A Few Things Ive Learned About Doing Business On The Internet
I've learned that there are more programs, and e-books available than I have money to purchase.
I've learned that many, many of the programs and e-books are simply a rehash of another program, or e-book.
I've learned that there are many different sites where by joining a program as a free member. Most, but not all of the e-books that I've spent my money to purchase; can be downloaded for free.
I've learned that some, not all of the e-books that can be purchased are a total waste of time.
I've learned that it is possible to download so many e-books; that either they don't get read, or you'll spend so much time reading them that you don't get anything else done.
I've also learned that some of the ideas expressed in some of them are so important, that if you don't take the time to read them; you'll be spending not only dollars, but time needlessly.
I've learned: that you can spend so much time promoting so many different products; that none of the promotions get enough time to be successful. That shotgun marketing is a losing proposition.
I've learned there are more Internet Gurus than I have time to study, and they got that way because they focused their energy.
I've learned that no matter how attractive the next program, e-book appears; that you must narrow your vision to the one best program you have in your arsenal, and give it 100% of your energy if you expect to succeed.
I've learned that without an opt-in list, you're dead.
And last, and most important: I've learned; you must discover your niche, and work it until it's a success
Andy Macdonald owns and runs his own Link ="http://www.swiftmediauk.co.uk/website-design.php" target="_blank">uk website design business called Link ="http://www.swiftmediauk.co.uk" target="_blank">Swift Media UK, which incorporates Link ="http://www.swiftmediauk.co.uk/logo-design.php" target="_blank">custom logo design
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10 Ways To Keep Visitors On Your Site Longer
1. Provide your web site visitors with content they can't read anywhere else. People will stay longer at your web site to read the original content.
2. Remind your web site visitors they can print out your content. They may browse around your online store while it's printing.
3. Offer your web site visitors a freebie if they take the time to fill out your online survey. They'll be at the site longer and might buy something afterwards.
4. Offer your visitors free software that they can download right from your web site. While they are waiting they might read your ad.
5. Provide a huge online directory of information that your visitors could search. The directory must contain information your visitors would want.
6. Make sure all your web pages load fast or your visitors will leave fast. Time is precious; they won't waste it waiting for your site to load.
7. Tell your visitors what's offered at your web site at the very beginning. If people are confused about what's being offered they may leave too early.
8. Publish your web site professionally. People will get turned off and leave if they see a lot of spelling and grammar mistakes.
9. Make your site text easy to read. Most people won't strain their eyes trying to read text that is too small, light or bright.
10. Use headlines and sub headlines all over your your web site that will grab visitors attention. It will attract them to explore your web site longer.
Andy Macdonald owns and runs his own Link ="http://www.swiftmediauk.co.uk/website-design.php" target="_blank">uk website design business called Link ="http://www.swiftmediauk.co.uk" target="_blank">Swift Media UK, which incorporates Link ="http://www.swiftmediauk.co.uk/logo-design.php" target="_blank">custom logo design
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3 Effective Tactics Every Business Should Implement
1. Create a Special Offer
A special offer is exactly that... an offer that is special. Normally, customers would not be able to purchase this product or combination of products, and once the products are gone... sorry!
You don't have to go out and order a bunch of new products to put together a special offer. It don't take a whole lot... just use what you've got. Grab a few items that are related, group them together, discount the price, and your customers will be excited to be getting a good deal. Think about it from your standpoint... you've sold three or four items rather than one. Yeah, combination offers are winning deals for everyone!
2. Address the Small Customer Groups
Niche markets are everywhere, right under your nose! Within the customer audience that you serve right now are groups of people who share common traits. Think about it... maybe you have a group who speaks Spanish, a group of teens, and a group of middle class family men and women.
Evaluate these classes of people, and discover the unique needs and desires they share. That will set you up to customize your advertising campaign directly to them. It's not hard to take your current ads, and make a few changes to adjust to the niches. They'll be impressed that you understand THEM, and the increase in your profits will be the best thanks you can get.
3. Set Up a Winning Referral Program
Successful marketers develop the ability to turn their customers into advocates. Often, they don't even have to directly ask customers to refer them to others. Their willingness to go the extra wins customer loyalty and support. Naturally, satisfied customers refer their friends and family to the place that will take good care of them.
Quality service and is the first step toward referrals, but you can easily take it one step further. Studies show that every satisfied customer tells three people about you. What would happen with a little incentive added to the picture? Yeah, a lot more. Give customers who refer friends a thank you - whether it's a discount, special gift item, or a simple thank you card - and watch the referrals spiral!
You can get two birds with one stone by implementing customer surveys. A few quick questions about what the customer does and doesn't like about your product, followed by a request for the names and addresses of friends and family who would benefit from the product, and you're all set to go with the contact information of a prospective customer!
Andy Macdonald owns and runs his own Link ="http://www.swiftmediauk.co.uk/website-design.php" target="_blank">uk website design business called Link ="http://www.swiftmediauk.co.uk" target="_blank">Swift Media UK, which incorporates Link ="http://www.swiftmediauk.co.uk/logo-design.php" target="_blank">custom logo design
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Web Sites that help you doing business in China: (3) Business Guide
This HSBS webpage covers different topics in doing business in China. It talks about how to setup different type of business entities in China. It also has a section to discuss the taxation, include corporate tax, personal income tax and indirect taxes. You need to understand the legal system to run your company better. The HSBC webpage provides introduction on the advertising law and labour law.
Link ="http://www.hsbc.com.hk/hk/commercial/chinabiz/default.htm">http://www.hsbc.com.hk/hk/commercial/chinabiz/default.htm
In this China-Window.com website, you can find a lot of business culture and tips. You can know how to addressing Chinese. You can know how to handle business gift-giving issues in China. You can understand how important of business networks in China. You are advised to explore the website if you want to have a deep understanding on the business culture in China.
Link ="http://www.china-window.com/china_business/doing_business_in_china/index.shtml">http://www.china-window.com/china_business/doing_business_in_china/index.shtml
This is an Extract from Guide to Doing Business in China. Though it is dated as November 2004, it is a good reference. It talks about foreign investment management, import/export, taxation, foreign exchange, finance and account, staff recruitment, etc.
Link ="http://www.tdctrade.com/chinaguide/">http://www.tdctrade.com/chinaguide/
ChinaToday.com provides general information about China. It provides information about trade & investment, cities, entertainment, travel and weather. You can find all the basic information over there.
Link ="http://www.chinatoday.com/">http://www.chinatoday.com/
Isaac Chu is Project Director of Evinco Solutions Limited. Evinco provides innovative business softwares, include emarketing web solutions, email marketing software, e-catalog publishing software, invoicing software, and electronic cheque writer. Visit: Link ="http://www.evinco.com.hk">www.evinco.com.hk
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Web Sites that help you doing business in China: (2) Business Directories
Alibaba
Famous Manufactures/Suppliers/Exporters/Importers Directories, you can find all your business needs here.
Link ="http://www.alibaba.com/">http://www.alibaba.com/
ChinaBig
It formed by China Union, PCCW Limited, R.H.Donnelley and INFOSPACE. It provides yellow page services and you can find different categorized company information, selling leads and buying leads.
Link ="http://www.chinabig.com/">http://www.chinabig.com/
Hong Kong Trade Development Council
TDC provides different business information, includes sourcing guide, business matching, market information and trade events. The sourcing guide covers China, Hong Kong and Taiwan and is one of the biggest sourcing guides in the region. tdctrade.com also provides news about Hong Kong business economy and China trade. It provides different languages support, include English, Chinese, Japanese, Deutsch, Francois, more.
Link ="http://www.tdctrade.com/">http://www.tdctrade.com/
Directory of Chinese Suppliers
It's an English directory listed over 250,000 Chinese suppliers in 30 categories.
Link ="http://www.chinese-suppliers-directory.com/">http://www.chinese-suppliers-directory.com/
China Supplier Directory
It's another directory, which lists China Suppliers. The directory is well organized. You can find details company information; include company background, address, and contacts.
Link ="http://www.tradebig.com/">http://www.tradebig.com/
China Business Directory
It is a business directory but with over 170,000 Chinese companies listed in English.
Link ="http://www.chinainfo.org/">http://www.chinainfo.org/
Isaac Chu is Project Director of Evinco Solutions Limited. Evinco provides innovative business softwares, include emarketing web solutions, email marketing software, e-catalog publishing software, invoicing software, and electronic cheque writer. Visit: Link ="http://www.evinco.com.hk">www.evinco.com.hk
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Web Sites that help you doing business in China: (1) Search engine list
In this series of articles, we will talk about different web sites that are useful when doing business in China. We will also introduce different tools to facilitate your business.
According to latest research made in fourth quarter 2005, there are over 100 million Internet users in China. (China rank second just after U.S.) However, it just covers 7.9% of the population. More important is that 63% of these Internet users have performed online purchase. Over the past ten years, the growth rate of Internet user is 300%. We can expect that the online market in China have enormous potential.
We will introduce different search engines in China and Hong Kong. (Hong Kong is always the gateway for your business to get into China, so we will get it in count). If you want to get your website searched by 100 million Internet users, you'd better make submission to the following search engines. Most of these search engines welcome website in English too. It's much better if you have your website in Chinese.
You may find difficulties in submission to some of the websites if you can't read Chinese. You can try to email the web master about your site and leave them the related info, likes URL, site title, description, email address, etc. And you can submit to the Google & Yahoo directory first as some of the search engines will follow these two big players and crawled your website.
Baidu
Baidu is China's Google. It is the most popular search engine in China. To submit website to Baidu, click below:
Link ="http://www.baidu.com/">http://www.baidu.com/
Netease
Netease is another big search engine in China. Similar to Yahoo, it provides search engine and portals with different nformation/services.
Link ="http://www.163.com/">http://www.163.com/
Sina
Sina.com is targeted to serve the Chinese community, include China, Taiwan, and Hong Kong. It has different portal for different areas. Sina.com provides large number of services; include directories, search engine, blog, chatroom, etc.
Link ="http://www.sina.com.cn/">http://www.sina.com.cn/
Sohu
Sohu.com provides similar services as Sina.com. It has over 100 million registered users and has 250 million pages viewed daily.
Link ="http://www.sohu.com">http://www.sohu.com/
Timway
Timway is a Hong Kong based search engine. It also provides searching services to other Hong Kong's portal.
Link ="http://www.timway.com.hk/">http://www.timway.com.hk/
Google China/Hong Kong
Link ="http://www.google.cn/">http://www.google.cn/
Link ="http://www.google.com.hk/">http://www.google.com.hk/
Yahoo China/Hong Kong
Link ="http://chinese.yahoo.com/">http://chinese.yahoo.com/
Link ="http://www.yahoo.com.hk/">http://www.yahoo.com.hk/
Isaac Chu is Project Director of Evinco Solutions Limited. Evinco provides innovative business softwares, include emarketing web solutions, email marketing software, e-catalog publishing software, invoicing software, and electronic cheque writer. Visit: Link ="http://www.evinco.com.hk">www.evinco.com.hk
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Office Supplies Do Not Have to Cost an Arm and A Leg
Every business in today's busy world makes use of several things within the workday. For example, nearly all businesses make use of a printer. With owning a printer, comes the need of having to supply your business with printing paper, forms, labels, printer cartridges, and toner. Many online stores exist that can offer your company extensive savings of such discount office supplies, over the main chain store competition.
No matter your business, any of the discount office supply websites can provide you with many of your office needs. For example, major technology such as computers, software, presentation devices, business electronics, telephones, business cards and other electronic business needs. Try shopping online for your discount office supplies like office furniture, warehouse furnishings, or basic supplies like markers, pens, pencils, business headers, forms and the like.
When searching online for a discount office supplies store, there are a few things you will want to keep in mind. First, ensure that the website is owned by a reputable company, you should also look for specific policies that state their terms and conditions about the security of your contact information, return policies, and guarantees. Any reputable company will offer a money back guarantee on any item purchased upon their website. It is important that you be fully aware of this guarantee and the specified amount of time given to return your items.
Additionally, many of these online discount office supply stores will offer a discount when a business purchases items in bulk. This is absolutely ideal for any large business who wants to save money on their investments. You should also carefully look at the site for something displayed that tells you they are secure in all transactions. For example, a site might display they are secured by Geo Trust. This is extremely important, for the simple fact that the website has thought about the security of their customers enough to ensure that their information is highly confidential throughout the entire buying process.
Finally, you will want to make sure the discount office supplies website prominently displays contact information. This information should always include the company name, address, telephone number, and email. You may want to go ahead and telephone the company if you have any doubts about its reliability, they should have customer service representatives ready to help you.
Dawn Harris is an experienced writer that has written an extensive amount of published articles to date. For more information, visit her website at Link ="http://www.sprstr7427.com">http://www.sprstr7427.com and take a look at all the services Dawn can offer you all with high quality, originality, and an excellent price. Be sure to say hello and let her know you found out about her right here!
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Patent: Seven Ways To Keep You From The Wolves
Invention development companies are private and public research companies that purport to help inventors develop, patent, and promote their ideas so they can be commercially licensed or sold. While many of these organizations are legitimate, some are not.
I state my stand on the use of such companies on my website - Link ="http://www.gadgets-gizmos-inventions">www.gadgets-gizmos-inventions,com. But, you may want to go that way anyway to develop your patent or invention. If that's the case, here are seven helpful tips for you to make smart patent and invention development decisions:
1. Learn About the Patent Process.
When you understand the basics of how to get a patent, you will know when invention marketers are making promises they, or the patent system, can't deliver. Knowing the steps to do a patent search, and what is required, as well as knowing what happens in the patenting process can only help you in making the right decision. You will have a better idea about whether the company you are talking to knows what they are doing for you - and not just their pocketbook.
2. Do Your Homework.
Check the organization's references, ask for credentials, and then check them. Ask them for statistics on how many successes they have had compared to how many total clients. They are required by law to offer you this type of information. In fact, the American Inventors Protection Act of 1999 gives you the following rights when dealing with invention promoters.
Before an invention promoter can enter into a contract with you, it must disclose the following information about its business practices during the past five years:
how many inventions it has evaluated,
how many of those inventions got positive or negative evaluations,
its total number of customers,
how many of those customers received a net profit from the promoter's services, and
how many of those customers have licensed their inventions due to the promoter's services.
This information can help you determine whether the promoter has been selective in deciding which inventions it promotes, and how successful the promoter has been. Ask for names of "successful" clients, and talk to them.
Invention promoters also must give you the names and addresses of all invention promotion companies they have been affiliated with over the past 10 years.
This information can help to determine whether the company you're considering doing business with has been subject to complaints or legal action.
You can call the U.S. Patent and Trademark Office (USPTO) at 1-866-767-3848, and the Better Business Bureau, the consumer protection agency, and the Attorney General in your state or city, and in the state or city where the company is headquartered to check them out.
3. Be Realistic.
Not every invention is patentable. Know that very few ideas - even the good ones - become commercially successful. Be wary of any developer willing to promote virtually any invention. If you are presented with the phrase - "We think your idea has great market potential" - beware, and take it for what it is - in a lot of cases, just a sales pitch.
4. Know Where Your Money Is Going.
Ask the organization how your money will be spent. Be on guard against large up-front fees and find out exactly how the money is spent. If the company gives you something like - "Our company has evaluated your idea, and now wants to prepare a more in-depth research report. It'll be several hundred dollars" - ask them if the idea is good enough for more research why don't they foot the bill.
5. Protect Your Rights.
DO NOT disclose your invention to a developer over the phone (or at any time) before first having them sign a confidentiality agreement. You could forfeit valuable patent rights. A sample confidentiality agreement is available on my website.
6. Track Your Invention's Progress.
If you decide to use an invention development organization, deal directly with the agent or patent attorney who will be handling your patent application. A lot of these type of firms outsource the work which is not good for you.
Many invention promotion firms also may claim to perform patent searches on your idea. Fraudulent invention promotion firms usually do patent searches that are are incomplete, conducted in the wrong category, or unaccompanied by a legal opinion on the results of the search from a registered patent attorney.
Because unscrupulous firms promote virtually any idea or invention without regard to its patentability - they may go ahead and market an idea for which someone already has a valid, unexpired patent. In that case, you may be the one subjected to a patent infringement lawsuit - even if the promotional efforts on your invention are successful. Most probably, the way the infringement suit is attracted is through a successful product.
7. Don't Get Discouraged!
The patent process can be very complicated, so you will probably need professional help. There are many good patent agents and attorneys that can help you. The U.S. Patent and Trademark Office maintains a nationwide register of attorneys and agents who meet the legal, scientific and technical requirements of the office.
The first step should be a patent search done by a reputable searcher. Your patent attorney can help with this, and should review the search for a package price, depending on the complexity of the invention.
Hang in there. It is a long and complicated process. But if your idea passes the initial search test and evaluation, there is a good chance you can receive a patent - in two or so years.
For information on registered patent attorney and agents, you may visit the USPTO's Office of Enrollment and Discipline Web site at Link ="http://www.uspto.gov/go/oed.">http://www.uspto.gov/go/oed.
Gary J. Cogley, JD, after being a musician, a TV Producer/Director/Writer, and an entertainment and IP attorney, now writes about all kinds of gadgets, gizmos and inventions. He also gives tips and info on patents, and scams to watch out for. Get info at:
Link ="http://www.gadgets-gizmos-inventions.com">http://www.gadgets-gizmos-inventions.com
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So You Have An Idea - So What?
Well, the first thing to do is get all your ducks in a row. Start a hard-bound journal and put everything in writing. Draw pictures or diagrams of how your invention works. Date and sign each page, and get someone you trust to look at it and date and sign too.
Then, get ready to spend some money. Sorry, but it takes money to get things going. If your idea is worth anything - which you can find out through the process - you should file for a patent.
A patent gives you 20 years from the filing date the right to keep others from making or selling your invention without your permission. That gives you time to develop and sell your invention in the marketplace. Believe me or not, getting the patent may be the easiest part. About 99% is in the development and marketing of the idea.
To get a patent it is best to find a registered patent attorney or agent. I know, attorneys are sharks. But in this case, their knowledge will get through the government bureaucracy a lot faster and easier than you can by yourself.
To give you an idea of what you are going to face when getting into the patent process, here are some FAQ's to help you understand better - maybe.
PATENT FAQ's
Q: What do the terms "patent pending" and "patent applied for" mean?
A: They are used by the inventor - or his manufacturer or seller of his product - to inform the public that a patent application has been filed with the Patent and Trademark Office ("USPTO"). You can be fined if you use these terms falsely and deceive the public.
Q: Is there any danger that the USPTO will give others information contained in my patent application while it is pending?
A: No. All patent applications are kept in strictest secrecy until the patent is issued. After the patent is issued your file is made available in the USPTO Files Information Room for inspection by anyone and copies of the files may be purchased from the USPTO. (The Files Information Room is where searchers go to prepare their patent searches - which are needed to complete a patent application)
Q: May I write directly to the USPTO about my application after it is filed?
A: The USPTO will answer questions regarding the status of the application, whether it has been rejected, allowed, or pending action. BUT, if you have an attorney representing you, the Office will not correspond with both of you. The best practice is for all comments be forwarded through your attorney. Another thing - it can take some time before your application will be assigned to an examiner, and what is called an "office action" will happen. Patience is needed.
Q: Do you actually have to go to the USPTO to do business with them?
No. Most business with the USPTO is done in writing and through correspondence. Interviews with Examiners are sometimes necessary (and sometimes helpful) but a lot of them are done by phone by your attorney. The expense of a trip to D. C. is seldom necessary.
Q: If two or more persons work together to make an invention, who gets the patent?
A: If each person had a share in the ideas forming the invention, they are considered joint inventors and a patent will be issued jointly if they make it through the application process. BUT, if one person provided all the ideas for the invention - and the other person(s) has only followed instructions in making the invention, the person with the ideas would be considered the sole inventor - meaning the patent application and the patent itself shall be in his/her name alone.
Q: What if one person supplies all the ideas to make an invention - and another person either employs him and/or comes up with the money to build and test the invention - should the patent application be filed jointly?
A: NO. The application MUST be signed by the TRUE INVENTOR - and filed with the USPTO in the true inventor's name. This is one time money doesn't count. It is the person with the ideas - not the employer - not the money man - that gets the patent. If the greedy, blood-sucking, viperous, money-grubbing, creatively non-contributing money man or boss wants any part of the invention, he would have to get his hold through a contract or license on the invention - not the patent itself.
Q: Does the USPTO control the fees charged by patent attorneys and agents for their services?
A: No. This is strictly a matter between you and the attorney or agent. Fees vary - as do attorneys and agents. You should feel comfortable with your choice. It would be best to ask up front for estimates on charges for: (a) a patent search; (b) The preparation of a patent application; (c) drawings to accompany the application; and, (d) the prosecution of the application before the USPTO. (NOTE: an attorney can only give you estimates. The cost of a search, and the application with drawings is pretty well determinable up front. But the prosecution step depends on the Examiner and what he does and doesn't like about your application. There may be amendments that have to be made (expect at least one), and negotiations to transpire, which all take time and effort from the attorney)
Q: Will the USPTO help me pick an attorney or agent to do my search or prepare my application?
A: No. The USPTO cannot make this choice for you. The Office does maintain a list of registered attorneys and agents. Also some bar associations have lawyer referral services that may help you. If you have a general attorney, although he can't help you directly if he isn't a registered attorney with the USPTO, he may help you with a referral.
Q: Will the USPTO advise me about whether or not a certain promotion firm is reliable and trustworthy?
A: No. The USPTO has no direct control over such organizations. While the USPTO does not investigate complaints about invention promoters or promotion firms - or get involved in any legal proceedings relating to such firms - there is a public forum to publish complaints against such firms. The protections you have from patent promotion firms is spelled out in laws passed in 1999. These promotion firms have specific duties of disclosure under this act. [See Link ="http://www.gadgets-gizmos-inventions.com">http://www.gadgets-gizmos-inventions.com for more info]
Q: Are there any organizations that can tell me how and where I may be able to get some assistance in developing and marketing my invention?
A: Yes. Organizations in your community - such as Chambers of Commerce and banks - may be able to help. Many communities have locally financed "business incubators" or industrial development organizations that can help you locate manufacturers and vulture (I mean Venture) capitalists that might be interested in helping you. Do your homework - check, check, check - and be careful.
Q: Are there any state government agencies that can help in developing and marketing my invention?
A: Yes. Nearly all states have state planning and development agencies or departments of commerce and industry that seek new products and articles to manufacture, or processes to assist existing manufacturers and communities in the state. A lot of these agencies are online - or at least have listings in telephone books. If all else fails - write your state governor's office.
Q: Can the USPTO help me in developing and marketing my invention?
A: No. the USPTO cannot act or advise concerning any business transactions or arrangements that are involved in the development and marketing of an invention. They will publish the fact that your patent is available for licensing or sale in the Official Gazette - at your request and for a fee.
Q: How do I start?
A: First, of course, you have to have an idea. Then that idea has to be put down in a form so that it can be understood at least by a person that is experienced in the field of endeavor that concerns the invention. This usually is a written description and a drawing. Whatever it takes to explain the invention.
The next step is a patent search - to see if someone else has come up with a similar idea. A lot of times this is the case. And, a lot of times your idea may be enough of an improvement to be unique enough for a new patent. There are search firms available - and most patent attorneys have access to their own favorites. It is best to commit only to the patent search at first. Do not sign a contract for anything else just in case the search finds your invention with no way to find "novelty" and "non-obviousness."
If the search report looks good (watch out for the hype artists), it is time for commitment. Choose your attorney and let it fly.
It is possible to file a patent application by yourself - but really - it is like you going into a restaurant in Paris, France that is, and trying to order from the menu. unless you know and speak the language, you won't get what you want. In the case of a patent, the USPTO will throw you out - even if your invention is great - because the application does not speak their language.
Gary J. Cogley, JD, after being a musician, a TV Producer/Director/Writer, and an entertainment and IP attorney, now writes about all kinds of gadgets, gizmos and inventions. He also gives tips and info on patents, and scams to watch out for. Get info at:
Link ="http://www.gadgets-gizmos-inventions.com">http://www.gadgets-gizmos-inventions.com
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Classified Advertising In Local Markets
It is unlikely that someone from across the country or around the world will want to purchase your used furniture, lawn mower or Kenmore washer and thus much of the traffic that would come to your Internet ad would be useless. However, due to the fact that most newspapers that feature classified advertisements have a local circulation, the chances of completing a sale through the newspaper greatly increase since the product can easily be obtained.
On the contrary, if you were to find a motorcycle for sale online and the seller lived in Florida while you resided in California, it would be very difficult to purchase the item. Furthermore, with the decreasing costs of advertising in the newspaper, many people find it a viable method of advertising the products they no longer need.
Another reason why classified advertisements are so popular in newspapers is because of the reach that many larger newspapers get. For example, a newspaper such as the Boston Globe, had hundreds of thousands of readers throughout the Boston area and throughout Massachusetts and southern New Hampshire and Vermont. Hence, if you are selling a product such as a car or other high-ticket item, many of these people may be interested in traveling a bit of a distance to make a purchase. By advertising in the classifieds section of larger newspapers, you are reaching an even greater number of potential customers within your local market.
Internet classified advertising does have some benefits such as it is very easy to post your ad and in certain circumstances your Internet classified advertisement may attract more visitors than your advertisement in the newspaper. Therefore, it is sensible to advertise your product on the Internet as well. By combining your newspaper and Internet advertising, you are sure to reach a large number of potential buyers in both the local and distant markets.
There are two types of classified advertisements which I would strongly recommend advertising primarily in newspapers. These types of advertisements would be promoting the sale of automobiles and low paying jobs. Many newspapers have a special section for these products/services and thus advertising these products in the newspapers is likely to reach more buyers in the local market.
Advertising higher paying jobs and hard to find items, such as a classic car, can do well on the Internet since people may be willing to travel far from home for these types of jobs or to acquire a unique item. If you are selling smaller sized items, such as jewelry, clothing or books, they can be sold utilizing online portals such as Ebay, since these products are fairly easy to ship to their destination and finding a local buyer is not as imperative.
In conclusion, you need to determine the best method of advertising for your item. Newspaper classifieds should always be considered since this medium can very often bring you the customer you are looking for to complete the sale. Depending on the type of item you are selling, advertising in the newspaper classifieds and locating a buyer within your locality can very well be the key to a successful sale of your item.
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Top 10 Proven Classified Ad Selling Tips To Guarantee A Successful Sale
1.PREPARE: Determine the items around your home that you no longer need. Once you have collected these items, confirm that they are in working order and in good selling condition. If items have been in storage for a long period of time, you may need to clean them up to make them more attractive to potential buyers.
2.RESEARCH: After all items are collected, do your research. Determine the value of your items and decide whether it would be worth you time and effort to place a classified ad. Some things will do well on their own while others may do better in a garage sale setting. If certain items do not have enough value to justify placing an advertisement and you are not interested in hosting a garage sale, donate these items to a local charity for a nice tax deduction.
3.WHERE TO ADVERTISE: Once you have the items sorted out, you need to decide the best method of advertising. Most items will do best advertised in your daily newspaper since you will be able to reach a local audience. Online classifieds generally do not receive as many local buyers, but most are free so you may want to place an ad there as well just to cover all the bases. If you are selling a larger item such as a car, motorcycle, motor home, etc., you will also want to place prominent for sale signs on the items themselves. You can also utilize bulletin boards in your local community to post a free advertisement.
4.DRAFTING YOUR AD: What are the most attractive selling features of your items for sale? Decide which of these features you want to highlight in your advertisement. Look for classified ads for similar items to get an idea of how they are written. Check out the competition to see how your item is better or different than the items that will be running along side your ad.
5.WRITING YOUR AD: Create a catchy title to get your reader's attention. This will spark an interest in your classified ad. Always include the brand name when applicable. Price should only be included in the title if it is an obvious selling point. Next, you need to write the body text of your ad and entice buyers even further with the details. Make your description clear and factual. Provide specific details in what it is that makes your item stand out from the others. Be honest in your representation and do not make your item appear better than it actually is. Always include the price in your ad. Take some time to view other classified ads for similar items in your newspaper. This will help you determine a fair asking price for your item. Keep in mind, just because you paid $1,500 for your dining room set, does not mean you will receive that much for it on resale. Be realistic in your expectations. Furthermore, if you will only be available during certain times of the day to discuss your item, make a note of this in your advertisement so buyers know the best time to reach you. If possible, include your email address.
6.INCLUDING PHOTOS: A picture is worth a thousand words. Some local newspapers provide you with the option to include photos with your classified ad. Be sure to include the photos! When buyers have the opportunity to see an article for sale they have a higher degree of interest and are more likely to buy when they follow up by telephone or email to ask questions or to get more information. If your newspaper does not offer photos or the photo option is too expensive, you can use an online classified photo hosting service. Visit Link ="http://www.seethisitem.com">http://www.seethisitem.com for information on how to include free digital photos with your Link ="http://www.seethisitem.com"> newspaper classified ad.
7.COMMUNICATING WITH BUYERS: Do your best to be available when customers call for information regarding your item. Be polite and helpful and answer all questions to the best of your knowledge.
8.SCHEDULING APPOINTMENTS: If you receive numerous calls for your item, be sure to space out the appointments so that you will have enough time to spend with each buyer and your appointments will not overlap. Safety tip: Whenever possible, have someone home with you when a buyer is coming over to look at your item. You really can never be too careful when dealing with people you have never met before.
9.NEGOTIATION: Decide before you negotiate, the lowest amount you will be willing to accept for your item. This will assure a smoother negotiation process.
10.PAYMENT: Never accept a check for your item. You should only accept cash or money orders. If a buyer decides they want the item, but they do not have cash on them, always take a deposit to hold the item until they are able to come back. Be sure to set a deadline for them to return with the balance due. Even though you have a deposit, do not stop showing your item since the deal is not final until you have the cash in your hand. If someone else is also interested, tell them you just received an offer, but you will be happy to take down their name and number in case the deal falls through. This will give you more options should the original buyer back out of the sale.
That's it! Keep these selling tips in mind and you will be on the road to a successful sale. Take your time, be thorough and most of all have fun! If you follow the steps outlined above, you will be turning your unused items into cash in no time.
Have a Link ="http://www.seethisitem.com"> Classified Ad Selling Tip or Story of your own to Share? Submit it to us and be eligible to win our contest. Your submission may also be published on our website! Visit us at Link ="http://www.seethisitem.com">http://www.seethisitem.com for details. All entries must be received by 7/31/06.
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Accounting: Understanding Your Assets
Cash in Checking: Any company's primary account is the checking account used for operating activities. This is the account used to deposit revenues and pay expenses. Some companies have more than one operating account in this category; for example, a company with many divisions may have an operating account for each division.
Cash in Savings: This account is used for surplus cash. Any cash for which there is no immediate plan is deposited in an interest-earning savings account so that it can at least earn interest while the company decides what to do with it.
Cash on Hand: This account is used to track any cash kept at retail stores or in the office. In retail stores, cash must be kept in registers in order to provide change to customers. In the office, petty cash is often kept around for immediate cash needs that pop up from time to time. This account helps you keep track of the cash held outside a financial institution.
Accounts Receivable: If you offer your products or services to customers on store credit (meaning your store credit system), then you need this account to track the customers who buy on your dime. Accounts Receivable isn't used to track purchases made on other types of credit cards because your business gets paid directly by banks, not customers, when other credit cards are used.
Inventory: This account tracks the products you have on hand to sell to your customers. The value of the assets in this account varies depending upon the way you decide to track the flow of inventory into and out of the business.
Vehicles: This account tracks any cars, trucks, or other vehicles owned by the business. The initial value of any vehicle is listed in this account based on the total cost paid to put the vehicle in service. Sometimes this value is more than the purchase price if additions were needed to make the vehicle usable for the particular type of business. For example, if a business provides transportation for the handicapped and must add additional equipment to a vehicle in order to serve the needs of its customers, that additional equipment is added to the value of the vehicle. Vehicles also depreciate through their useful lifespan.
Accumulated Depreciation Vehicles: This account tracks the depreciation of all vehicles owned by the company.
Furniture and Fixtures: This account tracks any furniture or fixtures purchased for use in the business. The account includes the value of all chairs, desks, store fixtures, and shelving needed to operate the business. The value of the furniture and fixtures in this account is based on the cost of purchasing these items. These items are depreciated during their useful lifespan.
Accumulated Depreciation Furniture and Fixtures: This account tracks the accumulated depreciation of all furniture and fixtures.
Equipment: This account tracks equipment that was purchased for use for more than one year, such as computers, copiers, tools, and cash registers. The value of the equipment is based on the cost to purchase these items. Equipment is also depreciated to show that over time it gets used up and must be replaced.
Accumulated Depreciation Equipment: This account tracks the accumulated depreciation of all the equipment.
Business Owners: How To Keep Your Books Ready For The IRS
Write checks payable to yourself only when making withdrawals of income from your business for your own use. Avoid writing business checks payable to cash as it is important to identify which disbursements are business and which are personal. In the event of an IRS audit, this is an area that will get close scrutiny. The IRS auditor will not only look at each check to see to whom it was paid, but will also look at the reverse of the check to see by whom and how the check was endorsed. If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. If you cannot get a receipt or a cash payment, put a statement in your records at the time of the transaction to explain the payment.
Get receipts for all business expenditures. For all business trips, make sure always to get receipts from hotels and motels. Toll receipts can also help to substantiate travel expenses. Obtain receipts from the post office when you purchase stamps and mail larger envelopes and packages. You should establish a petty cash fund for small expenses. All business expenses paid by cash should be clearly substantiated by documents showing their business purpose.
Support your entries with sales slips, invoices, canceled checks, paid bills, duplicate deposit slips, and any other documents that explain and support entries made in your books. File these materials in a safe place. Memorandums or sketchy records that approximate income, deductions, or other items affecting your tax liability will not be considered adequate by the IRS. Remember, where the IRS is concerned, the burden of proof is on the taxpayer. You will not be given the benefit of the doubt.
Classify your accounts by separating them into five groups:
1. Income
2. Expenses
3. Assets
4. Liabilities
5. Equity (net worth).
For your assets, record the date of acquisition, cost or other basis, depreciation, depletion, and anything else affecting their basis. Basis is the amount of your investment in a property for tax purposes.
Keeping Records: You must keep the books and records of your business available at all times for inspection by the IRS. Records must be kept as long as they may be needed in the administration of any Internal Revenue law. Keep records supporting items reported on a tax return until the period of limitations for that tax year has expired. Usually, this is the later of:
1. Three years after the date your return is due or filed; or
2. Two years after the date the tax was paid.
However, you should keep some records indefinitely. For example, if you adopt the last-in first-out (LIFO) method of valuing your inventory or change your accounting method, records supporting these decisions and approvals from the IRS may be needed for an indefinite time.
You should also keep records that support your basis in property for as long as they are needed to figure the correct basis of your original or replacement property (including capital improvements). Keep copies of your tax returns. They will help you in preparing future tax returns and in making computations if you later file an amended return or a claim for a refund.
Using Microfilm For Recordkeeping: Microfilm and microfiche reproductions of general books of accounts (such as cash books, journals, voucher registers, and ledgers) are accepted by the IRS for recordkeeping purposes if they comply. If your micrographic system does not meet the requirements of Revenue Procedure 81-46, you may be subject to penalties.
Using Computerized Recordkeeping: If you maintain your records with an automated data processing system, you must be able to produce legible records from the system to provide the information needed to determine your correct tax liability. You must keep a complete description of the computerized portion of your accounting system. This documentation must be sufficiently detailed to show the applications being performed; the procedures used in each application; or the controls used to ensure accurate and reliable processing; and controls used to prevent the unauthorized addition, alteration, or deletion of retained records. These records must be retained for as long as they may be material in the administration of any Internal Revenue law.
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A Crash Course On Understanding Financial Statements
Financial statements are accounting reports used to summarize and communicate financial information about a business. Three major financial statements - the income statement, the statement of changes in financial position, and the balance sheet - are used to report information about the business's primary objectives. These financial statements are the end result of the accounting process. Each of them summarizes certain information that has been identified, measured, recorded, and retained during the accounting process.
Income Statement: An income statement is a financial statement summarizing the results of a business's earnings activities for a specific period of time. It shows the revenues, expenses, and net income (or net loss) of the business for this period. Revenues are the prices charged to the business's customers for goods and services provided. Expenses are the costs of providing the goods or services. The net income is the excess of revenues over expenses; a net loss arises when expenses are greater than revenues.
Statement of Changes in Financial Position: A statement of changes in financial position is a financial statement summarizing the results of a business's financing and investing activities for a specific time period. The results of the business's financing activities are shown in a "Sources" section of the statement; this section includes sources from operations and other sources.
Balance Sheet: A balance sheet summarizes a business's financial position on a given date. It is alternatively called a statement of financial position. A balance sheet lists the business's assets, liabilities, and owner's equity.
Assets: Assets are the economic resources of a business that are expected to provide future benefits to the business. A business may own many assets, some of which are physical in nature, such as land, buildings, supplies to be used in the business, and goods (inventory) that the business expects to sell to its customers. Other assets do not possess physical characteristics, but are economic resources because of the legal rights they convey to the business. These assets include amounts owed by customers to the business (accounts receivable), the right to insurance protection (prepaid insurance), and investments made in other businesses.
Liabilities: Liabilities are the economic obligations (debts) of a business. The external parties to whom the economic obligations are owed are referred to as the creditors of the business. Usually, although not exclusively, legal documents serve as evidence of liabilities. These documents establish a claim (equity) by the creditors (the creditors' equity) against the assets of the business. Liabilities include such items as amounts owed to suppliers (accounts payable), amounts owed to employees for wages (wages payable), taxes payable, and mortgages owed on the business's property. A business 'may also borrow money from a bank on a short or long-term basis by signing a legal document called a note, which specifies the terms of the loan. Amounts of such loans would be listed as notes payable.
Owner's Equity: The owner's equity of a business is the owner's current investment in the assets of the business. For a partnership, the owner's equity might be referred to as the partners' equity; for a corporation, stockholders' equity. The owner's equity is affected by the capital invested in the business by the owner, by the business's earnings from its operations, and by withdrawals of capital by the owner of the business.
6 Ways To Avoid Being Scammed When Buying A Business Opportunity
Following a dream can blind us to what would otherwise be the most obvious of hucksters. We've met countless people who purchased business opportunities or signed up for multilevel programs they had no business getting involved in because "it sounded so good." Even worse are the many painful stories we've heard from people who were taken in by unscrupulous partners, investors, agents, or reps who seemed to be the "answer to all their prayers." If you're a stay-at-home mom, a senior citizen, someone with a disability, unemployed, seeking a second income, or a college student, you are even more likely to be victimized, according to the Council of Better Business Bureaus.
Make sure you don't get taken. Whenever you hear someone saying the things you've been yearning to hear or things that sound so good you never dreamed you'd hear anything like them, let it be a warning signal that sets off an alarm in your head with bells, whistles, and bright shiny lights saying "Proceed with Caution." For example, If someone requires you to sign a two-year exclusive distribution contract, you're giving up all other opportunities during that period.
With this image in mind, here are some guidelines you can use to protect you and your family from the tempting sights and smells of opportunity knocking:
1. Don't make decisions about opportunities from your heart alone. Run all such "offers" through careful, objective scrutiny.
2. Always arrange to take the time you need to make an objective informed decision. Do not let yourself be pressured into acting immediately. In fact, the more someone pressures you to act this very minute, the more suspicious you should be. My wife once had a salesperson tell her, for example, that she had to sign a contract that very day after a thirty-minute phone conversation or they could not proceed. We ran like a couple of rabbits. What kind of company would want to do business with someone who would make a decision like that on the spot?
3. Don't be tempted by special offers that prevent you from making an objective, informed decision, for example: "My prices go up tomorrow. This discount only applies today." Fine. Find out what the price will be once you've had the time you need to make an informed decision and consider that paying the difference will be well worth the investment. If the cost at that time will be prohibitive, look elsewhere.
4. Do not do business with any company or individual that refuses to give you the names, addresses, and telephone numbers of other people they have worked with.
5. Never, never ignore that little voice in your head or that little twinge in your stomach that's telling you to proceed with caution. That's your intuition and if you don't listen to it, later you'll be saying, "Something told me this was too good to be true. Why didn't I listen!" If you have any doubts, wait. Gather more information. Give your doubts time to surface so you can either dismiss or address them with confidence.
6. Ask yourself, what's the worst thing that could happen? Sometimes an offer sounds so good, you just want to throw caution to the wind and go for it. Before you do, however, make sure you're willing to live with the worst thing that could happen. For example, if you impulsively send off $100 for a guidebook, the worst thing that could happen might be that it would sit on your bookshelf unused. But if you buy a $10,000 business opportunity at an expo, that could set your family finances back more than you can afford.
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Emerging Markets And The Importance Of Translating Your Business Message
Everyone who has an online business is delivering their message in English. Sales pages are written in English. Ebooks and special reports are written in English. Instruction manuals for scripts and software programs are written in English. Web pages are written in English. Links are written in English.
How can 60.6% of the world be able to understand any component of your marketing campaigns then?
The solution is simple, but it's something that is not as widely implemented as much as one would expect. It's translation. You have to translate the carriers of your business message in languages that other people from other cultures will be able to understand. This way, you'll be able to conquer such segments of the market.
Translating your business messages into every known language in the world would be a logistical nightmare, however, not to mention expensive since you'll be outsourcing the translation jobs (unless, of course, you're multilingual master).
It will be best to focus on the language germane to some emerging markets, markets which are at the brink of a commercial online revolution. What are these markets?
- Japan. The Japanese market is a fast emerging power in internet marketing. People there are quickly discovering the earning potentials of the World Wide Web. The Japanese people are voracious feeders of knowledge. They want to gain every bit of information they can find. This makes them the perfect market for information products.
- China. The Chinese market is slowly opening its doors to the internet. Where once it was limited to the government-controlled intranet, China's new open door policy is leading to a slow but certain entrance of Chinese players in internet marketing.
- Spain/Mexico/Portugal. Spanish is one of the oldest languages in the world, and around a quarter of the world's population can understand the said language. Offering some translated pages and products in Spanish will help you corner this sizable market and get the head start on your competition.
It's quite unbelievable to think that close to 95% of online businesses haven't tapped into these emerging markets. They refuse to deliver their business messages in a language other than English, when such an approach is truly limiting their potential audience.
In an interview conducted by MarketingSherpa, one of the internet's leading online business research firms, Peter Davis, owner and operator of Link ="http://www.tpp.com">www.tpp.com , admitted that his enterprise experienced a tremendous upswing ever since he offered his newsletter in the Chinese language. His business is engaged in the licensing of mobile software technology for handheld manufacturers, and seeing as how China is one of the world's biggest manufacturers of handheld devices, he decided to translate his business messages in Chinese. As a result, his newsletter circulation increased by 47%. Currently, the Chinese version of his business' newsletter account for 80% of the downloads.
The fact that business messages are rarely translated to a variety of languages should be a plus for your enterprise. Since no one else is attempting to corner the big non-English speaking markets, you'd have less competition in securing some sales from them. Translation services can easily be procured from freelancing websites such as Link ="http://www.rentacoder.com">www.rentacoder.com , Link ="http://www.elance.com">www.elance.com , Link ="http://www.scriptlance.com">www.scriptlance.com , Link ="http://www.guru.com">www.guru.com and Link ="http://www.getafreelancer.com">www.getafreelancer.com . The price may vary but good deals can be found here and there.
If you're looking for a marketing approach that's sure to garner a lot of sales, then do consider catering to the non-English speaking market as soon as possible, and leave your competition eating your dust.
How To Buy A Home At An Auction?
Know What You Can Afford.
It is nice to look at houses listed in the auction brochures. But no matter how deep you fall in love with any of the houses on the list, everything simply boils down to what you can afford. So, before anything else, know your financial capability. Buying a home at an auction is a big step in realizing your dream to become a homeowner but that does not end there. You are responsible in keeping the payment for your mortgage up to date. Identify your present and future financial standing to decide which house you can afford.
Go To The Listings.
Now that you have a price range in mind, it is time to go through the brochures and look for the house that fits your budget. The key here is sticking to what you can afford. It is useless to buy the house you really want and lose it in a couple of months because of foreclosure. It is important to have enough savings before you plan to buy a house. This way, you increase your chances of buying better and more expensive property.
Do Your Research.
A house is sold at an auction because of two reasons: (1) the owner of the house is unable to pay for the mortgage and the house is taken back by the lender through foreclosure and (2) if the owner of the house cannot sell the property and has to seek the help from an auction company. Know the background of the property you are interested in. Schedule a visit so that you know what you are bidding for. Remember these 3 words: Location, location, location. Not being able to afford a first class neighborhood doesn't mean that you have to settle for a house in a crime-ridden area. Bid for a house that is accessible to your daily needs.
Once you have done these 3, it is time to go to the auction. Make sure that you have money on hand as auction houses require the winner to pay at least 10% of the total price as a down payment.
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Top Reasons Why You Should Hire A Professional Charity Auctioneer
A professional charity auctioneer does what he knows best: he connects with the audience, raises the money and sells items as high as possible for your cause. While in the real sense, the bidders have all the control over the final price of each auction goods on sale, a good auctioneer can stimulate the crowd to bring up the cost of the goods by bidding higher. Other volunteers and celebrities can raise the bidders to their feet but it takes more than applause, smiles, and laughs to raise a good amount of money; a task that only he can do.
It does not end here. Not because you see him only as the person who stands on the stage and calls in the bids means that his task is limited to his podium. A professional charity auctioneer can give you useful insights and help you plan better the event that very few members of your team can match.
He is not the planner though, but his experience in hosting the event will ensure that it will go smoothly as possible. Since the auctioneer participates all throughout the planning, he becomes part of the team. This is important since no charity auction will succeed without a good plan and organization. And no charity auction will do exceptionally well without someone who really knows the correct approach on every aspect of what he is doing.
A professional charity auctioneer may cost you some amount but the service he provides is worth more than he charges. Besides, there are auctioneers who will willingly give their service to charity auctions free of charge or for a very small amount.
Take note: a traditional auctioneer has high skills in his on rights but there is a special level of skill required when calling bids for a non-profit auction. The expertise combined with the passion and understanding to the mission and objectives of the clients are something you can only expect from a charity auctioneer.
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Winning Over Dummy Bidders And Snipers
Auction snipers on the other hand are real bidders that watch for a particular item and bid at the very last possible moment to emerge as the highest bidder. In online auctions, online sniping is usually done using a software. This software allows someone to win an item by setting it up to bid for the very last moment before the auction closes.
It is frustrating to encounter dummy bidders and auction snipers at auction houses especially if you really want to win an item or if you want to buy something at the very lowest price. How to win over them, you ask? Consider the following suggestions
Choose a reputable auction company. While dummy bidders can be at every auction, not all auction houses have them. Read feedbacks and testimonials of previous bidders. They are the most reliable source of information.
Identify the dummy bidder. This is quite a task since you need to focus on watching for your item as well. But, if you happen to identify some of them among the crowd, then you have a good chance of winning over them. Since their main role is to drive the price of an auction lot up, they will stop at a certain price limit. You can either hold your bid until the last possible second or engage them by bidding on the amount you can afford. You can jump bid but this is like saying that you allow dummy bidders to beat you in their game. Well, if the item is more important to you than its final price, then you can always bid higher than them. They will eventually stop bidding anyway.
Bidding snipers can only be beaten by becoming a sniper yourself. To become one, remain watchful and hold back your bid. At the very last moment or when the auctioneer is about to rap the hammer down, place your bid.
Also try throw bidding. This is done by bidding outside the increments. This will confuse bidders and will put the auctioneer off-guard.
Ignoring that they exist is not the best way to win them over. You must engage and fight to win your item without breaking your budget.
Vehicle Auction FAQ
A vehicle auction is a type of auction that specializes in selling all types of vehicles such as cars, trucks, SUVs, and motorcycles.
Are Auction Houses Selling Vehicles 90% Off Their Current Market Value?
Buying a car 90% off its market value sounds unbelievable but it is actually true. An auction is a very volatile marketplace and the price depends on the willingness of the bidders to buy a vehicle for a certain price. If you're the only person interested in a certain vehicle, you can buy a car at the cheapest price. Competition can drive the price of the car higher that its current market value, though. Driving home your next car at a dirt cheap price may be possible but is not an everyday affair.
Where Are Vehicle Auctions Held?
Vehicle auctions are being held all across the country everyday. Auctions are held at the following places: police agencies like county sheriff departments, police departments, local police agencies, federal law enforcement agencies; different government agencies including but not limited to U.S. Bankruptcy Court, State Tax Department, Customs and Border Protection; and privately sponsored auction houses. Schedules of auctions are posted and announced on websites, brochures, newspaper listings, and agency offices.
Do I Need To Register?
Yes. Before you can participate in vehicle auctions, you must register and a registration fee is required. This is done at the auction site on the day of the auction.
Do The Vehicles Have Warranties?
Most auto auctions do not provide "in-house" warranty; however, if it is applicable, the manufacturer's warranty is transferable.
Can I Test Drive The Vehicles?
During the auction preview, potential buyers are allowed to inspect the condition of the vehicles but are not allowed to test drive the vehicles. However, bidders are allowed to check the condition of the engine, heater, air conditioning, and other accessories while the engine is running.
How Can I Pay For My Vehicle?
The following are the most common forms of payment: credit card, cash, credit union cashier's check, cashier's check, and traveler's check. However, you should consult with the auction house and ask for the accepted modes of payment.
Can I Back Out From The Sale After I Have Won The Vehicle?
When you win a vehicle, you are legally and contractually bound to pay at a specified period of time. If you fail to pay for the car, you will be obliged to pay for additional fees and penalties identified on the conditions of sale.
Understanding How Silent Auction Work
At a silent auction, a table or a display that shows the items or services on sale is set up for the people to see. Some items or services may have a minimum bid as they may be of high value. A paper is usually located near the item where the bidders can write their names and the amount they are willing to buy the goods. Some silent auctions have one receptacle to hold the bids for all the goods on sale; others have individual container for each item. The choice however, is really up to the host.
The display gives the chance for the bidders to view all the items during the event and select which among the items they would like to bid.
At a silent auction, previous bids can be shown publicly through a bidding sheet. This allows other bidders to know that they need to bid higher in order to bring home the item. This also gives the bidder a chance to review the current bidding sheet and place their final offer prior to the closing of the auction.
Similarly, the bids at the silent auction can be kept privately throughout the event. All the bids will be calculated at the end of the auction and the highest bidder wins the item for whatever amount he or she has written.
One similar auction website that runs on the same principle as silent auction is eBay where people can see the item and place a bid higher than the previous one made by others.
A silent auction has an advantage over the regular form of auction. Since it is mostly used at charity events, silent auction eliminates the need to hire a professional charity auctioneer.
However, it has drawbacks. A regular auction capitalizes on impulse of the buyers to bid for the items in a very short amount of time. Silent auctions on the other hand allows bidders to consider the amount of their bids longer.
More often than not, charitable events use both silent auctions and regular auctions to take full advantage of both systems.
Types Of Government Auctions
With that in mind, it is easy to understand that government auctions come in many types. Each of which differ in the manner of how the government obtained the items or the properties and the manner of disposal the government uses to sold off the properties to the public while getting a profit in return.
Here are some of the types of government auctions:
Government Surplus Auctions
Also known as the GSA Auctions, is the type where the Government sells everything that it no longer needs. Thus you can find anything and everything being sold here. Typically, the items here are second hand but they are, in most cases, top caliber and buyers can get them at excessively low prices. The government does not aim to make profit on such things; it only wants to get rid of them.
Common items found in GSA auctions are automobiles, jewelry and office equipment. However, surplus buildings, real estate and properties are also sold here.
Many people doubt though whether they should buy too-good-to-be-true items in such auctions. But as they say, to see is to believe. But there is no doubt that most of these things are authentic.
Seized Property Auctions
Mostly selling confiscated properties, seized property auctions sell properties and items that were foreclosed by the government or taken from the original owners due to tax, financial and other related issues. However, seized properties may also come from confiscations from illegal activities like drug dealing or smuggling.
Seized property auctions could also stem from tax seizures. A house, for example, could be seized by the government if the owner fails to pay his taxes, mortgages and bills. This could extend to other properties like clothing, cars, and real estate.
Custom seizure auction, another type of seized properties auction, sells goods that could come from: a) smugglers, b) people who were not able to present enough and detailed information of the merchandise, and c) people who came from other countries bringing along with them unauthorized merchandise.
Buying from government auctions offers you some of the best pieces of items at a very (very) low price. If you want to find the best deals, try to research the schedules of government auctions.
Types Of Auctions
This type of auction is used at English auction houses like Phillips, Sotheby's, and Christie's. The process starts when the auctioneer announces the item and the minimum bid. Individuals openly try to outbid each other wherein each bid is higher than the previous one. The item is sold when the 'buy-out' price is reached or when there is no other person willing to place a higher bid. The 'buy-out' price is a pre-determined amount that is set by the seller.
In other cases, 'absentee bidding' is accepted wherein an individual will cast his or her bid online or through a telephone.
In an English auction, a 'reserve' price may be set. This is the lowest amount at which the seller is willing to sell the item. This gives the seller the right to refuse the sale if the final bid does not reach the reserve price.
One variant of the English auction is the silent auction wherein people can write down their bids together with their name on a piece of paper. At the end of the auction, the bids will be calculated and the highest bidder wins the item.
Dutch Auction:
This is a type of auction where the auctioneer begins by announcing the highest asking price. The amount is then lowered until someone is willing to buy the item. The bidder pays for the last announced price. This type of auction is convenient if the seller wants to sell the goods quickly since the process requires just a single bid to get a sale.
Chinese Auction:
This is basically an auction and a raffle combined. At Chinese auction, the bidders are not the ones who will call the price. Instead, the bidders will buy a ticker or tickets and place them inside the "hat" from which the winners will be drawn for a specific item. The bidders can buy as much tickets as they want to increase their chances of winning. It is unclear whether or not this type of auction originates in China but for sure, the term is more likely to come from "chance auction".
Sealed Auction:
This is a form of auction where participants place their bids in a concealed way, usually in an envelope. The highest bidder wins and pays the amount of his bid to the seller. A similar version, called the second-price sealed auction is a type of auction where the highest bidder wins but pays the price of the second highest bid.
All-Pay Auction:
This is a type of auction where all the bidders must pay for the amount they bid regardless of whether they win or not. The highest bidder wins the item.
The Advantages Of Buying From An Auction
The bidding process enables bidders to dictate the cost of the item they want to buy. While most items are often appraised to determine its minimum price or starting bid, the bidders are still the ones who will decide on the final price of the every item at the auction house.
Purchasing an item from an auction is often faster the than the conventional way of buying. Believe it or not, one item can be sold within 30 seconds at an auction. An auction is the simplest and fastest way to buy anything!
Generally, any item being sold at an auction is relatively cheaper compared to its actual market value. This does not mean though that you can steal a deal at a dirt cheap price all the time but auction items are usually sold 10% to 15% lower that their actual market value which is a pretty good deal if you want to save on cash.
The auction house or the auction companies allow you to inspect the items before the auction starts. This way, you can get up close and determine how much you are willing to pay for a particular item.
Items vary depending on what is available at the auction. From cars to boats to properties to office furniture to sports memorabilia to personal gadgets; the possibility of owning an item is endless. Some auction houses only focus on specific items such as cars or property. Still, inventory is very wide.
You can buy good quality items from an auction. This is contrary to the common notion that items that are sold there are used and poorly maintained. Designer clothes, jewelry, antiques, household goods and even cars, boats and motorcycles are well-kept before it is being sold at an auction. Or, in the case of seized properties, lots and houses that are being sold are not located in crime-ridden areas.
Finally, payment is even convenient. At the end of the auction, the item(s) you've won can be paid in cash, check or with a credit card. Partial or full payment is accepted to ensure that you get the item(s) you've won.
Selling Your House At An Auction: Know About The Reserve Price
One way to find a buyer fast is by placing the property on an auction. But as simple as it may sound, there is one thing that needs to be done in order to get a good deal: you need to set a reserve price.
A reserve price is basically the lowest price you are willing to sell your home. It protects you from highly unfavorable sale or getting a selling price lower than the price of your house.
This is different from setting a minimum bid. While participants know that there is a reserve price, the exact amount is not revealed to the bidders. If the highest bid is lower than the reserve price, you are not compelled to sell your house.
Why Set A Reserve Price?
Setting a minimum bid too low will attract bidders but you will end up with an unsatisfactory low sale price. Setting it too high discourages the interest of the bidders. In order to help you sell your house without compromising one over the other, a reserve price should be set.
How To Set A Reserve Price?
To set a reserve price, perform a property appraisal. Do this through the help of chartered surveyors. Usually, homeowners commit a mistake by letting the estate agents give the appraisal. The estate agents' job is to market your house and not to give an intuitive estimate of what they think your house is worth. As a result, unrealistic figure comes up either too low to make a quick sale or too high to secure your instruction.
It is also possible to do a property appraisal yourself. This is a bit complex as certain methods should be applied when estimating the price of your home. Still you can get the value of your property by using the "income approach" and the "comparable sales method" The income approach calculates the profitability of the property; comparable sales method involves looking into actual data. Both involve serious valuation to know your reserve price.
Selling An Item? Tips On Finding The Right Auction House
So if you want to sell something at an auction, choosing the right auction house is the first thing you should do.
1. Choose an auction site that sells similar items to yours with the same price range. This is very important since buyers go to auctions that enable them to have a wide selection of auction goods at a very affordable price. Auction houses that specialize in selling items such as yours should be your first option. Consider other auction companies if you think you cannot get a favorable deal on these auction houses. Also, take note of the price of other auction goods they are selling. If the item you want to sell is either too low or too high than the average price of the rest of the goods, find other options. (Placing your item in an auction that sells different items, however, will greatly diminish its chances of getting sold.)
2. Do your homework. Auction houses are not created equal. While they all sell goods that other people will buy, some are better than the others in terms of attracting bidders. You may want to find an auction house that markets or promotes your item very well. Your auction house should have websites where auction goods can be posted for the browsers to check. The auction house should be publishing brochures and catalogues as well.
3. Know the cost. Check with different auction houses on how much it would cost to sell your goods in your behalf. Also, ask how much would they charge for the commission. Usually it goes between 2% to 3% of the final selling price. Still, take note if you can actually earn by putting your good into auction with all the charges they apply. (One thing to remember: whether you item is sold or not, placing it in an auction will cost you money.)
4. Read the terms. Different auction houses have different conditions. One vital consideration when selecting an auction house is your stand on the company's policy. Before signing an agreement, understand carefully how the company will go about with selling your item. This prevents future dispute that costs a lot of trouble, time, and even money.
Real Estate Auctions: Will It Work In Your Favor Or Not?
A great deal of real estate properties are put on auction for the belief that the buyers could be carried by the hype of the bidding wars which in return, could lessen the devaluation of the properties. In most cases, many buyers jump into the hype and place bids that are beyond the prices that they first set and the prices that they could practically afford.
However this is not true in all cases. There are real estate properties that could sell even at the lowest prices available. If no one bids on the property, the owner might even have a deficit. If there are too few interested in the property, on the other hand, the owner might not get his expected value but the buyer will have a property at a much lower price. In general though, foreclosed real estate properties that are being auctioned are sold at a discounted rates to leave money to the new homeowner for repairs and refurbishments. Also, banks and mortgagors have no more interest on profiting from such sales. They only need the return of their investment or security of low deficit due to the cost of maintenance and other expenses over the property.
If you are interested in buying real estate from an auction, you should be very careful while bidding. Sometimes the highest bid is not the final price of the house. Remember that the auctioneers have to get a commission for their service. On the other hand, if you are bidding on a foreclosed house, you don't have to give really high bids to get the property. Allow yourself some money to cover for some unsolicited expenses after buying the house.
Nearly all auction houses have predetermined percentages over the houses being sold to be received as payments. When bidding, calculate this amount and add it to the highest bid you are willing to bid. For example, the typical commission is around 5%. So if you are buying a real estate property at a price of $100, 000, expect to pay a little more than that.
The main selling point of real estate at auctions is getting the property you want at a reduced price. So be sure to get that. If the price is not giving you that advantage then forget about the property.
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Pros And Cons Of Silent Auction
There are two ways to run a silent auction: first is by keeping the bids private and the other is by showing publicly through a bidding sheet the previous offers made by other individuals.
Pros
It gives no clue on how much the bids of others are. If the bid history is not written and displayed on a bidding sheet, others bidders will have no clue on how much they have to write in order to get the highest price to win the item. This can result in surprisingly good price returns.
Usually, the auction is just a part of a charity event. Thus, a silent auction will not detract people from entertainment as items are not being called by an auctioneer; instead, items are displayed for people to view and later, bid.
The bidding sheet includes the previous bids made together with the name of the bidder. If this is the case, individuals will think about the price they'll write in order not to draw negative reaction from others.
Cons
Long bidding process may give bidders time to consider the amount they are going to write. This is unlike regular auction that capitalizes on the impulse of buyers to bid on items higher than they originally have in mind. This is perhaps the major drawback of silent auctions.
If the bids are kept privately, the selling price may be lower than what is expected. This is because people have no idea whether or not they have to write down a higher amount to outbid others.
Silent auctions are not a perfect fundraising system. Still, it is said to be the more preferred way to raise money for a cause. The reason is that these drawbacks are often worked out so that it won't have a negative effect on the result of the auction. One way to do it is by using a type of silent auction that will work for the crowd. Another is to combine silent auction with regular auction. Ultimately, the choice is still in the hands of the organizers.
Police Auction: A Place To Get Bargain Items!
Police auction is no different from other types of auctions held by privately-sponsored auction houses. You go to the site, inspect the auction goods, bid, win, pay, and go home happy. The main difference is, unlike all other types of public auctions, you do not have to pay a registration fee in order to place a bid. All you have to do is to go to the location and bid.
You may have heard of claims saying that you can drive home an almost new car for just a couple hundred dollars. While this may seem to be too good to be true, there is a truth behind it.
One reason why these goods are being sold dirt cheap is because police agencies really have no use to them. So instead of putting these goods in their storage or at their garage, it is more reasonable to dispose them through public auction. Besides, storage cost are very high.
Another reason for this is that police auctions are not as popular to many as most people are more aware and would certainly go to online auction sites and privately-run auction house. As a result, there are less people that participate in the bidding. This keeps the price of the auction goods low and if you are lucky enough, you can get the item without dealing with the competition.
Third, many goods on sale at police auctions are not appraised. Meaning, the minimum bid is not based on the current market value of the goods. Thus, there is a possibility to get items at the least possible price.
Finally, there is a negative notion that goods being sold at police auctions come from criminal. While this is true, most of the items here do not have bad history of ownership. Still, most are discouraged to go to police auctions.
Police auctions are held on announced schedules. You can get auction schedules on the police agencies' offices, community boards, local newspapers, and police websites.
Property Auction: How To Decide How Much To Bid?
Here's how to decide how much to bid...
First, once you see the property you are interested in, call the auction house and arrange the viewing. This way, you will be able to decide according to the present condition of the property. Initial impression will give you a good idea (a personal estimate), how much you are willing to pay for the property.
Then, consult your mortgage lender and tell them about the property. They will not lend you money unless a survey or an appraisal is conducted. Know how much you can afford to borrow from your lender
Third, know its market value through an appraisal. This may not give you the exact amount you are looking for but property valuation will give you an idea on how much you should really pay for the property.
Also factor in the deposit you can afford. Usually, the least amount that the auction house accepts as down payment for the property is 10% of the final sale.
Compute the possible repair cost. Properties that are sold at auctions often come from repossession, foreclosure and bankruptcy. So it is likely that they may not be very well-maintained. And to make it livable, you need to do some repairs or renovation. Hire a professional do an estimate on the cost of the repairs. Include the cost of repairs on the highest amount of your bid.
Take into consideration several fees including survey fee, valuation fees, mortgage indemnity guarantees, arrangement fees, solicitor's fees, mortgage broker fees, lender fees, stamp duties, moving cost, auction registration fees, insurance, auction house commissions, and the cost of selling your previous home.
Once you have the figures from every detail you need including the price of the property, the cost of repair, and the extra expenses necessary to by the house, you should be able to identify the highest amount you should pay for the property.
Basically, determining how much you should pay for a property at an auction is similar to setting your budget when you buy property from an agent. The difference is, the price is not definite and will depend on other participants at the auction.
Must-Know Things About Car Auctions
First with the cars. Cars at auction are generally cheap. However, the mechanical condition of the cars suffers. You won't know whether the car has mechanical defects or whether the paint is original or not until the buyer tests it. The problem with car auctions is that not all auctions have a viewing time. Meaning some auctions will not allow the potential buyers to inspect the cars they are eyeing. Also, many organizers do not allow test-drives. Thus, any potential buyers are not certain whether the deal they are getting is good or bad.
Also, the cars are auctioned as-is. If the car has a dent then you'll be buying that dent along with the car. Nearly all auction organizers do not bother on fixing the car before they bring it to the auction site.
Second, the extra charges. These may be small and can be easily dealt with however, for many buyers paying extra cash for some fees that they were not prepared for could spoil the deal. Paying the buyer's premium, a fee charged to the person with the highest bid, could sometimes cost a couple of hundred dollars.
Third, the type of car auctions. There are several types of car auctions and these provide features that may not be had from other types. For example, there are auctions specializing only on second-hand cars, there are those that sell vintage cars and there are others that attract people wanting to buy salvaged cars. The buyer will then have to decide the options that suit him best which will let him get the best deal.
Fourth, knowing where to look for auctions. Different auction houses have different mediums for relaying their activities to the public. In short, there are many places to look for when wanting to find auctions. Advertisements are commonly found in radio announcements, local TV networks and car sale magazines.
Lastly, the car auctioneers. A lot of car auctioneers are reliable and reputed for their good services but some of them are not. So ensure to it that you go to auctioneers that operate on regular basis but sometimes, even that is not an assurance that you are getting the best deals.
Making The Most Of Government Auctions
Well-Known But Not Advertised
While you can get the real deal from government auctions, there is too little information about it. The government does not bother too much on advertising the auction dates and the items it would be offering. In fact, it is not bothered whether or not the auction will yield profit. All it wants is to get rid of the seized properties and merchandise and sell it to the willing public.
So if you are wondering where to find such auctions, it is best to visit Link ="http://www.usa.gov">www.usa.gov and start your research from there.
No Assurance
The disadvantage of buying at an auction is that you will never know whether the item is in its best condition until you have bought it. The same is true with government auctions. The items sold at such auctions could range anywhere from abused to mint condition. The bad part is it is too seldom that the items to be auctioned will be allowed for inspection. Chances are you won't be able to test drive the car you are eyeing, the most you can do maybe is to test if it starts. The auction organizers, in fact, do not test the items before they put them into auction so don't count on anything.
Competition
A lot of people attend government auctions so you should brace yourself for tough competition. Bidders range from high-end to low-end buyers and you may be up against people who have higher buying power than you.
Intense competition could lead bidders to overbid, which is not really advisable. Overbidding may lead to paying more than you should.
Phonies
Some government auctions are not really sponsored by the government, there are also some phonies out there. To know if the auction is legitimate or not, the best course of action is to check on the website stated above and contact the agency that is being represented by the auction.
Previews
As said earlier most government auctions do not allow previews. This does not mean that all auctions do not provide viewing time. If you are planning to bid on hundred dollar-items you should give yourself the assurance of examining them ahead of time.
Learning The Auction System
Preparation Period
Research is a valuable means by which you could make your decisions from. Gathering some information from all kinds of resources- the bidders themselves, the auctioneers, the catalogue, online information and thorough study could make the difference between getting a great deal or a not-so-great one.
Attending local auctions could also equip you with first hand information that is useful once you hop into the real deal. Most states hold regular auctions, it is best to attend some first to experience how they works.
You cannot join an auction if you don't have the buying power. Arrange your finances first. If you are buying something big- say real estate or foreclosed property- you should try to seek effective financing.
Decision-Making Period
All bidders have their reasons why they go to auctions instead of purchasing from other traditional methods. You should first determine your own reasons for using this option for buying. Are you after used cars and want to get them at the lowest possible price without the tedious negotiation process? Do you want to buy a home but you don't have enough money? Or are you fond of buying just about everything at discounted prices?
There are several types of auctions and each caters to a different audience. Government auctions, for example, provide the main advantage of offering the public excessively discounted items. A fine arts auction is a high end type of auction which caters to artists and collectors who want to buy art works. Antique auctions, on the other hand, are popular among collectors of old and sometimes historical objects. On your end, you should first decide why you are buying at an auction.
Buying Period
This period may begin once you have determined what you want to buy and the auction sites that you visit.
Most auction sites have their websites where they announce their activities. Use these to get more reliable information.
Buying will actually begin with bidding on the item. But prior to that, you should first establish the price limit you are willing to pay for the item you want. Also, prepare a mental plan that you want to follow and stick with it. Use this plan while bidding, it will help you become more critical of your decisions.
I Won Something! What Now?
These differences, however, may just be on small details. Generally, auction houses employ similar procedures of collecting payments.
The highest bidder will be asked to sign an auction memorandum or a sales invoice, or a paper signifying that he or she has won the item.
When a person wins an auction lot, he or she is required to pay for it immediately or pay within a period of days indicated on the terms and conditions of the auction company. Some auction houses require the winning bidder to pay for the lot at the end of the day or right after he or she has won the lot. Other auction houses give the highest bidder a few days to complete the payment. Other auction companies can give the highest bidder as long as 28 days to fulfill the payment obligation.
The type of auction goods often dictates how long the payment should be completed. Home furnishing items, motor vehicles, consumer electronics, and apparel among others are often required to be paid for immediately. Since there are papers that need to be furnished to complete the sale of real estate properties, the payment often takes longer than the others.
Payment conditions depend on the amount of the item sold. Many auction companies set price ceilings for certain items to identify which payment method to use. For example, an auction house can require the highest bidder to pay in cash if the item he or she has won is $1500 or below.
Modes of payment accepted depend on the auction company. The widely used payment is cash. The following can also be acknowledged as a way in paying auction goods: wire transfer, credit card (MasterCard, Visa, American Express, and Discover) cashier's check, credit union cashier's check, and traveler's check among others. It is important to check with your auction company which forms of payments are recognized.
An auction is legally binding. Once you win something, you cannot back out and refuse to pay. Refusal to pay for the item you have won has consequences including penalties and additional fees. Again, read the terms and conditions of the auction before bidding.
Items For Auction: What Are They?
Traditionally, auctions were a form of selling women to those who wanted to buy slaves or wives. The beautiful ones naturally got the higher prices while those without beauty had to pay the auctioneer to get listed on the auction. These days, however, auctions have become a popular substitute for the open market. While anything can be auctioned, there are several kinds of merchandise that yield the highest sale when put to auction.
Antiques
Antiques are popular among collectors. These could include items like watches, clocks, jewelry, historical items, furniture and others. There are so many different reasons why people are interested in antiques. Usually history buffs have the highest tendency to collect items with historical value or significance. Possibly someone who has been given an old article or item and just wants to expand his collection of the same thing. For example, someone who is fond of collecting potteries or porcelain from various periods of American history will find it relatively easy to obtain more of these items from auctions. Auction houses are one of the vast sources for collector's items.
Fine Art
Paintings and sculptures are staple items sold at auctions. Both buyers and sellers find it easy to dispose and hunt items that are artistically made through auctions.
Collectibles
Medals, coins, postcards, stamps, memorabilia are among the collectibles sold at auctions.
Property
Foreclosed properties are usually offered at auctions to help previous owners generate funds that will cover unpaid bills. While this may be popular due to the rise of home foreclosures in the past five years, many buyers find it hard to get homes that satisfy their dreams. But this does not negate the fact that auctioned homes could provide you the chance to get your dream house at a discounted rate.
Household
Carpets, garden equipment, beds, furniture and appliances could be bought at auctions. For people who have the need to dispose of their unnecessary household equipment, auction could be a good alternative to a garage sale. For willing buyers, auctions could get them the best deals without the frustration usually experienced at flea markets.
Consumables And Agricultural
Wines, beers, produce, and even fish are popular items found at auctions. In Japan, for example, excellent choices of fish are auctioned daily in their larger markets.
As you may notice not everything can be auctioned. In short, only merchandise, properties and real estate can be sold at auctions.
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How To Sell Your Item At An Auction?
Choosing an auction house is crucial for the sale of your item. Landing a wrong one greatly reduces the chances of getting a favorable sale. As much as possible, pick an auction house that sells items similar to yours within the same price range. There are privately-run auction houses that sell specific items such as jewelry, antiques, artwork, vehicles, or vintage cars. There are others that sell miscellaneous goods. Do some thorough research on the auction company carefully before selling your items through them.
Knowing and understanding the conditions set by the auction house before signing an agreement is important.
There is a cost in placing your item in an auction. One is the commission of the auction house on the sale it has made on your behalf and the other is for the advertisements in catalogues and brochures regardless of whether your item is sold or not.
Keep in mind the things you need to prepare including the reserve price, the contract, and opening your property for viewing (especially if it's a house).
A reserve price is the lowest amount at which you are willing to sell your item. To determine how much your reserve price is, you need to have your property appraised. It is based on the actual market value of the item you are selling. It protects you from selling your item when the final bid is lower than your intended amount of sale. Auction houses charge a fee when setting a reserve price.
The contract contains your terms and conditions of the sale which should be prepared by the solicitor of the auction.
If you are selling a property, have it opened for viewing. This allows potential buyers to inspect the condition of the house.
Once the auction starts, you have no control over your item. An auction is a highly volatile marketplace and the final price is dictated by the bidders. You may get a good deal but if the demand is low, you might end up selling your item at a low price.
One important fact: Whether your item is sold or not, you will pay the auction company. Calculate carefully if it is worth it to sell your items through an auction.
How To Sell Your House At An Auction
Which Properties To Sell
There are several types of properties that are best sold at auctions rather than under normal circumstances. They include:
Houses That Are Hard To Sell Through Conventional Means: There are certain types of houses that simply can't be sold through the open market fast. These include those that are in really bad shape and have received no repairs over the years, properties that have very unorthodox designs and those that don't receive good advertisement. All of these types could have a fair chance of getting sold through an auction.
Houses That Have No Definite Value: These are houses that are marked for their distinctiveness but are rather hard to sell on the open market.
Foreclosed Houses: Owners of foreclosed homes usually resort to auctioning their houses for faster sale to compensate the expenses, the unpaid bills and sometimes even to save the house itself from being foreclosed.
Highly-Demanded Properties: Popular houses get exceedingly higher selling prices when auctioned.
Evaluation Period
This entails the process of assessing your property and the potential auctioneer/s. Before you decide to sell it at auction, it is best to shop around for auction houses that fit your requirements. Have your property evaluated first so you'll know what is the reserve price of your house and the total value you should get after the auction. Then, check the price range of the properties that the auctioneer offers. This way, you'll be able to increase the possibility of getting a satisfactory deal for your property.
Properties at auctions are sold as-is but the owner has the option to increase its value first. For example, repairs, doing a bit of cleaning and restoring the property will actually increase its selling price.
Knowing The Cost
Auctioneers don't come free. They charge their clients for the brochures, advertisements and the general services they provide whether the house is sold or not. Also, you might pay a minimum commission of 2.5% from the sale of the house. To get around the unsolicited expenses and the payments that you may not expect before and after the auction, negotiate well with the auctioneer and read everything before signing anything.
Selling Proper
Before offering the house for auction, set the reserve price first - this is the starting bid for the property. Consult with your auctioneer before setting the reserve price. Second, arrange the contract. Finally, prepare the property for viewing by willing bidders.
Selling itself will occur during the auction. Potential buyers will bid on it. The one with the highest bid wins and the sale is official and legally binding.
How To Profit On Selling Real Estate At Auctions
Real estate auctions create the buzz and interest that may not be had through conventional selling on the open market. Sometimes, this type of merchandising your property may even increase its actual value due to bidding wars that often happen during auctions and by the attention the auction gets. Furthermore, bidding occurs only in a day so any willing buyers will have to compete with other more willing buyers to get the property they want.
Here's how you can profit from selling your real estate:
Preparation
To maximize profit, prepare your house for selling. Spruce up the property and make it look good to willing buyers. Paint the exterior and interior, landscape the garden, clean up and put away things that do not look good around your house. These little investments will go a long way in increasing your home's value.
Evaluation
Have your house evaluated by a realtor or real estate agent. If you do not want to throw in some cash, try to research on the general value of the properties in your neighborhood. Compare it against houses with similar amenities. This will give you a rough estimate of how much your house is worth.
Auctioneer
Prepare a meeting with professional auctioneer who offers similar properties like yours. This way you'll get the best value and maximized exposure. Ask for several references. Also, try to attend some of his auctions so you'll know the potential buying capacity of his regular bidders, his performance and his capacity to sell your house.
Then hire the best auctioneer that you can afford. Your best choice may require you to pay a lot more than hiring regular auctioneers. However the best people in this business have the best capacity to attract more interested people in buying your property.
Before signing any contract or agreement be sure to read the fine print. You never know what you will run in to. Also, be sure to note how much commission you will give him and other expenses that you may have to pay during the entire process.
Lastly, with the help of the auctioneer set a reserve price for your house. This is the least amount of money that you will get from auctioning your house.
How To Prepare Yourself For Buying At An Auction
First Step - know the type of item you want and the respective auction where it is showcased. Almost everything under the sun can be bought at an auction. If you want second-hand cars, you must go to auto auctions. If you opt for buying an old building you need a real estate auction. If you have no concrete idea of what to buy, it is best to go to government auctions where they sell just about everything at very low prices. There are also high-end and low-end auctions. Each showcases various items and properties that differ in price ranges.
Second Step - know the rules of the auction house. Each type of auction has a number of auction houses and each auction house has its own rules. If you are a first-time bidder, it is in your best interest to do your homework first and research on the purchasing or selling rules of the auction house. Most auction houses require registration fees from their participants. This could be withdrawn after the auction. Also, many auction houses require a buyer's premium from bidders who've won the item.
Third Step - know the timing. Auctions vary in timing, they could last anywhere from several minutes to days. The candle auction, for example, usually lasts around 15 to 20 minutes until the candle burns out completely while a real estate auction may last up to 4 days.
Fourth Step - check for the inspection time and maximize it. Some auction houses allow viewing time to give the potential buyers the chance to inspect the items they want to bid on. However many auctions do not provide this privilege especially if catalogues are given out.
Fifth Step - decide on what items you will buy. Once you see the items, pick out the ones you want to bid on and calculate how much you are willing to pay for them. Then set your price limit and stick with it. It is easy to get swept up by the excitement of bidding so be sure to guard yourself against this. If you let your emotions decide for you, you might be buying things you didn't intend to buy or pay more than you can afford.
Sixth Step - register. Almost all auction houses require their bidders to register. You may register beforehand or right before the auction. Before you register, prepare to spend some money.
Finally - start bidding and remember the preparations you've had. If you have a plan, don't diverge from it.
How To Prepare Your House For The Auction
So, if you have decided to sell your house at an auction, spend some time, thoughts, and perhaps money in polishing up your home.
Repairs.
Before opening your house for viewing, make sure that any minor and major flaws that are considered as eyesores to potential buyers are addressed.
- Clean stains on the floor, on the wall, and the ceiling.
- Replace broken or defective door handles of the closet, drawers, and cabinets.
- Replace dead light bulbs.
- Check all doors, windows, drawers, cabinets, and cupboards. Make sure that they all open and shut well.
- Fix any water leaks.
- Fix the roof.
- Trim the garden grass, bushes and trees.
- Dispose of all your garbage properly.
- Keep the bathroom floor and kitchen sink dry.
- Fix the doorbell if it is defective.
Refurbishments
Most of the time, minor details can influence potential buyers to seriously consider your home. Find a feature of the house that can really make a difference and highlight it more. It could be your fireplace or patio.
Give A Good First Impression.
Some potential buyers take the front porch, front garden, and the facade of the house as a major consideration when buying a home while others simply want a good first impression. Bottom line: you need to clean or even improve the front of your house so that you can attract more potential buyers.
Keep Your House Furnished.
The more organized your house is, the more saleable it becomes. A house looks good if it is furnished; but avoid over decorating. Remove all the clutter from the rooms. Do not exaggerate the space. Clean out your closets but do not remove everything. Leave a few things inside. Also, your furniture arrangement should be cohesive with the structure of the house. Remember, many potential buyers rely on what they see inside your house upon viewing and not on what it will look like once they have bought the property and move in with their own furniture.
Once you have ensured that your house is ready for viewing, it is time to sell it at an auction.
How To Buy A House At An Auction
Research:
Knowing what you are buying will equip you with the best judgments on how to deal with the owners, how much your highest bid will be and your expectations regarding the house itself. Try to get some information about the house. It is much easier to get information on a foreclosed house that is being sold by the owners. If it is being auctioned by the bank or the government, public information may be limited. If you are just looking for a house to buy at an auction, check the title company for information or the county recorder. Also, houses being auctioned are advertised through auction websites. Auction catalogues could also be a good source of information on the reserve price, the starting bid and the maximum price of the house being auctioned.
Compare:
If a house is foreclosed in a certain area, chances are there are other houses being sold in the same area. The prices of such other properties may be good estimates of the property's actual value. When comparing, assure that you are putting similar properties in comparison. Get down to the specifics- how large is the property, what is the lot area, what are the amenities, what is the estimated cost of repairs and others. For more reliable predictors, compare the property being auctioned with properties lying within 3 miles.
Financing:
When buying at an auction, it is not always necessary that you are buying with your own money. You could also get financing from money lenders and mortgagors. However, there is a danger to this- you have to pay the interest of their money on top of the total amount of money you are borrowing. That might hurt your finances a bit. Nonetheless, you must be ready to put some money down as a deposit if you win the auctioned house.
Pricing:
Once you consider bidding on a particular property, start setting your price limit. Remember that the reason you are at an auction is to save some money while getting the property you want. If you cannot achieve this then it is senseless to buy from an auction. Try not to join a bidding war if it occurs. This will increase the price unreasonably with you on the losing end.
Walk Away:
To every house that is being auctioned, there will only be one person who will win it over the others. Thus your chances of winning the auction is a lot lower than you might expect so be prepared to walk away.
Home Foreclosure Auction: How To Prepare
But there are some preparations needed to ensure that you get the best deal.
One, realize that foreclosed homes don't come out clean. The fact that the home was foreclosed only means that the owners failed to meet the regular payments and liens, if there are any. So be sure that the home being auctioned has clean papers. Here's the catch though- most foreclosed homes are auctioned as-is. So any mess or damages done by the previous owners will be your problem once you own the house. So as much as possible research on the particular house that interests you.
Two, don't hop into the auction right away. If you are serious about getting a house through auction try to practice first. Go to an auction but don't participate. This way you'll get the feel of being in the auction pit and it will help you when you actually participate in the bidding.
Three, never get carried away by the bidding wars. Some foreclosed homes increase in value because of exaggerated bidding wars. If there are several people who really want the house and the price has exceeded your budget then do yourself a favor, just back out form the bidding. Emotions can be very dangerous especially during auctions.
Last, do not expect too much. You may or you may not get the house being auctioned. Despite the preparations and research you have done prior to the auction, there might be someone else who may outbid you. If you want to give your efforts some justice and you resort to outbidding everyone else beyond your own capacity, you might find that the auctioned house you won might be a nightmare not a reward. Remember to pull your stops when necessary. If you don't get this house, then think about getting another in the future.
Guidelines On Buying At An Auction
Do your homework: Nothing is more important than knowing what type of battle you are going into. Before traveling towards the auction site, you should first obtain a considerable amount of information about the items being auctioned, the form of bidding and other necessary details. Also, know the requirements of the auction.
Bring cash: Most auctions require the potential buyer to deposit a registration fee which may or may not be withdrawn afterwards. This acts as an assurance to the auctioneer that the person is a serious bidder. Also, know the forms of payment that the auctioneer requires. You might be required to bring cash, to use your credit card or to pay through a bank. TIP: Refrain from joining bids where the auctioneer asks the winning bidders to wire their payment. Once you wire the money, it's lost.
Just be prepared: There are conditions when the auctioneers have to cancel the auction. To get around this possibility, call the auctioneer before going to the auction site. Some auctions are cancelled without notice or with very little notice.
Use the viewing time: Most auctions allow viewing time for the items or properties so that the bidders will get an idea of the items being auctioned. During this time, inspect the item you want to bid on. Check for any indications that will give you hints on whether an item is a good sale or not. Inspect thoroughly because merchandise at auctions come with no guarantees. Foreclosed homes that are being auctioned, for example, are sold as-is. Thus any damages to property, whether it's real estate, a car or just a collector's item will not be recognized through complaints. However, there are some auctions that allow the winning bidder to return the item if proven faulty. But just to eliminate the trouble, try to check the item first before deciding to bid on it.
Set a price limit: Some people get so caught in the bidding wars that they bid beyond their capacity in the process. Don't let your emotions take you to prices that you cannot afford. Set a ceiling for the purchase price and stick with it. This way you won't be a victim of negative spur of the moment decisions because sometimes, even if you can afford the price, it's not wise to buy something priced way beyond its original value.
Government-Seized Property Auctions: Buy Your Dream Home Here!
Where Do These Properties Come From?
Everyday, many privately-owned properties all across the country are subjected to foreclosure laws and repossession orders; other properties are seized because they were illegally acquired. All of these will become government properties. And since the government doesn't have any use for them, these real-estate properties are brought to auctions to be sold and become government assets.
Buying Your Dream Home At Rock Bottom Prices
When the real estate market is in distress, real estate property prices go down. And when the country's economy is in recession, citizens don't have the financial strength to keep up with the prices. One result of this slow down is homeowners missing their mortgage payments. Both are happening right now! And there's no better time to by property than today.
If You Put Time In It, You Will Be Able To Buy A Home 90% Below Its Market Value.
Do your research and acquire a property listing. If you have one, go through them one by one and study if any particular property fits your requirements. Once you have chosen a property, it is very important to go visit it before the auction. Houses offered at government auctions are not in perfect condition so it is a must that you check its general appearance before finalizing your decision.
Know your financial strength. Decide whether you will pay cash or use financing. If you choose the latter, get pre-approval first from a bank or loan company.
Government-seized properties may have or may have not been appraised before they are put on sale at an auction. Take note of this as the appraised properties are significantly more expensive.
Generally, properties at government-seized auctions are cheaper than the value on the open market but competition can drive the prices up. The key is, be wise when bidding. Bid only the amount you can afford. If you do all these, your dream home is going once going twice and sold to you!
Going To An Auction In 5 Easy Steps
1. Go To An Auction Preview
If you want to increase your chances of success, this is the most important step you should focus on. Auction previews are an opportunity to know the different auction goods on sale and the only time to inspect personally the items you are interested in bidding on. Turn it on, plug it in, try it out and examine all the features of the item when possible.
Auction previews are held days before the actual auction day. It is your chance to take notes, bring a camera, and screen the items through your personal quality check list. At the day of the auction, go through the items one last time and inspect that they are still in the same condition.
2. Do Your Research
Once you have seen the items on sale, go home and do your research. Go online and check the market value of the items. Consider the repair costs if necessary.
3. Set Your Budget
Once you have done your research on the items you are interested in bidding on, determine the highest amount you are willing to pay for each item. Take note, knowing the amount of your highest bid should be based on the current market value of each item, the possible repair costs, and the additional charges the auction company will impose on the sale.
4. Prepare Your Money
Winning at an auction is legally binding so you cannot simply pull yourself out after you win an item. Prepare your money that you have set to cover your bids and the extra fee.
5. Bid
When the auction opens and the auctioneer calls for the bids be ready. A second of hesitation may cost you to lose the item you are eyeing. Stay within your set budget. The auction process is fast-paced; things can get ugly, and emotions can run high. Do not let your emotions rule your decision-making. Bidding on impulse may win you an item but make sure that it won't overrule the budget you have set and the research you have done.
Fundraising Auction Do's And Don'ts
Do's
Do the planning carefully. Set your goal. Gather your team. Draw your plan. Delegate tasks. Prepare everything you need. Execute perfectly.
Get a corporate sponsor. Not only will it reduce your expenses, getting a corporate sponsor will also help you attract more people through corporate contacts or employees. Companies are less likely to refuse since it gives them exposure for a small amount. The thing is: You need them and they need you. Everyone benefits.
Define what auction you will use. You have 3 choices. You can use a regular auction, silent auction, or both. Each has its own pros and cons. It is up to you to decide what approach to take to make the most out of these types of auctions.
Do hire a professional charity auctioneer. Take note: "professional charity auctioneer". Regular auctioneers have a great skill of their own but a charity auctioneer knows how to execute a non-profit event very well.
Integrate the auction into a charity event. Often, a fundraising activity including charity auction is combined with an event. This helps draw invites and keep the guests entertained.
Don'ts
Don't set limitations on the type of auction goods to sell. If you want to gather enough funds for a cause, be ready to sell everything.
Don't assume that your guests know what to do. Not everyone has been to an auction or experienced bidding for an item at an auction. So keep each of your guests informed as to what they should expect during the actual event. Doing this allows you to connect with them personally. In return, your guests are well-informed on the cause of the event which can yield to better bidding results.
Don't spend too much on preparation. This is a fundraising event and your goal is to raise money. The last thing you want is to host an event that requires big money. Keep your budget to the minimum. Any amount you save is added to the money you earn.
Don't stress yourself out. While there are lots of things going on when preparing the fundraising event and during the auction itself, you don't have to stress yourself over the details too much. Trust your teammates. They will do the job as they're told.
Do Estate Auctions Interest You?
You never know what you are going to find for sale during an estate auction and what adds to the thrill of joining such. If you are someone who makes the most out of anything you see, you may find that an estate auction is more satisfying than you first expected.
But what will assure you of a great deal with an estate auction?
Going to the auction site an hour or half hour earlier than the actual auction schedule. This will give you time to inspect the items that you might want to bid on. Also, using the inspection period will let you see close the items that you want to buy. You can also evaluate the estimated price for each item, thus helping you decide on the ceiling price you'll give it.
While inspecting, look for the labels or manufacturers of the items you want. These will give you an approximation of its value.
Bid later in the auction. The crowd is usually largest at the beginning of the auctions. If you do not want to compete with other bidders, it is best to wait for the last parts of the auction when the crowd is thinning out. This works most effectively among people who are more interested in non-furniture items.
Do not join the bidding wars. If you want to buy a certain piece of furniture so badly, chances are there is someone in the crowd who wants it too. You'll know this for certain if someone in the crowd tries to outbid you. In the end, there will only be you and that bidder (and probably someone else) who'll be left bidding on an item. If this is the case, you can try to outbid him as much as you want but once the price crosses over the actual value of the item, pull the stops and let that person win it. An item is only as good as its original value.
Common Auction Terminologies: A Must Learn
Absolute auction is also known as straight auction. This is a type of auction where there is no amount or limiting conditions.
`As is where is' or 'in its present condition' or simply 'as is' is a term used to describe an item without return privileges.
Auction block is a stage or a podium where the auctioneer stands and calls for the bids. When an item is placed on an auction block, it means the item will go on sale.
Auctioneer is the person who calls for bid during the auction process.
Bid is an offer of a price the buyer has called.
Bid History is a list of all the bids made, usually, in chronological order. This is usually used at silent auctions.
Buy-out is a predetermined price set by the seller. Once the buy-out price is reached, the auctioneer has the option to stop the bidding and award the item to last bidder.
Deadbeats is a term given to a high bidder who fails to pay for the item he or she has won.
Dutch auction is a type of auction where the auctioneer calls the highest asking price and incrementally goes down until one bidder is willing to buy the item. The winning bidder pays for the last price called by the auctioneer.
English auction is a type of auction that starts with a minimum asking price and goes up incrementally. The item is won if the buyout price has been reached or if there is no other person willing to place a higher bid.
Featured auction are prominently placed on brochures, catalogues, category pages, or home pages of the auction service. Sellers usually pay for the placement.
Jump bid is a bid that is higher than the incremental bid.
Lot can be a single auction listing or a number given to an auction good for easier reference.
Market value is the highest price of the item when it is sold on the open market.
Maximum Bid is the highest amount a bidder is willing to pay for the item.
Opening Bid is the minimum bid.
Reserve Price is the lowest amount the seller is willing to accept for the item. Items with reserve prices are announced before the auction begins but the amount is not revealed.
Snipping is outbidding others during the last moment of the auction.
Charity Auction: An Effective Fundraising Tool
There are two types of auctions used on a fundraising event: Silent Auction And Regular Auction.
Silent auctions are conducted by setting up a table or a display where all the auction goods will be shown for people to bid on. A minimum bid may or may not be set. A piece of paper is located near the items where participants can write the amount of their bid together with their name. At the end of the auction, the bid is calculated and the person who casts the highest bid wins the item. This is often a better choice for fundraising organizers as it does not detract people from the entertainment.
Bids can be kept privately throughout the auction or can be displayed through a bidding sheet. In a 'private silent auction', all the previous bids are not revealed in public. The good thing about 'private silent auction' is that, it keeps the bidders clueless on other bids. In theory, if a person does not know how much the bids of others are, the tendency is to give the highest amount he or she is willing spend on a particular item. And since it is for a cause, money will definitely come easy.
On a 'displayed-bid silent auction' a sheet of paper reveals all the previous bids made by other people. This allows bidders to watch a particular item or items they like and place higher bids, to write down the amount higher than the previous bid, or to write down the highest bid before the auction closes. This method is currently being used by almost all internet auction sites including eBay.
A regular auction on the other hand requires an auctioneer who will call the price from people who raise their hands or numbers to bid. A regular auction takes advantage of impulse buying as bidders only have a few seconds to outbid each other. If the auctioneer is good and the competition is present, items can be sold higher that their original value.
When executed properly, both silent auction and regular auction effectively yield a good result.
Car Auctions: Advantageous Or Not?
Pros
People with limited budgets and who want to buy a car find that there are a lot of choices in car auctions as compared with conventional car distributors and dealers.
For regular cars sold at auctions, buyers could secure reliable if not the best cars at very cheap prices. In most cases, organizers make it a point that the cars they sell are checked well for any damages or malfunctions and are in good condition.
At car auctions, even the best and most popular models are being sold with an added perk- they come at lower prices.
For car collectors, there are available auctions where vintage cars are featured. This may be a good opportunity to obtain some of the best cars without having to go through negotiations with owners who are unwilling to sell their vintage cars. Also, car auctions present great opportunities for buying really old cars without having to pay premium prices for the "vintage tag".
Cons
Cars at auctions are sold at relatively lower prices because the items are typically second-hand autos repossessed by the mortgagors or the federal government. There is an added danger to this- there are cars labeled as second-hand but are not at all second hand, some of them could be third hand or more.
A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Such flaws may not be apparent during the auction due to refurbishments, repaints and fixes that were made on the car to make the item look their best. These flaws will start appearing once the buyer uses the car.
Some cars that are being auctioned are "hot" cars, meaning these may be smuggled or stolen. Chances are you'll have problems regarding the car's ownership.
Unlike autos being sold at regular distributors and dealers, those sold at auction usually do not have insurance coverage or warranties.
Different car buyers have different opinions on whether it is good or bad to buy a car at an auction. Thus the buyer has to rely on his best judgment backed by a considerable amount of research and use of gut feelings.