How to Use Webcast Auctions for Construction Equipment Purchases

Procurement specialists are tasked with purchasing high-quality construction equipment under tight budget constraints, all while continuing to manage their busy departments. For procurement specialists who want to maximize their resources, online bidding can have a dramatic impact on your department’s bottom line.If you purchase equipment at auction, you’ve likely experienced the thrill of winning a great piece at a competitive price, as well as the agony of defeat when leaving an auction empty-handed. Online bidding provides procurement specialists with the opportunity to bid on, and win, high-quality equipment without having to travel to the live auction. What does this mean for the average procurement specialist? Instead of spending precious time and resources away from the office, procurement specialists who purchase equipment online are more effective than ever. They are actively participating in auctions online and because they aren’t traveling, expenses are drastically reduced. Productivity increases as procurement specialists spend less time on the road and more time in the office managing business opportunities and equipment purchases.

Not all Online Bidding Services are Created Equally

When purchasing construction equipment online, consider that not all live auction webcasting services are the same.

• Choose a provider that works with only licensed auction companies to ensure you are acquiring equipment from a trusted source.
• Be certain that your provider has a proven track record and employs the latest technologies to ensure your bids are accurately represented.
• Select a provider who offers live audio and video streaming of the event to guarantee the best user experience possible.
• Work with a provider who offers access to auction archives, which allows bidders the opportunity to research the market value of items on which they plan to bid.
• Make sure the provider you choose has a secure website to protect your online purchases.

While there are several online auction providers, not every live auction webcasting solution emulates the live auction. Be sure your provider allows you to purchase times-the-money, all-one-money and in buyer’s choice lots-ensuring that you experience the same level of interaction and excitement as if you were at the live event.

In addition to selecting a provider who offers a leading live auction webcasting solution and access to equipment you need, be sure the provider offers world-class customer service. Speak with an auction specialist who works directly with bidders on a regular basis to ensure your needs are met as you participate live online.

How Does Live Webcast Bidding Work?

When participating in live webcast bidding, it is critical that the bidder is aware of the strategic interaction taking place between your bid, your online provider and the auctioneer. Once a bid has been placed via the Internet, rest assured that a real person-an agent on staff with your provider or a ringman on staff with the auctioneer-will represent the Internet bids until the high bid has been reached and the hammer has been dropped.

Bidding online is easy. Most online auction providers require bidders to have an account to participate in their auctions. They also require bidders to register per event as a means of protecting both the buyer and seller since terms and conditions are unique to each individual auction, and bidders must agree to the terms of the auction before they can bid. Auction companies often have varying requirements to be accepted to bid in auctions, such as deposits, bank letters or previous bid history. Because bank letters and deposits can sometimes be difficult to obtain, allow ample time to gather the required items for your registration well in advance of the auction. Be sure to allow at least twenty-four to forty-eight hours for the auction company to review and accept your bidder registration.

Select a live auction webcasting service that is interactive and intuitive to ensure a smooth bidding experience. Before you attempt to bid, watch a few auctions to familiarize yourself with the bidding application’s user interface and the pace of the auctioneer.

We recommend selecting a provider that offers bidders the opportunity to leave pre-bids and absentee bids for its auctions. If you cannot participate in a live auction webcast, simply leave a bid, up to your maximum amount, and the live webcast bidding provider will represent your bid, up to your maximum bid amount, using increments that the auction company has set prior to the live auction.

Tips for Effective Bidding

When bidding online for your next equipment purchase, be sure to consider the following:

• Research the equipment prior to the auction to ensure you are making an educated purchasing decision. If need be, contact a third-party equipment inspector.
• If you have questions regarding a particular piece, be sure to contact the auction company directly prior to the event.
• Review the auction terms and conditions and be certain that you understand them before you agree to them, including buyer’s fees and equipment removal guidelines.
• Register for events as quickly as possible to ensure enough time for approvals.Leave pre-bids to ensure your bids are always represented in the event you cannot attend an auction.
• Place your bids early and often! If you are interested in a piece, don’t wait to place your bid. Remember, you are competing with other Internet bidders, as well as with those in the live audience and the onsite software operator needs time to represent your bids before the hammer drops.
• Understand your shipping options and additional costs, including buyer’s fees, and budget accordingly prior to placing your online bid.

Procuring high-quality equipment under tight budget constraints is a difficult job, but online bidding solutions can help you save precious time and resources. Don’t let all of the terrific equipment crossing the auction block online each month pass you by. Join the thousands of savvy equipment purchasers who have already begun procuring equipment online and find out for yourself why more procurement specialists than ever are moving their purchasing to the Internet.

Construction Business Owner, July 2010