Johannesburg – There is no getting away from the fact that auctions are among the most exciting forms of commerce.
The thrill of bidding and winning goods people have set their hearts on cannot be beaten. Physical or in-person auctions also bring a carnival- like atmosphere to the bidding process, particularly if the auctioneer understands and plays to their audience. For decades, the late Cape Town auctioneer Julius Buchinsky was a household name in the Mother City, known for his unique brand of humour and effervescent spirit with hammer in hand.
In recent years, online auctions have become popular the world over. Being able to get your hands on a coveted item has never been easier, with the online purchase arriving within days of making the winning bid.
As the world emerges from severe lockdowns imposed as a result of the coronavirus pandemic, there is a real need to procure items quickly and effectively to get businesses up and running again, and it is no surprise that people are turning to auctions for this purpose.
Lockdowns have also meant that people are not only spending more time online for entertainment purposes and looking for fun ways to shop, but the economic fallout of the pandemic has also necessitated that bargains for business purposes need to be found as a matter of urgency.
Construction equipment has been in particularly high demand.
For example, construction industry publication PBC Today reports that at American auction giant Ritchie Bros’ recent event, more than 12 000 items were sold for more than $191-million (R2.8-billion) within six days.
Equipment included a range of earth-moving equipment and aerial hardware. But sought-after items also extend to the art world. Business Insider SA reported last month that the Worldart gallery in Cape Town was the first to offer non-fungible token (NFT) art on auction in South Africa.
The publication explains: “A non-fungible token (NFT) is a secure digital file that validates ownership within a blockchain system, which represents an online ledger. Any digital art – including images, video game items and music – can be packaged and sold as NFTs.”
It is clear the digital revolution has made its mark, but also that auctions in general continue to hold mass appeal among buyers. Craig Lubbe, the CEO of South African internet auction and online marketplace Bidorbuy, agrees that auctions are an “exciting way to shop”.
“There’s quite a thrill to see if you are the leader during the auction and watching people outbid you as you play your part in the auction,” he says.
For Lubbe, the easy-to-use nature of the Bidorbuy platform is an attractive proposition for customers.
It takes the form of ascending bid auctions in which bids are open for all to see. The winner is the highest bidder and the price is the highest bid, provided the (optional) reserve price has been met. Some of the items that often take bidders’ fancy include electronics, jewellery and gemstones, stamps and antiques and collectables.
“But that’s not to say you can’t find a deal for many other categories like clothing, toys and electronics,” Lubbe says. For starters, he recommends that if possible, customers should not start their bids too low.
“Research the cost of the item beforehand and start bidding knowing the price of the item. People who are only looking for a bargain are intimidated by high rates and will give up when the initial figure is high.
“You need to keep in mind that you need to leave some room to increase your bid against serious buyers.” He also says people should be ready to place a matching bid when other potential buyers place their bids. Bidorbuy has experienced strong year-on-year growth, particularly within the months of January and February. Ciena Bester, the owner and manager of 4 Auctions in East London, believes that auctions are the “only true indicator/ measure to gauge what an item is worth”.
“A buyer will never bid more than what he perceives the item to be worth,” Bester says.
To Bester’s mind, a good auction is one where the correct stock is in place to drive higher prices, buyers have cash available, and sellers make a decent percentage profit “We have weekly household goods, furniture and vehicle auctions, which are well-attended, even in these challenging times.”
Bester says it is important for bidders to view the goods they intend bidding on before the auction starts so they can familiarise themselves with the items and their condition as well as the auction terms and conditions.
“Decide what you want and what price you are willing to pay for the item and bid only on the goods you intend to buy. This avoids disagreements and disappointment when the sales are completed,” says Bester.
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