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An Auction Guide: Making a Profit

by Stan Daniloski

The idea of making money at auction is a complicated and hard process to master. It's not easy, if it were everybody would be doing it. If you plan taking your merchandise to auction and making a profit, take unusual or different items every auction and make sure the items are clean and in good condition.

Know the area in which you plan to sell, it is paramount to profits. If pottery in that area doesn't sell well, don't take pottery. The same can be said of anything. I made money at auctions by taking items that were different, unique and sold well at the respective auction house. I would buy in one state and sell in another. This way I could purchase items in one state, that I could get at a reasonable price, and take it to another where I could make a profit. And vice versa. Of course, my operating expenses were high (gas, lodging, etc.), but I nonetheless could make enough to recoup my expenses pay monthly bills and have enough left over to buy more merchandise. This method was highly susceptible to market conditions, which means that items available for purchase and profits were not consistent and at times would vary drastically. This method of buying and selling is not for everybody. But the message I'm trying to convey is do not buy and sell at the same place and bring merchandise that sells best for the area.

Do not bring in large quantities of the same item. If you have multiple items for sale, only bring a few at a time and do not bring in the same thing auction after auction. Your goal is to make money. If you flood an area with your merchandise, not only will your profits drop drastically but if other dealers buy your merchandise, they'll be stuck with inventory they cannot sell. You may ask, "Why should I care if someone else can make a profit on items I took to auction?, I just want to get rid of the stuff". My reply is: you better care. The majority of people buying at auctions are dealers. These people will greatly add to your income at the end of the day. They will remember what happens and usually find the individual responsible for 'dumping' in the area. And they will make sure that your profits are minimized, if your fortunate.

If you plan on taking new or reproduction items to auction for sale. It's best to keep quantities small, usually no more than two of an item (one is preferred). Bring a variety of items that sell well and do not get carried away with large numbers of new or reproductions. Keep your items to less than 10. The more you bring the lower the profit. The auctioneer usually will sell multiple items as 'choice'. When items are offered this way, people have a tendency of holding back on the price they're willing to pay in the hopes of getting at least one cheaper. Unless, the item is in demand your profits will be smaller.

If you plan on taking new and reproduction merchandise to auction and passing it along as being old. Remember, what goes around comes around. People pay high prices for some of these items and will remember when they are taken. Not only will the 'regulars' and 'dealers' not buy the item, but they usually notify interested people if an item is a reproduction. A trustworthy auctioneer or 'feeder' will also notify bidders of reproductions. People do not like to be fooled at auctions, I have seen some pretty nasty fights break out. Be-aware.

You will not get rich selling items at auction, but you will get quick cash for your items. If you plan ahead, and the nine conditions are in your favor, your sale will be successful.

Written and Copyrighted © 1997-2001 by Stan Daniloski

If you have any interesting stories or tips about buying or selling at live auctions please e-mail us at CBHcontact@gmail.com.