Auction market changing, more smaller sales

Greg Peterson Publisher, F.A.C.Ts Report 7/12/2006, 5:00 PM CDT

Sometimes change comes at us fast. Other times it comes more slowly, so slowly it takes a while to pick up on it.

I've noticed a slow moving change taking place regarding farm auctions for used equipment. In 2006, there has been a much higher percentage of auctions featuring small, partial lines of equipment. Sales with as few as five to ten pieces of equipment up for sale. These auctions stand in stark contrast to the traditional view of the auction with a farmer selling out his entire line of equipment upon retiring.

A good example was the small sale back on July 1, 2006, in east-central Iowa. The auctioneer dropped me a note after the sale. Just three older tractors, an older plow and an old loader. It was a very successful sale, as evidenced by the 1963 JD 2010 tractor with only 1,250 hours that sold for $8,300. (Click here to see what other items sold for at this auction.)

I think of another auction firm I've known for years, one of the top auction companies in their state. Just this past year they have begun to hold evening farm auctions. Judging by the sale price reports they send to us, seems like these night sales are a big success. Think we could have imagined an evening farm auction three, five, ten, twenty years ago?

Why the move to the smaller, less traditional auctions?

Bottom line is, the world is a changing place. Factors including tax planning, the general aging of the farm population and the hectic pace of our work world all may be playing key roles in this shift to smaller, alternative auctions.

Tax implications are playing a big role in folks deciding to maybe sell some of their equipment privately over the years, selectively selling a few of their pieces of equipment at auction along the way. Folks just trying to figure new ways to manage the tax bite.

Next time you leaf through your local ag paper's auction bill section, notice on the bottom of the sale bills how many feature "consigned by neighbor" equipment. This means there's probably just a couple pieces of equipment.

I can't begin to tell you the number of calls and emails I've fielded over the last year from folks with just one or two pieces of equipment for sale. Sure seems like a lot more than at any other time in my 17 years of compiling auction sale price data.

As for the evening farm auctions, I guess it does make perfect sense given how busy folks are these days. What percentage of folks also hold some type of off the farm job? How much busier are all of us with kids these days? Making your auction available and accessible to a higher percentage of potential buyers is just smart business.

Looking down the road in my crystal ball, I think these trends will continue and possibly pick up steam. The Internet in particular should play a key role in helping bring together buyers and sellers of all types of farm equipment. This will be good news for both sellers trying to move that piece or two of equipment, as well as for time-strapped buyers struggling to find the exact piece of equipment they need.

Change, we don't have to like it but to succeed we need to be aware of it and adapt along with it.

Inspiring Ethics & Integrity

In May of this year I had experienced an epiphany while talking on the phone with AuctionZip's Co-Founder, Steve Johnson, about the challenges we auctioneers face in running a successful auction business or any business for that matter. Steve was telling me a story about how he had overcome some adverse situations regarding some newspaper editors who would not allow AuctionZip's members to mention the name of AuctionZip.com in advertisements placed in their publications. Through the course of the conversation, I believe we both had the simultaneous realization about perhaps the biggest reason why businesses succeed or fail. It comes right down to ETHICS & INTEGRITY. Those people operating without ethics and integrity most often choose to operate from fear. As a result, they are misguided by this emotion and suffer in most areas of their lives.

Although passion, drive, motivation, experience and earning money all play major roles in the success of any business, sometimes as we know it's just not enough. How do we overcome those challenges we face daily in our business? How do we deal with those who choose to attack our personal and or business reputations? Many, if not all, of us have had to deal to with these very unpleasant situations, and I feel that it is our personal ethics and integrity that gives us purpose and meaning in carrying us successfully through life's trials and tribulations.

In Victor Frankel's autobiographical book, "Man's Search for Meaning" he discusses how he survived being interned as a Jew in a Nazi concentration camp. His realization was that everyday he found something worthwhile and meaningful in each day. Now there's an epiphany! Finding meaning in daily living gives us the drive to go on. Perhaps as Auctioneers we can institute our own personal ethics and integrity as the predominant reason why we continue to exist and survive in the business world?

Ethics and integrity allows us to remain strong. With ethics and integrity we do not need to go down to the least common denominator when dealing with those who challenge us. Ethics and integrity allows us to provide service above and beyond the call of duty. Ethics and integrity means we don't need to worry about rumors and untruths, as we rest confidently in our accomplishments and our established good reputations. Ethics and integrity means that we would offer a hand to the man that is down, rather than climbing on his back to get to the top. Put out good, and you will get good in return. This is a fact!

Steve really had inspired me in that conversation. Truthfully, it was a wake-up call! Even though I consider myself to be a man of integrity, I had realized that I have acted out of fear many times in the past. As FDR once said, "The only thing we have to fear is fear itself." Ethics and integrity may not be a panacea, but they certainly are wonderful guideposts to what I believe is the key to running a successful business and living life more productively and peacefully.

To contact Tom, visit www.DiNardoandLordAuctioneers.com

(c) 2004 Tom DiNardo - All rights reserved.

Auction market changing, more smaller sales

Greg Peterson Publisher, F.A.C.Ts Report

Sometimes change comes at us fast. Other times it comes more slowly, so slowly it takes a while to pick up on it.

I've noticed a slow moving change taking place regarding farm auctions for used equipment. In 2006, there has been a much higher percentage of auctions featuring small, partial lines of equipment. Sales with as few as five to ten pieces of equipment up for sale. These auctions stand in stark contrast to the traditional view of the auction with a farmer selling out his entire line of equipment upon retiring.

A good example was the small sale back on July 1, 2006, in east-central Iowa. The auctioneer dropped me a note after the sale. Just three older tractors, an older plow and an old loader. It was a very successful sale, as evidenced by the 1963 JD 2010 tractor with only 1,250 hours that sold for $8,300. (Click here to see what other items sold for at this auction.)

I think of another auction firm I've known for years, one of the top auction companies in their state. Just this past year they have begun to hold evening farm auctions. Judging by the sale price reports they send to us, seems like these night sales are a big success. Think we could have imagined an evening farm auction three, five, ten, twenty years ago?

Why the move to the smaller, less traditional auctions?

Bottom line is, the world is a changing place. Factors including tax planning, the general aging of the farm population and the hectic pace of our work world all may be playing key roles in this shift to smaller, alternative auctions.

Tax implications are playing a big role in folks deciding to maybe sell some of their equipment privately over the years, selectively selling a few of their pieces of equipment at auction along the way. Folks just trying to figure new ways to manage the tax bite.

Next time you leaf through your local ag paper's auction bill section, notice on the bottom of the sale bills how many feature "consigned by neighbor" equipment. This means there's probably just a couple pieces of equipment.

I can't begin to tell you the number of calls and emails I've fielded over the last year from folks with just one or two pieces of equipment for sale. Sure seems like a lot more than at any other time in my 17 years of compiling auction sale price data.

As for the evening farm auctions, I guess it does make perfect sense given how busy folks are these days. What percentage of folks also hold some type of off the farm job? How much busier are all of us with kids these days? Making your auction available and accessible to a higher percentage of potential buyers is just smart business.

Looking down the road in my crystal ball, I think these trends will continue and possibly pick up steam. The Internet in particular should play a key role in helping bring together buyers and sellers of all types of farm equipment. This will be good news for both sellers trying to move that piece or two of equipment, as well as for time-strapped buyers struggling to find the exact piece of equipment they need.

Change, we don't have to like it but to succeed we need to be aware of it and adapt along with it.