If you're looking to sell something, whether it's a personal or business asset, selling at auction can be profitable and exciting. Not only do you get to watch as people bid on your item, but many times you can walk away with valuable experience that help you sell and buy goods in the future. In fact, here are five reasons why selling at auction is a great idea.
The feeling of winning a competition is wonderful. And that dynamic is exactly what's at play in an auction. With one buyer, there is no market pressure. They can throw out ridiculous offers, and you might just have to accept a price much lower than you originally wanted to sell for. But when multiple buyers and sitting in a room throwing out bids, their competitive spirit kicks in and your product's price can shoot up.
Without an auction, there is no timeline that is defined. This takes a lot of pressure out of the situation. However, with an auction and a hard deadline, the buyer must present their offer within that time. Instead haggling your margins away, buyers will act on their sense of urgency to the get the deal done.
Validation of Peers
When other potential buyers see someone bidding on a product, they infer that it must be valuable. This simple phenomenon of social proof and peer validation can help you sell your goods.
Fear of Loss
Many of the buyers at an auction will have done their homework regarding the items for sale. When they start bidding, it's because they feel that the product is a great fit for their current needs. Because they are so invested mentally and time-wise in your product, they may not want to miss the chance to buy it while they can. This fear of losing the deal can work in your favor as your most qualified buyers commit more and more.
Enhanced Company Value
If you are a regular seller at an auction and your goods typically get bought, it can create a powerful reputation for you. This will work in your favor, as buyers that are on the fence will start giving you the benefit of the doubt.
An auction is an amazing way to sell your products. The combination of time pressure, competition, and social proof work together to sell your items quickly and for a great price. Next time you're looking to offload something valuable, be sure to explore the power of selling it at an auction like those coordinated by Gary Hanna Auctions Ltd.