Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

First of all we need to define sales skills, and remove the negative stereotypes which surround the typical “salesman.”  Ask anyone who has not engaged in a sales career, and often their perception of the sales trade is exactly opposite of that of a successful salesperson.As you pursue your home based business, you’ll want  to consistently pay attention to the following.A. Being pushy and aggressive does not sell. It turns people off and often makes them defensive. Being courtesly assertive and persistent is what your aiming for. This is a skill which anyone can better at. Think of the last major purchase you made where the sales process was seamless. I would suspect your needs or desires were identified, and the salesperson simply provided you a solution which you purchased. Fact is, most home based businesses offer a credible product or service.B. The expression you have 2 ears  and 1 mouth, because you need to listen twice as much as you speak, is key to selling successfully in any home based business. People will tell you what you want if you simply ask directive questions and listen. Avoid trying to give too much information, it will usually confuse most people, and they will not be able to make an educated decision. The great thing about home based businesses is most people who are considering are usually serious about starting something. Identify first what they want, and then and only then, can the decision if your home based business suits their needs. I can’t stress this point enough. The mistake most salespeople make is talking too much, and talking past the close.C. Let’s identify the sales process. On a sheet of paper draw a line. On the far left write “warm-up”. In the middle of the line write presentation, and at the far right put in “close”. On top of the presentation draw in several arrows pointing to the line and label trial closes. Let’s discuss. When you are first introduced to your prospect usually via telephone you want to form a connection and establish rapport (warm-up). Remember, people will purchase your home based business opportunity if they feel comfortable with you. Talk about their past work experiences, their family, goals etc. You’ll know when you’ve established rapport, and then its time to begin your presentation of your home based business. The trial closes are merely questions or comments you ask in order to provide feedback, and hopefully tacit consent or buy in to your home based business. Don’t make the mistake of speeding through your business providing endless details. You need to get feedback from your prospect. Think of trial closes as mini closes with a cumulative effect. The more favorable response and interaction you receive during your presentation, the easier the actual close will be. Think of trial closes as the process we all go through before we buy a pair of shoes. We try them on, walk down the aisle, view in the floor mirror from different angles. These are all trial closes which allow you to comfortably purchase the shoes and leave the store. Afterall, most people know their shoe size, but I’m willing to guess in the history of man, no one has ever walked in a store and bought a pair of shoes without going through that ritual.D. Whether the home based business you are discussing is inexpensive ( a few hundred dollars) or high end ( thousands of dollars), it really isn’t important. If your prospect is qualified and properly informed, the decision process is the same. If your presentation was interactive, and tacit consent through trial closes was given, then simply assume he/she will join.Think of a traffic light between your presentation and the close. Once your presentation is complete, the traffic light will be red, green or yellow. It may be your prospect is not interested in your home based business. That’s a “red” light, and it happens, don’t beat yourself up. Occasionally the light is “green.” Move quickly to the close and discuss financial arrangements. Pat yourself on the back for a job well done. Most prospects will see a “yellow” light. There’s a degree of caution, and they could stop or proceed forward. Usually they see “yellow” because they need a little more information or direction. Success is made in home based businesses by people who can help those “yellow” viewers see “green.”Volumes of material have been written about sales techniques. It is my hope this article has provided some insight to help you increase sales in your home based business. Follow me in future articles and I’ll reveal more proven sales methods.

In today’s challenging economy where do budding entrepreneurs look for business ideas and how do they do find success? What is meant by a small business varies widely around the world. Small businesses are normally privately owned corporations or partnerships with generally less than 50 employees. But if you are looking for good small business ideas, starting business with 50 employees may seem anything but small!Good small business ideas are ideally suited to internet marketing because it can easily serve specialized niches, something that would have been more difficult prior to the internet revolution.It is no secret that there has been a massive shift to people buying products and services online and this continues to grow which is good news for anyone doing business online.Small businesses do not suffer equally in tough economic times; while some will be hit severely, other small businesses will only experience a slight dip and still others will actually prosper.It is interesting to note that in Chinese, the word crisis is composed of two characters. One represents danger, and the other represents opportunity. The new digital internet economy opens up infinite possibilities of good small business ideas. For some, this means crisis, for others, opportunity.But how do businesses become a reality online? There are millions and millions of websites all fighting for attention and the only way to survive in the highly competitive online business world is be skilled on how to use it to your full advantage.New online entrepreneurs need to learn how to set up and earn from their online businesses. To succeed good small business ideas need to have somebody who is willing to learn a new set of skills and be committed to success.Good small business ideas on the internetAffiliate marketing is one of the most profitable business ideas on the internet. Quite simply, you promote other people’s products and services and, when somebody buys something that you are promoting, you get paid a commission by the product owner. You do not have to worry about creating a product or service, dealing with the fulfilment or any customer queries.There are so many different products and service which are available to promote, you are sure to find something that interests you.ClickBank is a popular online marketplace where you can find products for your business ideas. It boasts a vast selection of ebooks, software and other digital goods, which are products that are downloaded over the internet and where the buyer has instant access. ClickBank contains thousands of products that you are free to promote as a ClickBank affiliate. The vast majority of ClickBank vendors pay a commission of between 50% and 75% on the sale price of their products. To put this into perspective, ClickBank has paid out over $2 billion in commissions in the last 10 years.It is no secret that we are are currently in the longest depression since the 1920s. Unemployment remains uncomfortably high five years after the financial crisis and many of those in work have had to accept lower pay, part-time work and temporary contracts.The time has come for many to stop depending or be satisfied with just one income from one job. Entrepreneurs with good small business ideas and who take those ideas to the internet to start generating a new income are ahead of the game. We are at the start of the digital internet revolution and those who take the time to learn the skills and techniques required to succeed online will reap the benefits.