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Differences in the Types of Auctions That Take Place Around the World

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.

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How Important Is the Fundraising Auctioneer to the Success of Your Event?

I want you to think about the term “Fundraising Auction”.

A “Fundraising Auction” is an event where items of value are gathered, and then sold in a competitive bidding situation, either in a Silent Auction format, or in a Live Auction format by a Live Auctioneer. And since typically the best items are saved for the Live Auction, arguably it is the Live Auction that should generate a significant portion of the proceeds in any Fundraising Auction.

So why do so many non-profit groups consider the Fundraising Auctioneer to be the least valuable component in a Fundraising Auction?

The Hosting Facility gets paid.
The Printer gets paid.
The Caterer gets paid.
The Liquor Store gets paid.
The DJ gets paid.
The Florist gets paid.
But the Auctioneer … the individual who is expected to raise the lion’s share of the event’s proceeds… is expected to work for Free. And is usually under-appreciated for the professional services he/she provides.

I’m not trying to underscore the value of the invitations & programs, food, booze, music, and decorations. All are important in their own way. But each of these are “Expenses”. It is the Auctioneer who is going to bring “Revenue”… and thus, the “Profits”… into any event. Which is the ultimate objective of any Fundraising Auction.

Here is a real-life example of how under-appreciated the Auctioneer can be. In two comparable events we worked last year, during the dinner portion of the event one non-profit group sat the Auctioneer (me) at a table with the DJ, the Interns, the Volunteer Staff, and other event “Help”. The 2nd non-profit group sat the Auctioneer (me) directly next to the CEO of their organization, where we chatted about how important the pending revenue would be to their organization. Which group do you think valued the services of the Fundraising Auctioneer more?

Don’t ever under-estimate the value that a professional Fundraising Auctioneer can bring to your event. The Auctioneer adds value as a pre-event consultant. And the Auctioneer can change an event from a moderate to a huge success.

A Case Study Once I was scheduled to call an Auction for a major local non-profit group. They represented a very good cause and they had a strong and dedicated following. Their event was sold out, quality Live & Silent Auction items had been solicited, and the Special Pledge Appeal had been choreographed and was ready to go. The facility was first class, the appropriate caterer was booked, and the food was ready to cook.

But quite unexpectedly, some unseasonably inclement weather forced the event’s cancellation. Despite all of the committee’s hard work, cancelling the event was the proper decision considering the circumstances.

So the Event Committee scrambled to re-schedule the event for the following weekend.

They confirmed with the Hosting Facility.
They confirmed with the Caterer.
They confirmed with the Liquor Store.
They confirmed with the DJ.
They confirmed with the Florist.
Since they already had the Mailing List of those scheduled to attend, no new invitations had to be printed as all were contacted by email or telephone. So with everything in place, the group went ahead and re-scheduled the event for the following weekend.

But guess who they failed to confirm? You got it… the Professional Auctioneer. They thought so little of the Auctioneer’s contribution that they “assumed” that the Auctioneer would be available and at their beck and call.

But the Auctioneer already had another Fundraising Auction booked for that date with another non-profit group. It was only hour away from the re-scheduled event, and things could have been easily worked out. All Group #1 had to do was start their event one hour earlier, or one hour later, than the Group #2, and the Auctioneer could have helped both groups on the same day.

But because Group #1 failed to anticipate a possible Auctioneer conflict, because they failed to confirm with the Auctioneer before re-scheduling their event, their preferred Auctioneer had to bow out and they had to scramble to locate substitute “Volunteer” Auctioneer only days before their event.

And it cost them.

Learning Points

The Live Auction is usually where the profits are made at any Fundraising Auction.
A Professional Fundraising Auctioneer can be vital to the success of any Fundraising Auction.
The better Fundraising Auctioneers usually get booked quickly.
You need to recognize the important contributions that a good Auctioneer can make to your event.
Michael Ivankovich is a Bucks County Fundraising Auctioneer based in Doylestown PA, and serves the Great Philadelphia PA area. He has been a professionally licensed and bonded Auctioneer in Pennsylvania for nearly 20 years, has been named Pennsylvania’s Auctioneer of the Year, and has considerable experience in conducting Fundraising Auctions. Michael loves helping groups raise needed funds for good causes and one of his specialties is the “Special Pledge Appeal” or “Fund-A-Cause Appeal” which usually enables clients to double their revenue in a single evening.

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Search Engine Marketing – How and Why?

Here’s an overview of search engine marketing from the perspective of a Greensboro, NC marketing firm. According to Wikipedia, the definition of Search Engine Marketing (SEM) is a form of internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization (both on-page and off-page) as well as through advertising (paid placements, contextual advertising, and paid inclusions).1 Depending on the context, SEM can be an umbrella term for various means of marketing a website including search engine optimization (SEO), which adjusts or rewrites website content to achieve a higher ranking in search engine results pages, or it may contrast with pay per click (PPC), focusing on only paid components.2

Due to the many intricate details in the complex technology of search engine marketing, a large number of marketing professionals and business owners do not understand the ever-changing nuances and methodologies so they rely on top ad agencies or marketing consultants for their expertise in managing their search engine marketing.

Spending on paid search has increased more than 20 percent from 2012 and with product listing ads, this will continue to grow. Your website will need to be highly optimized in order to be relevant in organic search or you will need to pay for search ads to target certain keywords and phrases. Mobil spending on paid search has also experienced a huge year with more than a 30% increase in 2012. If your search marketing campaigns are implemented by a professional marketing consultant or a top ad agency, your results with generating leads will be much better and your ROI will be much higher.

Spending on SEO to organically optimize your site will be very important as new surveys have shown increases in effectiveness for Organic SEO to generate leads. Hummingbird is focusing on original content relevant to the products or services so SEO will be very critical in 2014 and beyond. Paid and Social media will certainly generate new leads, but according to the latest surveys, Organic SEO is increasing while PPC has slightly decreased and Social has remained constant. B2B companies are seeing the largest percentage of leads from SEO with PPC and Social Media being quite a bit lower based on percentage of leads generated. The 2011 survey from WebMarketing 123 is available to view via PDF along with the 2012 survey from Web Marketing 123.

There are many areas of search marketing specialty under the main heading of Search Engine Marketing or Search Marketing for short. The sub-categories for branding, conversion, mobile, landing pages, public relations, search term research, ppc, social marketing and blogs are all very important to the overall search marketing category.

When a person is interested in a product or service, they will begin searching or hunting for those items via online sources. It could be found through text, video, or audio components. If they are hunting or searching, this should give you a very good clue that they are somewhere in the buying cycle. It could be driven by a search to fill an immediate need or potentially a future need. Whether captured through a paid or an organic source, these leads are very good quality as you have a captive audience who is already interested in the product or service. Your job is not so much to sell them on the idea of the product or service itself, but to educate and provide information on how your branded product or service can yield value to that consumer. What’s unique about your brand and how can you make their life easier?

Here’s a multitude of reasons why people buy things:

Marketing… (Had to do this one first since we are a marketing firm) Marketing makes you remember brands and it changes product perception. It not only gives the rational view, but also provides the emotional arguments or attachments to draw you in closer. Product design and packaging make the product sexy. Slogans or bi-lines ring in your ears when you think of certain brands. Music attachment with stars or celebs make products more memorable if partnered successfully. Many marketing experts are also very knowledgeable about the psychology of buying. And lastly on the marketing reason, did you really plan to get those snacks at the store, or was it the marketing promotion to buy one and get one free. (BOGO as some reference)

Creatures of Habit… If you go to the movies, will it matter whether the popcorn is piping hot or just luke-warm? In most cases, it will not matter because you will eat the popcorn out of habit whether it’s good or not.

Moods… If you feel good, then you are more likely to reward yourself with nicer things. If you are hungry or have craving, you are more likely to take care of your immediate craving versus putting that craving off for a longer term goal like a diet objective. If you are depressed or sad, you may make an impulsive purchase to try and lift the depression or sadness. If you are mentally exhausted from a long day at the office, you may give in to your kid at the store to get such and such item just to avoid the negotiations or arguments so you can get out of the store faster.

Temptation… Companies want you to try things that make you feel good or try things give you satisfaction. It could be succulent chocolates, a mixed drink, and products attached to your own image such as beauty products to make us look good, trendy watches, or designer clothes.

Impulsivity… If you see a sexy package, your brain receptors may default to reward and then you rationalize to justify the unnecessary purchase. Some people are affected by the advertising and marketing more than others and respond to ads, offers, and promotions because they feel because they are getting a deal, that it justifies the unnecessary purchase. ADHD will certainly make an impact with more product purchasing.

Peer Pressure… You sometimes get products simply because your neighbor has them. The product may not be worth a flip, but you still get it because the Smith’s have it. You see others in the community with certain shoes, clothes, etc. and you get them because others have them first so you can be like them.