As a dealer (a very small one) the fact that auctions have all gone online, has just about made it impossible to do what we used to do- go to an auction, and buy something that we could potentially make a quid on. (or not!) And as Pauly says, going to auctions was quite enjoyable, there was usually something interesting to see, or people to meet. And because you could actually see touch and feel the truck, you could make a much more educated guess at what it was worth. My dad made it an art form, he was widely known at most auctions, and buying and selling was all in good fun for him I reckon. Now you are just bidding on a bunch of photos..you certainly can't be spending time and money to go look at things that you probably aren't even going to come close to buying.
So instead of say 50-100 people at an auction, and things being knocked down as they go, as stated above by Steve, now they can go on for bloody hours after the close. I've seen a Grays auction that closed at 7.30pm, still going at midnight. So essentially what the auction houses have done is to open up their world to everyone, so now old mate can be sitting at the kitchen table with his kids in Dubbo, buying a truck in Townsville. As it's an auction, theres always that "one more bid" temptation, which we all have- without the pressure to bid before it's knocked down. And there ain't bugger all customer comeback, you buy, it, you own it! Then you add the GST and the buyers premium, which I think is bloody sneaky- I bought something for $7900 highest bid last week, actual invoice cost? $9200. Bastards, I reckon.
It's not rare for trucks to bring double what I've value them at.. And I've found that by the time you've bid like buggery to buy something, paid all the premiums and junk they add on, then you can't sell whatever it is you've bought! It's damn near too dear, and everyone that may have wanted it, has probably seen the auction and you've out bid them. So after busting your guts to buy something against a frenzy of bidders, the bloody thing sits in your yard unsold....
Obviously I'm biased and looking at it purely from my own point of view. As has been said above, the LAST thing the auction house wants, is to sell stuff cheaply. More money means more buyers premium for them as well as more stock coming in the door from people who see the crazy prices things can bring when you massively increase your customer base, then make them bid against each other. I can't knock them for doing it, (much as I hate it!) it's part of the wheel of free enterprise that keeps turning.
The real thing I don't like, is that like so many business models these days, small business gets pushed aside, leaving big business as the only one with the capital, resources, and marketing ability to keep ahead of the complexity and rigors of running a business these days.. (Bunnings compared to your local hardware store)
One well known auction house told me that going online due to covid, has saved them over $400,000 per annum, due to the massive cost saving compared to running a live auction... Not bad bucks for doing nothing!
Anyway if we had any brains we'd have started an auction eh. Now all we can do is grizzle at the silly prices things bring! (except when I sell things at auction, then they bring bugger all and I moan about losing money...)
Cheers!
Rich
