What to know as a first-time liquidation auction bidder?
Considering the ever-galloping pace of the 21st century and the technological advancements that are being introduced in every realm of our society, developing and nurturing a small business and having an edge in the competition without substantial resources to fall back on, seems a little challenging. This is the reason why small businessmen are always encouraged to expand their inventories. The silver lining here is that, through liquidation auction, you can procure plenty of inventory for your company to be sold on both online and offline platforms. However, if you are only a beginner and do not carry any experience in your bag whatsoever, we will try to ease it out for you. In the following section, we will be jotting down a few indispensables that you must familiarize yourself with before bidding at a liquidation auction.
Your research should be on point
As far as acing the best deal in a liquidation auction is concerned, your research should be top-notch and there cannot be an exception with that. Carefully list out the types of products that your company would want to sell and the ones that you know your potential customers will be more inclined towards buying. Instead of aiming for the bird’s eye right at the beginning, have your plans in place so that you are well-acquainted with your targets and are certain that you are bidding on the appropriate pallets. If you come across a pallet that can be worked on to ensue benefits, assess their exhibits and make a note of every shred of information that is available, including their life span and present condition. Additionally, do not forget to take the shipping charges into consideration; that way you will have an insight into the total cost of your buy and check for yourself if the purchase fits your budget or not.
Start with small budgets and bids
Like all its contemporaries, government auctions can be tricky too; thereby, to make sure that you are on the safer spectrum of things, start with small budgets and bids. Bear in mind that the objective is to make a profit and not to focus on the number of things you are obtaining from the auction. Formulate your budget in such a way that will have a chunk of the amount reserved for the bids that you cannot miss on under any circumstance, while the rest should be designated to the alternative options in the inventory. If you are a fresher, start from the lowest possible amount because there’s always a narrow possibility that no one would bid on the pallet that you have chosen. But, even if others start bidding against you, they will also strive at keeping the prices low as nobody wants to invest more than what is required in a particular object.
Keep a track of the bid
When you are at a liquidation auction and you have already made a lot of bids, it is imperative to keep a track of them all because there will be others inevitably bidding against you. Hence, you will have to keep increasing your bids so that you have can utilize your lead and subtly persuade the bidders to back out. This is especially important when the auction reaches its closing hours; you are bound to come across someone who will try to barge in and try to outbid you by a very small amount and you shouldn’t let that happen. Smartly devise your strategy and ensure that you have the upper hand in the auction forums and if required, you are in a position to turn the tables and effectually be the last-minute bidder that we are trying to warn you against.