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Post by D

Lender remarketing considerations

Wed., Apr. 11, 2012 - 3 pm | Dave Sommers, AARE, PRI

Experienced lenders repeatedly share with me their philosophy in remarketing collateral. To sum up their message in a succinct paraphrase, they desire to effectively and efficiently conduct a commercially reasonable sale, as holding costs quickly erode recovery dollars.

Holding costs add up faster than many realize, and here are several other aspects for consideration.

Depreciation
Equipment, especially when not in use, does not typically become more valuable with time.

Opportunity
Where could the recovery money or reserves be used elsewhere?

Time
Sell well and efficiently. Hire a professional remarketer to free your time.

Frustration
Get the issue off your desk, heed lessons learned, sleep well and move on.

Carrying costs
Insurance, storage fees, maintenance, pilfering and other costs add up quickly.

Transportation fees
Moving assets is costly and always involves a chance of damage. If possible, sell equipment where it sits.

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Post by A

Considerations and pitfalls for turning used inventory into cash with auctions

Thu., Mar. 15, 2012 - 7 am | Andy Artley

Successful dealership models tend to embrace quicker inventory turns, minimize floor plans costs, and keep sales staff engaged. A case can be made to occasionally use an auction format to complement your business. There are some really effective ways to incorporate an auction into a retail business model that will not only remarket stale inventory, but jump start some additional sales without disturbing a normal transaction cycle. As you do your homework and gather information, here are a few points to consider when looking for an auction company.

Pick an auction company that isn’t going to try to compete with your dealership.
Auction sellers should want the auction company to be acting as the seller’s agent because of the duties and obligations it places on the auction company. The retail transaction, the promotion of your business and the longevity of your business are more important than any other agenda the auction company may have. You, not the auction company, are the principal retailer of your product. They are conducting an auction for your business, not the other way around.

Know the difference between unreserved and reserved auctions.
Quite simply, if you are considering a reserved auction, don’t. Reserved auctions will do nothing for moving inventory and will potentially damage customer relations. Auction transparency has advanced so drastically in recent years that if reserve prices are even suspected, the really good auction buyers will not participate and your recoveries will be dismal. If you are considering a reserved auction, you would be better served to drastically mark down the inventory and run it through conventional retail means.

Know the difference between an Internet auction company and a live auction company.
Until recently, live auctions were the only standard. But with the advance of technologies and how our customers buy, sell and communicate Internet only or “timed auctions” can be just as effective. However, don’t be fooled. Throwing your assets up on the Internet does not mean automatic success. The Internet-based company still needs to be a full-service auction company that understands the idiosyncrasies of bidders, buyers and potential auction pitfalls. There are pros and cons on both, but ultimately you need to choose an online venue that will not be intrusive and will complement your business model.

Understand the fees and returns.
Low fees don’t necessarily mean the best return, nor do high fees always mean great service. Some auction companies charge set up fees, advertising fees, inspection fees, transport fees and make-ready fees. These extra fees can really eat up what you thought you were going to keep. Be cautious and make sure the fee schedule is set within the contractual agreement that you sign before the auction takes place.

Questions need to be asked.

  • What fees are involved?
  • How and where is the advertising placed?
  • How are the assets marketed?
  • Will my dealership be promoted as well as the auction?
  • Will prospective leads and buyer information be shared with me?
  • How are collections, administration and issues handled as they arise?
  • When are auction proceeds paid out?
  • Are ancillary non-auction sales promoted or restricted?
  • Can the auction company provide relevant references?
  • Will the assets be appraised and discussed before the agreement is signed?
  • Is there a guarantee on results?

Be cautious of guarantees.
Guarantees sound nice, as they imply that a fail-safe is in place if the auction should fail. However, not all guarantees are equal. Some are gross guarantees, some are net guarantees, while others are just old fashioned reserves masked to sound appealing. In most cases, guarantees come with a higher commission rate charged to your assets and have to be diligently scrutinized as these additional fees can have a significant impact on your bottom line. If a guarantee is considered, it is important that the auction company clearly and effectively explain its guarantee contract language to you.

Sign an agreement of understanding.
A quality auction company will always offer an auction contract that is mutually agreed upon by all parties. This contract will protect your business if a discrepancy arises.

Pick an auction company with whom you enjoy working.
Promoting your dealership through an auction process must be a partnership and filled with good energy. Pick personalities that will complement your sales force. The highest results are achieved with a positive collaboration between your organization and the auction company.

In summary, there are some very good auction companies that have come a long way in understanding the retail sales model and are fantastic marketers. Make it a priority to interview these candidates and see if there is a fit. I wish you financial success in all of your endeavors!

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Post by S

See us at the Iowa State Association of Counties Spring School of Instruction

Wed., Mar. 14, 2012 - 6 am | Scott Wiese

Andy Artley and I will be in Iowa tomorrow at the Iowa State Association of Counties Spring School of Instruction at the Des Moines Marriott Downtown in Des Moines, Iowa.

Iowa State Association of Counties Spring School of InstructionISAC‘s mission is to promote effective and responsible county government for the people of Iowa. ISAC’s vision is to be the principal, authoritative source of representation, information and services for and about county government in Iowa.

This annual meeting held in March is the association’s business meeting and will feature education and vendor exhibits. We’ll be in the exhibit hall all day tomorrow, Thursday, March 15. Stop by and see us at booth 22 and ask us how we can provide solutions for managing surplus equipment.

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Post by A

March 28 ag equipment auction

Tue., Mar. 13, 2012 - 2 pm | Aaron Traffas, CAI, ATS, CES

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March 28 ag auction flyer

Aaron Traffas: Hello, this is Aaron Traffas with Purple Wave. On Wednesday, March 28, Purple Wave will conduct an auction of ag equipment for many sellers in several Midwestern states. I’m going to speak with Joe Frusher, Purple Wave’s territory manager for southwestern Kansas and parts of eastern Colorado, about one of the larger consignments in this auction. Hi, Joe, and thanks for joining me.

Joe Frusher: Good morning, Traffas.

AT: We have over 40 different sellers in the March 28 ag auction including one from your neck of the woods in southwestern Kansas. What can you tell me about Gere’s.

JF: Gere’s is a local company here in Garden City. Hi Gere is the owner and he actually has two business, a large trucking company and a packing business. Unfortunately, with the loss of his father, he’s decided to have to make the hard decision which business to keep. He had some great opportunities in the trucking business so he’s selling out from the packing side of his business.

Why did Mr. Gere elect to use Purple Wave and did he consider any other means?

Yes he did. Probably the main reason he decided to use Purple Wave is, with the size of these tractors, he wanted to reach more of a global market and not just here in southwestern Kansas where he probably wouldn’t get the best price for tractors of this size.

Let’s dig in to the inventory, Joe. What can you tell me about these tractors?

2009 John Deere 9630

Well the biggest tractor – we’ve got a 2009 John Deere 9630. It’s got about 4000 hours on it. It’s a really big tractor – really nice. It has a powershift transmission. All these tractors, they were serviced right here in Garden City at the local John Deere dealership. I’ve personally driven every tractor and they seem really clean and ready to do any job you might have for them.

Are all their items at the same place and what does a prospective bidder need to do to inspect any of these tractors before placing a bid?

Yeah, all these units are located here at the same spot here in Garden City at Gere’s. All you have to do is go online and there’ll be some information on who to contact and you can set up a time to come out any time to take a look at those tractors.

Joe, is there anything else you want to tell us about this consignment or the auction itself?

If you’re in the market for a nice Peterbilt or a nice silage truck, we have a couple of silage trucks and an Aeroswint side dump silage box also to be coming up. So, definitely, if you’re looking for a good silage truck, this would be an auction to look at.

Joe Frusher

I’ve been speaking with Joe Frusher about one of the consignments in the March 28 ag equipment auction. Find Joe on the web at purplewave.com/joefrusher or call 785.341.9158. Thanks, Joe, for joining me.

Thank you.

Bidding for the ag equipment auction is open now and will close Wednesday, March 28, beginning at 10 a.m. central. Like all Purple Wave auctions, there are no reserves or minimum bids. Items receiving bids in the last few minutes will be automatically extended to give everyone a fair chance to bid. There’s no advantage to waiting. Remember, today we discussed but one of over 40 different consignments of quality ag equipment in this event, so view the complete inventory with inspection information – and place your bids now – at purplewave.com.

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press release

Kansas Department of Transportation to sell tractors, trucks, other surplus assets in Purple Wave Internet auction

Wed., Mar. 7, 2012 - 3 pm | press release

MANHATTAN, Kan. (March 7, 2012) – The Kansas Department of Transportation (KDOT) is liquidating more than 560 surplus assets  including backhoes, tractors, pickup trucks and dump trucks, among others. Manhattan-based Purple Wave is selling the items in an Internet auction that ends at 10 a.m. Tuesday, March 13. Bidding is currently under way at purplewave.com.

KDOT has used Purple Wave to auction assets numerous times since 2008, resulting in $3.13 million in proceeds for the agency.

“Bidders have responded well to previous KDOT auctions, resulting in the return of significant dollars to the agency. Bidders can view photos of each asset, read a detailed description, and learn about personal inspection opportunities on our auction website. After the auction, the final prices are published. This transparency gives people the confidence to bid,” said Jerrod Westfahl, Purple Wave’s chief executive officer.

The auction will include at least 92 pickup trucks, 32 dump trucks, 19 tractors, and scores of other pieces of machinery previously used for state road construction and maintenance.

“All items are selling where they sit, so KDOT doesn’t have to spend taxpayer dollars transporting items to and from an auction site,” said Westfahl. “This also adds to the convenience for bidders around the state, who can inspect items in their area without traveling to a central location.”

Items are on display in Norton, Almena, Chanute, Garden City, Hutchinson, Salina, Topeka and Ulysses. Details of exact items and locations are available at purplewave.com, where individuals may also place bids.

Purple Wave currently delivers complete auction services as the on-call service provider for all state agencies, school districts, townships, counties, cities and others. “It’s a true honor to serve the Kansas taxpayers. As we have demonstrated the effectiveness of our auction services, we have had opportunities to provide similar services to agencies in Iowa, Missouri and other states,” said Westfahl.

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Post by A

Mike Saxton is new Iowa territory manager

Thu., Mar. 1, 2012 - 9 pm | Aaron Traffas, CAI, ATS, CES

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Hello this is Aaron Traffas with Purple Wave. Today, I’m going to speak with Purple Wave’s newest territory manager, Mike Saxton from Urbandale, IA. Hi, Mike, and thanks for joining me.

Mike Saxton

Mike Saxton

Hi, Aaron. Thanks for the call. I appreciate it.

Begin by speaking to your background. Have you always lived in Urbandale?

I’m about a 20 year resident of Urbandale. I was born and raised up until the age of 16 in Creston, Iowa, in southwest Iowa. I moved to Urbandale, Iowa, for my senior year in high school and I ended up marrying my childhood sweetheart, who is a lifelong Urbandale resident.

I understand you have experience in both the construction industry as well as the auction industry. What has your business background been so far?

Actually, I’ve got extensive experience in both  the construction equipment and heavy industrial segments. I started out with my father operating a small dirt spread, or helping him operate a small dirt spread, for approximately seven years. After his early passing, I spent approximately the next seven years of my life as a service mechanic and service manager. I always wanted to move into sales in construction and in industrial equipment. I started my sales career with Graham Equipment Company several years back and spent the next approximately 17 years in the construction equipment dealer sales representative category working for several dealers over that time. My last position in a sales capacity for a construction equipment dealership was VP of sales where I had about a four-year experience in that regard. I actually got into the auction industry in 1999 with a large auction company and spent a little over a decade with those people. After leaving the large auction company in 1999, I have done extensive contract work and worked for several various auction companies for short amounts of time. I’m very excited to be with Purple Wave auction company, a very dynamic, young, aggressive company. My assignment with Purple Wave will be central and eastern Iowa and I look forward to getting started.

Mike, what was it that made you want to be a part of Purple Wave and how do you feel about it so far?

Oh, I’m very enthused to be associated with Purple Wave auctions. I absolutely subscribe to the unreserved auction method which is tantamount to this organization. We operate in a very transparent, simple method which we know, without question, offers a potential consigner a great amount of benefit.

You’ve been on the ground at our Manhattan, Kan., headquarters for the last several days. Tell me about your experience and impression of the crew so far?

Oh, I couldn’t be more pleased or happy. It’s just a great group of individuals willing to help anyone with any project at any time – just a tremendous group – great group of people. I could not be more pleased.

Mike Saxton's Iowa territory

Mike Saxton’s Iowa territory

You mentioned your going to be covering the better part of Iowa, as far as your territory. Tell me about your role and responsibilities. What’s going to be an average day for you?

Well, an average day will be both soliciting consignments for auction through both phone and travel. My responsibility, or job title, is territory manager. I will be graded or evaluated on auction sales production.

Tell me about some of your personal interests. When you’re not making phone calls and listing items, what do you like to do in your spare time?

I love to fly fish. That’s an absolute passion of mine.

I’ve been speaking with Mike Saxton, Purple Wave’s new Iowa territory manager. Thanks again, Mike, for joining me today.

Thank you very much.

Find Mike on the web at purplewave.com/mikesaxton. Contact him at mike.saxton@purplewave.com or call 515.803.0833.

Don’t forget to find us on Facebook at facebook.com/purplewaveinc or follow us on Twitter at twitter.com/purplewave. Subscribe to Purple Wave’s Auction Podcast on iTunes. Search iTunes for “Purple Wave” or use the link on the podcast page on our website at purplewave.com/podcast.

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Post by J

See us at the US Custom Harvesters convention

Wed., Feb. 29, 2012 - 12 pm | James Beal

Purple Wave has a booth this weekend at the US Custom Harvesters 2012 Annual Convention in Grand Island, Neb.

US Custom HarvestersU.S. Custom Harvesters, Inc. is an association of professional custom harvesters, serving the needs of the American farmer. The organization was established and chartered in 1983 in the State of Texas and serves as a link between the harvesters and the many groups of people they work with, such as farmers, businesses, State and Federal Government. We are a dues funded, membership organization with the Harvest News magazine as our primary means of communicating with members.

The show runs from Thursday through Saturday.

  • 8 a.m. to 6 p.m. on Thursday, March 1
  • 8 a.m. to 5 p.m. on Friday, March 2
  • 8 a.m. to noon on Saturday, March 3

I’ll be there all three days. Chad Blackmore will join me on Thursday and Roger Kisner will be at the booth on Friday and Saturday.

We’ll be giving away several door prizes from Omaha Steaks and Cabela’s. Each prize is worth over $50, so make sure to swing by, say hi and register for the giveaway.

The convention is held at the Heartland Events Center in Fonner Park, 700 E Stolley Park Rd, Grand Island, Neb. More information about the event can be found on the US Custom Harvesters website.

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Post by C

See us at the Western Farm Show

Fri., Feb. 24, 2012 - 11 am | Chad Blackmore

Purple Wave has a booth this weekend at the 51st Annual Western Farm Show in Kansas City. Stop by now through Sunday to see Mike Braun, Jim Norris, Dan Doak, Jeff Wilson and me. We’ll be giving away an iPad every day of the show, so stop by and register to bid for your chance to win.

The Western Farm Show features over 500 exhibitors.

Whether you buy or sell farm equipment, the Western Farm Show is the place to be every February. Our show features aisles and aisles of the latest farm and livestock equipment, buildings, fertilizer, feed, seed and much more. The Family Living Center and Health & Safety Roundup provide products and information for the entire family. Where else can you see more than 500 exhibits all indoors under one roof?

The show is at the American Royal Complex, 1701 American Royal Ct in Kansas City, Mo. Purple Wave’s booth is at F1-G1 in the Central Exhibit Hallway. To register to win an iPad, you must be 18 or older and register as a new bidder. Full details of the contest can be found at our booth.

Learn more about the Western Farm Show at www.westernfarmshow.com.

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Post by A

McKee one of Ingram’s 50 Kansans You Should Know

Thu., Feb. 23, 2012 - 5 pm | Aaron Traffas, CAI, ATS, CES

January 2012 issue of Ingram's

January 2012 issue of Ingram's

For the second year in a row, Kansas City business magazine Ingram’s has released a list entitled “50 Kansans You Should Know”. In an introductory article to the list, co-author Dennis Boone said the intent is to underscore the variety of business opportunities and successes within the state of Kansas. “Our goal was to capture not just a sense of what business leadership has to offer, but other figures, some iconic, some flying under the radar, whose achievements have added depth and texture to life in Kansas.”

Aaron McKee, CAI, ATS, AARE

Aaron McKee, CAI, ATS, AARE

Purple Wave’s Aaron McKee was among the 50 Kansans listed. Aaron explained in the article that Purple Wave’s success hasn’t come without hard work, but that “growing up on a farm in rural Kansas, where people really had to do most things for themselves, has helped [him] to have the confidence to face challenges head-on.”

We’re proud of Aaron’s accomplishments and agree that he’s a great guy to know. You can find “50 Kansans You Should Know” in the January 2012 issue of Ingram’s.

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press release

Greensburg farm family gives back to tornado volunteers with Bid for Blue

Mon., Feb. 20, 2012 - 7 am | press release

After the 2007 tornado devastated Greensburg, Kan., and left farm fields littered with debris, volunteers flooded in to assist cleanup efforts in Greensburg and the surrounding areas. Almost five years later, one Greensburg area farm family vividly remembers the volunteers who came to their farm. Ki and Kim Gamble’s farm fields were strewn with metal and other debris, making it impossible to plant crops. The Gambles remember the students of Chaparral High School working tirelessly to clear the debris.

Kansas FFA FoundationLast fall, the Gambles purchased a piece of farm equipment through an Internet auction at www.purplewave.com. That asset was part of the Bid for Blue program. Through the program, which is ongoing, Purple Wave donates a portion of its commission earned on certain asset to Kansas FFA chapters and the Kansas FFA Foundation. The winning bidders for those assets have a voice in deciding which local chapter benefits from the donations. When asked what Kansas FFA chapter they wanted to receive a portion of the donation, the Gambles quickly designated the Chaparral FFA Chapter.

When asked why they designated Chaparral, Kim Gamble replied with emotion in her voice, “It wasn’t just a volunteer experience. They understood clearing our fields meant we would be able to plant and earn our livelihood.

Chaparral FFA Advisor Ty Theurer said volunteering after the tornado became an entire school project started by the local chapter’s members. “The nice part was going into the rural community around Greensburg to help fellow agriculturalists,” Theurer said. “To this day, the students talk about what we saw and were able to accomplish.”

Chaparral High School

Chaparral High School FFA receives donation

Former Chaparral FFA member Jeff Cather believes all the volunteers grew from the experience. “With most of us growing up close to agriculture, we realized that we could, at any point in time, be in the same situation,” Cather said. “Knowing that, we understood that there would be people lining up to help us.”

The devastation was worse than the students imagined. “Driving into Greensburg, I instantly felt hopeless,” Cather said. “However, as we drove further into town, there were volunteers everywhere. It made me feel like I was going to be a part of something big and, as it turns out, I was. To know five years later the Gambles still remember us speaks loudly for the impact service and volunteering has on others.”

The Chaparral FFA Chapter will use the donation from Purple Wave to fund FFA member scholarships to attend the Washington Leadership Conference in Washington, D.C. this summer.

bid for blue logo

Since the Bid for Blue program began in 2011, over $10,000 has been donated to the Kansas FFA Foundation and Kansas FFA chapters from across Kansas. The donation to the Kansas FFA Foundation supports career development events and student leadership development.

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