Frank Lewis
Introduction
If you’re a business owner looking to offload used equipment, auctioning it off sounds like a smart move, right? It is—if you pick the right auctioneer. Otherwise, you could end up with lowball offers, no buyers at all, or worse, legal headaches. In this guide, we’re diving deep into the 7 most common mistakes business owners make when choosing equipment auctioneers, and how you can avoid them.
Whether you’re in manufacturing, construction, hospitality, or any other industry, avoiding these pitfalls can be the difference between a successful liquidation and a financial disaster.
Why Equipment Auctions Matter for Business Owners
Converting Idle Assets into Cash
Your idle machinery or outdated equipment isn’t doing your business any favors by collecting dust. Equipment auctions can convert those unused assets into working capital quickly. Services like Lewis Auctioneers specialize in auctioning business equipment and making sure sellers get top dollar.
Finding the Right Buyers
An experienced auctioneer brings a ready-made audience. That means your equipment is seen by qualified buyers who actually want it. That visibility can drastically impact your final sale price and how fast it sells. Real estate and estate auctions get a lot of buzz, but the same strategy applies to business equipment.
Mistake #1: Not Researching the Auctioneer’s Reputation
How to Investigate a Track Record
Would you hand over your expensive equipment to someone you’ve never heard of? Of course not. Before partnering with an auctioneer, dig into their history. Visit their website, check their past auctions, and see what kind of success they’ve had. At Lewis Auctioneers, you’ll find a wealth of resources and tips that show they know the auction world inside and out.
The Power of Online Reviews and Testimonials
Don’t just take the auctioneer’s word for it—look at what others are saying. Client testimonials and third-party reviews on platforms like Google and Facebook can tell you a lot about an auctioneer’s reliability and performance. Look for tags like #success and #skills for further insights.
Mistake #2: Overlooking Specialization in Business Equipment
Not All Auctioneers Handle Equipment
Some auctioneers might specialize in real estate or collectibles, not industrial equipment. Choosing someone unfamiliar with your type of inventory is a mistake.
Choosing Experience Over General Services
Look for an auctioneer who lives and breathes business equipment auctions. You want someone who understands your gear, knows the market, and can talk the talk with buyers.
Mistake #3: Ignoring Marketing Strategies
How Your Auction Gets Promoted Matters
An auction is only as successful as the number of eyes on it. If your auctioneer doesn’t have a solid marketing plan, your equipment may sit unsold. A good auctioneer uses SEO, email campaigns, and social media to spread the word—fast and far.
The Role of Online and Offline Visibility
Offline strategies like signage, flyers, and networking events still play a role. Combining the old-school charm with modern tech is what companies like Lewis Auctioneers do best.
Mistake #4: Failing to Ask About Legal Compliance
Auction Laws Vary by State
Did you know auction laws change depending on where you’re located? Some states require auctioneers to be licensed, bonded, or both. Working with an unlicensed professional could result in fines or invalid transactions.
The Risks of Working with an Unlicensed Auctioneer
This isn’t just a paperwork problem—it’s a legal risk. Stick with professionals who understand legal tips and who follow state guidelines to the letter.
Mistake #5: Choosing Based on the Lowest Fees
Cheap Doesn’t Mean Better
Sure, low fees sound tempting—but what are you giving up? Lesser-known or inexperienced auctioneers might charge less but fail to deliver results.
Value vs. Cost: A Crucial Distinction
The real question is, “What am I getting for my money?” A more experienced auctioneer may charge higher fees but also drive higher sale prices. Consider it a smart investment in your business.
Mistake #6: Overlooking Auctioneer Communication Skills
Transparency Builds Trust
Good communication is everything in the auction world. You want updates, timelines, and honest answers. Lack of communication can lead to misunderstandings or missed opportunities.
How Communication Affects Auction Day Success
From setting expectations to adjusting reserve prices in real time, auctioneer communication skills can make or break the auction experience. Check out tags like #qualities and #auctioneers for deeper insight into what makes a great professional.
Mistake #7: Not Understanding the Contract Terms
Hidden Fees and Clauses to Watch For
It’s easy to get blindsided by legal jargon. Read the fine print! Look for extra fees, cancellation clauses, or commission structures that aren’t straightforward.
Get It in Writing
Everything—from commission to promotion to timing—should be in a written contract. Don’t rely on verbal promises. You need documented accountability.
Bonus Tips for Picking the Right Equipment Auctioneer
Use Reputable Platforms
Stick to auctioneers who have a solid digital presence and use secure platforms. Sites like lewisauctioneers.com are great examples of trustworthy resources.
Ask for Case Studies
Want proof? Ask for examples of similar equipment they’ve sold. Look at the prices, turnout, and timeline. Tags like #assets, #bidding, and #sales reveal the scope of successful past auctions.
Conclusion
Choosing the right equipment auctioneer isn’t just about who offers the lowest fee or has the flashiest website. It’s about experience, transparency, communication, and results. Avoiding these 7 common mistakes can save your business a lot of stress—and earn you a much bigger return on your equipment.
Whether you’re downsizing, upgrading, or closing shop, make sure you work with auctioneers who understand your needs. Start by exploring reputable experts like those at Lewis Auctioneers and learn more from their auctioneering tips and services.
FAQs
1. How do I know if an auctioneer is legitimate?
Check for state licensing, reviews, and a professional website like lewisauctioneers.com. Don’t forget to read testimonials.
2. Should I sell equipment individually or at auction?
Auctions are faster and reach more buyers. Especially with fast-sale strategies, you can liquidate assets efficiently.
3. How much commission should I expect to pay?
It varies. Typically, it ranges from 10-20%. Focus more on value delivered than just price.
4. Can I attend the auction in person?
Yes! Many auctions are live, offering both in-person and online formats.
5. Do auctioneers promote my equipment beforehand?
Good ones do! Marketing is crucial. Look for auctioneers who use both digital and print strategies.
6. What kind of equipment can I sell at auction?
Just about anything—from manufacturing tools to restaurant gear. Check the business equipment section for examples.
7. How long does it take to complete an auction?
The entire process can take a few weeks, depending on the setup and marketing plan.