You may have heard of the phrase, “I won it an auction.” Followed by, “I was the highest bidder.” And maybe you ask, “What do you mean?” They then answer with, “It means I placed the winning bid.” Either you stay quiet and pretend you understood (with some research here and there later), or you stay around and find out more. The winning word was, of course, ‘winning’.
Auctions come in all shapes and sizes—in other words, there are quite a few forms of it. Many, if not all, of the times, auctions are set up as it is a more efficient way to raise funds. It involves selling items at the best price. There is a competition to determine the best selling price. There are three forms of auctions:
1. Live Auction (Live On-Site Auction)
These events are held mostly in indoor locations (such a conference/meeting facility, hotel convention, etc.). It will be no surprise if the interested bidders have already gotten a chance to take a peek at the items on sale before the official bidding begins.
There is an auctioneer at the head of the room, in front of the bidders and onlookers. They call out bids and once a bidder places their bets, the auctioneer asks for higher bidding.
This is considered to be a transparent event as the competition between the bidders are open and happening at the same time.
Although this auction is the most additional forms, the venues could be accessible for certain people only. And another thing, venues being reserved could be expensive.
2. Online Auction
This form of bidding is much similar to that of a live auction; their only difference is that bidders bid online. This has also become an integral part of electronic commerce due to its flexibility and possibilities.
Many people consider online auctions the best. That is because there is an access to a global market no matter what of your physical location.
There is a need for trust and transparency. This allows for easier regulation of underpricing and overpricing. Online auctions are the most advantageous mode of selling due to its variety:
- Live Auction – hosted by auctioneer online but in real-time
- Timed Auction – automated and used only online
3. Sealed-Bid Auction
In this form, the bids are preferred to be confidential. The seller may consider optimal terms or sales, and thus, he would usually choose from sealed auctions. And when there is more than a single item being auctioned, the auctioneer can choose from the sealed auctions to enable each bidder to determine the best combinations that will help with their own needs.
This form may not be the people’s choice due to bidders’ lack of competitive aspects. Competition makes a higher salary.
Consider Your Options
There is no such thing as the best form of auction. Not in general, at least. Each and everyone has their own form of auctions that they like more than others. You have to consider your actions and accessibility.
Hilco APAC’s live online auctions are very fair. They allow you to stay in the comfort of your own homes as you buy the machinery you need. There is no need for the hassle of leaving the house to be able to join such a rush of competitiveness.