By Tim Kipper

Regional Manager, BigIron Auctions

Special to Farm World

My most heartwarming experiences during my nearly decade-long tenure in the online auction industry have come from retirement auctions. For those looking to retire and increase their capital, the benefits of the online auction cannot be overstated – a global buyer base means increased competition bidding on your equipment.

Yet, many don’t understand selling equipment online. My goal is to give you a better understanding of the online auction process, how to get the most back from your equipment, and the relationship between a retiree and their auction representative.

Brothers and recent farming retirees from Nebraska, Delton and Delwin Myers, recently went through the retirement auction process and can provide a seller’s perspective.

Doing due diligence

Reputable companies that adhere to practices that bring in proven results are few and far between, so it is important to do your research before choosing an auction company.

For example, understanding that unreserved auctions typically bring in higher bids due to higher buyer confidence is a good sign that your chosen provider knows what they are doing. Another is understanding whether your chosen company imposes buyer fees.

Word-of-mouth referrals are a key part of our business. If you’re thinking about retiring and others are recommending a reputable auction company, be sure to give that firm some thought. However, take every referral and do your own homework so you understand what sets one provider apart from the others.

At an online auction, “You get a wider variety of people across the whole United States as opposed to an on-site auction,” said Delton Myers, adding that a seller gets a “wide variety of bidders, and more publicity across the United States for people to bid.”

Building a plan

Once you have an idea of how you want your auction to go, ask your provider to develop a strategy for how to best execute it. This means identifying what pieces of equipment you want to sell and when, what dates work best for you, payment procedures, equipment cleaning, and so on.

As an auction provider, once we have the agreement signed, we begin building a timeline for taking photos, videos, and developing item descriptions of equipment. We also help stage the equipment so it looks its best, and review the listings to make sure everything is as accurate as possible.

We’ll also ask you to provide service records in case buyers want to see them. This is done to help build trust with the buyer, which can help bring in higher bids.

“Even the small items, (our auctioneer) would take eight pictures in different angles,” said Delwin Myers. “He wasn’t going to skip anything.”

Another key aspect of a successful auction is building and maintaining connections between sellers and buyers. Buyers will often have questions or may even want to test equipment before they commit to buying. These calls and visits are more frequent as the actual auction date gets closer, but by working with a full-service company, all you need to worry about is connecting with buyers.

"The one thing that really surprised me was the number of phone calls we had the last day of the auction," said Delton. "It made the morning go really fast, since you had questions to answer instead of time to think about everything."

Informing the public

It is paramount to the success of the auction that people know it is happening. Experience has proven that people are typically willing to travel about 250 miles to pick up purchased equipment. This means the local community needs to know an auction is happening. Full-service firms specialize in getting the word out, and we like to make an auction both an online and local event.

Every auction has its own set of challenges. Sometimes that means a marketing campaign needs to be designed with those specific hurdles in mind. Typical marketing includes a presence on social media, email, and outdoor signage. For larger items, it’s typical to have local newspaper ads and radio too.

“At a local auction, you would still get the same bidders close by. They still see the sale bill,” said Delwin. “Farther out, people aren’t going to get it. This really helped.”

Where everything comes together, however, is the open house. Typically done about a week before the auction closes, this is a chance for buyers to see the equipment firsthand and for sellers to tell its story.

“We didn’t even know how many would show up (at the open house). We thought maybe 10 people or so,” said Delton. “There was more than that a half-hour before it was supposed to start.”

Finally, after all that planning, cleaning, waiting, answering calls, and questions, auction day comes. You’ll have the opportunity to keep engaging buyers and tracking current auction prices. Just prior to the auction closing, our team will start calling buyers to generate more interest in these items, which can help increase competition.

Once auction day is over, buyers and sellers need to coordinate how equipment will be retrieved. The auction provider should be able to help schedule removal dates if needed, but sellers typically manage this.

“I was in the shop when we were told the figure of what we made,” said Delwin. “I was totally blown away. ‘Elation’ is probably an understatement.”

Some final tips

Equipment that is lien-free typically does better on the market, but just because a piece has a lien on it doesn’t mean it can’t be auctioned. Best-of-breed online auction companies conduct UCC checks and, if a lien is found, the companies will communicate with the seller to find a solution.

Another observation is that when you sell multiple pieces of equipment as a package, they typically do better than selling a single item. The more value the buyer sees, the more enticed they are.

If there is anything I want readers to walk away with, it’s that the key to a successful auction is an honest and reputable company. While it can be an arduous process, it’s worth it when I give a client their check and that inevitable grin forms, and I am reminded how meaningful and rewarding my job can be.