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Clarifying Details About How Auctions Work
Clarifying Details About How Auctions Work
December 28, 2020

If your business is looking to liquidate assets or just clear some storage space inventory that’s not needed anymore, auctions can be a financially advantageous option. It can also be used to fuel growth or make room for new machinery. Machine tool auctions in particular are a perfect option to get rid of any surplus machinery you have left on your hands. If you’re new to the world of industrial auctions you may still have a handful of questions in mind about how this type of event carries on. In order to help clarify important things about auctions, here are some of the primary misconceptions about them explained. 

 

Auctions are just for distressed items

This is a huge misconception because the fact is that auctions are the main sales channel where companies and individuals alike can sell highly valuable assets. It is the competitive nature of the bidding process that sets the market value and final price of the assets sold at machine tool auctions apart from other sales processes.

 

Absolute auction vs. reserve auction

A reserve auction is a minimum price that’s set between the auctioneer and the seller. This has to be met in order to close the sale and is used to give the seller the security that the sale they hoped for is achieved. On the other hand, absolute auction means the item is being sold to the highest bidder without any minimum amount to be satisfied to close the deal. In both cases there are plenty of opportunities for your business to gain a profit.

 

What buyer’s premium is all about

This concept is used at machine tool auctions and other auction types as a form of payment of the winning bidder for the company conducting it, the auctioneer. It may also refer to the advertised percentage of the highest bid as an additional amount to such bid, or can also be a flat fee being charged to be added to the overall contract price of the item sold at the auction.

 

If you’re looking to partner with a trusted auctioneer with years of industry knowledge, Infinity Asset Solutions are ready to help your business obtain the best value for your assets. Contact us today to learn more about the various industries we service!

 

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