I have been to a few liquidations and auctions where businesses close and the equipment, furniture and stock is sold off. I find that the auctions are rigged. I went with a friend to an auction where he was interested in a piece of equipment that was very specialized and only a few people might want. I stood in the front at the foot of the auctioneer facing the group of bidders as I was not bidding on any equipment that day. I saw that the auctioneer called out a few times raising the bid when there were no bidders signalling a bid. I protested, the auctioneer started the bids again and at the end the price of the item sold for half the price of bids on the last round.
I have suspicions that the autioneers remove some of the best stuff before the public can inspect the goods and equipment. The big items that must be sold is bid up higher, I believe they get 30% of the price of items sold. So for each $10 extra they bring in, they get $3. The items that are not sold might go as a lot to a budy, but they will have to pad the lot with some good stuff so they hold back some items. I have also seen some worthless items go for rediculous prices, I suspect shills in the audience bidding up prices to break the ice on bidding prices. I saw a beat up bench vise go for the unbelivable price of $60 in 4 bids, there was a second bench vice in just a bad a shape that went for the same price later in the auction, bid on and bought by the same people. These items that no one wants are put in a lot all alone so that their shills can stir the crowd up with exited bidding.
What is your experience with auctions and liquidations?
I have suspicions that the autioneers remove some of the best stuff before the public can inspect the goods and equipment. The big items that must be sold is bid up higher, I believe they get 30% of the price of items sold. So for each $10 extra they bring in, they get $3. The items that are not sold might go as a lot to a budy, but they will have to pad the lot with some good stuff so they hold back some items. I have also seen some worthless items go for rediculous prices, I suspect shills in the audience bidding up prices to break the ice on bidding prices. I saw a beat up bench vise go for the unbelivable price of $60 in 4 bids, there was a second bench vice in just a bad a shape that went for the same price later in the auction, bid on and bought by the same people. These items that no one wants are put in a lot all alone so that their shills can stir the crowd up with exited bidding.
What is your experience with auctions and liquidations?
