Make Profit from the Auction

All successful businesses are based on the simple principle -

buy something cheap - then sell it at a mark up.  Simple, in

theory - but rarely simple in practice.  One of the major

entrepreneurs 'headaches' can be where to get goods to sell

at a cheap enough price to allow a large enough profit.

Fortunately, there is a way that problem can be solved -

easily.  Quite simply, auctions offer you the chance to buy

all sorts of goods at under market value.  It's then a simple

matter to resell them, perhaps immediately, at in excess of

market value.  A clear, quick profit!

Auction buying is not just an aid to those already in

business.  There are many cases of people who do nothing but

buy 'anything' at auction and resell for a profit.  Just

consider, it only needs a few items bought/sold a week with a

few hundred pounds mark up on each to build a considerable

income.  You can be an auction entrepreneur in just part time

hours.

Of course, auctions are still shrouded in some mystery.

That's what helps to keep the undetermined away from the

profits.  But, they are generally simpler to follow than they

were.  With a few visits you can be quite experienced at

'snapping up' bargains at auction and reselling for an

immediate gain.

Really, it matters not what you buy.  Just consider an

auction as a place where you can get things for a lot less

than they are worth.  That's nothing short of an instant

money making opportunity!

Sheer Potential

The great thing about auction trading is that you can

actually prove the potential to yourself before actually

spending anything.  Just go along to a few local auctions.

Auctions are mainly a quick way of selling goods for vendors. 

And, they are also a way of selling things where any other

techniques e.g. press advertising would be difficult. 

Because of this the prices are invariably far less than

market price.  Auctions are rarely an attempt to get more for

an item than it is really worth, despite appearances to the

contrary.  But, of course, you would always guard against

being over charged.

Discounts at auction vary according to the type of goods

sold, type of auction, type and number of crowd - even things

like the weather.  In some cases auction discounts have been

quantified at as much as 80%!  Rarely would the saving fall

below 10% - but a reasonable ready accessible saving would be

20-30%.

Quite simply, the auction potential means you might buy an

item (say a car) at œ1,000 one day.  Then, the next day sell

it for at least œ1,200 to œ1,300.  That's a considerable,

instant profit for hardly any word - a way of making very

quick extra cash.

How to find an Auction

Auctions are held the length and breadth of the country

almost every day of the week.  So, there will always be a

chance to make money.  It's not always obvious which are the

best to attend though, and this will need some market

research on your part.

There are directories available listing auctions and

auctioneers.  But, the cheapest way of finding them is to

look in the Yellow Pages at your local library.  Check the

index to see what different categories 'auctions' might fall

into.

It is wise to visit auctions before you even consider buying. 

Because, although they offer the same service they do work on

different principles.  Check, by observation, that the

auction is fair.  Auctions are, of course, working to get

highest prices for sellers - but they should not be biased.

Good auctions should display goods prior to the sale for

inspection.  And, they should issue a catalogue or list of

what is on offer.  The buyer accommodation should offer a

clear view of the auctioneer during bidding.  More

importantly, the rules of the particular event should be

displayed on site - and followed by staff at all times.

Do ensure the auction you attend is fair to all buyers, and

not favouring the 'regulars'.  Also that the price is not

artificially inflated by the auctioneer - it should be the

demand that sets the price.  Most auctions are honourable

organisations, but there could be exceptions!

Do stay behind after an auction has finished.  This gives a

chance to see if those who have bought are pleased with their

purchases - or if any 'little disputes' arise.  A good guide

to finding the best, most honest and most profitable

auctions.

Successful Buying at Auctions

When you have gained a little experience at auction you can

venture to make your first deal.  And, there's no reason why

it should not be very profitable.

Do remember that most auctions demand cash on sale.  So, take

an appropriate amount with you.  If this is risky ask for a

bankers draft at your bank.  This is really a cheque that

cannot be stopped and most auctions will take them.

At auction, goods are sold in lots.  So, you will need to

decide which interests you.  It is a good idea to select

'substitutes' in case your choices are bought by someone

else.

To start bidding, the auctioneer will normally set a price. 

This could be far too high - or far too low.  So, wait until

a few bids have followed.  You can then decide whether the

price will allow you sufficient sale margin and start your

own bidding.  Each bid may rise in œ1, œ10, œ100 or larger

units.  So you have to keep a check on the total carefully.

There is a good deal of showmanship involved in auctioneering

and you'll certainly need all your wits about you.  Perhaps

the main aim is to ensure you only buy at good low prices. 

Fall out of bidding if the price is getting too high.

Although experienced bidders may make strange signals to the

auctioneer there is nothing wrong with making your bid quite

clear.  You can pick up the 'tricks' that others use in the

future.

When the bidding slows and the appropriate sum is reached the

auctioneer will proclaim the classic 'going, going, gone'!

When the hammer falls the item is sold at the final price.

Most auctions will demand a cash deposit at the fall of the

hammer.  The only exception being if they require all bidders

to register and lodge a deposit before the auction.  The

balance must be paid and your purchase removed within a

certain time limit.

Note that auctions operate on a 'sold as seen' basis and

rarely give refunds.  Only a few give a guarantee against

faulty goods.  So, bid enthusiastically, but with care taking

professional guidance as appropriate.

For best results you should arrange to process and resell

your purchase immediately.  Don't sell at auction though -

the profits won't be enough.  Best profits are perhaps to be

found through newspaper advertisements.

Then - when you've cashed your purchase in and made your

profit why not reinvest the proceeds in an even bigger

auction deal?

Some possibilities

Following you will find a list of the proven opportunities

auctions offer:

- Cars.  One of the biggest auction money makers - huge

discounts.  But, do buy carefully as you have little

protection against faulty cars, although most auctions have

warranties against stolen cars.  Follow all vehicle

regulations - a car dealing licence may be needed in some

areas.

- Household effects.  Ideal place to start in auctions,

buying up household items.  Often valuable items can be

bought for pence in 'job lots'.  Sometimes changes to pick up

antiques.

- Stock.  Bankrupt trade stock, discounted lines, etc. are

frequently sold off by auction.  There are good opportunities

here to buy up lines and then offer to traders or sell via

market stalls etc.

- Tools/Plant.  Items from the trade are frequently sold off

by auction.  This may include new and used items which can be

bought up and then sold back to the trade.  Do check items

offered as, with many other auctionites, it may be up to the

bidder to check whether they are working or not.

- Farm Stock.  Another popular auction line.  But it is

probably not suitable unless you have some experience in this

area.

- Property.  A real potential winner with huge discounts

available on property of all types.  Do take legal advice,

and advice from a surveyor/valuer though.

- Art and Antiques.  Offers profits to beat them all.  Needs

a little study of the business - but there are smaller

markets you can try and succeed in.  Not all auctions sell

'old masters' for millionaires only

Always remember of course that auctions do not always fall

neatly into categories.  Some may be a combination of several

types - or completely new auction lines.  Just keep your eye

out for any auction - because it's almost always a chance to

enjoy huge price cuts!

Auction Success

Auctions are a unique opportunity in a way.  Because, unlike

other ventures you can't guarantee a certain trade week in

and week out.  Remember though, this means your income is

limited by virtually nothing!

It does not matter how little you know about auctions - or

what you buy.  Simply consider them as a way of getting

attractive merchandise at very low prices indeed.  A source

only open to the most enterprising of people.

'Buy cheap, sell dear' is a principle that means nothing less

than complete success.  Exploit that principle and let

auctions make money for you.