Busting the 5 Biggest Auction Myths
Auctions are often misunderstood and overlooked as a route to buying or selling goods.
By the end of this post, you should have a clear understanding of how auctions work and how they can provide a great solution for both buyers and sellers.
More and more people are joining online auctions but why aren't you?
We're going to look at some of the most common auction myths and misconceptions to bust them all for you.
Myth #1: Auctions are only for luxury items
What ultimately steals the headlines are stories like this:
Auctions aren't just for luxury items, they are more than that. Auctions present a great route to market for a wide plethora of goods ranging from consumer goods like clothing and electronics to trade and industrial auctions featuring plant, machinery and even liquidations.
You'll still find countless auctions of luxury watches, jewellery and classic cars but you can also find everything between these extremes.
Myth #2: You can only buy second-hand goods at auction
It's not uncommon for online shoppers to assume that items listed in auction are second-hand items or even broken.
Online auctions are getting bigger and vendors are seeing the benefits of consigning new items to auction and bidders benefit from this because they are able to find the deals that make them the topic of conversation!
Myth #3: Auctions are a last resort for buying and selling
Auctions have been wrongly seen as a last resort. They actually call it the triple D's which stand for Death, Divorce or Debt.
They are not the reasons why people sell at auction! Unless you're Russel Crowe who named his auction the "Art of Divorce". You can read more here: Russell Crowe cashes in at Art of Divorce auction.
There are endless reasons to participate in auctions!
There's always the chance of getting your hands on an amazing deal and this makes buying at auction an exciting way to purchase goods and in a way that is both simple and convenient.
Myth #4: Auctions are on-location events
I'm sure that when you think of auctions for the first time, you think of the auctioneer in the room talking at an increasing speed until they finally bang down the gavel shouting "SOLD".
However, that isn't always the case and the emergence of online timed auctions has revolutionised the world of auctioneering as we know it. Now you can bid from the comfort of your own home or even through your smartphone, wherever you are in the world.
At William George & Co, we still adhere to some of the more traditional approaches to auctioning like extending the time on the auction if someone bids in the last 10 minutes. This enables the auction to remain fair and prevents so-called "snipers" from bidding at the last minute to steal an item from under your nose.
Myth #5: Auctions only happen a few times a year
Traditional auction houses may host a small number of auctions a year because they need to spend time compiling large catalogues from multiple channels in time for a future date.
However, online auction houses have enabled catalogues to be built quicker and this enabled online auction houses to scale their frequency.
Last year at William George & Co, we hosted more than 500 auctions featuring almost 70,000 lots and we generally host in excess of 10 auctions a week over a variety of categories.
Myth #6: It costs a fortune to sell at auction
What's a WG guide without one?
The majority of auction houses will charge the seller a fee of up to 25% of the items hammer price.
At William George we charge 0% seller commission, meaning that you keep 100% of the hammer and there are absolutely no listing fees in any of our collective auctions.
As online auctions become increasingly popular, we hope this myth buster will help to demystify the world of online auctions for any new users.
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