Must-Know Lingo Before You Bid In Your First Industrial Auction

eCommerce-Glossary-of-Terms-and-Definitions-for-Merchants.jpg

For commercial and industrial buyers, auctions are a great way to secure great deals on used equipment, parts, and machinery. When you’re watching your bottom line, industrial auctions can help you stretch your capital equipment budget.  With technology today, you can participate in auctions via the Internet, such as on industrial liquidation marketplaces like Aucto.

Knowing some standard auction and liquidation terms and definitions will help you succeed on online marketplaces.  If you’ve never participated in an online auction, don’t worry. Many auction websites and companies offer assistance and guides.  Before you start bidding, here are some key terms and phrases used in auctions. By familiarizing yourself with these terms and definitions, you can bid with confidence and purchase what you need at the right price.

Auction Terms and Definitions

Absentee Bids – Bidding in an auction without being present at the time the lot expires. The method of submitting bids varies by auctioneer and auction house. In an online auction, you can enter your maximum bid and the system will bid on your behalf up to your maximum amount. –

Absolute Auction 

The highest bidder wins the item, with no limit or minimum prices set.

Ask Price

After a buyer places a bid, the auctioneer will offer it to other buyers at a higher amount or the ask price.

Appraisal 

The process of examining an item to find its value. This may be written or oral, and done by an expert who analyzes current market trends and other relevant information.

As-is

The selling of an item without guarantees to the fitness or functionality of the item.

Bid

An offer to purchase the item at the ask price.

Bidder Acknowledgement

Also known as a memorandum, it is a document signed by parties in the contract room or auction floor. For online auctions, potential Bidders must agree to the Terms and Conditions posted by the Seller prior to being allowed to participate in the auction. 

Bid Price

The most current and highest bid.

Buyer’s Premium

An pre-specified amount the buyer must pay on top of the final bid, usually to cover administrative costs. This may be a percentage of the bid amount or a flat fee, but must always be disclosed before the auction starts.

Catalog

A published list that itemizes and describes all the items on sale at an auction. 

Earnest Money Deposit

An amount paid by the Bidder in advance of the auction. This is usually a set amount given to the auction house to prove the buyer’s genuine interest in bidding. The winner will have his or her deposit applied to the final price and all other bidders will have their money refunded.

Lot End Time

The time at which the lot expires and a winner is determined. 

Lot Number

 A unique number that identifies each lot being sold at an auction.

Market Value

The highest possible price that an item may fetch in an open market. This assumes a fair sale and excludes outside and undue stimulus.

Starting Bid

The initial ask price of a lot. The amount at which the bidding starts for a particular lot.

Private Auction

An auction that is invite-only. 

Reserved Auction

An auction where the sellers set a minimum price (reserve price) that the bidding must reach. If the reserve price is not met, the seller may refuse to accept the highest bid.

Terms and Conditions

The rules and regulations that govern any auction.

Timed Bidding

Some online auctions may utilize a timed bidding component. With timed bidding, the End Time of the lot is extended by a pre-determined amount of time if a bid is placed within the last few minutes . If no additional bids are placed, the lot expires and the highest bidder is awarded the lot. 

Next Post:  8 Simple Tips To Make Old and Used Machinery Look Great In Photos
Previous Post: How You Can Strike Gold At Online Equipment Auctions

 

Recent Posts

The Top 5 Myths About Selling Used Metalworking Equipment In Missouri
The Top 5 Myths About Selling Used Metalworking Equipment In Missouri

The Show-Me state is showing the world that it is developing into a manufacturing hub, but how are these companies able to sustain this growth? Our latest article examines how this is possible while examining and debunking the top myths about selling used metalworking equipment in Missouri

Why Businesses in Washington State Must Sell Their Used Metalworking Equipment
Why Businesses in Washington State Must Sell Their Used Metalworking Equipment

Though Washington may not be as well-known for being a manufacturing hotspot as some states, the reality is that the state's manufacturing industry is alive and well. Let's examines why businesses across the state must sell their used metalworking equipment to maintain a competitive advantage.

Your Guide to Selling Metalworking Equipment in Indiana
Your Guide to Selling Metalworking Equipment in Indiana

Indiana's rich history of manufacturing makes the state a top destination for selling used metalworking equipment. Whether you are already selling equipment or are brand new to selling metalworking equipment in Indiana learn more about the process here.

Selling Metalworking Equipment in Tennessee: The Complete Guide
Selling Metalworking Equipment in Tennessee: The Complete Guide

The Volunteer State is quickly becoming an economic hub for manufacturers in the United States. Our guide examines why these businesses should look at selling metalworking equipment, and why selling used metalworking equipment in Tennessee can help local businesses grow.

The Top Myths about Selling Metalworking Equipment in Arizona
The Top Myths about Selling Metalworking Equipment in Arizona

Every day more and more urban myths get created providing false information to those who may not know better. Today we are dispelling the Top Myths about Selling Metalworking Equipment in Arizona.