Technology Changes the Auction As We Know It

Transcription

...as seen in Horological Times
BY JENNIFER BILODEAU
Technology
Changes the
Auction As We
Know It
Introduction
I
n this day and age, most of us have visited eBay at
least a few times. Many have also likely purchased
or sold items on eBay. In fact, online auctions like
eBay are now the norm. Companies all over the world
have brought their businesses to the web to sell their
products through niche online auction sources. This
article will examine three different companies that
make good use of the Internet to reach the most customers possible.
it’s convenient, are huge factors. In addition, internet
search technology makes it easy to locate a single
item from millions of different listings online. For sellers, online auctions create a larger market for their
items. They can also easily reach a large group of bidders on short notice because online advertising works
fast.
There are a few disadvantages to internet auctions,
however. The most obvious is that it’s hard for bidders to inspect goods before bidding in an online
auction (even though they can ask the seller questions online, via e-mail or over the phone). Another
downside is the number of cases of fraud reported by
bidders in online auctions. However, the amount of
fraud is tiny compared to the number of transactions
which take place. Online auctioneers have pursued a
number of ways to minimize fraud, such as encouraging third-party escrow services.
The sellers we interviewed for this article all strive to
take high-quality photos or videos of their items. Their
goal is to provide detailed, accurate descriptions and
offer excellent customer service for sellers and buyers; from the beginning to the end of the process.
The three auction houses interviewed have different styles of business. However, all agreed that advertising is the key to a successful online auction.
From search engine optimization (getting the right
keywords into the search engines), to advertising
in trade publications, or by posting on social media
(Facebook, Twitter, etc.), they couldn’t put enough
emphasis on “getting the word out” to the right buyers. Coincidentally, all three companies have a strong
connection to the field of horology.
Gordon Converse surrounds himself with the timepieces, writes
while examining each piece, looks for facts of interest to collectors, and also notes condition prior to the on-site/online auction.
The first company, Aumann Auctions, is owned and
operated by Kurt Aumann, a professional auctioneer
and auctioneering instructor. Kurt learned the auctioneering trade at twelve years old, getting a very
early start in the business. In the 1990s, he refused to
listen to other’s initial skepticism about the Internet.
Instead, he helped pioneer the online auction. He developed his own auction software and launched his
first auctions online with little hesitation. His auctions
did so well, he now franchises his auction software to
other businesses across the country.
There are several advantages to conducting an online auction, along with—or instead of—holding a traditional on-site auction. For buyers, geographic and
temporal convenience, and being able to bid when
The second auction house interviewed, Carolina Auction & Realty, is owned and operated by Tom Jordan,
a professional auctioneer. The company has a regional focus working mostly in North Carolina and sur-
Horological Times is a monthly publication of the American Watchmakers-Clockmakers Institute (AWCI),
Amy Dunn, Editor, 701 Enterprise Dr., Harrison, OH 45030, 866-367-2924, www.awci.com, copyright, 2012
TECHNOLOGY CHANGES THE AUCTION AS WE KNOW IT
rounding areas. They sell both real estate and personal property using the auction as their method of
marketing. They also handle business liquidations, estates and commercial equipment.
“Get Online or Get in the Bread Line”
Tom finds that educating the public on the items he
sells, and being there for them every step of the way,
makes his auctions run smoothly. The son and grandson of watchmakers, Tom feels a connection to his
timepiece auctions and posts videos on www.youtube.com for a historic account of each piece. This
gives his clientele a sense of confidence when dealing
with him online.
Set in a rural area south of Springfield, Illinois, Aumann
Auction’s spacious, modern buildings encompass
nearly 16,000 square feet with three acres of parking. The Auction Center is designed to conduct two
auctions simultaneously. The owner, Kurt Aumann, a
seasoned veteran in the auction world, has also franchised his proprietary online auction software to 45
auction houses nationwide. Together, they hold a total of 4,000 auctions a year.
The third auction house we spoke with was Gordon
Converse & Company. The owner, Gordon Converse,
has been an appraiser on Antiques Roadshow (yes,
we have a bit of a TV celebrity as an AWCI member). After repairing clocks and watches for a living,
Gordon decided to move his entire clock shop online and use the internet to sell. His online auctions
went so well, he started assisting other people with
selling their timepieces using online auction software.
Gordon enjoys teaching his sellers the value of their
clocks or watches. He is especially interested in helping them research their pieces. Additionally, he knows
it’s vital to get items in front of the right buyers.
All three of these companies couldn’t stress enough
the importance of the online auction supported by advertising. Yet, all three have different business styles,
backgrounds and success stories to share. This article
will describe how online auctions work and how they
could benefit you as a buyer or seller.
Kurt Aumann, Aumann Auctions, ‘Ex’ Auction Software and MarkNet Alliance
Kurt had an interesting start in the auction trade. He
graduated from auctioneering school at the ripe old
age of 12 years old. He was raised around farm equipment, farm toys and antiques and knew from an early
age that auctions were his calling. He worked as an
auctioneer throughout secondary school and after
graduation.
What Does the Internet Have to Do With the First
Automobile?
Kurt Aumann was never a person that take much
stock in what everybody else around him was saying about “trends.” During the late 1990s, Kurt would
hear, “We’re going to wait out this ‘Internet thing’ and
see what happens,” but Kurt strongly disagreed.
He viewed the Internet much like the first automobile.
He realized this was a major development that was
here to stay. Kurt was ready to take his auction business online, while other auction houses were scoffing
at the thought of putting their business on the web.
He saw the Internet as an opportunity to broaden his
audience. The Internet would not require buyers to
be in a certain place at a certain time; bidding could
take place at the user’s convenience. He also realized
the value of Amazon and started selling with them in
1999.
The Next Step: Proprietary Software, MarkNet
Alliance and Franchising
After a few years, Kurt decided to develop his own
online bidding software called, “Ex.” The software
proved to be another great move, growing his
Auctioneer and President of Aumann Auctions, Inc. Kurt Aumann
bid calling at an auction.
company even more. In 2007, Kurt decided to franchise his online auction business. He then created
MarkNet Alliance. This was founded in 2007 with 10
compa-nies and has grown to 45 companies licensed
bid in increments of 15 minutes. This prevents a lastsecond bidder from pushing other bidders out of the
running.
Completing the Cycle
Four years after starting his online auction businesses,
Kurt was ready to share the wealth of information he
had accumulated. He went to the auctioneer schools
to teach classes on how to successfully advertise
auction businesses online. Kurt felt that he had now
completed the cycle. He had started out as an auctioneering student, answered the door when opportunity knocked with the Internet, and steadily grew
his business. He now teaches others how to do the
same. Kurt wants fellow auctioneers to be successful,
just as he has been. He sees with clarity how quickly
consumers adapt and push technology forward. This
allows him to sell online to the world.
Aumann Auction Inc. cashiers, Becky Carter-Beeson and Kiry Aumann, help register phone customers for bidder numbers.
in over 40 states. MarkNet has now become recognized as a leader in online-only auctions.
Kurt only sells his franchise to licensed, auction professionals with proven track records and thriving
businesses. His software, Ex, allows his franchises to
cooperate with other member auctioneers across the
country while managing the process from their home
office. The software also monitors each auction and
allows his clients to track every aspect of the auction
webpage and phone calls, thus giving them the mostup-to-date information on auction activity.
Before the conversation with Kurt ended, he laughed
and reminded business owners to, “Get online or get
the in bread line.” He should know.
As a pioneer in farm toy auctions, Kurt’s company,
Aumann Auctions, has an online bidding platform and
large buying base. They not only auction farm toy collections, but also maintain a presence in timepiece,
coin, train, antique toy, firearm, advertising and petroliana auctions. Aumann Auctions, Inc., a member of
NAA, conducts over 100 auctions a year. Visit www.
aumannauctions.com for information.
The Timing Couldn’t be Better for Online
Auctions
Smart Advertising
Carolina Auction & Realty, Tom Jordan
“If you are marketing your auctions correctly, you can
reach any niche successfully,” Kurt says. He believes
that all online auctions should be advertised in traditional formats such as print, and also on the web.
For niche auctions, like antique clocks, he uses trade
publications like AWCI’s Horological Times to get the
word out to a target industry.
Tom Jordan isn’t just an auctioneer in the North Carolina region. He is also the son and grandson of professional watchmakers. That’s why he’s especially excited when he has an opportunity to market timepieces.
A good example was when an English client moved
to the U.S. with fifty antique clocks. Tom noted that
because of his family history, he felt a special connection to his client’s antique clocks which dated from
the mid-1700s through the late 1800s. According to
Tom, “The online auction went great. We had nineteen bidders on fifteen clocks that placed 184 bids
over a 14-day period. Everyone was locked in. They
already knew what they were willing to spend. The
client and I were happy with the results.”
With niche items like antique clocks, he will have a
professional in horology assist his staff with correctly
photographing and cataloging each clock. This information goes online and each sale is timed, similar
to eBay. However, he has anti-sniping software programmed which allows the bidder to “push out” the
Tom says he works hard to establish honest and open
communication with his clients. He wants each auction, whether online or in-person, to be a “win-win”
outcome for the buyer and seller, both. “People need
to trust their auction house. As an auctioneer, you are
accepting responsibility for the seller’s livelihood. Our
clients call us when they have a problem, and we have
to own their problem. My aim is to give people that
feeling that we are going to take care of them. And
we do,” he states assuredly.
Researching Items to be Sold
Researching Auction Software
Each of the online auctions also categorizes items to
assist niche buyers. These buyers save time online—
they don’t have to sort through a variety of unrelated
items, which may happen at traditional auctions.
When it came time for Tom to expand his business
online, he made sure to perform meticulous research.
After examining and comparing different bidder platforms (auction software), Tom chose Proxibid. This
company works only with licensed auctioneers. He
also knew Proxibid had a good reputation for advertising online and drew a lot of traffic. Additionally,
they offer free training for potential buyers on how
to bid online.
“People enjoy buying online because they can log
on from the comfort of their own home and research
items ahead of time. They don’t feel rushed or pressured because we provide a lot of information and
customer support for them,” Tom adds. “The auction
takes place in a 14-day time span. This gives our buyers time to watch videos on items, perform their own
research, check on shipping costs, and ask us questions. Our staff is always there helping to prepare the
bidder.
Tom does his homework when preparing for an online auction. He and his staff videotape each clock so
potential buyers can see the timepiece running. He
also includes a detailed description with each photo.
In addition, Tom saves these videos on www.youtube.
com permanently, in case another person ever needs
to research that same piece. In a sense, he is “recording” history.
Advertising is Still Everything
Tom continues to perform auctions on-site for such
clients needing business liquidations and selling commercial equipment. Whether he is auctioning items
on-site or online, he advertises every auction online.
Many buyers see his ads online and register to bid, or
show up at the site to view items.
Tom is a member of the NAA (National Auctioneers
Association). The trade association provides training
for auctioneers on how to advertise successfully online. The training covers how to perform SEO (Search
Engine Optimization) for online auctions. Tom enters
his own keywords on his website before an auction.
He often uses Google Keywords to find the most
highly searched terms, like “antique clock auction” or
“antique clocks for sale.” His auctions attract buyers
from all over the world. For the clock collection auction he told us about earlier, buyers placing bids from
all over the U.S. to Singapore and Australia.
Avoiding the “eBay Way”
Tom Jordan conducts an online auction at Carolina Auction &
Realty.
Carolina Auction & Realty also chooses not to follow
the eBay model. What is “the eBay Way?” During the
last 30 seconds on eBay, anybody can sneak in a bid
and knock other bidders out, even if others have been
bidding diligently. To prevent this, Carolina Auction &
Realty also uses “anti-sniping” software that detects
when someone places a last minute bid. The software
extends the sale automatically for 15 – 20 minutes—
and sometimes up to an hour—to foil these last-second attempts.
tower clocks, museum pieces, and clocks for collectors and retail customers in the Philadelphia area.
He also began writing and lecturing on antique clock
topics and became an appraiser for the Antiques
Roadshow between 1996 and 2006. He then trained
his son to help in the shop with the antique clock repair.
Time for Change
Customers using the Proxibid software.
Advice from One Professional to Another
Tom Jordan has been successful in growing his business by adding online auctions to his traditional services. Even if you don’t wish to sell online, he suggests, “Everyone needs to buy a computer. It doesn’t
have to be expensive, but at least buy something that
will get you on the Internet. People should also consider advertising online because right now seems to
be a very active time for sellers.”
Tom is a member of the North Carolina Auctioneers
Association (NCAA) and the National Auctioneers Association (NAA). He is a licensed auctioneer and real
estate broker in 4 states. Tom and his staff have over
30 years of combined experience. Visit their website
at: www.carolinaauctionrealty.com.
“Live Auction” Software Fosters Healthy
Competition
Gordon Converse, Gordon Converse & Company
Gordon Converse’s interest in timepieces started at
the age of twelve when he joined a watch and clock
trade organization and began collecting and repairing antique pocket watches. The goal of advancing
his watchmaking career was put on hold while he
served in the Vietnam War.
After the 2000 recession, Gordon knew it was time to
change his business model. First and foremost, Gordon wanted to “try out auctions” in his shop. After the
first few auctions, he knew he was onto something
good. After holding on-site auctions for a few years,
he decided to launch an online auction business. He
chose the software, “Live Auctions,” and ran every
auction in-person at the same time he was running
the online auction.
Gordon’s customers appreciated the choice of either
showing up or logging onto his website. He found the
simultaneous activity created a healthy competition
when on-site bidders began to compete directly with
online bidders. Similar to other auction software, Live
Auction also allows bidders to push out their bids for
as long as needed for more fair results.
A Typical Gordon Converse Auction
Gordon’s process is to launch his auction’s catalog a
month before the auction date, allowing bidder’s time
for research. This also gives the company time to get
the word out about the upcoming auction. As the sale
date approaches, the bidding momentum builds.
Gordon employs a licensed auctioneer and support
staff to run each in-person auction, while Gordon
himself will stand nearby, sharing facts and tidbits of
information on the next piece for sale. Bidders can
call in, place bids online, or even mail bids in advance.
Like other successful online auction businesses, Gordon knows the value of promotion. He uses all avenues of marketing to promote sales, from web to
print. Gordon states, “You can’t underestimate how
important good photographs are to successful promotion. It’s essential we take the best possible photos
to accurately represent each timepiece.”
In 1979, Gordon then established an antique store and
repair business that focused on antique clocks and
watches. Along the way he was involved in restoring
clocks, fine art, porcelain and antiques.Bidders could
also preview the lots on their website.
At the auction, they offered a rare Waltham Girandole
ornate banjo clock in excellent condition. The serial
number was one of less than fifty and it featured an
unusual added thermometer in the throat. The online
and live bidding for this clock soared to a $17,255 winning bid. Many others sold for a strong price, including an antique Seth Thomas clock.
New Technology Opens Auctions to the World
Gordon Converse & Company runs its on-site and online auctions
concurrently to foster a healthy competition among bidders.
He also comments that “doing whatever it takes to
make the seller and buyer happy” is his most important job. The company has been known to hand deliver a clock when shipping options aren’t optimal, but
he jokingly adds, “Don’t
quote me on that.”
The use of software technology, combined with each
company’s unique knowledge, has opened up a world
of new business for these three successful auction
firms, and for many other businesses,as well.
Gordon Converse & Company research the value,
photograph and catalog timepieces, then create a focused, custom marketing plan. For additional information see: www.converseclocks.com. t
A Special Skill
Gordon
prides
himself
on the horology knowledge he has accumulated
over the years. His forte
is work ing with the sellers, teaching them about
their timepieces, appraising their items and making
sure they receive the price
they deserve. Many clients
may not know the value
of their clocks or watches,
and Gordon helps them research their pieces accurately.
Waltham Girandole ornate
banjo clock sold at auction
for $17,255.
Their recent auction held
on December 28, 2011 near
Philadelphia is a good example of how modern
auction houses use online
services to expand participation in a live auction.
Gordon Converse held previews at the auction site for
over 400 lots of antique
Antique Seth Thomas clock sold at recent Philadelphia auction.

Technology Changes the Auction As We Know It

Transcription

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