This subject has to rank right at the top, when it comes to misunderstandings and myths about auctions.
I often hear comments, which imply that auctioneers just "run up the bid". Of course, this often implies that the auctioneer is "shilling" or similar illegal activities and in some cases, it may be true. However, it also depends on one very important point, referred to as Disclosure.
So, first we must understand why the auctioneer would bid against the bidders, in the first place. This is usually due to a "reserve" or minimum price that must be met, which was set by the seller.
The Texas Business and Commerce Code, Section 2.328, was adopted and it is also designed to protect the seller, in case there isn't a reasonable interest for their goods, at a particular auction. Therefore, it states that ALL auctions are considered to be With Reserves, unless otherwise announced to be Absolute (without reserves). This gives the auctioneer the authority to protect the seller from a "bad day" at the auction.
So, if there is only one bidder with any interest and bidding starts below the reserve, the auctioneer only has two options:
1.)Pass the item, in which the bidder may get upset because they would have bid higher and the item may have met the reserve, or
2.)Bid on behalf of the seller's reserve, until the item reaches the minimum or the bidder stops bidding. Of course, if the reserve is not met, the auctioneer may sell it to a "seller's bidder number" or "Pass" the item. (I'll explain this more, shortly.)
HOWEVER, there are laws that determine IF and WHEN an auctioneer or seller can bid!
If the auctioneer does not DISCLOSE that they will bid on behalf of any items with reserves, then it is called "shilling" (capping, puffing or other similar terms), which would be illegal.
Of course, laws are written mostly by lawyers, so you often have to read carefully to understand the meaning and what it does or doesn't allow. So, as we keep this in mind, we look at another part of Section 2.328, which states, "If the auctioneer knowingly receives a bid on the seller's behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved...".
You should note the words, "and notice has not been given that liberty for such bidding is reserved". This is the part that gives the auctioneer the authority to bid on behalf of the Seller, ONLY if "such bidding has been DISCLOSED" (notice has been given) by the auctioneer, prior to doing so.
So, to simplify this:
1.) This means, if it is DISCLOSED that the Seller (or the seller's agent) has the right to bid, then it is completely legal for the Seller to bid on their own items.
2.) If the auctioneer DISCLOSES that he/she reserves the right to bid on behalf of the Seller (as the seller's agent) and/or any reserved minimums, then it is also legal. In such cases, usually the auctioneer (or their staff) will bid on behalf of the reserves, as needed. This is the more common method, as it keeps Sellers from second guessing the bidders and running the bid higher than they may have originally sold it for, had they just set an agreed minimum with the auctioneer.
If the item does not meet the reserve price, then the auctioneer has two options.
1.) The auctioneer may "Pass" the item.
2.) The auctioneer may use a use a "Seller's Bidder Number" or "House Number" and "sell" the item back to the Seller. This is typically referred to as a "Buy-Back" and there are several reasons that the auctioneer may use this method. I'll explain more about this, later.
Note: The auctioneer does not have to disclose if a particular item has a reserved minimum. In fact, it is not in the Seller's best interest to disclose items with reserves or the minimum price, as it tends to stifle the bidding.
Keep in mind, "Disclosure" does not mean that the auctioneer must make the statement each time, for each item. Neither does the auctioneer have to make a verbal statement regarding such disclosure, if it is clearly stated in a written Terms & Conditions made available for everyone to read.
Buy Backs: Why do some Auctioneers use a "House Number" or "Seller's Bidder Number"?
One of the reasons is that the auctioneer may charge the seller for reserved minimums, if the item doesn't sell. This may be a flat fee or a percentage of the minimum reserved price or possibly the highest bid received, etc. In some cases, the seller may be required to actually pay for the item and then get paid for the "sale" of the item, minus the auctioneer's commission.
Sellers should keep in mind, since the auctioneer works on commission and for each item that does not sell, the auctioneer would otherwise only be losing money after expending the same effort to advertise and attempts to sell your item, as other items without reserves. So, one might consider why the auctioneer would waste their time and effort, when they may have been able to sell something else and earn a commission on that sale. Keep in mind, even a Doctor still charges you when he/she tells you that you only have a cold and you just end up going to the pharmacy to buy cough syrup off the shelf. The same is true for all Professionals, as they are paid for their time, knowledge and effort expended.
Now, some bidders still may not think it's fair for an Auctioneer to allow a reserve on the items, although the law states that ALL auctions are considered With Reserve, unless specifically stated that they are "Absolute". You rarely find any auctioneer advertising an Absolute Auction, even if everything has no reserves. This still allows the auctioneer to use their judgment and pass any item that may not have a reasonable offer, based on their responsibility to the the Seller, which is who the auctioneer is actually working for, not the bidders. This is also covered by law and is referred to as "fiduciary duty".
Should the Auctioneer just say "Pass"?
I rarely use "seller's bid numbers" or "house numbers," although I will admit that I have done so on some occasions. In some cases, if I can't get the bidding started at the reserve, I may sometimes just "Pass" the item. If I do accept a bid below the reserve, then I may bid on behalf of the reserve and if it doesn't meet the minimum, I may only "Pass" the item or... "Sorry folks, we didn't quite make it on that one. Next item!".
Now, I've also had people ask why I don't sell as much as other auctioneers do, as it appears that everything sells at other auctions and a few have also complained that I "pass" too many items. This is another reason that many other auctioneers prefer to use "seller/house numbers", as it seems to make it appear more interesting to the buyers, as they hear "sold"... after all, that's what they expect at an auction. So, I may not please everyone with my methods, either. But, I just like to be a bit more open about the way auctions are conducted and the bidders get to see what is really selling and which items were "passed". To me, it beats explaining why the item that Sold, showed up again at a later auction.
In summary, let's revisit Section 2-328 of the Texas Business and Commerce Code:
Part (4) is where it states, "if the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved..."
So, if it is "announced" either verbally or within the Terms & Conditions, then "Notice HAS been given" and it is legal.
While I do know that there are some auctioneers that do not legally comply with this law, be sure that you have read all Terms & Conditions and have also listened closely to any opening announcements, as the Disclosure does not have to be provided in both forms of communication. Therefore, some auctioneers may have the disclosure written in their Terms & Conditions, but they may not verbally announce it and leave it to the bidder's own due diligence (and perception). Keep in mind, the law makes it the bidder's responsibility to know what the term and conditions are, prior to bidding. Just because you weren't there during the opening statements, you are still legally bound to those terms when you bid... even if you don't know what was stated. So, find out, BEFORE you bid.
You can read the laws that govern auctions & auctioneers on the Texas Dept of Licensing & Regulations (TDLR) website at:
http://www.license.state.tx.us/auc/auction.htm
You can also download the "Greenbook" at the TDLR web site, which is a compilation of ALL laws that an auctioneer must be aware of, from auction laws to business requirements, trade laws, lien requirements, auto, real estate, wildlife and many, many more. You can find the "Greenbook" here: http://www.license.state.tx.us/auc/greenbook.htm (this is a PDF, so you will need the free Adobe Acrobat Reader)
Keep in mind, if you come to one of our auctions, you will often hear me state that I reserve the right to bid on behalf of any reserves and other similar statements. However, should I forget to make a particular announcement, I ALWAYS have a written Terms & Conditions posted at my auctions and I strongly encourage everyone to carefully read it, as it would take too much time to try to cover every detail when we're trying to get the auction underway. Of course, a few people may think I spend too much time on the opening statements, but I do try to make sure that everyone understands what is going on at OUR auctions.
Jim
Texas-National Auctioneers
Showing posts with label puffer. Show all posts
Showing posts with label puffer. Show all posts
Tuesday, October 26, 2010
Saturday, May 20, 2006
How Do Reserves Work?
It seems everyone has their own idea how an auction is suppose
to work. We had this man tell us that, he felt that if an item had
a dollar bid, then it should be sold for a dollar. As we talked for
a while, he indicated that he might want to consign some things
to our auction... I asked him if we could sell his stuff for a dollar?
Of course, he said "NO!"... well, I think he finally understood.
In the State of Texas, ALL auctions are automatically considered
to be "WITH RESERVE", unless specifically stated that it is an
Absolute (without reserve). If there is only 1 item in an auction
with a reserve, then the auction can NOT be advertised as "absolute".
Now... I had another person tell me that she didn't like it when
there were bids on an item, but the item was "Passed" anyway.
The reason the item was Passed, was because the bidding didn't
reach the reserve price. Then she said that we shouldn't drop
below the reserve price. Well, as the saying goes "It doesn't
matter where it starts, it's where it ends that counts"... She felt
that we should announce the reserve. However, that isn't fair
to the consignor. Often, people don't know what something is worth,
but in a true market, it is worth "what a willing buyer is willing to
pay"... and "what a willing seller is willing to sell for". So, the seller
sets a reserve (minimum) that they are willing to accept, with the
hopes that there is 2 or more people that are willing to pay more.
The winning bidder has only paid one bid higher than someone else.
This is the fair way for an auction to work. However, if the reserve
is announced, then it may give a perceived value and it may not go
any higher, even though it's actual value may be much more...
hence, it is not fair to the seller.
This same lady told me that she goes to other auctions and they don't
Pass items... it appears that EVERYTHING is SOLD!
Did you notice that I said "appears"? The reason for this is that
most auction houses use one or more "House Numbers". If the
item doesn't reach the reserve price, it is sold back to a House
Number. This is completely legal, as long as it's announced that
the seller is allowed to bid and the "house number" is basically
used as a consignor bidder number. Then you say... but it's not
there at the next auction... true, because the auction house may
require the consignor to pick up their stuff that didn't sell after
the auction or it's sent out to another auction somewhere else or
possibly stored away for a while.
We don't always require our consignors to pick up their goods if
they don't sell. That means it might possibly be there at the next
auction (if the consignor so desires). So, if it doesn't meet the
reserve, we will "Pass" it.
We normally don't accept Reserves, except for expensive items.
However, we will only accept "reasonable" reserves. What do we
consider reasonable? That often depends on the particular item.
But, remember... this is an auction! It is NOT a means of getting
Full Retail Value. It is a means of moving items quickly and without
the hassles of "dickering", reducing the "holding costs" and advertising
costs normally associated with selling an item. These costs add up and
you may find that your actual profit is drastically reduced when you
add up these costs. In the normal market, a seller asks a price and
the buyer usually tries to negotiate a lower price. At the auction, the
bidders determine what they are willing to pay on a given day... the
bidding starts at whatever point the bidders wish to start the bidding
and it goes UP! until the last successful bid WINS!
We encourage people to ask questions at our auctions. If you don't
understand, we'll be glad to explain it to you... don't be afraid to ask.
I hope this helps to enlighten everyone, so that the auction experience
is FUN!
If you have any questions, contact us through the Texas-National
Auctioneers website at http://www.t-na.com
to work. We had this man tell us that, he felt that if an item had
a dollar bid, then it should be sold for a dollar. As we talked for
a while, he indicated that he might want to consign some things
to our auction... I asked him if we could sell his stuff for a dollar?
Of course, he said "NO!"... well, I think he finally understood.
In the State of Texas, ALL auctions are automatically considered
to be "WITH RESERVE", unless specifically stated that it is an
Absolute (without reserve). If there is only 1 item in an auction
with a reserve, then the auction can NOT be advertised as "absolute".
Now... I had another person tell me that she didn't like it when
there were bids on an item, but the item was "Passed" anyway.
The reason the item was Passed, was because the bidding didn't
reach the reserve price. Then she said that we shouldn't drop
below the reserve price. Well, as the saying goes "It doesn't
matter where it starts, it's where it ends that counts"... She felt
that we should announce the reserve. However, that isn't fair
to the consignor. Often, people don't know what something is worth,
but in a true market, it is worth "what a willing buyer is willing to
pay"... and "what a willing seller is willing to sell for". So, the seller
sets a reserve (minimum) that they are willing to accept, with the
hopes that there is 2 or more people that are willing to pay more.
The winning bidder has only paid one bid higher than someone else.
This is the fair way for an auction to work. However, if the reserve
is announced, then it may give a perceived value and it may not go
any higher, even though it's actual value may be much more...
hence, it is not fair to the seller.
This same lady told me that she goes to other auctions and they don't
Pass items... it appears that EVERYTHING is SOLD!
Did you notice that I said "appears"? The reason for this is that
most auction houses use one or more "House Numbers". If the
item doesn't reach the reserve price, it is sold back to a House
Number. This is completely legal, as long as it's announced that
the seller is allowed to bid and the "house number" is basically
used as a consignor bidder number. Then you say... but it's not
there at the next auction... true, because the auction house may
require the consignor to pick up their stuff that didn't sell after
the auction or it's sent out to another auction somewhere else or
possibly stored away for a while.
We don't always require our consignors to pick up their goods if
they don't sell. That means it might possibly be there at the next
auction (if the consignor so desires). So, if it doesn't meet the
reserve, we will "Pass" it.
We normally don't accept Reserves, except for expensive items.
However, we will only accept "reasonable" reserves. What do we
consider reasonable? That often depends on the particular item.
But, remember... this is an auction! It is NOT a means of getting
Full Retail Value. It is a means of moving items quickly and without
the hassles of "dickering", reducing the "holding costs" and advertising
costs normally associated with selling an item. These costs add up and
you may find that your actual profit is drastically reduced when you
add up these costs. In the normal market, a seller asks a price and
the buyer usually tries to negotiate a lower price. At the auction, the
bidders determine what they are willing to pay on a given day... the
bidding starts at whatever point the bidders wish to start the bidding
and it goes UP! until the last successful bid WINS!
We encourage people to ask questions at our auctions. If you don't
understand, we'll be glad to explain it to you... don't be afraid to ask.
I hope this helps to enlighten everyone, so that the auction experience
is FUN!
If you have any questions, contact us through the Texas-National
Auctioneers website at http://www.t-na.com
Saturday, May 13, 2006
Running the Bid to Protect a Reserve
The following is my response in a forum, concerning the way some auctioneers "run the bid". Some auctioneers feel that this is okay, because so many others do it, as well as some of the "big" auction houses. As you will note in my response, I do not concur with this manner of auctioneering.
- - - - -
Just because a particular "big" auction company does something, does not make it right, ethical or legal. You will recall that it wasn't so long ago that one of the "big auctions" was fighting court battles due to their "normal" activities, not to mention selling illegal/stolen goods. The old adage, "just because everyone does something, doesn't make it right" certainly applies to this.
As I stated, no one is reinventing the wheel. Some auctioneers sell to a house number, while some "pass" the item. We use the "pass" as opposed to using a house number. It doesn't make things flow any differently. However, this is not the point that I find a problem with.
One of the most controversial subjects about auctions is the use of phantom bidding, which is utilized in "running" a bid. There are a lot of articles on the internet, many from law firms, discussing the legalities of this practice and it's associated meaning.
Steve Proffitt is general counsel (lawyer) of J.P. King Auction Company, Inc. is also an auctioneer and instructor at the Reppert School of Auctioneering in Auburn, Indiana, and at the Mendenhall School of Auctioneering in High Point, North Carolina. As a Virginia auctioneer and lawyer, Steve Proffitt, makes some good points in some of his articles. As he states in one article...
"History shows that auctions have a long record of bad conduct. Indeed, I have often said that when it comes to auctions, fraud is Public Enemy Number One. This includes the widespread use of shills, phantom bids, hidden buy-ins, selling unannounced reproductions and fakes, allowing unannounced seller bidding, abuses in the advertising and conduct of absolute auctions, intentional clerking errors, and other forms of deceit, misrepresentation, and trickery that often occur."
Let's take a closer look at the phantom bidding practice and similar practices used by various auctions.
Auction sales psychology works because it is based on perceptions of the the public (as does all other marketing and sales). This is also where problems lie and potentially bear the implication of dishonesty and possibly fraud. Yes, the auctioneer posts notices of reserve bidding in their terms and conditions (as required by law) and they may even announce it at the beginning of the auction. But, we also know that most people don't necessarily understand what it means, nor do they question it. Most sit through the opening announcements chatting with others, while they wait for you to get through the boring statements and 'get on with the auction'. They come to the auction with the perception that "everything sells to the highest bidder and there are BARGAINS! to be had". So, when bidders start looking around and notice that no one actually seems to be bidding, they feel that the auctioneer is just another one of "those crooks."
The problem: "running" a bid, when no one is bidding... How can this be justified?
At auction, it is the "competitive" bidding which determines the final selling price. Of course, if there is a reserve (and appropriate notice is given in the terms of sale), then the owner or agent, i.e. auctioneer, may bid against other bidders, up to the reserve price. They may do this if they are BIDDING against someone who is actually bidding, which in effect means the seller is "buying back" their own property if it does not reach the reserve.
Is "running the bid" ethical? If you are calling for the next bid, and the current high bidder mistakenly holds up their bid card again, do you accept this bid against their previously held bid? I assume most auctioneer's answer to this is "NO", as most ethical auctioneers will let the person know that they already "have the bid".
The act of competitive bidding must occur between two or more persons. How can one person (the seller) bid against their self, as is the case with "running" the bid?
Therefore, how can an auctioneer justify "running" the bid against the reserve? This in effect is the seller bidding against himself, as there is no competing bid.
Since this implies that the seller is bidding against their self, this is where it becomes phantom bidding, which makes it appear unethical.
Now, keeping in mind the previous statements about marketing psychology, we have to look at it from the buyer's perceptions...
To make the point, I'll reference another article from Steve Profitt, in which an auction-goer sends him the following question:
I've been going to auctions with reserves for over 20 years. What's bothered me all this time is how auctioneers deal with reserves when the reserve price is not met.
I have no problem with the practice of using reserves. Reserves are part of the auction business because they protect the seller against a weak market where there is little or no demand for the item. However, in my experience, the majority of auctioneers call "sold" and use a "buy-back" number when the reserve is not met. Most bidders assume the item has been sold. In my area, I know of only two auctions where the auctioneer explicitly states, "Pass" or "The reserve has not been met." In these auctions, the bidders know the item was not sold.
Webster's dictionary defines "sell" as: "To give up to another for money or other valuable consideration." An owner cannot buy something he already owns. So to use the term "sold" as a buy-back for the owner is deceptive and misleading. It causes bidders to falsely believe that the auctioneer actually sold the item for the price stated. I think this practice is as egregious as phantom bidding.
What is the legality of "buy-back" bidding? If it's legal, wouldn't it be more ethical for an auctioneer to let bidders know that an item did not meet the reserve, rather than call "sold" under a phantom buy-back number?
You can read the entire article and Steve Proffitt's response at:
Auction Law and Ethics: Do You Want to Know a Secret?
I provided this reader's question only to show my point, that even educated auction-goers find such tactics as potentially dishonest.
Therefore, this is where I try to set myself apart from others. I do not "run the bid", although I will bid on behalf of the reserve only against a sole bidder. If the item doesn't make it to the reserve, I normally just "pass" the item, rather than sell to a "house number." Of course, I've also had bidders complain about this and heard such statements as "wasting their time". So, one might question if their perception of an item being "sold" is worth their time.
I have to agree with Steve Proffitt on this particular point:
"The knowledge that many auctioneers have about legal requirements and ethical duties has largely come from other auctioneers. That's unfortunate, because a good amount of this "knowledge" is wrong. Indeed, some auctioneers have done so much wrong for so long they've come to believe it's right—but it's not. It's just repetitious wrong."
The biggest problem with the "norm" is that it can continue to cause potential damage to the auction industry due to the public's perception. My biggest advantage to the "norm" is that, as more people learn about these things, the more I will benefit, as I will be one of the few that they will be seeking out as an "honest" auctioneer. I am not implying that all other auctioneers are dishonest, but you can bet that I'll use that perception to my own marketing advantage to stand out from the rest. One of the best testimonials I ever received was when a retiring auctioneer, Del Lemons, announced to his crowd at his last auction "Folks, I want to introduce you to an honest auctioneer... Jim Ford. If you want to attend a good, honest auction, then see him and get one of his business cards." I want all my customers saying the same thing!
- - - - -
If you're looking for an Honest Auctioneer, you can find me at http://www.t-na.com
- - - - -
Just because a particular "big" auction company does something, does not make it right, ethical or legal. You will recall that it wasn't so long ago that one of the "big auctions" was fighting court battles due to their "normal" activities, not to mention selling illegal/stolen goods. The old adage, "just because everyone does something, doesn't make it right" certainly applies to this.
As I stated, no one is reinventing the wheel. Some auctioneers sell to a house number, while some "pass" the item. We use the "pass" as opposed to using a house number. It doesn't make things flow any differently. However, this is not the point that I find a problem with.
One of the most controversial subjects about auctions is the use of phantom bidding, which is utilized in "running" a bid. There are a lot of articles on the internet, many from law firms, discussing the legalities of this practice and it's associated meaning.
Steve Proffitt is general counsel (lawyer) of J.P. King Auction Company, Inc. is also an auctioneer and instructor at the Reppert School of Auctioneering in Auburn, Indiana, and at the Mendenhall School of Auctioneering in High Point, North Carolina. As a Virginia auctioneer and lawyer, Steve Proffitt, makes some good points in some of his articles. As he states in one article...
"History shows that auctions have a long record of bad conduct. Indeed, I have often said that when it comes to auctions, fraud is Public Enemy Number One. This includes the widespread use of shills, phantom bids, hidden buy-ins, selling unannounced reproductions and fakes, allowing unannounced seller bidding, abuses in the advertising and conduct of absolute auctions, intentional clerking errors, and other forms of deceit, misrepresentation, and trickery that often occur."
Let's take a closer look at the phantom bidding practice and similar practices used by various auctions.
Auction sales psychology works because it is based on perceptions of the the public (as does all other marketing and sales). This is also where problems lie and potentially bear the implication of dishonesty and possibly fraud. Yes, the auctioneer posts notices of reserve bidding in their terms and conditions (as required by law) and they may even announce it at the beginning of the auction. But, we also know that most people don't necessarily understand what it means, nor do they question it. Most sit through the opening announcements chatting with others, while they wait for you to get through the boring statements and 'get on with the auction'. They come to the auction with the perception that "everything sells to the highest bidder and there are BARGAINS! to be had". So, when bidders start looking around and notice that no one actually seems to be bidding, they feel that the auctioneer is just another one of "those crooks."
The problem: "running" a bid, when no one is bidding... How can this be justified?
At auction, it is the "competitive" bidding which determines the final selling price. Of course, if there is a reserve (and appropriate notice is given in the terms of sale), then the owner or agent, i.e. auctioneer, may bid against other bidders, up to the reserve price. They may do this if they are BIDDING against someone who is actually bidding, which in effect means the seller is "buying back" their own property if it does not reach the reserve.
Is "running the bid" ethical? If you are calling for the next bid, and the current high bidder mistakenly holds up their bid card again, do you accept this bid against their previously held bid? I assume most auctioneer's answer to this is "NO", as most ethical auctioneers will let the person know that they already "have the bid".
The act of competitive bidding must occur between two or more persons. How can one person (the seller) bid against their self, as is the case with "running" the bid?
Therefore, how can an auctioneer justify "running" the bid against the reserve? This in effect is the seller bidding against himself, as there is no competing bid.
Since this implies that the seller is bidding against their self, this is where it becomes phantom bidding, which makes it appear unethical.
Now, keeping in mind the previous statements about marketing psychology, we have to look at it from the buyer's perceptions...
To make the point, I'll reference another article from Steve Profitt, in which an auction-goer sends him the following question:
I've been going to auctions with reserves for over 20 years. What's bothered me all this time is how auctioneers deal with reserves when the reserve price is not met.
I have no problem with the practice of using reserves. Reserves are part of the auction business because they protect the seller against a weak market where there is little or no demand for the item. However, in my experience, the majority of auctioneers call "sold" and use a "buy-back" number when the reserve is not met. Most bidders assume the item has been sold. In my area, I know of only two auctions where the auctioneer explicitly states, "Pass" or "The reserve has not been met." In these auctions, the bidders know the item was not sold.
Webster's dictionary defines "sell" as: "To give up to another for money or other valuable consideration." An owner cannot buy something he already owns. So to use the term "sold" as a buy-back for the owner is deceptive and misleading. It causes bidders to falsely believe that the auctioneer actually sold the item for the price stated. I think this practice is as egregious as phantom bidding.
What is the legality of "buy-back" bidding? If it's legal, wouldn't it be more ethical for an auctioneer to let bidders know that an item did not meet the reserve, rather than call "sold" under a phantom buy-back number?
You can read the entire article and Steve Proffitt's response at:
Auction Law and Ethics: Do You Want to Know a Secret?
I provided this reader's question only to show my point, that even educated auction-goers find such tactics as potentially dishonest.
Therefore, this is where I try to set myself apart from others. I do not "run the bid", although I will bid on behalf of the reserve only against a sole bidder. If the item doesn't make it to the reserve, I normally just "pass" the item, rather than sell to a "house number." Of course, I've also had bidders complain about this and heard such statements as "wasting their time". So, one might question if their perception of an item being "sold" is worth their time.
I have to agree with Steve Proffitt on this particular point:
"The knowledge that many auctioneers have about legal requirements and ethical duties has largely come from other auctioneers. That's unfortunate, because a good amount of this "knowledge" is wrong. Indeed, some auctioneers have done so much wrong for so long they've come to believe it's right—but it's not. It's just repetitious wrong."
The biggest problem with the "norm" is that it can continue to cause potential damage to the auction industry due to the public's perception. My biggest advantage to the "norm" is that, as more people learn about these things, the more I will benefit, as I will be one of the few that they will be seeking out as an "honest" auctioneer. I am not implying that all other auctioneers are dishonest, but you can bet that I'll use that perception to my own marketing advantage to stand out from the rest. One of the best testimonials I ever received was when a retiring auctioneer, Del Lemons, announced to his crowd at his last auction "Folks, I want to introduce you to an honest auctioneer... Jim Ford. If you want to attend a good, honest auction, then see him and get one of his business cards." I want all my customers saying the same thing!
- - - - -
If you're looking for an Honest Auctioneer, you can find me at http://www.t-na.com
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