While online auction sites like eBay have become all the rage, nothing beats the excitement of a genuine offline auction. For those who have an area of specialist interest or a knowledge of a given field, the auction can not only be an exciting place to spend a morning, but also a valuable source of income.
How to Make Money From an Auction
Making money from an action house can be done in two ways. At the one end of the scale, an auction house can act as a place to pick up bargain goods for onward sale to a customer in another auction or as a private sale. At the other end of the spectrum, you may choose to use an auction house as a source of revenue, selling goods and services obtained from another enterprise such as a house clearance or private purchase.
No two auction rooms as the same and getting to know what sells in specific auction room can lead to a simple buy and sell opportunity, in which one buys a range of goods in one auction house only to sell it straight on at a profit in another house with a different clientele.
Reasons Why Offline Auctions are Better than Online Auctions
- Viewing. Most auctions will offer a viewing session prior to the auction. This is a chance for the prospective buyer to see what they are biding on firsthand.
- Shipping. If buying at an auction, you will be responsible for the onward transport of goods purchased. The advantage is that sellers will not able to use this as a mechanism to bump up the price.
- Atmosphere. Auctions can be exciting places to be, especially if an auction house has an auctioneer with a colorful personality.
- Relationships. If attending an auction regularly, one may get to know the auctioneer and even other attendees. This can often lead to valuable tips for up and coming items of interest.
While going to an auction can be a great way of making money, there are some costs associated with the business model:
- Auction Fees. Fees are usually levied on the sale of goods and often charged as a percentage of the final sale value.
- Transport. Whether buying or selling, the cost of moving the goods should be taken into account. This can be considerable where there are additional costs, such as the need to hire a van or truck.
- Cost of Goods. Always take into account the cost of obtaining the goods to be sold in the first place. Even if the goods where obtained for free, there may have been a transport or other cost associated with the initial acquisition of the items to be sold.
Fancy giving the auction business a shot? UK Auction Guides is a great starting place if living in the UK. It lists local auction houses, as well as specialist areas of interest, including antiques and vehicle auctions.
So, whether it's a one-time chance to earn some money from a spring cleaning or the desire to start your own small business buying and selling, the old-fashioned offline auction offers a genuine opportunity to make money buying and selling a wide range of goods.
Frank Smith - Frank Smith currently works as an full time industry analyst for a well known construction company in Lincolnshire. In his spare time, ...
