to learn the pitfalls so they can avoid them.

Written manuals are a good start. Live group training over the phone is also good. Group training lets you feel that you are part of a community with others who are starting new businesses.

More and more models are offering live web-based video training. This is more effective than audio only phone calls. It’s almost like being in the classroom with the fellow students. Those attending can see exactly what the instructors are doing and they can ask questions if something is not crystal clear.

Some models record training so novice business owners can watch segments over and over again. Video-on-demand training is also a great backup if the new home based business owner is unable to attend training live. The training may originate from a different time zone that is not convenient for some students to attend live.

All of the support described here is more than most novice home based business owners have available to them. Group training is great, but for those who can’t afford to be without the best support available there is one more thing they should have—a mentor.

People need group training and documents, but there is nothing like having direct access to an experienced mentor who is already doing what the novice hopes to do. Being able to get quick answers to questions that come up in the day to day operation of a business is priceless.

Business failure statistics are staggering. However, with the right one dedication and support system novice home based business owners can persevere and rise to the top.

Dean Marino has gained a reputation over the years as the home based travel business expert for good reason. He is a respected trainer and mentor to successful home based business owners throughout the industry and widely regarded as an expert on the subject of travel.

As an avid traveler, Marino has flown over one million miles just with U S Airways and several hundred thousand miles with other airlines. He is a Hilton Diamond VIP member (over 27 stays per year), an Avis First member (the rental car company’s highest elite level status) and a travel agent.

Internet Advertising: Understand the Playing Field

Many Websites, offering advertising solutions, will promise the world, wittingly hiding their true agenda. Internet advertising veterans are familiar with which methods work and which are offered for ulterior motives. However, this comes from experience and, in many cases, moderate expense. Advertising on the internet is still evolving. New ideas are born, and old ones die, almost daily. Because of this, novel advertisers should familiarize themselves with forms of advertising offered before pursuing the solution.

Pixel Advertising

This is a new craze, often referred to as, “Million Dollar Page Advertising”. To summarize, this is a Web-page displaying a large grid. Businesses can purchase pixels, or squares, of the grid. Generally, each pixel cost one dollar. Within the pixels purchased, the business can feature an image that is linked to their Website.

The pixel advertising concept was conceived by 22-year-old, Alex Tew. He developed the original, “Million Dollar Homepage”. Alex’s creation generated Media frenzy, because the idea was simple and original. This frenzy gave lots of weight to his pixel ad solution, so much weight that Alex’s page actually did generate one million dollars. This was achieved by selling a million, one dollar pixels. The mind set for advertisers’ was, buy a lot of pixels and your ad would standout from others.

Attempting to Mirror his success, many developers have created their own, “Million Dollar Homepage”. The problem is the frenzy is not coming. These mirrors are not original with, “Slap you in the face,” simplicity. People are not visiting the vast number of, “Million Dollar Homepages,” to see this new insane concept. Therefore, people are not seeing the ads.

For the most part, pixel advertising will not generate sales. The primary motive, behind advertising on such a venue has evolved to increasing Search Engine recognition for a Website. Once again, this may be from the excellent recognition Alex’s page received. The motive of the business offering the solution is to get rich, period. The vast array of pages offering such a solution will not help search engines understand the premise of a Website. They lack organization and focus.

Viral Advertising

Often considered the most powerful form of advertising and often misunderstood. Some business professionals shy away from Viral Advertising ideas, simply because the term, “Viral”. Despite the common fear of the word, there is nothing wrong with Viral Advertising. To summarize, it simply means Advertising that will continue to spread through the Internet on its own or with little interaction.

Viral Advertising starts with a simple product, feature, service, or idea. It is then offered to the internet community for free. Typically, the advertisement offers something to those who display it. A common example would be Googles’ Site Search. They are offering a powerful utility, to Website Developers, which allows visitors to search the displaying Website. In addition, the visitors can also search the Internet, from the Publishing Website. This could easily introduce or familiarize new users with Google. That is a very powerful Viral Advertising Campaign.

It should be understood, there is no pure format to Viral Advertising. It’s a very broad spectrum that comes in many forms. It requires imagination and vision from the business launching the campaign. It’s simply releasing something that is desired by many and watching it spread. It can be a free program, Website Content, or a utility which improves upon a Website. Moreover, it could be something you, the reader, believes many people would want. If one should find themselves wondering, why something is being given away for free, they are probably witnessing a Viral Advertising Campaign.

A commonly scrupulous Viral Advertising campaign is a modification to Pyramid Sales Schemes. Many developers have probably stumbled upon Internet Sites promising exponential display of any advertisement. The craze has died out a bit, but it still lurks.

What’s really cooking here? We start with the Website offering exponential display of any Internet Sites Advertisement. Let’s call it the Mother Site. In the beginning, Mother is seeking two Websites, to display her advertisement (Typically to the effect of, “Generate 5,000 Visitors in 90 days Guaranteed). After Mother finds two Children, she starts seeking four Grand Children, to display two ads. On all four of the next Internet sites will be Mothers’ ad. The two children will be divided. Basically, Mother now has six ads and her children have two. Mother is advertising nobody. Once mother has four Grandchildren, see seeks eight great children to display three ads. On all eight, they advertise Great Grandmother. Then the tree gets divided again. The Grandparents get their ad displayed on four of the sites. The parents have their ads shown on two of the sites. This ad campaign continues to grow, as the original site finds more off-spring.

The Finer Points of Internet Auctions

WHAT IS A PENNY AUCTION?

Penny auctions have exploded in popularity with the massive growth of the internet. However, few people know the true origins of penny auctions.Beginnings actually stretch back to the Great Depression. Those were hard times for everyone, but even harder for farmers. Farmers struggled to bring in steady income because of droughts and crops not selling as well as they had previously. As a result, the banks would foreclose on the farmers who couldn’t keep up with their mortgage payments.

The banks weren’t satisfied with just repossessing the house, they wanted to raise as much capital as possible, so they resorted to selling off the possessions of the owners of the repossessed houses. There was not much the farmers could do about it so they began bidding ridiculously low prices, pennies, on the items while threatening others who dared to bid higher than a few pennies.

The auctions of today hardly resemble their tremulous beginnings. Being part of a penny auction today is exhilarating, fun, and addictive. It combines the selling format of auctioning with a little bit of chance factored in.Auctions are a game of strategy but also a game of luck.

The premise behind penny auctions is giving people the chance to win an item at a drastically reduced price.Auctions make that possible by spreading out the cost of the product among multiple bidders. In order for a person to take part in an auction, they must pay a set price for each bid. For example, if a person wanted to bid on a fifty dollar Amazon gift card then he would spend a dollar for each time a bid placed. If he ended up winning the gift card, then he would only have spent a few dollars for a fifty dollar gift card. Usually penny auctions sell bids in packages.

HOW PENNY AUCTIONS WORK!

The main foundation of penny auctions is the pay-per-bid format. It is the key that allows bidders to win items at the fraction of their retail value and allows the auction owners to keep their site profitable. Most y auction sites run on the same premise: people pay a set amount for each bid, whenever a person places a bid within the closing seconds of the auction time will be added, the last person left with a unique bid after the clocks runs out will win the item. There are a large variety of items that can be won, but they tend to be popular electronics or gift cards to popular stores.

There are two types of auctions: lowest unique bid auction and highest unique bid auction. Lowest unique auction sounds confusing but it is actually quite simple. A unique bid is when only one person has a bid at a certain price. Bids usually start at one penny, a bidder can then place a bid at two pennies. Until another bidder places a higher bid, the most recent bidder will be the lowest unique bid because that was the only bid at two cents and nobody bid higher. However, penny auctions generally don’t stop at one penny. It is not uncommon to find auctions that end up at a couple hundred dollars based on the popularity of the item being auctioned. However, the same principles apply for those auctions. Highest unique bid auctions follow the more traditional auction format such as eBay. The person with the highest bid at the end of the auction wins the item.

Auction site owners turn a profit by selling bids. Say twenty people are bidding on a ten dollar gift card at one dollar per bid, at the end of the auction if there were twenty bids placed in total then the site owner would have made twenty dollars with a ten dollar profit.Auctions do seem like a win-win situation:The site owner makes money while the bidder gets an item for dirt cheap. However, not everyone wins in penny auctions. The people who paid one dollar each bid but left with nothing to show for their investments will not be so happy.

HOW TO WIN!

Penny auction has a lot of chance mixed into it, but one can incorporate strategy that will help raise the chances of winning. Playing smart can make all the difference between gambling and auctioning.

The first crucial tip to winning penny auctions is to know how to manage your bids. Your goal should be to win as much as possible without spending a ton of money buying bids. Managing your bids means that you should already know how much you are willing to risk in order to win an item. The amount of capital you are willing to risk will determine how many bids you can use. Once you know how many bids you have to spend on an item, then you will be better able to manage how and when you place a bid. That will keep you from blowing away all of your bids in the first few seconds of the auction.

The next tip is to practice time management. When fighting in the trenches of penny auctions, you have two enemies: other bidders and time. Knowing when to bid is a must if you want to have success. Placing a bid when there is a lot of time left on the clock is never a good idea. You have to remember that the key to winning a penny auction is being the last one standing when the clock runs out and that each bid increases the amount of time left. It would be a good practice to wait until the last few minutes of the auction before you begin to bid.

The final tip for successful auctioning is to keep your emotions under control.Auctions have a lot of similarities to gambling, and just like gambling, your spending can get out of control. If you keep your emotions level, it will keep you from making rash decisions and blowing loads of cash. Keep your mind clear so that you can gage the behavior of the other bidders and outsmart them.

HOW TO AVOID SCAM SITES!

Penny auctions are a great addition to the web whether you want to win an item that otherwise you wouldn’t be able to afford or if you simply enjoy the thrill that comes with bidding in auctions. Unfortunately, scam sites have tarnished the reputation of the legitimate penny auction sites. However, there are ways that you can protect yourself from scamers and enjoy your auctioning without having to worry about losing your money due to dishonesty.

Checking the reputation of the auction site before you start spending your hard earned money is always a good idea. Chances are other people have tried the site before you and some of them have left reviews. The reviews are your way to gage whether a auction site is trustworthy or not. If a site is getting overwhelmingly negative reviews, then that is a clear indication that you should steer your business elsewhere.

Another tool you can use to protect yourself is checking the Alexia ranks of the auction sites. Alexia rank will give a solid view of how much traffic the auction is getting. If you see a huge difference in the amount of traffic Alexia is projecting and the amount of active bidders on the site, then warning signals should be ringing in your head. Some auction sites have been known to set up robots that automatically bid on projects in order to keep the auction going and inflate the price. That is known as shill bidding. You can sniff out those sites by comparing the traffic the site should be getting to the amount of users using this site.

CONCLUSION!

New legislation may come out later down the road that will officially make penny auctions gambling, but until then, it is a fun, exciting auction that allows one to win the item they’ve always wanted but couldn’t afford.Auctions are also quite lucrative for the site owners because of the pay-per-bid strategy they’ve incorporated. Penny auctions had humble beginnings with farmers who just wanted to get back at the banks who kicked them out of their house. More recently, auctions have enjoyed an explosion in popularity with the rise of the internet.

There are two main formats fora auctions, lowest and highest unique auction, however they both run on the same premise where the last unique bid wins the item. Winning a penny auction will require a certain amount of mental tactic and a bit of luck. However, you can increase your odds of winning by practicing certain techniques such as managing your bids wisely, learning how to work with the time, and keeping a level head and your emotions under control. When you combine those three strategies to your bidding plan, you will find that you win a lot more often.

It is important that you do your due diligence to protect yourself when participating in auctions. Not every auction is run by honest and trustworthy people. There are people out there who just want to take your money. You can protect yourself by ensuring that you only bid on sites that already have a very positive reputation from real users.

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.


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