Auction Service business.
Business Overview
Did you know that it is estimated that more than 75,000 auctions sales take place each year in the United States? Becoming a certified auctioneer is not difficult, the course is less than two-weeks in duration and costs only a few thousand dollars. Once certified, a world of opportunity awaits the innovative entrepreneurial auctioneers. You can host and arrange your own auction sales or work on a contract basis auctioneering for other services. Many auctioneers like to specialize in one particular type of auctioneering service including real estate, automobiles, fine art, household furnishings, businesses, or heavy equipment. Depending on your experiences and skills you may also want to consider specialization for your service. Typically, auctioneers retain 7 to 12 percent of the value of the goods auctioned and in some cases also charge purchasers a bidders fee that can range from an additional 5 to 10 percent. However lucrative this may sound, be forewarned that hosting and promoting auction sales can be very costly. Directly from the commissions you have to pay for expenses, such as wages for employees, transportation costs, sale advertising and promotion, and administrative costs. Securing clients can also be difficult simply due to the fact that this is a competitive industry and sellers want as much for their products as possible, especially commercial clients. The decision to select one auction service over another is usually based on past performance and experience in the particular goods being auction. But providing research is completed, careful planning is practiced, and you take the time to build a strong and reputable service, a very financially rewarding future can lie ahead.
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