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Zac Fronterhouse

Top 10 Things You Should Know When Starting Your Auction Business: Wisdom from Experienced Auctioneers

Updated: Oct 2


Starting an auction business can be an exciting yet challenging endeavor. To help aspiring auctioneers navigate this path, I recently reached out to seasoned professionals in the field. I posted a simple question in an Auctioneers Facebook group: "What's the best piece of advice you'd give when starting an auction business?" The response was overwhelming, with many experienced auctioneers sharing their hard-earned wisdom. Here, I've distilled their insights into the top 10 things you should know when embarking on your auction business journey.


1. Build a Financial Safety Net

Darrin E. Johnston emphasizes the importance of financial stability: "If it is going to be your sole source of income, have at least one year's worth of money in the bank to live on." Starting any business comes with financial uncertainties, and the auction business is no exception. Having a solid financial cushion allows you to weather the initial storms and focus on growing your business without immediate financial pressure.


2. Network and Get Involved

Marc Huber advises, "Network and get involved in your state and national associations!" These associations offer invaluable opportunities for education, networking, and staying updated on industry trends. They can also provide mentorship opportunities and help you build a reputation within the auctioneer community.


3. Think Long-Term

Jim Weigl suggests, "Think big picture and long term and plan your business model for that goal." While it's easy to get caught up in day-to-day operations, keeping your long-term vision in mind will help guide your decisions and strategy. This approach ensures that each step you take contributes to your overall business goals.


4. Develop Resilience

Jacob Farr shares two powerful pieces of advice he received: "If you're going to be in this business, you have to have ice in your veins" and "No matter what, don't give up." The auction business can be unpredictable and sometimes challenging. Developing mental toughness and persistence will be crucial to your long-term success.


5. Focus on Quality

Bruce Murphy puts it simply: "You can't make money selling junk." Your reputation as an auctioneer will largely depend on the quality of items you sell. Focusing on quality inventory will attract serious buyers and consignors, ultimately leading to better sales and a stronger business.


6. Be Selective with Inventory

Linford Berry offers a crucial insight: "Whatever you sell, that is what you will get more of. Be careful what you sell." The items you choose to auction will shape your business's identity and attract similar consignments in the future. Be strategic about the types of items you want to specialize in.


7. Learn to Say No

Several auctioneers, including David Asher and Brian Shafer, stress the importance of being selective with the jobs you take. As David puts it, "'No' sometimes is the best auction you never had." While it might be tempting to take every opportunity when starting out, being discerning about your auctions will help maintain your reputation and leave room for more profitable opportunities.


8. Prioritize Professionalism

Allee Harmon reminds us, "Every public auction that you conduct is a job interview for future business. Do not cut corners to 'save' money." Maintaining a high level of professionalism in every aspect of your business – from marketing to conducting the auction itself – will set you apart and lead to more opportunities.


9. Market Yourself Effectively

Mary Beth Gross suggests a clever marketing tactic: "Go to the editor of your newspaper and tell him you'd like him to do a new business opening in your area. They usually do them for free." Look for creative and cost-effective ways to get your name out there and build your brand in the community.


10. Balance Client Relationships

Katy Alexander offers an interesting perspective on managing relationships: "Direct 80% of your efforts towards your consignors and 20% to your buyers." While both are crucial to your business, remember that securing quality consignments is often the more challenging aspect. Nurturing relationships with consignors can lead to a steady stream of quality inventory.


Starting an auction business is an exciting journey filled with unique challenges and opportunities. By keeping these ten pieces of advice in mind, you'll be better prepared to navigate the complexities of the industry and build a successful, sustainable business. Remember, the wisdom of experienced auctioneers is an invaluable resource – don't hesitate to seek advice and learn from those who have walked this path before you.


As you embark on your auction business journey, keep learning, stay adaptable, and always strive for excellence. With determination, professionalism, and a strategic approach, you'll be well on your way to becoming a successful auctioneer.

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